2022
9
UK Virtual Reality Market Report 2022
2022-01-27T03:11:12+00:00
OX1049099
2195
147395
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Report
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“Cross-platform gaming will be key in making VR a more social experience by removing the need for friends and family to own headsets in order to play together. Meta is…

UK Virtual Reality Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Virtual Reality report identifies consumer attitudes towards the ownership and usage of VR headsets, virtual reality market value, activities using VR and spend in the UK. This market report covers the virtual reality market size, virtual reality forecast, market forecast, market segmentation and industry trends for the technology market in the UK. 

Current Market Landscape

Over half of VR consumers use their headset for gaming, making this the most popular VR activity ahead of watching films. However, the gap between the two activities is much closer for consumers with a household income of £50,000 and over.

  • 56% of consumers either use their VR headset for gaming, or would do so, if they were to buy one. 40% of consumers use their headsets for watching films.
  • 47% with this income use or would use a headset to game, while 43% use or would use it to watch films.
  • VR ownership fluctuated from 7% and 9% of consumers between September 2018 and September 2021

The COVID-19 lockdowns significantly increased interest in console gaming which also re-ignited interest in VR for those who had headsets already. The pandemic will cause permanent changes to work locations and the shift to homeworking provides the basis for using VR headsets to work. Meta in particular has been leading this, although mixed reality experiences are likely to be more appealing than VR alone for consumers entering the market for the first time.

 

Future Market Trends in Virtual Reality 

One of the biggest threats in the market continues to be converting interest in VR into purchases, with the most common reason people have not bought a headset is that they would not use it often enough.

Older Millennials will be key to sales of VR headsets in 2022, with 30% planning to buy in the next 12 months. 82% of Older Millennials who plan to buy headsets in the future intend to buy the next-generation PSVR specifically which is well above the average (62%).

Read on to discover more details or take a look at all of our UK Virtual Reality market research.

Quickly understand

  • The impact of COVID-19 on sales and usage of VR headsets.
  • Ownership and frequency of usage for VR headsets.
  • The level of interest in buying a headset in the next 12 months or further ahead and how much people would be willing to spend on the device.
  • The activities that consumers are most likely to use VR headsets for and their attitudes towards using it for video-based work meetings or virtually meeting friends and family.

Covered in this report

Brands: PlayStation VR, Samsung Gear VR, Oculus (Oculus Quest, Oculus Rift, Oculus Go), Google (Google Daydream View, Google Cardboard), HP Reverb, HTC Vive, Meta.

Expert analysis from a specialist in the field

This report, written by Zach Emmanuel, a leading analyst in the Technology sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Cross-platform gaming will be key in making VR a more social experience by removing the need for friends and family to own headsets in order to play together. Meta is trying to improve the social aspect with mixed reality features while Google Stadia is potentially adding VR to its platform, enhancing cross-platform gameplay and reducing the feeling of VR being an isolated experience.

Zach Emmanuel - Research AnalystZach Emmanuel
Consumer Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on virtual reality
      • Figure 1: Short-, medium-and long-term impact of COVID-19 on virtual reality, 2021
    • The market
    • VR market returns to strong growth due to sales and price increases
      • Figure 2: Market size for virtual reality, 2017-21
    • Netflix expected to develop more VR experiences and games
    • PSVR is the most commonly owned headset
      • Figure 3: Brand of VR headset owned or most used, 2021
    • Meta predicts a central role for VR in working from home
    • Companies and brands
    • HTC announces VIVE Flow with a focus on wellness
    • PlayStation gives first view of controllers for next-generation PSVR
    • Meta adds mixed reality recording for Quest headsets
    • The consumer
    • Slight growth in ownership of VR headsets
      • Figure 4: Frequency of usage for VR headset, 2021
    • Older Millennials are likely to be a strong target market for the next-generation PSVR and accessories
      • Figure 5: Intentions to buy a VR headset in the future, 2021
    • Opportunity for an entry-level sub-£200 headset
      • Figure 6: Price range of a future VR headset purchase, 2021
    • Engage more affluent consumers with a focus on gaming and films
      • Figure 7: Activities performed on VR headset, 2021
    • Mixed reality experience for work could provide motivation to buy VR headsets in the future
      • Figure 8: Reasons against buying a VR headset besides price, 2021
    • COVID-19 drives VR workspaces
      • Figure 9: Attitudes towards VR, 2021
  3. Issues and Insights

