Press release: Consumer Virtual Reality market worth $5.2bn by 2018
Cambridge, U.K. — The consumer virtual reality market will be worth $5.2 billion by 2018, according to the latest KZero market sizing report on the Consumer Virtual Reality market. As part of this report, both hardware and software forecasted sales from 2014 to 2018 have been assessed.
The primary audience for consumer virtual reality is segmented into three main groups:
- Hardcore gamers and innovators
- Light gamers and early adopters
- Kids, tweens and teens
On an overall basis, it is estimated that 2014 unit sales will reach 200,000, all from the hardcore gamer and innovator segment, as the market begins to emerge.
From here, 2015 sales are forecasted at 5.7 million units rising to 23.8 million in 2018. Total cumulative units sold from 2014 to 2018 equals 56.8 million devices. This is broken out as 10.9 million units from hardcore gamers, 18.1 million from light gamers and 27.7 million from the kids, tweens and teens segment.
Applying a starting selling price point of $300 in 2014, falling circa $50 per year through to 2018 — a continuing fall in the retail price is factored in as more companies enter the market and drive competition — 2014 hardware revenue is calculated at $60 million in total. As unit sales increase, total hardware revenues grow to $1.4 billion in 2015 from 5.7 million purchased devices, through to $2.1 billion 2016, and $2.4 billion in 2017.
Full year 2018 hardware revenue from devices sales is estimated at $2.3 billion, creating total cumulative hardware revenues of $8.4 billion. This is broken out as $1.6 billion units from hardcore gamers, $2.5 billion from light gamers and $4.2 billion from the kids, tweens and teens segment.
Games and apps
Once you’ve got a consumer virtual reality device you need games, apps and other software to do stuff. Therefore, the software side of the market has also been assessed. To calculate software revenues an active user forecast — on the basis that a single device will have more than one user — has been applied to a forecasted ARPPU data in order to determine revenues.
2014 software revenue are forecasted at $30 million in 2014, from 600,000 active users. This increases to $947 million in 2015 from 15.7 million active users.
Total 2018 annual software revenue is forecasted at $2.8 billion from 47.6 million active users. Cumulative software revenue from 2014 to 2018 is estimated at $7.7 billion .This is broken out as $1.4 billion software revenue from hardcore gamers, $2.4 billion from light gamers and $3.8 billion from the kids, tweens and teens segment.
Since 2006, KZero has been at the heart of the virtual world, MMO, augmented and virtual reality and social gaming sectors. Clients include global brands, leading developers and publishers in these sectors and start-ups gearing up to enter the market. For more information, visit kzero.co.uk.
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