Virtual reality (VR) content is expected to increase more than 160% in the next five years as demand from consumers and the enterprise market accelerates.
The new data from Juniper Research forecasts revenues from VR will jump to more than $7 billion in 2025 up from the $3 billion expected to be generated in 2020. The primary driver for this revenue will be consumer content in the console space, which will amount to 41% in 2025.
Juniper forecasts that standalone VR will become the fastest-growing user base in the next five years, taking the largest spot from smartphone-based VR, which is expected to falter due to Google and Samsung exiting the market. Mobile VR is forecast to decline over the next five years to only 1.2 million headsets by 2025.
During the forecast period, Juniper expects larger consumer companies to expand VR services and content, but will be targeted more toward enterprise users. The consumer space will continue to struggle to become mainstream with console gamers being the most lucrative area. However, only 4% of console users worldwide will use the platform, making it a potential market for game developers to focus on in the future.
“The price of entry remains an obstacle to many potential VR users and developers,” said James Moar, analyst at Juniper Research. “We expect standalone VR to grow more rapidly, as the middle ground of affordable quality, but platform providers need to develop ways for content to be more effectively monetized, in order to attract developers.”
The full research can be found in Juniper’s Virtual Reality Markets: Platform Trends, Market Analysis & Forecasts 2020-2025 report.
