Whilst still small, the virtual reality (VR) industry is continuing to see improved growth and sizable investment with several studios recently revealing new funding rounds. This week, PwC has released its Global Entertainment & Media Outlook 2021-2025 report which predicts that not only will this growth continue, it’ll increase more than any other media segment.
According to PwC’s report, the VR market achieved global revenues of $1.8 billion USD during 2020 which was a 31.7% increase over 2019. Over the next few years, revenue growth is expected to be maintained at around 30%, reaching $6.9 billion by 2025. Uptake has been helped by smaller, lighter VR headsets coming to market at a more consumer-friendly price point, as well as an increase in content of high quality.
Videogames will remain the driving force when it comes to revenue but PwC does expect to see growth in VR video as well. The report found that VR video generated $615 million during 2020, likely to grow to $1.4bn by 2025.
Unsurprisingly, VR adoption and growth will be the largest in the standalone headset market with expectations that it’ll triple by 2025. While this includes both consumer and enterprise, the home PC VR market will also increase just not to the same levels. Mobile VR devices which dominated only a few short years ago will continue to decline as they’re superseded by all-in-one (AIO) headsets.
All this growth looks great for VR as a whole but it still pales in comparison to the videogame industry at large. Thanks to the new console generation plus social and casual gaming accounting for nearly 60% of the market, revenues will reportedly reach $194.7billion in 2025. And when it comes to game sales, digital is the dominant force. In the next four years, PC gaming will be 99.8% digital and console physical sales will drop from 48.2% to 35.5%. VR has always been digital from the outset, with PlayStation VR being the only platform to offer physical copies.
As the VR market continues to gain traction, both in the consumer end enterprise sectors, VRFocus will keep you updated.