Regional Economic Impacts of the UK Games Industry

2019-11-27T14:44:43Z

UkieUser:

Regional Economic Impacts of the UK Games Industry

2019-11-27T14:38:00Z

UkieUser:

Regional Economic Impacts of the UK Games Industry

2019-11-27T14:04:43Z

UkieUser:

2019-11-26T11:43:00Z

UkieUser: /* 2019 Stats */

== 2019 Stats ==

=== Virtual Reality ===

*From Q2-Q3 of 2019, HTC and Oculus dominated the VR headset market, with a market share of 46.8% for HTC (Vive, Vive Pro) and 41.8% for Oculus (Go, Rift, Rift S) ([https://app.hubspot.com/documents/3422458/view/61968727?accessId=3f17f5 Observer Analytics], Nov 2019)

*During this period, NVIDIA completely dominated the market for graphics cards in the VR sector, with a 87.9% market share ([https://app.hubspot.com/documents/3422458/view/61968727?accessId=3f17f5 Observer Analytics], Nov 2019)

*During the average VR session, tracking is lost 2.49 times (this occurs when sensor are blocked or cables become disconnected). This is most common for the Oculus Rift headset (tracking lost over 4 times on average) and least common with the Valve Index (tracking lost around once per session) ([https://app.hubspot.com/documents/3422458/view/61968727?accessId=3f17f5 Observer Analytics], Nov 2019)

*In the UK in 2018, games made up 53% of spending on VR ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*The UK VR industry specifically is expected to be worth £294m by 2023 ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*By the end of 2022, the market size for VR is predicted to reach $13.7bn ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*Sony have announced that as of 3rd March 2019, they have sold through 4.2m PSVR systems worldwide. ([https://blog.us.playstation.com/2019/03/25/playstation-vr-the-next-wave-of-games-coming-in-spring-and-summer-2019/ Sony PlayStation Blog], March 2019)

*Oculus Go sold 1million units after its May 2018 launch. It appealed to mainstream users by being a mobile headset that didn't require a connection to another device. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*The market for VR installations and attractions such as Star Wars: Secrets of the Empire and Jurassic World VR Expedition grew 37% to $413m. These VR exhibitions are expected to introduce everyday consumers to high-end VR by offering experiences in busy locations such as airports and restaurants. This may alleviate the initial slower-than-anticipated adoption of high-end consumer VR headsets. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*According to analytics firm ABI and NVIDIA, 4 million PC VR headsets have been sold to date. [https://www.roadtovr.com/nvidia-claims-4-million-pc-vr-headsets-sold/ Road to VR], Jan 2019)

*According to the latest Steam Hardware & Software Survey, around 767,000 or 0.8% of all Steam users have VR headsets attached to their machines, almost double the numbers published 16 months previously. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

*The market share for VR headsets among Steam users is 46.5% Oculus Rift and 40.1% HTC VIVE, although the HTC VIVE Pro which picks up an 2.81% for HTC. Windows VR headsets collectively make up 8.9% of the market. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

=== Augmented and Mixed Reality ===

*The market size for Augmented and Mixed reality is expected to reach $18.9bn by the end of 2022 ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*In 2019, 33% of Augmented and Mixed reality headsets are estimated to be purchased by consumers. The remaining 67% are purchased by developers and enterprise clients ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*Magic Leap has secured a $280 million investment from Japanese mobile operator Docomo, bringing the total investment into Magic Leap to $2.6 billion since being formed in 2010. ([http://gamasutra.com/view/news/341674/Japanese_mobile_operator_Docomo_sinks_280_million_into_Magic_Leap.php Gamasutra] / [https://www.magicleap.com/news/press-release/magic-leap-partnership-ntt-docomo Magic Leap], Apr 2019)

*Mixed reality hardware and software revenues rose from $4.5nn to $6.6bn from the years 2017 to 2018. In 2019, it is expected that $11.5billion will be generated. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Social media apps such as SnapChat and Instagram drove mobile augmented reality (AR) user numbers to 1.1billion and helped push mixed reality revenue to $2.3billion. In the US, 84% of mobile AR audience used mixed reality technology in social media apps like TikTok, Snapchat and Instagram. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprise clients are set to account for 85% mixed reality headsets sold in 2019 and will continue to represent the majority of demand through 2022. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

=== VR and AR ===

*The global VR/AR market is expected to be worth $160b by 2023, with engineering and manufacturing applications of these technologies expected to be major drivers of this growth ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*Outside of London, the largest regional hubs for VR/AR businesses include Manchester and the North West (52 companies) and Bristol and the South West (49 companies) ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*VR and AR technologies are predicted to offer a boost of £62.5b ($69.3b) to UK GDP by 2030. Up from £1.8b ($2.0b) in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*VR and AR technologies are predicted to offer a boost of $1,542.9b to global GDP by 2030. Up from $46.4b in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*Use of VR and AR in healthcare alone in 2019 contributes $11.0b to global GDP. By 2030 this is predicted to be $350.9b ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*The share of immersive technology revenue, such as Virtual and Augmented reality, grew from 27% to 25% in 2018. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprises purchasing immersive technology surpassed $11b as businesses see the potential for return on investment. Training employees is the biggest reason why businesses purchase immersive technology, with 71% of firms using VR to develop their workforce in skills from performing surgery to practising customer service. For example, Walmart agreed to purchase 17,000 Oculus Go headsets to train retail employees in September 2018 in customer service. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

== 2018 Stats ==

=== Virtual Reality ===

*By 2022, VR content will generate $21.2bn a year by 2022, with game revenue ($12bn approx.) staying ahead of video ($9bn approx.). ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*Total global revenues from VR apps, gaming and video will grow from $3.9bn in 2017 to over $20bn in 2022. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*By 2022, 175.2m VR headsets will be in consumers’ hands across ten major markets, up from an estimated 37.6m at the end of 2017. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*The UK’s fastest growing entertainment and media sector is Virtual Reality, growing at 34 per cent annually to reach £1.2bn in revenue by 2022. VR headsets are forecast to sell with more than 7.8m cumulatively by the same period. ([http://www.cityam.com/287043/uks-entertainment-and-media-sector-forecast-grow-gbp76bn PwC / City AM], Jun 2018)

*The UK’s VR industry will generate more revenue than any other country in Western Europe over this time. ([https://www.digitaltveurope.com/2018/06/07/pwc-vr-the-fastest-growing-segment-of-uk-media-sector/ PwC / digitsaltveurope.com], Jun 2018)

*Venture capital investment in UK virtual reality grew +260% from £50m in 2016 to £180m in 2017. Seed stage funding was down from £5m to £2m in the same period. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Consumer virtual reality revenue reached $2.2bn in 2017, with $1.7bn from hardware sales and $554m in software sales. In 2018, revenues are expected to increase 105% to $4.5bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Samsung’s Gear VR was the highest selling mobile headset in 2017 and Sony’s PlayStation VR was the highest selling console/PC headset (see chart below). ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

=== Augmented and Mixed Reality ===

*Venture capital investment in UK augmented reality increased by around 40% to £48.4m in 217 but investment at seed stage was broadly flat year-on-year. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

=== VR and AR ===

*There are 1,000 immersive-specialist companies in the UK (>50% of income from immersive projects), employing around 4,500 people and generating £660m in sales. This potentially represents as much as 9% of the global market. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Half of immersive-specialist businesses in the UK were incorporated since 2012. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*6 out of 10 of immersive-specialist businesses grew their turnover in the past 12 months and 90% were confident of their future prospects. 70% were exporting immersive-related products and services, with a particular focus on US markets. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*38% of immersive business are located in London. Other hubs for immersive businesses include Brighton, Bristol, Newcastle, Liverpool, Manchester, Cambridge, Oxford and Edinburgh. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*253 projects worth a total of £160m were identified in UK Research Councils, Innovate UK and EU Horizon 2020 open datasets. Funding for immersive tech projects was 9 times higher in 2016-2017 than in 2009-2010. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*3 in 10 immersive specialist companies benefitted from tax incentives in the last 12 months and 2 in 10 received some sort of national grant. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Extended reality (XR) revenue up by 37% to $4.0bn in 2017. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*$2.3bn of venture investments in XR were made in 2017, with Magic Leap accounting for $0.5bn of total revenues. The remainder was split $0.9bn in VR projects and $0.9bn in AR/MR projects. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Venture funding of VR/AR companies reached at least $1.9bn in 2017. The total number of companies raising venture capital during 2017 outpaced 2016, but the average deal size declined sharply by 35%. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

*The majority of VR/AR venture funding deals in 2017 were early stage (Seed and Series A). The number of early stage deals in 2017 was up 27% YoY and 105 companies raised $2M or more from VCs. However, the average Seed and Series A deal size declined 9% and 17%, respectively. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

