Table of Contents
Overview
-
- What you need to know
- Products covered in this report
Executive Summary
-
- The market
- Revenues growing rapidly despite declining average prices
-
- Figure 1: Virtual reality market, 2016 and 2017
- Launch activity and innovation
- Facebook looks to take VR mainstream with standalone headset
- Free-roaming VR set to launch in the UK
- IMAX opens dedicated VR centre in Manchester
- The consumer
- Over three quarters of people have never used VR
-
- Figure 2: Recent VR Headset use, October 2017
- Popularity of home use offers opportunities for headset sales
-
- Figure 3: Location of VR headset use, October 2017
- Two thirds of Millennials interested in VR films
-
- Figure 4: Interest in VR activities, October 2017
- The majority of people are interested in a range of VR applications
-
- Figure 5: Repertoire of interest in VR activities, October 2017
- Interest in VR is strong given the lack of advertising spend
-
- Figure 6: VR headset purchase plans, October 2017
- Cultural experiences could benefit from VR offerings
-
- Figure 7: Attitudes towards VR, October 2017
- What we think
Issues and Insights
-
- Awareness and direct experience are the priority for VR
- The facts
- The implications
- High prices have limited take-up, particularly among Millennials
- The facts
- The implications
- VR experiences outside the home are key to market growth
- The facts
- The implications
The Market – What You Need to Know
-
- Revenues growing rapidly despite declining average prices
- Processing power innovations driving VR quality
- Price cuts to headsets and big sale events driving demand
- VR advertising spend growth will boost consumer awareness
- Free content boosting interest in VR
- Football set to drive interest in VR
Market Size
-
- Growing competition in the VR market
- Revenues growing rapidly despite declining average prices
-
- Figure 8: Estimated value and volume sales of virtual reality headsets, 2016 and 2017
- Figure 9: Virtual reality market, 2016 and 2017
Market Drivers
-
- Processing power innovations driving VR quality
- Sony pushes VR content at Paris Games Week
-
- Figure 10: Sony’s PlayStation VR ‘Starter Pack’
- Price cuts to headsets and big sale events driving demand
- Free headsets to drive smartphone sales
- Football set to drive interest in VR
- Free content boosting interest in VR
- VR advertising spend growth will boost consumer awareness
- Immersive nature of VR offers new opportunities for advertisers
Launch Activity and Innovation – What You Need to Know
-
- Facebook looks to take VR mainstream with standalone headset
- Free-roaming VR set to launch in the UK
- Google launches Daydream View 2
- IMAX opens dedicated VR centre in Manchester
Launch Activity and Innovation
-
- Facebook looks to take VR mainstream with standalone headset …
-
- Figure 11: Oculus Go headset, scheduled for release in early 2018
- … with an HTC launch also imminent
- Google launches Daydream View 2
-
- Figure 12: Google’s Daydream View 2 headset
- Free-roaming VR set to launch in the UK
-
- Figure 13: Ghostbusters Dimension ‘Hyper Reality’ experience
- Logitech working on VR keyboards
-
- Figure 14: Logitech’s ‘Bridge’ keyboard for VR
- IMAX opens dedicated VR centre in Manchester
-
- Figure 15: ODEON’S IMAX VR centre in Manchester
The Consumer – What You Need to Know
-
- Over three quarters of people have never used VR
- Men are twice as likely to own a VR headset
- Popularity of home use offers opportunities for headset sales
- Intention to buy is strong given the lack of advertising
- Two thirds of Millennials are interested in VR films
- Gaming will remain a key factor in VR expansion
- Large proportion are interested in a VR arcade
- Falling prices will present strong opportunities among Millennials
VR Headset Usage
-
- Men are twice as likely to own a VR headset
- Over three quarters of people have never used VR …
-
- Figure 16: Recent VR Headset use, October 2017
- … rising to 82% of women who have never used VR
- Parents and Millennials the most likely VR users
-
- Figure 17: Recent VR use, by demographics, October 2017
Location of VR Use
-
- Popularity of home use offers opportunities for headset sales
- Men twice as likely to use VR cinema and theatre
- Presence of children more likely to make people seek out VR
-
- Figure 18: Location of VR headset use, October 2017
- A third of Millennials have used VR in two or more locations
-
- Figure 19: Repertoire of VR headset use locations, October 2017
Uses of VR
-
- Two thirds of Millennials interested in VR films
- Gaming will remain a key factor in VR expansion
-
- Figure 20: Interest in VR activities, October 2017
- Interest in VR live sport may be short-lived
- A quarter of people are interested in using social media VR
-
- Figure 21: Interest in VR activities, by selected demographics, October 2017
- Shopping could be a big VR market for Millennials
- VR and 360-degree video a natural progression for holiday market
-
- Figure 22: People ‘very interested’ in VR activities – all respondents and Millennials, October 2017
- The majority of people are interested in a range of VR applications
-
- Figure 23: Repertoire of interest in VR activities, October 2017
Intent to Buy
-
- Interest in VR is strong …
- … but increasing intent to buy will require more direct experience
-
- Figure 24: VR headset purchase plans, October 2017
- Men twice as likely to buy VR headsets in the next year
- Technologically engaged Millennials most likely to be early adopters
- Parents are showing a strong intent to buy
-
- Figure 25: VR headset purchase plans, by selected demographics, October 2017
- Most VR customers intend to buy high-end headsets
-
- Figure 26: VR headset purchase plans, by brand, October 2017
Attitudes towards VR
-
- Cultural experiences could benefit from VR offerings
- Most VR users do not find the experience isolating
- Four in 10 interested in VR arcades
-
- Figure 27: Attitudes towards VR, October 2017
- Over half of people have been put off by high prices
- Product awareness is a key issue
- Second-generation and standalone headsets could boost take-up
- Launches from key games franchises will boost interest in VR
-
- Figure 28: Attitudes towards VR of those not owning headsets, October 2017
CHAID analysis – Attitudes towards Virtual Reality
-
- Methodology
- VR headset price premiums are putting off young Millennials
-
- Figure 29: Target groups based on attitudes towards VR headsets – CHAID – Tree output, October 2017
-
- Figure 30: Target groups based on attitudes towards VR headsets– CHAID – Table output, October 2017
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top