Europe Virtual Reality Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on Europe Virtual Reality Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to Europe Virtual Reality Market

VR technology has gone beyond its early exploratory stage and is increasingly accepted and demanded. VR has reached a tipping point for large scale adoption, in particular thanks to the development of more comfortable and affordable hardware. Even though VR has been around for a while, initially it was not available for the wider audience. Headsets were either too clumsy and not allowing for smooth virtual experience, or they were too expensive and powered by large-scale computers. As a result, VR was mostly used by large companies in industrial design or by specialised research centres.

The top application areas in Europe are entertainment and gaming, simulation and training for professional and industrial use, healthcare, real estate and architecture.

Market Dynamics

The key market drivers are:

  • VR research and development: Since the early 1990s, EU research funds have supported more than 450 projects dedicated to VR, with a total of over €1 billion. Due to the availability of public research funding (European Union and national public funds), European universities and research centres have been experimenting with VR since the 1970s and are well advanced in coming up with successful applications. For example, MindMaze, a hugely successful Swiss VR med tech company, is a spin-off of neuroscience research at EPFL Lausanne and ETH Zurich.
  • High-precision and niche manufacturing as well as hardware development are well established in Europe. They now feed into state-of-the-art audio and optical technologies and VR for the medical sector. Europe is strong particularly in middleware and software, both of which are soon expected to emerge as the areas of true value for VR. On the user side, the European automotive industry, aviation and machinery are early adopters of VR technologies.
  • Customers are increasingly accepting VR technology, whether for professional or private use or as consumers. This acceptance rate is significantly higher compared to two years ago. An increasing number of customers are actively requesting VR solutions, whereas others are curious about VR and demand information and trials

The key challenges that need to be addressed are:

  • Weak links between research and the market: A considerable amount of public money goes into research institutions and universities across Europe, which is developing incredible technologies. These, however, often do not make it to the market. There is a much more pronounced focus on fundamental than applied research, and most of the research outcomes don’t make it past the prototype stage (according to a report by XR association). According to their research, only 29% of the companies surveyed actively cooperate with universities and research centres, while 61% of the companies carry out R&D internally, indicating a real need to improve the links between research and the market.
  • A lack of cooperation across the different countries in Europe. Despite the high levels of cooperation observed within the various hubs and countries in Europe, cross-border collaboration could be improved further. Most supplier/ customer relations are also either national or global, further hinting at limited European networks. The VR landscape is currently so fragmented and fast-evolving that much time is spent by companies simply looking up contacts. Apart from collaboration across Europe, further collaboration should be encouraged between the three VR global ‘bubbles’ of Europe, Silicon Valley and Asia. This will require additional attention when the UK leaves the EU, as currently London and Palo Alto form the strongest channel of transatlantic collaboration for VR.

 

Market Segmentation

Segmentation based on operating platform

  • PCs
  • Mobile Devices
  • Consoles

Segmentation based on application

  • Military
  • Education
  • Entertainment and Media
  • Gaming and Sports
  • Telecommunications

Segmentation based on technology

  • Immersive
  • Non-immersive
  • Semi-immersive
  • Distributed

Segmentation based on distribution channel

  • Hardware
  • Content
  • VR Experience

 

Regional/Geographic Analysis

In terms of European VR businesses France, Germany, the United Kingdom and the Netherlands are clear frontrunners, with growing VR activity to be observed in the Nordic Countries of Sweden and Finland along with Switzerland, Spain, and Italy, also to a more limited extent Eastern Europe (Poland and the Czech Republic). Specific “hot spots” of VR activity can be found in Paris, Laval, London, Amsterdam, Berlin, Munich, Stockholm, Zurich and Madrid.

In terms of business environment, London and Amsterdam in particular create a favourable atmosphere for new VR start-ups thanks to their vibrant business environment and innovative culture. Meanwhile, Paris and Stockholm are likely to go through a rapid growth in the upcoming years as they record the highest annual increase in investment.

Key Players

  • Oculus
  • 8i
  • Google
  • Virtuix
  • Jaunt
  • GoPro
  • HTC Vive
  • AMD
  • Sony
  • Microsoft
  • Samsung

Major Trade Partners

  • China
  • US
  • Japan

The report contains a comprehensive analysis on:

  • Europe Virtual Reality Market Segments
  • Europe Virtual Reality Market Drivers, Restraints and Opportunities
  • Europe Virtual Reality Market Size & Forecast 2016 to 2023
  • Supply & Demand Value Chain
  • Europe Virtual Reality Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

 

 

Regional analysis for Europe Virtual Reality Market includes:

  • Western Europe
  • EU5 (Germany, France, Italy, Spain, U.K.)
  • Nordic Countries (Denmark, Finland, Norway, and Sweden)
  • Benelux (Belgium, The Netherlands, and Luxembourg)
  • Rest of Western Europe
  • Eastern Europe
  • Russia
  • Poland
  • Rest of Eastern Europe

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macro-economic factors and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

Report Highlights:

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

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