== 2017 Stats ==

=== Virtual Reality ===

*Sony’s PlayStation VR headset (PSVR) has sold through 2m units globally. ([http://www.sie.com/en/corporate/release/2017/171207.html SIE], Dec 2017)

*The UK will have the largest and fastest growing VR hardware market in EMEA, worth £0.8m in 2021, growing at 76% CAGR. ([https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html PWC], June 2017)

*PlayStation VR has sold more than 1m units worldwide ($399 / £308 approx), Sony Interactive Entertainment have confirmed. ([http://www.mcvuk.com/news/read/psvr-hits-1m-sales-worldwide/0183302 MCV] / [http://www.bbc.co.uk/news/technology-40190448 BBC], June 2017)

*55% of the most frequent gamers are familiar with virtual reality; among those, 40% say they will likely purchase VR within the next year. ([http://essentialfacts.theesa.com/ ESA], April 2017)

*The total virtual reality revenues to reach $7.2 billion globally by the end of 2017 with head-mounted displays (HMDs) accounting for $4.7 billion. By 2021, global revenues are expected to reach $74.8bn. ([http://greenlightinsights.com/2017/04/virtual-reality-industry-report-7b-2017/ Greenlight Insights], Apr 2017)

=== VR and AR ===

*There are 463 VR / AR companies operating in the UK, split into 308 in content, 110 in technology and 45 services. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

*London is the largest hub for VR/ AR companies, with 244 businesses located in the capital. These companies have attracted a combined VC investment of $645.7m. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

== 2016 Stats ==

=== Virtual Reality ===

*The world consumer VR headset installed base reached 28 million at the end of 2017 and will reach 75.7 million consumer VR headsets installed by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR headsets reached $2.4 billion in 2017 and is forecast to reach $5.8 billion by 2021. Spend will be driven by continued adoption of PC, console and standalone headsets offset by reduction in price points for these same headsets. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR games, interactive experiences and video reached $803 million in 2017 and is forecasted to reach $2.8 billion by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Consumer spending on location-based VR reached $385 million in 2017. This is forecast to grow to $906 million by 2021. In 2017, China’s share of the market was 65%. This is expected to decrease to 51% by 2021 as other regions and country markets become more established. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*The VR market generated $2.7bn in 2016 and will grow to $17.8bn by 2019. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

*The total value of VR market (including hard- and software) will reach $6.7bn in 2016 and will reach $70bn by 2020. ([http://press.trendforce.com/node/view/2210.html TrendForce], Dec 2016)

*Of more than 800 companies working in the VR sector worldwide, more than 150 are based in Britain. ([http://www.growthenabler.com/download-tools GrowthEnabler], Sept 2016)

*According to 01consulting, as of November 2016, Sony’s PSVR represents around one third (30%) of the total VR market. ([http://www.01consulting.net/#!portfolio-item/vr-virtual-reality-market-research-analysis-report-2016 01consulting], Dec 2016)

*Sales of Sony’s PlayStation VR headset are on track to outsell the combined sales of the HTC Vive and Oculus Rift by the end of 2016. ([https://fileexchangeemea.gfk.com/pickup/eJFVObTtdbNCgDBjdyGERUnrmSKLF7CHDOYeD4vG/VR Study TEASER DECK SENT TO CLIENTS 2016.pdf GfK] / [http://www.mcvuk.com/news/read/playstation-vr-set-to-eclipse-rift-and-vive-sales-in-the-uk/0175824 MCV], Nov 2016)

*Consumer spend on VR to hit $11.2bn by 2020, with headsets accounting for $7.9bn and VR entertainment $3.3bn. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*The installed base of VR headsets is set to increase from 4 million in 2015 to 81 million in 2020. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*According to IHS Markit, Samsung Gear VR will be the most widely used VR brand by the end of 2016, making up 30% of owned headsets. Playstation VR is expected to exceed both Oculus and HTC Vive headsets combines, covering 8% of the market. A large segment of the market (40%) is made up of many smaller entrants, mostly smartphone headsets. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*While generally consumers are excited by the potential of VR, many still see a lack of understanding of the products and the potentially high costs as barriers to purchase. 75% of consumers agreed that they do not understand enough about VR products, and 73% would like to wait before investing in the platform. ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*The opportunity to demo VR products is seen as the key factor in the decision to purchase VR by European consumers (79%), ahead of the cost of the product (68%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Cheaper VR products such as Google Cardboard show a higher level of penetration into the market, however, when asked which product they would most likely purchase, the UK’s consumers favoured the more advanced products from Sony PlayStation VR (18%) and Oculus Rift (10%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*UK consumers have a high level of awareness of VR (75% stating that they have heard of VR), ahead of Spain (72%), Italy (71%) and France (70%), although awareness is slightly higher in Germany (79.5%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Worldwide shipments of Virtual Reality hardware will reach 9.6 million units in 2016, generating revenues of approximately $2.3 billion. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

*$2.8B has been invested in VR this year, bringing the total since 2012 up to $8.8B ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*As of April 2016, the market data company Superdata have revised their 2016 global VR hardware and software forecast down to $2.9 billion, a 43% drop from their [https://www.superdataresearch.com/market-data/ $5.1 billion] projection at the beginning of the year. ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*Across key countries in North America and Europe, an average of 11% of the online population between 10 and 65 state that they are planning to buy VR products in the next six months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*On average, men comprise 68% of those who intend to buy VR. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*12% of the online US population is planning to buy VR products in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*10% of online brits intend to purchase VR within the next 6 months, with a further 26% who were undecided. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*For US eSport enthusiasts, 56% intend to buy in the next 6 months, making up 45% of the group that intends to buy VR in that period. Occasional eSport viewers are also keen, with 24% intending to buy in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

=== Augmented and Mixed Reality ===

*Consumer spend on all AR-related mobile apps is forecast to grow from $1.6bn in 2017 to $7.8bn in 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Augmented Reality accounted for $1bn in 2016 revenue and Mixed Reality made up $100m. By 2019, Mixed Reality will become the dominant sector of the two, worth $9.4bn to AR’s $4.2bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

=== VR and AR ===

*The Virtual, Augmented and Mixed Reality games market will be worth $1.2bn by the end of 2016 and is projected at up to $8.8bn by the end of 2020, with VR becoming the dominant sector in revenue terms. ([https://www.superdataresearch.com/superdata-vr-data-network/ Superdata], Nov 2016)

*London is the top hub for VR and AR talent in Europe, with the highest number of LinkedIn members with VR/AR skills. As a proportion of total local members, London has the 7th highest density of VR/AR talent, followed by Birmingham at 9th. Oxford and Cambridge also have high level of VR/AR talent. ([http://www.slush.org/news/state-european-tech-2016-future-invented-europe/ LinkedIn/ Atomico / Slush], Nov 2016)

*Growing at a cumulative annual rate of 184%, VR shipments will reach 64.8 million units by 2020. Combined with Augmented Reality hardware, shipments will reach 110 million units by 2020. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

== 2015 Stats ==

=== Virtual Reality ===

*Current VR hype is different from past attempts, in that systems will exceed the hype this time, as opposed to systems that can’t live up to the hype. In past VR were more gimmicks than launchable platforms, finally it’s really here. It’s now realistic to do VR at consumer pricing, whereas before it was too expensive. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The impact of having many companies involved in VR is that they are releasing products around the same time, so we’ll see a whole industry that wasn’t there before. VR and AR are going to be powerful drivers in PC growth, as you need better hardware to run the new experiences. It will push the ecosystem of PCs and transform the technology landscape. Having major players involved will accelerate things, but considering a 10-year span before the technology is widely available is reasonable, as PCs will be gradually upgraded with powerful hardware. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The challenges developers face to develop for VR are the misunderstanding of the medium (need for managing motion sickness, mixing gameplay styles to accommodate…) and the natural behaviour of recreating genres that already exist. Sometimes inspiration can be found in sci-fi books rather than in the current market. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

=== VR and AR ===

*Digi-Capital has forecasted that augmented and virtual reality will be worth $150bn by 2020. Interestingly AR is forecasted to reach 4 times what VR will ($120bn vs $30bn). Digi-capital analysts state that while VR is great for games and 3D films, due to its need for full immersion you won’t be able to play anywhere. AR on the other hand will be easier to play on the tube, and there’s more potential market for the technology beyond games. ([http://www.gamesindustry.biz/articles/2015-04-06-ar-vr-forecast-at-usd150-billion-by-2020 Gamesindustry.biz], Apr 2015)

Virtual reality

2019-11-26T11:42:32Z

UkieUser: /* 2018 Stats */

2019-11-20T16:28:15Z

UkieUser: /* UK Success Stories */

== UK Success Stories ==

The UK has a long history of making world class video games. With the global games audience estimated between [https://newzoo.com/insights/articles/the-global-games-market-will-reach-108-9-billion-in-2017-with-mobile-taking-42/ 2.2] and [http://dq756f9pzlyr3.cloudfront.net/file/Internet+Trends+2017+Report.pdf 2.6] billion people and the global software market expected to grow from [https://resources.newzoo.com/hubfs/Reports/Newzoo_2018_Global_Games_Market_Report_Light.pdf?utm_campaign=Games%20Market%20Report&utm_medium=email&_hsenc=p2ANqtz-93Xu8VqDs6szT503OsLWrNNaKrt0gC8gEVhgGWm4HCOdz_4JcVHLNfcA8Eo33XqdhwnBW-dVGouT3Th4F0FOyfGAlYfQ&_hsmi=63907018&utm_content=63906677&utm_source=hs_email&hsCtaTracking=ffa42eb3-9f57-4ca1-bccb-425a3cd98d81%7C075c1c69-ce55-4aba-9c03-5d441d779476 $137.9 billion] in 2018 to an estimated $180.1 billion by the end of 2021, the opportunities for the UK games industry have never been greater.

