Global Virtual Reality Market to Reach $940 Million, China Tops Market
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker’s Virtual Reality Industry Review in a nutshell
- In 2020, market will increase to $30 billion
- Asian market will be worth $10 billion in 2021
- Chinese companies quick to enter market
How is the virtual reality industry?
The virtual reality market will reach $970 million this year and $30 billion in 2020, Research in China reports.
The augmented reality market also will see growth, reaching $500 million in 2016 and $90.8 billion in 2020.
To experience virtual reality (VR) a headset is needed. Applications include simulations and live streaming. Augmented reality (AR) uses handsets or headsets to project images onto real backgrounds.
By 2021, the Asian VR market is forecasted to be worth $10 billion. China is the largest market in terms of technological investment and hardware production. Korea and Japan are the next largest markets.
Globally, VR is a niche market, attracting mostly gamers. In China, however, the technology is a widely available form of entertainment.
The Chinese VR market is expected to worth $840 million by the year’s end, according to a report by e-commerce company JD.com and market intelligence firm IDC. This means the market will be triple the size it was in 2015 and is growing at a compound annual growth rate (CAGR) of 75.5%.
This year, the number of Chinese VR users will pass 1.4 million.
Urban men under 35 make up the bulk of VR users.
Headset price is a barrier for most consumer. The average VR headset sold in China costs $30 and is made of cardboard.
Since December, Chinese VR startups have raised $1.5 million.
More than 60 companies have entered the VR market since July.
Chinese VR Entrepreneurs
The Chinese VR market is forecasted to reach $8.5 billion in 2020, according to Greenlight VR.
Much of this growth is fueled by VR cafes and arcades that charge customers a fee.
One success is EMAX, which runs 179 VR kiosks. Customers pay $7.50 for a virtual ride.
The company has gained $6.7 million in venture capital. It soon plans to write VR software.
Another success is the VR Lounge. Customers pay $15 for 30 minutes and must be lounge members.
Members can browse from a VR catalogue.
There are approximately 300 VR cafes in China. VR café owner Chen Jiawei believes there will be six times that amount in 2017, according to Quartz.
ReportLinker Review: the Global Virtual Reality Market
- By 2022, the market is forecasted to reach $35 million in value. During the period 2014-2022, this represents a CAGR of 90%. This growth is fueled by the use of head mounted displays in gaming and entertainment. (source: Stratistics MRC)
- In 2015, the market was valued at $1.37 billion. By 2022, it is forecasted to reach $33.9 billion, growing between 2016 and 2022 at a CAGR of 57.84%. (source: MarketsandMarkets)
- In 2015, the global augmented and virtual reality market was valued at $2.67 billion. By 2022, it is forecasted to be valued at $66.68 billion, growing at a CAGR of 58.3%. (source: Stratistics MRC)