Juniper Research: VR Consumer Content Revenue to Exceed $7 billion in 2025, Led by Console Gamers

BASINGSTOKE, England–(BUSINESS WIRE)–#virtualrealitymarketanalysis–A new report from Juniper Research has found that consumer virtual reality content will bring over $7 billion in revenue in 2025, an increase of over 160% on the $3 billion it is expected to generate in 2020. The primary driver for consumer content in this space will be console gamers, which will account for 41% of revenue generated in 2025.

The new research, Virtual Reality Markets: Platform Trends, Market Analysis & Forecasts 2020-2025, expects console content revenue to be buoyed by a presence from larger developers that are often absent in most other VR platforms. The report also notes that standalone VR will be the fastest-growing user base in the next five years; taking over from smartphone-based VR, which will stall, following the exit of Google and Samsung from the market last year. Juniper Research expects mobile VR to decline over the next five years, with only 1.2 million headsets in use by 2025.

For more insights, download the free whitepaper, Next-Gen VR: Going it Standalone?

Expanding Niche Content Critical to VR’s Future

The research shows that, while VR is expanding to more users, it is failing to gain the attention of large consumer companies, with many products and services targeted towards enterprise users. The consumer space, meanwhile, will struggle to become mainstream. Console games will be the most lucrative area here, but still have relatively low revenue per transaction, with an average price of $17 per VR game expected for consoles through the forecast period. At the same time, however, less than 4% of console users worldwide will use the platform; making VR compatibility, rather than VR exclusivity, a safer bet for games developers.

The price of entry remains an obstacle to many potential VR users and developers,’ remarked research co-author James Moar. ‘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 monetised, in order to attract developers.’

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Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.


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