As of June 2018, there are [https://gamesmap.uk/ 2,261 active games companies] in the UK, operating at all sizes and scales, with world-class talent across the full spectrum of games technologies - from mobile, PC and console, to fast-developing sectors such as VR / AR, esports and Artificial Intelligence.

Recent global UK successes include:

*'''Grand Theft Auto V''' by Rockstar Games, is the [https://www.gamesindustry.biz/articles/2018-04-09-gta-v-is-the-most-profitable-entertainment-product-of-all-time most financially successful media product] of all time, selling over [http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsarticle&ID=2349458 95 million units] worldwide and over $6bn in global revenue. It is the fastest selling entertainment product ever, grossing $1bn worldwide in just 3 days and the top selling game of all time in the UK, generating over £240m from more than 6 million physical copies sold - or roughly [http://ukie.org.uk/press-release/2016/12/grand-theft-auto-v-breaks-6m-boxed-copies-sold-uk 3.5 sales per minute], as well as being the top-selling game [http://ir.take2games.com/phoenix.zhtml?c=86428&p=irol-newsArticle&ID=2315089 in the US] in terms of both revenue and units. GTAV still continues to defy expectations, returning to the top of the UK chart in [http://ukie.org.uk/news/2018/03/its-15th-week-top-charts-gta-v March 2018], 4.5 years after it was first launched.

*'''Batman: Arkham Knight''' by Rocksteady Studios, the [https://www.videogamer.com/news/batman-arkham-knight-becomes-the-fastest-selling-game-of-2015 fastest-selling game of 2015] and winner of multiple awards, including the 2016 BATFA for [http://www.bafta.org/games/awards/games-awards-winners-in-2016#british-game---batman-arkham-knight Best British game].

*'''Monument Valley''' by ustwo, downloaded over [https://medium.com/@ustwogames/monument-valley-in-numbers-year-2-440cf5562fe#.6blva9j2z 26 million times] and winner of 20 international awards, including Apple iPad Game of the Year 2014 and the 2015 BATFAs for both Best Mobile & Handheld and Best British game.

*'''Hellblade: Senua’s Sacrifice''' by Ninja Theory, winner of [http://awards.bafta.org/award/2018/games 5 BAFTAs] in 2018, including Best British Game, as well as numerous other awards and accolades. It was one of the [http://ukie.org.uk/news/2018/01/strong-showing-uk-made-games-steams-biggest-games-2017 top selling games] on Steam in 2017 and was the best-selling PlayStation game in Europe the month it was released. The game was widely recognised for its pioneering work depicting the mental health of the main character, based on research partnerships with the University of Cambridge, the University of Durham and the Wellcome Trust.

*'''Lego: Star Wars / Batman / Harry Potter / Avengers''' by Traveller's Tales. The Knutsford-based studio has built a name for itself with its Lego adaptations of much loved film franchises, achieving [https://www.gamesradar.com/uk/best-lego-games/ critical and commercial success] with its charming and humorous family-friendly games.

There are plenty more. We support the [http://www.thecreativeindustries.co.uk/industries/games Creative Industries website] which features more great UK games stories.

== UK Consumer Market ==

The UK is the [https://newzoo.com/insights/infographics/uk-games-market-2018/ 6th largest] video game market in 2017 in terms of consumer revenues, after China , USA, Japan and Germany. Approximately [https://newzoo.com/insights/infographics/uk-games-market-2018/ 37.3m people] in the UK play games.

According to the 2018 [[Ukie UK Consumer Games Market Valuation]], UK spend on games was valued at a record [https://ukie.org.uk/news/2019/04/uk-consumer-spend-games-grows-10-record-%C2%A357bn-2018 £5.7bn] in 2018, up 10.0% [http://ukie.org.uk/news/2018/02/uk-games-market-grows-124-record-%C2%A3511bn-2017 from 2017] (£5.18bn, revised figures):

*2018 was the biggest ever year for games software, growing +10.3% to a record £4.01bn in sales, driven by record results in both Digital and Online sales, which eclipsed £2.01bn for the first time, up +20.3%, and Mobile Games, which grew +8.2% to £1.17bn . Boxed software remains a substantial factor in software sales, experiencing a slight drop of -2.6% to £770m, however pre-owned games dropped significantly -30.8% to £67.9m.

*Game hardware continued to be a core driver of spend in 2018, up +10.7% to £1.57bn. Consoles sales grew a solid +6.5% to £702m, despite no new consoles being released. PC game hardware sales saw a strong year, up +18.4% to £445m, and the peripherals and accessories market similarly increase +19.9% to £355m. VR Hardware had a more difficult year, dropping -20.9% to £72m, as early adopters await the next generation of headsets.

*Consumer spend on wider game culture contributed an additional £109.6m in revenues across game-related toys, merchandise, books, movies and soundtracks, as well as game-based events around the UK.

According to the [https://eraltd.org/news-events/press-releases/2018/streaming-boom-powers-entertainment-market-to-new-all-time-high-of-724bn-in-2017/ Entertainment Retailers Association] (ERA), combined physical and digital sales UK games sales in 2018 generated a record £3.86bn, increasing 9.1% on the previous year.

This figure is now greater than that of home music and video sales combined, comprising 51.3% of the overall value of the sector, making the UK games market 1.65 times the size of the video market (£2.3bn) and 2.9 times the size of music (£1.3bn).

Digital games sales provided the majority of growth, increasing 9.1% to £3.01bn, while physical game sales declined slightly by -2.1% to £769m, although not as drastically as in physical sales for both music (-16.6%) and video (-17.1%).

In 2016, Electronic Art's FIFA 17 was the [https://eraltd.org/news-events/press-releases/2017/entertainment-sales-reached-63bn-in-2016/ highest selling entertainment product] in the UK, selling 2.5m units, approximately 9% more sales than Star Wars: The Force Awakens, which sold 2.3m units.

== UK Games Map ==

In September 2016, Ukie launched the [https://gamesmap.uk/ UK Games Map], the first interactive, real-time map of the UK games industry.

Built in partnership with Nesta, the UK's innovation foundation, the UK Games Map builds on the methodology established in the 2014 Ukie/Nesta report '[http://ukie.org.uk/research#Report A Map of The UK Games Industry]' to provide the most complete dataset of the geography of the UK games industry ever compiled. A more detailed description of the UK Games Map can be found [http://ukie.org.uk/news/2016/09/uk-games-map-puts-uk-games-businesses-map here].

The UK Games Map is constantly being updated with new data from across the industry - since launch in September 2016 there have been more than 1,000 updates to company data on the platform.

Key findings:

*There are 2,277 active games companies in the UK (listed in the map, as of December 2018)
*2,728 UK games companies have been mapped to date
*62% of UK games companies were founded since the beginning of 2010
*Only 41% of UK games companies use the right Standard Industrial Classification codes
*The map also lists 149 games industry service companies and 231 games-related courses across 95 universities and academic institutions.
*As of June 2018, there 21 towns / cities that are home to more than 20 games companies, the top 10 of which are listed below:

{| class="wikitable"
!colspan="2"|Top 10 Towns by Company Count (Jun 2018)
|-
|'''Town / City'''
|'''No. Companies'''
|-
|London
|614
|-
|Manchester
|96
|-
|Brighton
|73
|-
|Guildford & Aldershot
|70
|-
|Slough & Heathrow
|67
|-
|Cambridge
|53
|-
|Bristol
|50
|-
|Sheffield
|41
|-
|Glasgow
|37
|-
|Liverpool
|37
|}

== Economic Contribution ==

In October 2018, the BFI published a report covering the games industry's economic contribution to the UK in 2016, entitled '[[BFI_Screen_Business|Screen Business]]'. Both the full and summary versions of the report and can be downloaded in full via the [https://www.bfi.org.uk/education-research/film-industry-statistics-research/reports/uk-film-economy BFI website].

