Table of Contents
Executive Summary
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- Impact of COVID-19 on virtual reality
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on virtual reality, 15 December 2020
- The market
- Higher average price of a headset keeps market growing despite lower shipments
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- Figure 2: Market size for virtual reality, 2016-20
- Fewer mid-range headsets available to consumers
- Virtual work meetings could give people first experience of VR
- Companies and brands
- HTC announces new products for Cosmos range
- XRSpace launches Manova headset with social VR platform
- Oculus announces Quest 2 at cheaper price than the original
- The consumer
- Two in ten headset owners use VR daily
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- Figure 3: Frequency of usage for VR headsets, September 2020
- Converting interest into purchasing is the biggest challenge for VR
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- Figure 4: Previous usage and interest in VR headsets, September 2020
- Weight and graphics of VR headsets are currently problems for consumers
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- Figure 5: Previous VR users’ attitudes towards VR, September 2020
- Ownership of Oculus Quest already matches Rift
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- Figure 6: Type of VR headset owned, September 2020
- Significant growth in using VR headsets to watch films
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- Figure 7: Activities performed on a VR headset, September 2019 - September 2020
- Four in ten VR owners have used the device more since COVID-19
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- Figure 8: Changes in usage of VR headset since COVID-19, September 2020
- Balance between battery life and performance is key for VR headsets
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- Figure 9: Most important factors when purchasing a VR headset, September 2020
- Retailers can appeal to Older Millennials with demos of VR concerts
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- Figure 10: Attitudes towards trialling and buying VR headsets since COVID-19, September 2020
Issues and Insights
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- How COVID-19 is shaping the virtual reality market
- Watching films with VR headsets
- Using VR concert demos in-store to engage Older Millennials
The Market – Key Takeaways
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- VR market grows in value despite drop in shipments for 2020
- Decreasing number of mid-range headsets makes attracting new buyers difficult
Market Size
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- Impact of COVID-19 on virtual reality
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- Figure 11: Short-, medium- and long-term impact of COVID-19 on virtual reality, 15 December 2020
- Higher average price of a headset keeps market growing despite lower shipments
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- Figure 12: Market size for virtual reality, 2016-20
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- Figure 13: Volume, average price and value of virtual reality market, 2016-20
- Figure 14: Market forecast for virtual reality, 2016-26
Market Drivers
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- Fewer mid-range headsets available to consumers
- Discontinued VR headsets
- Impact on the growth of the market
- Companies also reducing focus on tethered headsets
- Virtual work meetings could give people first experience of VR
- MeetinVR
- Spatial
- Advantages of these platforms
- Consumers could get first experience of VR through these use cases
- Apple entering mixed reality market, but pricing expected to be an issue
- Impact on the VR market
Companies and Brands – Key Takeaways
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- Social VR could come into greater focus due to COVID-19
- Oculus develops Quest series whilst decreasing price
Launch Activity and Innovation
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- HTC announces new products for Cosmos range
- Cosmos Elite
- Cosmos XR
- Cosmos Play
- XRSpace launches Manova headset with social VR platform
- Impact of social VR platforms
- Oculus announces Quest 2 at cheaper price than the original
- HP Reverb G2 adds cameras and improves audio quality
The Consumer – Key Takeaways
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- Stable ownership of VR headsets continues
- Older Millennials could buy headsets after concert demos in-store
- Oculus Quest series in a strong position to gain market share on PSVR
- Major streaming platforms should offer interactive VR films or TV
Impact of COVID-19 on Consumer Behaviour
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- Four in ten VR owners have used the device more since COVID-19
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- Figure 15: Changes in usage of VR headset since COVID-19, September 2020
- Retailers can appeal to Older Millennials with demos of VR concerts
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- Figure 16: Attitudes towards trialling and buying VR headsets since COVID-19, September 2020
VR Headset Ownership, Usage and Barriers to Use
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- Two in ten VR owners use it daily
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- Figure 17: Ownership of VR headsets, September 2018 - September 2020
- Figure 18: Frequency of usage for VR headsets, September 2020
- Converting interest into purchasing is the biggest challenge for VR
- Older Millennials most likely to be interested in VR after previous usage
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- Figure 19: Previous usage and interest in VR headsets, September 2020
- Weight and graphics of VR headsets are currently problems for consumers
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- Figure 20: Previous VR users’ attitudes towards VR, September 2020
Type of VR Headset Owned
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- PSVR successor still a long way off, meaning opportunities exist for rivals
- Ownership of Oculus Quest already matches Rift
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- Figure 21: Type of VR headset owned, September 2020
Apps Used on VR Headset
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- Significant growth in using VR headsets to watch films
- Opportunity for major streaming platforms to offer interactive VR content
- Mindfulness and VR
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- Figure 22: Activities performed on a VR headset, September 2019 - September 2020
Factors in VR Purchase Decisions
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- Balance between battery life and performance is key for VR headsets
- Impact of consumer priorities on the market
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- Figure 23: Most important factors when purchasing a VR headset, September 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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