Virtual Reality and Entertainment: Bubble or Next Big Thing?

Virtual Reality and Entertainment: Bubble or Next Big Thing?

October 26, 2015  | Subscribers Only

Piers Harding-Rolls Piers Harding-Rolls Director – Research and Analysis Director, Games, IHS Markit
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The report represents IHS’ first in-depth analysis of a new generation of virtual reality technology and entertainment. It examines the positional strategies of emerging virtual reality platforms, includes sales forecasts of virtual reality headsets by brand, country and platform type and analyses the content opportunity across games and video.

Conditions are more suited to virtual reality technology and content adoption than ever before: Entertainment consumption habits, better virtual reality technology, cheap virtual reality headsets, an active start-up community and big technology interest in the market provide a strong backdrop for virtual reality adoption.

Highlights

  • Investment in virtual reality companies is centred on consumer usage and entertainment: IHS data shows that 77% of VR funding and acquisition deals in the last two years were related to VR entertainment content or its provision.
  • Virtual reality headset installed base: The World installed base forecast for virtual reality headsets is 38m by end of 2020.
  • Virtual reality headset market opportunity: Sales value of virtual reality headsets will reach $1.1bn in 2016. This is expected to grow to $2.7bn by 2020.
  • Smartphone-based headsets will have the biggest share of installed base in 2016 at 64%: But most spending on hardware and content will take place at the high-end part of the market, for Oculus Rift, PlayStation VR and HTC Vive.
  • VR games market: The paid VR games market will be worth $496m in 2016.
  • USA will be the biggest market for virtual reality headsets and content during the forecast period: In 2016, IHS expects the USA to represent 44% share of World spend on VR games 

In this report

  • Executive summary
  • Intro and market conditions
  • Virtual reality-related investment and M&A
  • Virtual reality value chain
  • Virtual reality headset technology, strengths and weaknesses and addressable market
  • Virtual reality headset installed base forecasts
  • Virtual reality headset sales value forecasts
  • Virtual reality headset installed base forecasts by brand
  • Virtual reality headset and platform analysis
  • Virtual reality entertainment content trends, workflow disruption and challenges
  • Virtual reality game distribution
  • Virtual reality video and ‘experience’ distribution
  • Virtual reality gaming tastes and content structure
  • Virtual reality games spend forecasts
  • Virtual reality games spend forecasts by source platform
  • Virtual reality games spend forecasts by headset brand  
  • Conclusions

List of tables and charts

  • able: Key virtual reality funding and M&A deals
  • Chart: Entertainment Share of Funding/M&A Deal Volume in VR
  • Chart: Funding/M&A Deal Volume in VR by Company Type
  • Table: Virtual reality headset release dates and expected pricing
  • Chart: World smartphone versus high-end PC and PS4 installed base
  • Chart: Samsung Gear VR addressable market, forecast
  • Chart: VR headset addressable market comparison, forecast
  • Chart: PS4 installed base, forecast
  • Chart: High-end PC installed base, forecast
  • Chart: VR headset installed base, forecast
  • Chart: From launch CE installed base comparison
  • Chart: VR headset installed base forecast by platform type
  • Chart: VR headset installed base forecast by top six countries
  • Chart: VR headset sales value
  • Chart: VR headset sales value share by platform type, 2016
  • Chart: World VR headset installed base brand share, forecast to 2020
  • Chart: World VR headset installed base by brand, forecast to 2020
  • Chart: World VR headset installed base brand share, 2016
  • Chart: Oculus Rift installed base forecast, to 2020
  • Chart: Samsung Gear VR installed base forecast, to 2020
  • Chart: PlayStation VR installed base forecast, to 2020
  • Chart: HTC Vive installed base forecast, to 2020
  • Chart: Google Cardboard installed base forecast, to 2020
  • Chart: Oculus Share free downloads by genre (Aug 2015)
  • Chart: World VR paid games spend forecast, to 2020
  • Chart: World consumer spend on VR hardware and VR games, 2016
  • Chart: World VR paid games spend by platform type
  • Chart: World paid full game spend by overall segment
  • Chart: World VR paid games spend share by headset forecast, to 2020
  • Chart: World VR paid games spend by headset forecast, to 2020
  • Chart: Paid VR games spend by leading country market
  • Chart: Paid VR games spend share by leading country market, 2016

Number of pages: 52

Number of tables and charts: 32

Piers Harding-Rolls

Director – Research and Analysis Director, Games, IHS Markit

Mr. Piers Harding-Rolls is a director of Research and Analysis Games at IHS Markit, focuses on the evolution of games.

Research by Market
Media & Advertising
Category
Games
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