Findings from the BFI's Economic Contribution report:

*Overall in 2016, the UK games industry provided 47,620 FTE jobs and contributed £2.87bn in GVA to the UK economy.

*The UK games industry directly employs 20,430 FTEs in development, publishing and retail roles, which contribute £1.52bn in direct GVA to the economy.

{| class="wikitable"
!colspan="3"|Direct economic contribution of the UK Games Industry in 2016
|-
|'''Subsector'''
|'''Employment (FTEs)'''
|'''GVA (£m)'''
|-
|Development
|13,840
|826.0
|-
|Publishing
|2,300
|526.6
|-
|Digital Retail
|310
|31.7
|-
|Physical Retail
|3,980
|132.0
|-
|'''Total'''
|'''20,430'''
|'''1.52'''
|}

*The economic impact of the growing UK Esports sector was also assessed for the first time and was shown to have supported 470 FTE jobs and contributed £18.4m in GVA in 2016.

*In 2016, the UK games industry spent £1.25bn on game development.

*In the period 2015-2017, there was at least £1.75bn of inward investment in the UK games industry.

More detail on the economic impact of the UK games industry can be found via the '[[BFI_Screen_Business|Screen Business]]' page.

== Video Games Tax Relief ==

Video Games Tax Relief (VGTR) has been available for qualifying games companies to claim since April 2014.

The BFI '[[BFI_Screen_Business|Screen Business]]' report, released in October 2018, showed the economic impacts of the relief in 2016

*The VGTR supports 9,240 FTE jobs across the UK games industry, including 4,320 directly in development roles (31% of the total UK development workforce).

*VGTR games represented £389.9m of UK development spend, 31% of the total development spend. Overall, projects supported by the VGTR contibuted £525m in GVA to the UK economy and £158m in tax revenue.

*68% of VGTR-supported games would not be made in the UK, or at all, without the relief in place.

*For every £1 the Government invested into the games sector via VGTR, an additional £4 in GVA was generated for the UK economy.

*Of all the screen sector tax reliefs, the games sector was shown to have the highest rate of productivity, where each employee generated an average of £83,800 in GVA for the economy, significantly above the national industrial average of £62,100.

According to data released by HMRC in [https://www.gov.uk/government/statistics/creative-industries-statistics-july-2018 July 2018], VGTR has provided £230m to UK studios across 770 claims since the relief was launched in April 2014. Of that total, £105m was paid out to 345 claims in the financial year 2017-18.

To date, VGTR has been claimed by 480 video game productions, accounting for over £1bn in UK expenditure.

The latest annual figures from the [http://www.bfi.org.uk/supporting-uk-film/british-certification-tax-relief BFI Certification Unit] on how many games passed the cultural test for qualification for VGTR were released in May 2017. The full BFI release is [http://www.bfi.org.uk/sites/bfi.org.uk/files/downloads/bfi-british-film-other-screen-sectors-certification-q1-2017-v1.pdf available here].

The latest end-of year figures for games certification numbers are:

{| class="wikitable"
!colspan="5"|VGTR Cultural Test Certification, Apr 2014 – Mar 2017
|-
|'''Certification'''
|'''Number'''
|'''EEA/UK spend £m'''
|'''Total Budget £m'''
|'''EEA/UK spend as a % of total budget'''
|-
|Final
|364
|423.9
|548.4
|77.3%
|-
|Interim
|370
|1,146.4
|1,280.6
|89.5%
|}

However, in [http://www.bfi.org.uk/sites/bfi.org.uk/files/downloads/bfi-british-film-other-screen-sectors-certification-q3-2017.pdf October 2017] the BFI released further data showing that 161 games received final certification between 1st Jan to 30th September 2017, representing £136.8m EEA/UK spend from a total budget of £159.5m. This is a 25% increase in the number of games, but a slight decrease of -3.8% in EEA/UK spend over the same period the previous year. Looking at interim certifcication in the same period, 130 games were interim certified (-9.7%) representing an £296.6m of EEA/UK spend (-2.3%) and a total budget of £319.6m (-11.5%).

*Final certification covers games that have been completed and released, and have claimed their tax relief.
*Interim certification covers games that are still in development but have been approved for the cultural test.
*Some games that have progressed from development to completed and released since the launch of the VGTR may be counted in both Interim and Final categories.

Since the relief was introduced in Apr 2014, the number of games gaining final and interim certification has increased significantly year-on-year. In the financial year 2016/17, 212 games received final certification while 187 received interim certification, an increase of +59.4% and +38.5% on the previous year respectively.

*In FY2016/17, the 212 games that received final certification had a total budget of £258m, £220.4m of which was spent in the UK. For the 187 games recieving interim certification, the total budget was £482.2, £412.2m of which was spent in the UK.
*Median budget for the projects applying for VGTR has also shown a huge year on year increase, rising from £0.2 million in 2014 to £0.7 million in Q1 2017.
*Games qualifying through the 'cultural test' typically receive a return of about 20 per cent of their development costs.
*The BFI publish as list of all video games certified as British through the video games cultural test, which can be downloaded here.

== UK Esports ==

*In 2016, the [https://newzoo.com/insights/infographics/uk-esports-audience-2016/ UK esports audience] will grow to 6.5 million people, with 3.1 million watching more than once a month. The audience is expected to grow [http://ukie.org.uk/sites/default/files/eSports%20whitepaper.pdf 7.5% year-on-year] to reach 8 million people by 2019.

*According to [https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html PWC], the UK esports market will see a 27.6% CAGR, reaching £8m in consumer ticket sales by 2021. Digital advertising in esports will increase to £12m by 2021, a CAGR of 46.2%.

*Esports is [https://newzoo.com/insights/infographics/uk-esports-audience-2016/ popular with millennials] in the UK, with the 21-35 age group representing 63% of the market. Women make up 31% of the audience and are most likely to watch when aged between 21-35.

*The largest prize pool event held in the UK to date was [https://www.eslgaming.com/press/esl-one-dota-2-major-comes-birmingham ESL One Birmingham], with a prize pool of $1 million, held at Arena Birmingham in May 2018.

*The UK is the home to some of the world's top esports talent. One of the UK's leading esports teams, Team Dignitas [http://team-dignitas.net/articles/news/Team-Dignitas/10251/philadelphia-76ers-acquire-merge-and-manage-leading-esports-teams-dignitas-and-apex were acquired] by the owners of the US basketball's Philadelphia 76ers in September 2016.

*Major UK football clubs including [http://www.bbc.co.uk/news/technology-36734518 Manchester City] and [http://www.bbc.co.uk/sport/football/36231379 West Ham United] have signed professional esports players.

*The UK's largest gaming retailer, Game, [http://www.mcvuk.com/news/read/game-acquires-multiplay-for-20m/0145947 acquired Multiplay], one of the UK's longest established esports businesses, for £20m.

*There is also [http://ukie.org.uk/sites/default/files/eSports%20whitepaper.pdf growing grassroots esports scene] in the UK's universities, with 3,000 players in the National University Esports League, representing 110 universities.

== UK Mobile Games ==

*There are [https://gamesmap.uk/ 1,483 active games companies] making mobile games in the UK (as of August 2017).

*The UK has the [http://www.isfe.eu/about-isfe/news/isfe-report-deloitte-illustrates-economic-impact-new-business-models largest mobile games workforce] in the EU, with 5,000 full-time employees. This represents nearly a quarter of all 21,000 mobile game jobs across the EU.

*[https://www.ofcom.org.uk/research-and-data/cmr/cmr16 71% of UK adults] (approx 40m) own a smartphone and 59% of UK households (approx 15.9m) own a tablet.

*47% of [https://www.deloitte.co.uk/mobileuk/ UK smartphone owners] use apps on their phones to play games – more that use apps for online banking (40%) or reading the news (33%).

*44% households [https://www.isfe.eu/industry-facts own an iPhone], 46% and Android phone and 12% a Windows phone.

*The free apps with in-app purchase model is king, representing 76% of the revenue share of the UK for apps.

*In terms of revenue per download, the UK is best positioned in western Europe with a potential profit of $0.47 per download. The UK is more profitable than Germany, United States and China.

== UK Player Demographics ==

There are several different estimations for UK player demographics available:

Newzoo:

*In 2017, [https://newzoo.com/insights/infographics/the-u-k-gamer-2017/ 32.4 million people] play games in the UK. Spending $4.2 billion this year, they make the UK the 5th largest games market in the world.

*The UK mobile market is very evenly represented between the genders, with a [https://newzoo.com/insights/infographics/the-u-k-gamer-2017/ 48% female / 52% male split] between those who are playing more than once a month.

