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Experts Predict Virtual Reality Content Boom in China

Consumers suggest VR gaming and movies have strong potential

October 31, 2016

Spending on hardware and software related to virtual reality (VR) is growing rapidly in China. In fact, creating content for this emerging VR industry may prove to be one of the market’s biggest opportunities in the coming years.

Virtual Reality Content Revenues in China, 2015-2020 (billions of Chinese yuan renminbi and % change)

Based on estimates from an April 2016 report on VR content in China from by iiMedia Research, revenues from the sector will grow 458% in 2016 to total RMB0.67 billion ($98.9 million). iiMedia expects VR content revenues will grow by another 279% in 2017, reaching RMB2.54 billion ($375.1 million).

Other data sources beyond iiMedia have highlighted the importance of VR content in consumers’ purchase decisions, a fact which may be helping to increase the sector’s revenue forecasts. In a May 2016 survey from VR hardware-maker HTC that examined important factors for purchasing a VR device, an “abundance of content” was the second-most popular factor cited by internet users in China.

Important Factors When Purchasing a Virtual Reality (VR) Device According to Internet Users in China, May 2016 (% of respondents)

iiMedia’s report provides further insight into the types of VR content likely to be in demand over the next few years. According to its data, gaming and movies were the most anticipated categories of VR app content, mentioned by 32.3% and 26.9% of mobile internet users.

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