2021
9
UK Virtual Reality Market Report 2021
2021-02-04T03:01:56+00:00
OX989544
2195
133573
[{"name":"Technology","url":"https:\/\/store.mintel.com\/industries\/technology"}]
Report
en_GB
“Converting interest into purchases remains a key challenge for the virtual reality market. A potential audience to look at to resolve this is Older Millennials as they have shown greater…

UK Virtual Reality Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Virtual Reality market, including the behaviours, preferences and habits of the consumer.

The UK virtual reality market has maintained steady growth during the COVID-19 pandemic, although has struggled to see rising interest translate into sales. With more people spending time at home because of the lockdown restrictions, 40% of VR headset owners reported spending more time using their headset than before the pandemic, as well as a 30% increase in interest among consumers. However, ownership has remained at 7%, the same as in 2018.

While there has been an increased usage of the headsets among owners, this is predicted to fall as lockdowns lift and social events return. VR headsets are a very individual activity, meaning that social events will replace the time spent using them. However, interactive VR short films from streaming services offers a potential opportunity for innovation.

With older millennials being the key audience for VR headsets, ventures into more artistic uses of the headsets could provide new market opportunities. 39% of this demographic report that more artistic content on VR headsets would make them worth buying. This could be utilised alongside concert apps to create more artistic home viewing experiences, as well as innovations into homeworking opportunities.

Read on to discover more details or take a look at all of our UK Technology and Telecoms market research.

Quickly understand

  • The short-, medium- and long-term impact of COVID-19 on buying and using virtual reality headsets.
  • Which type of VR headset consumers own and which factors are most important to them when deciding on a new headset.
  • The growth in using VR headsets to watch films and how the major streaming platforms can enhance their apps to take advantage of this trend.
  • The interest in VR for people who do not currently have headsets and some of the barriers to using technology.

Covered in this report

Brands: Oculus (Oculus Rift, Oculus Quest, Oculus Go), XRSpace, HTC Vive, Playstation VR, Samsung Gear VR, Google (Google Daydream View, Google Cardboard).

Expert analysis from a specialist in the field

Written by Zach Emmanuel, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Converting interest into purchases remains a key challenge for the virtual reality market. A potential audience to look at to resolve this is older millennials as they have shown greater interest than others in buying headsets since COVID-19. With this age group also being engaged by artistic performances in VR, retailers could have success by demonstrating concert performances to older millennials in stores.

Zach Emmanuel
Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: market context
    • Impact of the January lockdown and the vaccination rollout
    • 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, 15 December 2020
    • The market
    • Higher average price of a headset keeps market growing despite lower shipments
      • 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
      • Figure 3: Frequency of usage for VR headsets, September 2020
    • Converting interest into purchasing is the biggest challenge for VR
      • Figure 4: Previous usage and interest in VR headsets, September 2020
    • Weight and graphics of VR headsets are currently problems for consumers
      • Figure 5: Previous VR users’ attitudes towards VR, September 2020
    • Ownership of Oculus Quest already matches Rift
      • Figure 6: Type of VR headset owned, September 2020
    • Significant growth in using VR headsets to watch films
      • 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
      • Figure 8: Changes in usage of VR headset since COVID-19, September 2020
    • Balance between battery life and performance is key for VR headsets
      • Figure 9: Most important factors when purchasing a VR headset, September 2020
    • Retailers can appeal to Older Millennials with demos of VR concerts
      • Figure 10: Attitudes towards trialling and buying VR headsets since COVID-19, September 2020
  3. Issues and Insights

    • How COVID-19 is shaping the virtual reality market
    • Watching films with VR headsets
    • Using VR concert demos in-store to engage Older Millennials
  4. The Market – Key Takeaways

    • VR market grows in value despite drop in shipments for 2020
    • Decreasing number of mid-range headsets makes attracting new buyers difficult
  5. Market Size

    • Impact of COVID-19 on virtual reality
      • 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
      • Figure 12: Market size for virtual reality, 2016-20
      • Figure 13: Volume, average price and value of virtual reality market, 2016-20
      • Figure 14: Market forecast for virtual reality, 2016-26
  6. Market Drivers

    • 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
  7. Companies and Brands – Key Takeaways

    • Social VR could come into greater focus due to COVID-19
    • Oculus develops Quest series whilst decreasing price
  8. Launch Activity and Innovation

    • 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
  9. The Consumer – Key Takeaways

    • 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
  10. Impact of COVID-19 on Consumer Behaviour

    • Four in ten VR owners have used the device more since COVID-19
      • Figure 15: Changes in usage of VR headset since COVID-19, September 2020
    • Retailers can appeal to Older Millennials with demos of VR concerts
      • Figure 16: Attitudes towards trialling and buying VR headsets since COVID-19, September 2020
  11. VR Headset Ownership, Usage and Barriers to Use

    • Two in ten VR owners use it daily
      • 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
      • Figure 19: Previous usage and interest in VR headsets, September 2020
    • Weight and graphics of VR headsets are currently problems for consumers
      • Figure 20: Previous VR users’ attitudes towards VR, September 2020
  12. Type of VR Headset Owned

    • PSVR successor still a long way off, meaning opportunities exist for rivals
    • Ownership of Oculus Quest already matches Rift
      • Figure 21: Type of VR headset owned, September 2020
  13. Apps Used on VR Headset

    • Significant growth in using VR headsets to watch films
    • Opportunity for major streaming platforms to offer interactive VR content
    • Mindfulness and VR
      • Figure 22: Activities performed on a VR headset, September 2019 – September 2020
  14. Factors in VR Purchase Decisions

    • Balance between battery life and performance is key for VR headsets
    • Impact of consumer priorities on the market
      • Figure 23: Most important factors when purchasing a VR headset, September 2020
  15. 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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