*[https://newzoo.com/insights/infographics/the-u-k-gamer-2017/ 32% of UK players] play mobile, console and PC games.

*In 2016, there were 31.6m players in the UK, approximately 50% of the total population. Of those that play games, 59% of them spend money on games, annually spending an average of [https://newzoo.com/insights/infographics/the-uk-games-market-2016/ $206 per player].

[https://www.isfe.eu/industry-facts GameTrack]:

*There are 20.6m people aged between 6 and 64 playing games in the UK, or 43% of the population in that age group. (2017 Q3)

*On average, 11 to 64 year-olds in the UK spend 9.5 hours per week playing games. (2017 Q3)

*Across all UK 6-64 year olds, 25% (11.7m) played packaged games, 22% app games (10.6m) and 24% (11.4m) online games. (2017 Q3)

*Similarly, 27% (12.7m) play on consoles, 24% (11.4m) on computers, 22% (10.6m) on smartphones, 17% (7.9m) on tablets and 10% on handhelds (4.5m). (2017 Q3)

*57% players in the UK are male and 43% female. The largest single age/gender demographic is 15-24 year-old males, making up 15% of all players. (2017 Q3)

== Specialised Courses and Qualified Workforce ==

*UK higher education is a strong supporter of the games industry. 60 universities/colleges provide 215 undergraduate and 40 master video game courses throughout the UK in 2014. (Creative Skillset)

*23% of the courses are in London, 18% in the West Midlands and 16% in Yorkshire and the Humber: these 3 regions cover 57% of all courses provided. (Creative Skillset)

*The top 3 universities in number of courses provided are: Staffordshire University (29 courses), University of East London (17 courses) and Sheffield Hallam University (16 courses). (Creative Skillset)

*The computer games workforce is highly qualified, with 63% having a degree compared to 57% of the wider Creative Media workforce and 37% of the wider UK economy in 2011. (Creative Skillset)

Virtual reality

2019-11-20T15:49:06Z

UkieUser: /* 2019 Stats */

== 2019 Stats ==

*In the UK in 2018, games made up 53% of spending on VR ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*The global VR/AR market is expected to be worth $160b by 2023, with engineering and manufacturing applications of these technologies expected to be major drivers of this growth ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*The UK VR industry specifically is expected to be worth £294m by 2023 ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*Outside of London, the largest regional hubs for VR/AR businesses include Manchester and the North West (52 companies) and Bristol and the South West (49 companies) ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*VR and AR technologies are predicted to offer a boost of £62.5b ($69.3b) to UK GDP by 2030. Up from £1.8b ($2.0b) in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*VR and AR technologies are predicted to offer a boost of $1,542.9b to global GDP by 2030. Up from $46.4b in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*Use of VR and AR in healthcare alone in 2019 contributes $11.0b to global GDP. By 2030 this is predicted to be $350.9b ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*By the end of 2022, the market size for VR is predicted to reach $13.7bn ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*The market size for Augmented and Mixed reality is expected to reach $18.9bn by the end of 2022 ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*In 2019, 33% of Augmented and Mixed reality headsets are estimated to be purchased by consumers. The remaining 67% are purchased by developers and enterprise clients ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*Magic Leap has secured a $280 million investment from Japanese mobile operator Docomo, bringing the total investment into Magic Leap to $2.6 billion since being formed in 2010. ([http://gamasutra.com/view/news/341674/Japanese_mobile_operator_Docomo_sinks_280_million_into_Magic_Leap.php Gamasutra] / [https://www.magicleap.com/news/press-release/magic-leap-partnership-ntt-docomo Magic Leap], Apr 2019)

*Sony have announced that as of 3rd March 2019, they have sold through 4.2m PSVR systems worldwide. ([https://blog.us.playstation.com/2019/03/25/playstation-vr-the-next-wave-of-games-coming-in-spring-and-summer-2019/ Sony PlayStation Blog], March 2019)

*Mixed reality hardware and software revenues rose from $4.5nn to $6.6bn from the years 2017 to 2018. In 2019, it is expected that $11.5billion will be generated. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*The share of immersive technology revenue, such as Virtual and Augmented reality, grew from 27% to 25% in 2018. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Oculus Go sold 1million units after its May 2018 launch. It appealed to mainstream users by being a mobile headset that didn't require a connection to another device. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Social media apps such as SnapChat and Instagram drove mobile augmented reality (AR) user numbers to 1.1billion and helped push mixed reality revenue to $2.3billion. In the US, 84% of mobile AR audience used mixed reality technology in social media apps like TikTok, Snapchat and Instagram. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprises purchasing immersive technology surpassed $11b as businesses see the potential for return on investment. Training employees is the biggest reason why businesses purchase immersive technology, with 71% of firms using VR to develop their workforce in skills from performing surgery to practising customer service. For example, Walmart agreed to purchase 17,000 Oculus Go headsets to train retail employees in September 2018 in customer service. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprise clients are set to account for 85% mixed reality headsets sold in 2019 and will continue to represent the majority of demand through 2022. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*The market for VR installations and attractions such as Star Wars: Secrets of the Empire and Jurassic World VR Expedition grew 37% to $413m. These VR exhibitions are expected to introduce everyday consumers to high-end VR by offering experiences in busy locations such as airports and restaurants. This may alleviate the initial slower-than-anticipated adoption of high-end consumer VR headsets. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*According to analytics firm ABI and NVIDIA, 4 million PC VR headsets have been sold to date. [https://www.roadtovr.com/nvidia-claims-4-million-pc-vr-headsets-sold/ Road to VR], Jan 2019)

*According to the latest Steam Hardware & Software Survey, around 767,000 or 0.8% of all Steam users have VR headsets attached to their machines, almost double the numbers published 16 months previously. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

*The market share for VR headsets among Steam users is 46.5% Oculus Rift and 40.1% HTC VIVE, although the HTC VIVE Pro which picks up an 2.81% for HTC. Windows VR headsets collectively make up 8.9% of the market. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

== 2018 Stats ==

*By 2022, VR content will generate $21.2bn a year by 2022, with game revenue ($12bn approx.) staying ahead of video ($9bn approx.). ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*Total global revenues from VR apps, gaming and video will grow from $3.9bn in 2017 to over $20bn in 2022. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*By 2022, 175.2m VR headsets will be in consumers’ hands across ten major markets, up from an estimated 37.6m at the end of 2017. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*The UK’s fastest growing entertainment and media sector is Virtual Reality, growing at 34 per cent annually to reach £1.2bn in revenue by 2022. VR headsets are forecast to sell with more than 7.8m cumulatively by the same period. ([http://www.cityam.com/287043/uks-entertainment-and-media-sector-forecast-grow-gbp76bn PwC / City AM], Jun 2018)

*The UK’s VR industry will generate more revenue than any other country in Western Europe over this time. ([https://www.digitaltveurope.com/2018/06/07/pwc-vr-the-fastest-growing-segment-of-uk-media-sector/ PwC / digitsaltveurope.com], Jun 2018)

*There are 1,000 immersive-specialist companies in the UK (>50% of income from immersive projects), employing around 4,500 people and generating £660m in sales. This potentially represents as much as 9% of the global market. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Half of immersive-specialist businesses in the UK were incorporated since 2012. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*6 out of 10 of immersive-specialist businesses grew their turnover in the past 12 months and 90% were confident of their future prospects. 70% were exporting immersive-related products and services, with a particular focus on US markets. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*38% of immersive business are located in London. Other hubs for immersive businesses include Brighton, Bristol, Newcastle, Liverpool, Manchester, Cambridge, Oxford and Edinburgh. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*253 projects worth a total of £160m were identified in UK Research Councils, Innovate UK and EU Horizon 2020 open datasets. Funding for immersive tech projects was 9 times higher in 2016-2017 than in 2009-2010. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*3 in 10 immersive specialist companies benefitted from tax incentives in the last 12 months and 2 in 10 received some sort of national grant. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Venture capital investment in UK augmented reality increased by around 40% to £48.4m in 217 but investment at seed stage was broadly flat year-on-year. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Venture capital investment in UK virtual reality grew +260% from £50m in 2016 to £180m in 2017. Seed stage funding was down from £5m to £2m in the same period. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Extended reality (XR) revenue up by 37% to $4.0bn in 2017. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Consumer virtual reality revenue reached $2.2bn in 2017, with $1.7bn from hardware sales and $554m in software sales. In 2018, revenues are expected to increase 105% to $4.5bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Samsung’s Gear VR was the highest selling mobile headset in 2017 and Sony’s PlayStation VR was the highest selling console/PC headset (see chart below). ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*$2.3bn of venture investments in XR were made in 2017, with Magic Leap accounting for $0.5bn of total revenues. The remainder was split $0.9bn in VR projects and $0.9bn in AR/MR projects. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Venture funding of VR/AR companies reached at least $1.9bn in 2017. The total number of companies raising venture capital during 2017 outpaced 2016, but the average deal size declined sharply by 35%. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

