The UK is witnessing a significant boost in its entertainment and media sector, thanks to the burgeoning virtual reality (VR) market. By 2021, the industry is expected to reach a remarkable valuation of £72 billion.
According to PwC’s Global Entertainment & Media Outlook, VR will lead this charge with an impressive 76% annual growth projection, positioning the UK as a powerhouse in the EMEA region.
A majority of VR users in the UK will interact via mobile devices. Phil Stokes of PwC anticipates over 16 million VR headsets in use by 2021, with about 12 million being portable mobile VR devices.
These devices, driven by smartphones, are more affordable and benefit from rapid technological advancements, making them a popular choice among consumers.
The UK video games industry remains the largest in Europe and ranks fifth globally. It is projected to be valued at £5.2 billion by 2021.
The growth in gaming is set to surpass traditional sectors such as books, forecasted to reach only £5 billion. This indicates a shift in consumer spending patterns.
Advertising in the UK’s entertainment and media sector is expected to constitute a third of total revenue by 2021. With 89 million smartphones forecasted to be in use by then, mobile advertising is likely to see a substantial rise.
The UK holds the title for the largest internet advertising market in Europe. Anticipated to surpass £10 billion this year, internet advertising revenue continues to climb, projected to hit £14.4 billion by 2021.
The technological landscape in the UK is evolving rapidly. Digital services and innovative technology play pivotal roles in shaping consumer habits.
With consumers exercising more control and choice over their consumption, companies are compelled to develop novel strategies to captivate and retain their audience.
The UK’s entertainment and media industry are poised for substantial growth over the next five years. As technology dictates new growth avenues, companies are exploring diverse ways to engage consumers and boost their digital presence.
Phil Stokes emphasises that the creative industry has been earmarked as a priority in the Government’s industrial strategy, further strengthening the potential for sustained progress.
As the UK’s VR market continues to expand, it heralds a new era for the entertainment and media sectors. The projections indicate a future where innovation and digital engagement will drive economic vitality.
Overall, this growth underscores the importance of technological advancements in shaping the future landscape of the media industry.
In conclusion, the UK’s VR market is set to redefine the entertainment landscape significantly. With rapid advancements in technology and consumer preferences leaning towards digital platforms, the sector stands on the precipice of unprecedented growth.
Embracing these changes is vital for stakeholders aiming to capitalise on the vast opportunities presented by this vibrant market.
