Greenlight VR Report: Consumers Are Surprisingly Unaware of Virtual Reality

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After our latest US consumer research in October 2015, we wanted to find out if the trends we were seeing in the survey data held for a larger, more international pool. In December, we surveyed over 1,000 respondents throughout the United Kingdom about their awareness of virtual reality, interest in purchasing headsets and trying applications, and their concerns.

With everyone from Facebook’s Mark Zuckerberg to analysts at Goldman Sachs boldly claiming VR as the next computing platform, we believe it is critical strategic decision makers — product managers, marketers, and investors alike — better understand the industry’s potential early adopters and what they really want from our industry.

VR Has an Awareness Problem

Understanding the specifications and various use cases for an emerging technology is important for consumers. Awareness at both the brand and category level is a unique necessity for the virtual reality industry. That is why we asked consumers whether they were aware of recent technological developments in VR. These developments ranged from product releases, rumored features for currently unreleased devices, or even academic advancements. Surprisingly, only 8% of the UK sample claimed enough confidence to say they knew a lot about VR.

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Out of the entire sample, 23% had never heard of virtual reality in the UK. In the US, that number was 25% (and only 10% claimed to know a lot about VR). In the US and UK, those who polled higher in awareness for VR included gamers and those looking to purchase a VR device.

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These numbers pose a significant hurdle for brands trying to establish presence in this young market. The advancements in both technology and product availability are important for business-to-consumer relations. Awareness in this field could be directly linked to how young the commercial VR industry is or a gap in the marketing of various hardware and software.

Parents Have Concerns About VR’s Safety

Considering the enthusiasm for VR, one might be tempted to ignore many of the concerns. However, in both the US and UK samples, with over 3,400 respondents around the globe, similar concerns and fears keep popping up. Specifically, within the UK, 73% of the parents who specified a concern cited adverse health effects for their children using virtual reality.

These concerns are best illustrated by comments like:

“I would be concerned as to whether it would affect their vision.”

“Eye health concerns, headaches. How long is it safe for them to wear them in one gaming experience? How heavy will the headset be (impacting their necks, muscles and bones)?”

“I worry about them not getting enough 'real world' interaction and confusing their young brains with fantasy vs reality.”

VR’s Greatest Obstacle In 2016 May Not Be High Prices or Lack of Content

Greenlight VR expects headset cost and lack of content to be choke points for the consumer adoption of virtual reality near term, but VR’s greatest obstacle for 2016 may be consumer awareness.

Awareness is most important at the brand level, but with new consumer technologies like virtual reality, it is also an important metric as overall category awareness will impact the success of the individual brands. Therefore, it would be wise for the companies in the industry to increase marketing activities. The future of VR will be dependent on more than just word of mouth by early adopters. It will require new consumers to actually experience for themselves what it’s like to venture into a virtual world.

Image Credit: Mark Grey/FlickrCC

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Howie Leibach

Howie is a senior research analyst for Greenlight VR. Greenlight VR is the industry leader in market intelligence for the global virtual reality economy. The company tracks more virtual and augmented reality companies than any other market data company — to date, over 1 million data points on thousands of companies. To learn more, visit www.greenlightvr.com
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Discussion — 3 Responses

  • Quantium January 29, 2016 on 8:28 am

    The difference between VR and watching a screen is that two or more people would find it a lot more difficult to share the experience unless sharing could be programmed into the game.

    But I think “virtual travel” or telepresence is the killer app that is needed. How many elderly people have forced themselves to get on line in order to maintain audio/visual contact with grand children? Using the message feature of skype reduces the synchronisation difficulties with the old fashioned telephone, and the increased audio bandwidth and video makes the experience a whole lot more immersive.

    But virtual travel would be an enormous market for this equipment. Remember how much closed circuit TV cameras and VCRs cost at one time? That would be a smudged picture in black and white, and if you pointed the lens straight down you’d run the risk of ruining the “vidicon” tube. So it will come.

  • shnfy February 1, 2016 on 2:52 pm

    Occulus started all this nonsense off with a lot of blustery marketing and promises and just about zero delivery, so its no surprise that the character of VR today is almost entirely fluff and rumor. Thanks to Singularity Hub we learn that most everyone is virtually unaware of virtual reality, and why shouldn’t they be?
    Quantium, you hit the nail on the head; There is no killer app.

    Usually new markets emerge because there is a new product that everyone just HAS TO HAVE, not the reverse. Immersive virtual reality has been a long standing dream for many people, but we aren’t that much closer to realizing it than we were in the 90’s. I’d wager that what tech investors are excited about with VR is that it could be a brand new tech market for them to escape into; The diminishing returns and slowing advancement in computers and soon mobile means the industry is in store for some rough times. The dotcom bubble should have taught these people that throwing a ton of money at a problem like this is just more fuel on the fire. I think that VR will be the future of communications, and exponential technology will bring it sooner than later, but probably not soon enough for tech investors.

    • nickmain shnfy February 8, 2016 on 5:41 pm

      “Occulus started all this nonsense off with a lot of blustery marketing and promises and just about zero delivery”

      Oculus has released two developer’s kits in the past 3 years and sold ~200,000 units for the purpose of getting DEVELOPERS excited and creating content. The first consumer version comes out in March (followed shortly by HTC Vive and PSVR). 100+ new games/experiences will be ready at launch with another 100+ games converted to work with it. Almost every person I’ve ever read about trying them has been impressed with each version.

      I don’t know what you were expecting. I know a lot of media and fans jumped the gun and said 2015 was going to be the year of VR. But they were wrong. And 2016 is just going to be “The year you tried your friend’s VR and REALLY wanted it”. We’re just seeing the launch. Another year of early adopters willing to pay the high price (Oculus preorders are sold out through June at least). Next year we’ll see it start making it’s way to the masses.