*The majority of VR/AR venture funding deals in 2017 were early stage (Seed and Series A). The number of early stage deals in 2017 was up 27% YoY and 105 companies raised $2M or more from VCs. However, the average Seed and Series A deal size declined 9% and 17%, respectively. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

== 2017 Stats ==

*Sony’s PlayStation VR headset (PSVR) has sold through 2m units globally. ([http://www.sie.com/en/corporate/release/2017/171207.html SIE], Dec 2017)

*There are 463 VR / AR companies operating in the UK, split into 308 in content, 110 in technology and 45 services. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

*London is the largest hub for VR/ AR companies, with 244 businesses located in the capital. These companies have attracted a combined VC investment of $645.7m. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

*The UK will have the largest and fastest growing VR hardware market in EMEA, worth £0.8m in 2021, growing at 76% CAGR. ([https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html PWC], June 2017)

*PlayStation VR has sold more than 1m units worldwide ($399 / £308 approx), Sony Interactive Entertainment have confirmed. ([http://www.mcvuk.com/news/read/psvr-hits-1m-sales-worldwide/0183302 MCV] / [http://www.bbc.co.uk/news/technology-40190448 BBC], June 2017)

*55% of the most frequent gamers are familiar with virtual reality; among those, 40% say they will likely purchase VR within the next year. ([http://essentialfacts.theesa.com/ ESA], April 2017)

*The total virtual reality revenues to reach $7.2 billion globally by the end of 2017 with head-mounted displays (HMDs) accounting for $4.7 billion. By 2021, global revenues are expected to reach $74.8bn. ([http://greenlightinsights.com/2017/04/virtual-reality-industry-report-7b-2017/ Greenlight Insights], Apr 2017)

== 2016 Stats ==

*The world consumer VR headset installed base reached 28 million at the end of 2017 and will reach 75.7 million consumer VR headsets installed by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR headsets reached $2.4 billion in 2017 and is forecast to reach $5.8 billion by 2021. Spend will be driven by continued adoption of PC, console and standalone headsets offset by reduction in price points for these same headsets. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR games, interactive experiences and video reached $803 million in 2017 and is forecasted to reach $2.8 billion by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Consumer spending on location-based VR reached $385 million in 2017. This is forecast to grow to $906 million by 2021. In 2017, China’s share of the market was 65%. This is expected to decrease to 51% by 2021 as other regions and country markets become more established. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Consumer spend on all AR-related mobile apps is forecast to grow from $1.6bn in 2017 to $7.8bn in 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*The VR market generated $2.7bn in 2016 and will grow to $17.8bn by 2019. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

*Augmented Reality accounted for $1bn in 2016 revenue and Mixed Reality made up $100m. By 2019, Mixed Reality will become the dominant sector of the two, worth $9.4bn to AR’s $4.2bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

*The Virtual, Augmented and Mixed Reality games market will be worth $1.2bn by the end of 2016 and is projected at up to $8.8bn by the end of 2020, with VR becoming the dominant sector in revenue terms. ([https://www.superdataresearch.com/superdata-vr-data-network/ Superdata], Nov 2016)

*The total value of VR market (including hard- and software) will reach $6.7bn in 2016 and will reach $70bn by 2020. ([http://press.trendforce.com/node/view/2210.html TrendForce], Dec 2016)

*London is the top hub for VR and AR talent in Europe, with the highest number of LinkedIn members with VR/AR skills. As a proportion of total local members, London has the 7th highest density of VR/AR talent, followed by Birmingham at 9th. Oxford and Cambridge also have high level of VR/AR talent. ([http://www.slush.org/news/state-european-tech-2016-future-invented-europe/ LinkedIn/ Atomico / Slush], Nov 2016)

*Of more than 800 companies working in the VR sector worldwide, more than 150 are based in Britain. ([http://www.growthenabler.com/download-tools GrowthEnabler], Sept 2016)

*According to 01consulting, as of November 2016, Sony’s PSVR represents around one third (30%) of the total VR market. ([http://www.01consulting.net/#!portfolio-item/vr-virtual-reality-market-research-analysis-report-2016 01consulting], Dec 2016)

*Sales of Sony’s PlayStation VR headset are on track to outsell the combined sales of the HTC Vive and Oculus Rift by the end of 2016. ([https://fileexchangeemea.gfk.com/pickup/eJFVObTtdbNCgDBjdyGERUnrmSKLF7CHDOYeD4vG/VR Study TEASER DECK SENT TO CLIENTS 2016.pdf GfK] / [http://www.mcvuk.com/news/read/playstation-vr-set-to-eclipse-rift-and-vive-sales-in-the-uk/0175824 MCV], Nov 2016)

*Consumer spend on VR to hit $11.2bn by 2020, with headsets accounting for $7.9bn and VR entertainment $3.3bn. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*The installed base of VR headsets is set to increase from 4 million in 2015 to 81 million in 2020. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*According to IHS Markit, Samsung Gear VR will be the most widely used VR brand by the end of 2016, making up 30% of owned headsets. Playstation VR is expected to exceed both Oculus and HTC Vive headsets combines, covering 8% of the market. A large segment of the market (40%) is made up of many smaller entrants, mostly smartphone headsets. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*While generally consumers are excited by the potential of VR, many still see a lack of understanding of the products and the potentially high costs as barriers to purchase. 75% of consumers agreed that they do not understand enough about VR products, and 73% would like to wait before investing in the platform. ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*The opportunity to demo VR products is seen as the key factor in the decision to purchase VR by European consumers (79%), ahead of the cost of the product (68%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Cheaper VR products such as Google Cardboard show a higher level of penetration into the market, however, when asked which product they would most likely purchase, the UK’s consumers favoured the more advanced products from Sony PlayStation VR (18%) and Oculus Rift (10%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*UK consumers have a high level of awareness of VR (75% stating that they have heard of VR), ahead of Spain (72%), Italy (71%) and France (70%), although awareness is slightly higher in Germany (79.5%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Worldwide shipments of Virtual Reality hardware will reach 9.6 million units in 2016, generating revenues of approximately $2.3 billion. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

*Growing at a cumulative annual rate of 184%, VR shipments will reach 64.8 million units by 2020. Combined with Augmented Reality hardware, shipments will reach 110 million units by 2020. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

*$2.8B has been invested in VR this year, bringing the total since 2012 up to $8.8B ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*As of April 2016, the market data company Superdata have revised their 2016 global VR hardware and software forecast down to $2.9 billion, a 43% drop from their [https://www.superdataresearch.com/market-data/ $5.1 billion] projection at the beginning of the year. ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*Across key countries in North America and Europe, an average of 11% of the online population between 10 and 65 state that they are planning to buy VR products in the next six months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*On average, men comprise 68% of those who intend to buy VR. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*12% of the online US population is planning to buy VR products in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*10% of online brits intend to purchase VR within the next 6 months, with a further 26% who were undecided. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*For US eSport enthusiasts, 56% intend to buy in the next 6 months, making up 45% of the group that intends to buy VR in that period. Occasional eSport viewers are also keen, with 24% intending to buy in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

== 2015 Stats ==

*Current VR hype is different from past attempts, in that systems will exceed the hype this time, as opposed to systems that can’t live up to the hype. In past VR were more gimmicks than launchable platforms, finally it’s really here. It’s now realistic to do VR at consumer pricing, whereas before it was too expensive. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The impact of having many companies involved in VR is that they are releasing products around the same time, so we’ll see a whole industry that wasn’t there before. VR and AR are going to be powerful drivers in PC growth, as you need better hardware to run the new experiences. It will push the ecosystem of PCs and transform the technology landscape. Having major players involved will accelerate things, but considering a 10-year span before the technology is widely available is reasonable, as PCs will be gradually upgraded with powerful hardware. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The challenges developers face to develop for VR are the misunderstanding of the medium (need for managing motion sickness, mixing gameplay styles to accommodate…) and the natural behaviour of recreating genres that already exist. Sometimes inspiration can be found in sci-fi books rather than in the current market. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*Digi-Capital has forecasted that augmented and virtual reality will be worth $150bn by 2020. Interestingly AR is forecasted to reach 4 times what VR will ($120bn vs $30bn). Digi-capital analysts state that while VR is great for games and 3D films, due to its need for full immersion you won’t be able to play anywhere. AR on the other hand will be easier to play on the tube, and there’s more potential market for the technology beyond games. ([http://www.gamesindustry.biz/articles/2015-04-06-ar-vr-forecast-at-usd150-billion-by-2020 Gamesindustry.biz], Apr 2015)

