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Virtual Reality - UK - December 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The Market
VR market at crossroads as sales decrease
Ready Player One movie showcases VR
Increasing importance of standalone headsets
Launch Activity and Innovation
Quest headset to launch in 2019
HTC announces Vive Pro, Vive Focus for UK and wireless adapter
Lenovo unveils Mirage Solo headset with Google Daydream
HaptX releases developer kit for haptic VR
Zero Latency opens first VR studio in UK
The Consumer
Almost 40% of headset owners rarely use it
Figure 1: VR usage frequency for headset owners, September 2018
Just 21% of non-owners have tried VR
Almost three quarters of consumers don’t intend to buy
Figure 2: Intention to buy a headset, September 2018
PlayStation VR leads competition for new potential customers
Figure 3: Intention to buy across brands, September 2018
Lack of awareness from consumers about VR
Figure 4: Reason to not purchase a VR headset, September 2018
World Cup VR figures suggest work to be done to persuade fans
Figure 5: Watching World Cup in VR, September 2018
What we think
ISSUES AND INSIGHTS
The challenge of creating engagement when access to headsets is limited
The facts
The implications
Consumers held back by price and lack of awareness
The facts
The implications
Films appeal to most consumers but sport divides opinion
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
VR market at crossroads as sales decrease
Ready Player One movie showcases VR
PlayStation sells 3 million VR headsets
Increasing importance of standalone headsets
Price discounts continue for holiday seasons
MARKET SIZE
VR market at a crossroads as sales stall
Figure 6: VR market size, 2016-18
Figure 7: VR market, 2016-18
Mid-market focus could be key to growth
MARKET DRIVERS
Ready Player One movie showcases VR
Consumers could look for better VR experiences after Google Cardboard success
PlayStation sells 3 million VR headsets
Figure 8: PlayStation VR headset
Increasing importance of standalone headsets
Price discounts continue for holiday seasons
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Quest headset to launch in 2019
HTC announces Vive Pro, Vive Focus for UK and wireless adapter
Lenovo unveils Mirage Solo headset with Google Daydream
HaptX releases developer kit for haptic VR
Zero Latency opens first VR studio in UK
Vive Studios and DVgroup demonstrate role of VR in film
LAUNCH ACTIVITY AND INNOVATION
Quest headset to launch in 2019
Figure 9: Oculus quest headset
Oculus agrees a range of new partnerships
Figure 10: VR experience in Oculus Go for CHLA surgeons
HTC announces Vive Pro and Vive Focus for UK market
Adapter brings wireless functionality to Vive headsets
Lenovo unveils Mirage Solo headset with Google Daydream
Figure 11: Lenovo Mirage Solo headset
HaptX releases developer kit for haptic VR
Figure 12: HaptX gloves
Zero Latency opens first VR studio in UK
Figure 13: Zero Latency equipment
Vive Studios and DVgroup demonstrate role of VR in film
THE CONSUMER – WHAT YOU NEED TO KNOW
VR ownership still well behind more established technology items
Just 21% of non-owners have tried VR
Prices hold back new buyers
Lack of awareness from consumers about VR
PlayStation VR leads competition for new potential customers
Millennials more engaged in all aspects of VR content – especially gaming
World Cup VR figures suggest work to be done to persuade fans
VR HEADSET OWNERSHIP AND USAGE
VR ownership still well behind more established technology items
Figure 14: Technology items in household, September 2018
Just 21% of non-owners have used VR
Figure 15: Last time for VR usage, September 2018
Over a third use VR more than once a week
Figure 16: VR usage frequency, September 2018
INTENT TO BUY
Almost three quarters of consumers don’t intend to buy
Figure 17: Intent to buy a VR headset, September 2018
Millennials well ahead in intent to buy a headset
Figure 18: Intent to buy a headset, by generation, September 2018
PlayStation VR leads competition for new potential customers
Figure 19: Consumer intent across VR brands, September 2018
INCENTIVES AND BARRIERS TO VR PURCHASING
Price holds back new buyers
Figure 20: Motivators to buy a VR headset, September 2018
Lack of consumer awareness about VR
Figure 21: Knowledge of VR headsets, September 2018
INTEREST IN VR CONTENT
VR activities receive mixed response from consumers
Figure 22: Interest in VR activities, September 2018
Millennials more engaged in all aspects of VR content – especially gaming
Figure 23: Interest in gaming for VR, by generation, September 2018
VR educational use as appealing as gaming for Millennials
Figure 24: Interest in educational use for VR, by generation, September 2018
Watching films of interest to most consumers, while holiday destination experiences show the broadest appeal
Social media lowest on consumer priority list
Figure 25: Interest in using social media with VR, by gender, September 2018
Watching sport also divides opinion
Figure 26: Interest in watching sport with VR, by gender and generation, September 2018
Parents with children aged 18 and under interested in VR property search
Close split between men and women over VR shopping
Figure 27: Interest in shopping with VR, by gender and socio-economic group, September 2018
Cultural experiences and concerts appeal to large audiences
Figure 28: Interest in cultural experiences with VR, by socio-economic group, September 2018
OTHER ISSUES WITH VR
Over half of consumers cautious over prolonged VR use
Figure 29: Opinions on extended VR use, September 2018
Figure 30: Whether VR is disorientating after long use, by generation, September 2018
Older Millennials find VR set-up harder than Generation X
Figure 31: VR set-up, September 2018
VR FOR THE WORLD CUP 
World Cup VR figures suggest work needs to be done to persuade fans
Figure 32: VR usage for World Cup, September 2018
Figure 33: Interest in VR for World Cup, by gender and generation, September 2018
INTEREST IN VR VENUES AND ARCADES
Majority of young Millennials interested in VR-dedicated venues
Figure 34: Interest in free-roaming VR venues, by gender, generation and presence of children, September 2018
VR arcades appeal to less than a third of consumers
Figure 35: Interest in VR arcades, by gender and generation, September 2018
CHAID ANALYSIS – OPINIONS ON VR VENUES
Methodology
Men with experience of VR most interested in free-roaming
Figure 36: Target group for free-roaming venues – CHAID – Tree output, September 2018
Figure 37: Target group for free-roaming venues – CHAID – Table output, September 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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