    • Gap in the market for £200 wireless headset after Meta moves focus to Quest devices
    • Mixed reality and weight distribution on headsets are key factors in potential success of VR for working
  4. Market Size

    • Impact of COVID-19 on the virtual reality market
      • Figure 10: Short-, medium- and long-term impact of COVID-19 on virtual reality, 2021
    • VR market returns to strong growth due to shipment and average price increases
    • Cost of VR headsets continues to increase
    • Strong performance of Meta Quest 2 helps growth in VR sales
      • Figure 11: Market size for virtual reality, 2017-21
      • Figure 12: Value, volume and average price of virtual reality market, 2017-21
  5. Market Drivers

    • Workers shifting to working from home will benefit VR industry
    • Growth in gaming interest on consoles can help engagement in VR
    • Job listings point to Google Stadia potentially adding VR support
    • Role of VR in game streaming
    • Netflix expected to develop more VR experiences and games
    • Netflix games can bring fans to VR
    • GDP should reach pre-pandemic levels by the end of Q1 2022…
    • …but the post-COVID bounce-back will be short term
    • Consumers’ financial wellbeing has slipped from its recent high point
    • Impact on VR
      • Figure 13: Household financial wellbeing index, 2016-21
    • Summary of key economic data, 2020-26
      • Figure 14: Key economic data, 2020-26
  6. Market Share

    • PSVR is the most commonly owned headset
    • PSVR still has no direct competition from Xbox
    • Meta headsets still have a key role to play due to wireless functionality
    • Take-up of Apple mixed reality headset would be low
      • Figure 15: Brand of VR headset, 2021
  7. Launch Activity and Innovation

    • Meta predicts a central role for VR in working from home
    • Horizon Workrooms for videoconferencing
    • Zoom is coming to Horizon Workrooms next year
    • Smartphone notifications and 2D apps
    • Meta is also working on a high-end headset for next year
    • Using mixed reality is expected to be more appealing in long term
    • HTC announces VIVE Flow with a focus on wellness
    • Device is only expected to appeal to a niche market
    • HTC releases high-end VIVE Pro 2
    • PlayStation gives first view of controllers for next-generation PSVR
    • Meta adds mixed reality recording for Quest headsets
    • Meta brings wireless PC gaming to Quest headsets
  8. VR Headset Ownership and Usage

    • Slight growth in ownership of VR headsets
      • Figure 16: Frequency of usage for VR headset, 2021
  9. Intent to Buy VR Headsets

    • Older Millennials are likely to be a strong target market for the next-generation PSVR and its accessories
      • Figure 17: Intentions to buy a VR headset in the future, 2021
      • Figure 18: Intent to buy the next-generation PSVR, 2021
    • Opportunity for an entry-level sub-£200 headset
    • A £200 headset could be the stepping stone towards a more expensive product
    • Subscription-based model for premium headsets could also lower barriers to entry
      • Figure 19: Price range of a future VR headset purchase, 2021
      • Figure 20: Price range of a future VR headset purchase (more or less than £250), 2021
  10. Barriers against Buying VR Headsets

    • Mixed reality experience for work could provide motivation to buy VR headsets in the future
    • Mixed reality can help with the transition for first-time buyers of VR headsets
      • Figure 21: Reasons against buying a VR headset besides price, 2021
  11. Activities Performed on VR Headsets

    • Engage more affluent consumers with a focus on gaming and films
    • Clear difference in knowledge of the VR use cases for those with and without headsets
    • Access to cinema-released films could help to motivate consumers to buy headsets
      • Figure 22: Activities performed on VR headset, 2021
      • Figure 23: Activities performed on VR headset for consumers planning to buy one, 2021
  12. Attitudes towards VR

    • Meta headsets to benefit long term due to focus on wireless
    • COVID-19 brings VR workspaces into focus
    • Better weight distribution on headsets could play an important role in success of VR working
    • Recording and sharing gameplay on Facebook can engage Older Millennials
    • Cross-platform gaming could also help to improve the social VR experience
    • PSVR 2 expected to perform strongly due to consumers’ brand loyalty
      • Figure 24: Attitudes towards wireless VR headsets and using VR for working or socialising, 2021
  13. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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