Virtual reality

2019-11-20T12:19:23Z

UkieUser: /* 2019 Stats */

== 2019 Stats ==

*In the UK in 2018, games made up 53% of spending on VR ([https://assets.ctfassets.net/nubxhjiwc091/5wcen51tqGQSRl1SCgqRJQ/8dea5bd41ef7ded0c7491f2721329c2f/The_immersive_economy_in_the_UK_2019_Report_Nov19.pdf Catapult Digital], Nov 2019)

*VR and AR technologies are predicted to offer a boost of £62.5b ($69.3b) to UK GDP by 2030. Up from £1.8b ($2.0b) in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*VR and AR technologies are predicted to offer a boost of $1,542.9b to global GDP by 2030. Up from $46.4b in 2019 ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*Use of VR and AR in healthcare alone in 2019 contributes $11.0b to global GDP. By 2030 this is predicted to be $350.9b ([https://www.pwc.com/seeingisbelieving PwC], Nov 2019)

*By the end of 2022, the market size for VR is predicted to reach $13.7bn ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*The market size for Augmented and Mixed reality is expected to reach $18.9bn by the end of 2022 ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*In 2019, 33% of Augmented and Mixed reality headsets are estimated to be purchased by consumers. The remaining 67% are purchased by developers and enterprise clients ([https://www.superdataresearch.com/state-of-consumer-xr-2019/ SuperData], Oct 2019)

*Magic Leap has secured a $280 million investment from Japanese mobile operator Docomo, bringing the total investment into Magic Leap to $2.6 billion since being formed in 2010. ([http://gamasutra.com/view/news/341674/Japanese_mobile_operator_Docomo_sinks_280_million_into_Magic_Leap.php Gamasutra] / [https://www.magicleap.com/news/press-release/magic-leap-partnership-ntt-docomo Magic Leap], Apr 2019)

*Sony have announced that as of 3rd March 2019, they have sold through 4.2m PSVR systems worldwide. ([https://blog.us.playstation.com/2019/03/25/playstation-vr-the-next-wave-of-games-coming-in-spring-and-summer-2019/ Sony PlayStation Blog], March 2019)

*Mixed reality hardware and software revenues rose from $4.5nn to $6.6bn from the years 2017 to 2018. In 2019, it is expected that $11.5billion will be generated. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*The share of immersive technology revenue, such as Virtual and Augmented reality, grew from 27% to 25% in 2018. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Oculus Go sold 1million units after its May 2018 launch. It appealed to mainstream users by being a mobile headset that didn't require a connection to another device. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Social media apps such as SnapChat and Instagram drove mobile augmented reality (AR) user numbers to 1.1billion and helped push mixed reality revenue to $2.3billion. In the US, 84% of mobile AR audience used mixed reality technology in social media apps like TikTok, Snapchat and Instagram. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprises purchasing immersive technology surpassed $11b as businesses see the potential for return on investment. Training employees is the biggest reason why businesses purchase immersive technology, with 71% of firms using VR to develop their workforce in skills from performing surgery to practising customer service. For example, Walmart agreed to purchase 17,000 Oculus Go headsets to train retail employees in September 2018 in customer service. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*Enterprise clients are set to account for 85% mixed reality headsets sold in 2019 and will continue to represent the majority of demand through 2022. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*The market for VR installations and attractions such as Star Wars: Secrets of the Empire and Jurassic World VR Expedition grew 37% to $413m. These VR exhibitions are expected to introduce everyday consumers to high-end VR by offering experiences in busy locations such as airports and restaurants. This may alleviate the initial slower-than-anticipated adoption of high-end consumer VR headsets. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2019)

*According to analytics firm ABI and NVIDIA, 4 million PC VR headsets have been sold to date. [https://www.roadtovr.com/nvidia-claims-4-million-pc-vr-headsets-sold/ Road to VR], Jan 2019)

*According to the latest Steam Hardware & Software Survey, around 767,000 or 0.8% of all Steam users have VR headsets attached to their machines, almost double the numbers published 16 months previously. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

*The market share for VR headsets among Steam users is 46.5% Oculus Rift and 40.1% HTC VIVE, although the HTC VIVE Pro which picks up an 2.81% for HTC. Windows VR headsets collectively make up 8.9% of the market. ([https://www.roadtovr.com/2018-ends-with-a-record-number-of-vr-headsets-on-steam/ Road to VR], Jan 2019)

== 2018 Stats ==

*By 2022, VR content will generate $21.2bn a year by 2022, with game revenue ($12bn approx.) staying ahead of video ($9bn approx.). ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*Total global revenues from VR apps, gaming and video will grow from $3.9bn in 2017 to over $20bn in 2022. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*By 2022, 175.2m VR headsets will be in consumers’ hands across ten major markets, up from an estimated 37.6m at the end of 2017. ([https://www.pwc.com/gx/en/industries/tmt/media/outlook/segment-findings.html PwC], Jun 2018)

*The UK’s fastest growing entertainment and media sector is Virtual Reality, growing at 34 per cent annually to reach £1.2bn in revenue by 2022. VR headsets are forecast to sell with more than 7.8m cumulatively by the same period. ([http://www.cityam.com/287043/uks-entertainment-and-media-sector-forecast-grow-gbp76bn PwC / City AM], Jun 2018)

*The UK’s VR industry will generate more revenue than any other country in Western Europe over this time. ([https://www.digitaltveurope.com/2018/06/07/pwc-vr-the-fastest-growing-segment-of-uk-media-sector/ PwC / digitsaltveurope.com], Jun 2018)

*There are 1,000 immersive-specialist companies in the UK (>50% of income from immersive projects), employing around 4,500 people and generating £660m in sales. This potentially represents as much as 9% of the global market. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Half of immersive-specialist businesses in the UK were incorporated since 2012. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*6 out of 10 of immersive-specialist businesses grew their turnover in the past 12 months and 90% were confident of their future prospects. 70% were exporting immersive-related products and services, with a particular focus on US markets. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*38% of immersive business are located in London. Other hubs for immersive businesses include Brighton, Bristol, Newcastle, Liverpool, Manchester, Cambridge, Oxford and Edinburgh. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*253 projects worth a total of £160m were identified in UK Research Councils, Innovate UK and EU Horizon 2020 open datasets. Funding for immersive tech projects was 9 times higher in 2016-2017 than in 2009-2010. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*3 in 10 immersive specialist companies benefitted from tax incentives in the last 12 months and 2 in 10 received some sort of national grant. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Venture capital investment in UK augmented reality increased by around 40% to £48.4m in 217 but investment at seed stage was broadly flat year-on-year. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Venture capital investment in UK virtual reality grew +260% from £50m in 2016 to £180m in 2017. Seed stage funding was down from £5m to £2m in the same period. ([https://www.immerseuk.org/wp-content/uploads/2018/05/Immersive_Technologies_PDF_lowres.pdf ImmerseUK], May 2018)

*Extended reality (XR) revenue up by 37% to $4.0bn in 2017. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Consumer virtual reality revenue reached $2.2bn in 2017, with $1.7bn from hardware sales and $554m in software sales. In 2018, revenues are expected to increase 105% to $4.5bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Samsung’s Gear VR was the highest selling mobile headset in 2017 and Sony’s PlayStation VR was the highest selling console/PC headset (see chart below). ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*$2.3bn of venture investments in XR were made in 2017, with Magic Leap accounting for $0.5bn of total revenues. The remainder was split $0.9bn in VR projects and $0.9bn in AR/MR projects. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ Superdata], Jan 2018)

*Venture funding of VR/AR companies reached at least $1.9bn in 2017. The total number of companies raising venture capital during 2017 outpaced 2016, but the average deal size declined sharply by 35%. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

*The majority of VR/AR venture funding deals in 2017 were early stage (Seed and Series A). The number of early stage deals in 2017 was up 27% YoY and 105 companies raised $2M or more from VCs. However, the average Seed and Series A deal size declined 9% and 17%, respectively. ([https://www.roadtovr.com/investors-poured-record-breaking-2b-into-vrar-in-2017-but-early-stage-funding-slowed/ Greenlight Insights], Jan 2018)

== 2017 Stats ==

*Sony’s PlayStation VR headset (PSVR) has sold through 2m units globally. ([http://www.sie.com/en/corporate/release/2017/171207.html SIE], Dec 2017)

*There are 463 VR / AR companies operating in the UK, split into 308 in content, 110 in technology and 45 services. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

*London is the largest hub for VR/ AR companies, with 244 businesses located in the capital. These companies have attracted a combined VC investment of $645.7m. ([https://public.tableau.com/profile/jeremy.dalton#!/vizhome/VRARinteractiveUKmap_0/VRARCompaniesAcrosstheUK_ PWC / Immerse UK], July 2017)

*The UK will have the largest and fastest growing VR hardware market in EMEA, worth £0.8m in 2021, growing at 76% CAGR. ([https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html PWC], June 2017)

*PlayStation VR has sold more than 1m units worldwide ($399 / £308 approx), Sony Interactive Entertainment have confirmed. ([http://www.mcvuk.com/news/read/psvr-hits-1m-sales-worldwide/0183302 MCV] / [http://www.bbc.co.uk/news/technology-40190448 BBC], June 2017)

*55% of the most frequent gamers are familiar with virtual reality; among those, 40% say they will likely purchase VR within the next year. ([http://essentialfacts.theesa.com/ ESA], April 2017)

*The total virtual reality revenues to reach $7.2 billion globally by the end of 2017 with head-mounted displays (HMDs) accounting for $4.7 billion. By 2021, global revenues are expected to reach $74.8bn. ([http://greenlightinsights.com/2017/04/virtual-reality-industry-report-7b-2017/ Greenlight Insights], Apr 2017)

== 2016 Stats ==

*The world consumer VR headset installed base reached 28 million at the end of 2017 and will reach 75.7 million consumer VR headsets installed by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR headsets reached $2.4 billion in 2017 and is forecast to reach $5.8 billion by 2021. Spend will be driven by continued adoption of PC, console and standalone headsets offset by reduction in price points for these same headsets. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*World consumer spending on VR games, interactive experiences and video reached $803 million in 2017 and is forecasted to reach $2.8 billion by 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Consumer spending on location-based VR reached $385 million in 2017. This is forecast to grow to $906 million by 2021. In 2017, China’s share of the market was 65%. This is expected to decrease to 51% by 2021 as other regions and country markets become more established. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*Consumer spend on all AR-related mobile apps is forecast to grow from $1.6bn in 2017 to $7.8bn in 2021. ([https://technology.ihs.com/591822/immersive-computing-consumer-augmented-virtual-reality-report-2018 IHS Markit], Feb 2016)

*The VR market generated $2.7bn in 2016 and will grow to $17.8bn by 2019. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

*Augmented Reality accounted for $1bn in 2016 revenue and Mixed Reality made up $100m. By 2019, Mixed Reality will become the dominant sector of the two, worth $9.4bn to AR’s $4.2bn. ([https://www.superdataresearch.com/market-data/market-brief-year-in-review/ SuperData], Dec 2016)

*The Virtual, Augmented and Mixed Reality games market will be worth $1.2bn by the end of 2016 and is projected at up to $8.8bn by the end of 2020, with VR becoming the dominant sector in revenue terms. ([https://www.superdataresearch.com/superdata-vr-data-network/ Superdata], Nov 2016)

*The total value of VR market (including hard- and software) will reach $6.7bn in 2016 and will reach $70bn by 2020. ([http://press.trendforce.com/node/view/2210.html TrendForce], Dec 2016)

*London is the top hub for VR and AR talent in Europe, with the highest number of LinkedIn members with VR/AR skills. As a proportion of total local members, London has the 7th highest density of VR/AR talent, followed by Birmingham at 9th. Oxford and Cambridge also have high level of VR/AR talent. ([http://www.slush.org/news/state-european-tech-2016-future-invented-europe/ LinkedIn/ Atomico / Slush], Nov 2016)

*Of more than 800 companies working in the VR sector worldwide, more than 150 are based in Britain. ([http://www.growthenabler.com/download-tools GrowthEnabler], Sept 2016)

*According to 01consulting, as of November 2016, Sony’s PSVR represents around one third (30%) of the total VR market. ([http://www.01consulting.net/#!portfolio-item/vr-virtual-reality-market-research-analysis-report-2016 01consulting], Dec 2016)

*Sales of Sony’s PlayStation VR headset are on track to outsell the combined sales of the HTC Vive and Oculus Rift by the end of 2016. ([https://fileexchangeemea.gfk.com/pickup/eJFVObTtdbNCgDBjdyGERUnrmSKLF7CHDOYeD4vG/VR Study TEASER DECK SENT TO CLIENTS 2016.pdf GfK] / [http://www.mcvuk.com/news/read/playstation-vr-set-to-eclipse-rift-and-vive-sales-in-the-uk/0175824 MCV], Nov 2016)

*Consumer spend on VR to hit $11.2bn by 2020, with headsets accounting for $7.9bn and VR entertainment $3.3bn. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*The installed base of VR headsets is set to increase from 4 million in 2015 to 81 million in 2020. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*According to IHS Markit, Samsung Gear VR will be the most widely used VR brand by the end of 2016, making up 30% of owned headsets. Playstation VR is expected to exceed both Oculus and HTC Vive headsets combines, covering 8% of the market. A large segment of the market (40%) is made up of many smaller entrants, mostly smartphone headsets. ([http://www.gamesindustry.biz/articles/2016-10-06-consumer-spend-on-vr-to-hit-usd11-2-billion-by-2020-ihs-markit IHS Markit], Sept 2016)

*While generally consumers are excited by the potential of VR, many still see a lack of understanding of the products and the potentially high costs as barriers to purchase. 75% of consumers agreed that they do not understand enough about VR products, and 73% would like to wait before investing in the platform. ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*The opportunity to demo VR products is seen as the key factor in the decision to purchase VR by European consumers (79%), ahead of the cost of the product (68%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Cheaper VR products such as Google Cardboard show a higher level of penetration into the market, however, when asked which product they would most likely purchase, the UK’s consumers favoured the more advanced products from Sony PlayStation VR (18%) and Oculus Rift (10%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*UK consumers have a high level of awareness of VR (75% stating that they have heard of VR), ahead of Spain (72%), Italy (71%) and France (70%), although awareness is slightly higher in Germany (79.5%). ([http://ukie.org.uk/news/2016/07/consumer-vr-survey-%E2%80%93-results-ukie-member-discount CONTEXT], July 2016)

*Worldwide shipments of Virtual Reality hardware will reach 9.6 million units in 2016, generating revenues of approximately $2.3 billion. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

*Growing at a cumulative annual rate of 184%, VR shipments will reach 64.8 million units by 2020. Combined with Augmented Reality hardware, shipments will reach 110 million units by 2020. ([http://www.idc.com/getdoc.jsp?containerId=prUS41199616 IDC], Apr 2016)

*$2.8B has been invested in VR this year, bringing the total since 2012 up to $8.8B ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*As of April 2016, the market data company Superdata have revised their 2016 global VR hardware and software forecast down to $2.9 billion, a 43% drop from their [https://www.superdataresearch.com/market-data/ $5.1 billion] projection at the beginning of the year. ([https://www.superdataresearch.com/market-data/virtual-reality-industry-report/ Superdata], Apr 2016)

*Across key countries in North America and Europe, an average of 11% of the online population between 10 and 65 state that they are planning to buy VR products in the next six months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*On average, men comprise 68% of those who intend to buy VR. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*12% of the online US population is planning to buy VR products in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*10% of online brits intend to purchase VR within the next 6 months, with a further 26% who were undecided. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

*For US eSport enthusiasts, 56% intend to buy in the next 6 months, making up 45% of the group that intends to buy VR in that period. Occasional eSport viewers are also keen, with 24% intending to buy in the next 6 months. ([https://newzoo.com/insights/articles/vr-buying-intention-europe-north-america/ Newzoo], Apr 2016)

== 2015 Stats ==

*Current VR hype is different from past attempts, in that systems will exceed the hype this time, as opposed to systems that can’t live up to the hype. In past VR were more gimmicks than launchable platforms, finally it’s really here. It’s now realistic to do VR at consumer pricing, whereas before it was too expensive. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The impact of having many companies involved in VR is that they are releasing products around the same time, so we’ll see a whole industry that wasn’t there before. VR and AR are going to be powerful drivers in PC growth, as you need better hardware to run the new experiences. It will push the ecosystem of PCs and transform the technology landscape. Having major players involved will accelerate things, but considering a 10-year span before the technology is widely available is reasonable, as PCs will be gradually upgraded with powerful hardware. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*The challenges developers face to develop for VR are the misunderstanding of the medium (need for managing motion sickness, mixing gameplay styles to accommodate…) and the natural behaviour of recreating genres that already exist. Sometimes inspiration can be found in sci-fi books rather than in the current market. ([http://1.fc-bi.com/LP=5230 VR Intelligence], Aug 2015)

*Digi-Capital has forecasted that augmented and virtual reality will be worth $150bn by 2020. Interestingly AR is forecasted to reach 4 times what VR will ($120bn vs $30bn). Digi-capital analysts state that while VR is great for games and 3D films, due to its need for full immersion you won’t be able to play anywhere. AR on the other hand will be easier to play on the tube, and there’s more potential market for the technology beyond games. ([http://www.gamesindustry.biz/articles/2015-04-06-ar-vr-forecast-at-usd150-billion-by-2020 Gamesindustry.biz], Apr 2015)