VR Market Size & Issues
What is the real size of the VR Market? What are the issues?
The Dvision Network is a new VR content ecosystem that utilizes blockchain technology. It aspires to provide the best user experience by utilizing the advantageous features of Blockchain and VR technologies, and by creating an unprecedented and inclusive virtual ecosystem for businesses and designers.
Welcome to the Dvision Network! In the previous post, we provided an introduction to the Dvision Network to our dearest readers. However, today we would like to let you know the solid rationale behind the emergence of the Dvision Network. First of all, we will briefly observe the real size and the CAGR trend of the VR market. Then we will provide the main reason and central idea for the Dvision Platform. Let’s check out together what makes Dvision unique👇!
Global VR Market
As we have previously mentioned, the VR industry is going through significant changes as domestic and foreign IT companies are increasing their investments in VR tech in response to the evolution of 5G and the arrival of the cloud era. According to a report by ITP, big IT enterprises like Facebook, Microsoft, Sony, and HTC have started investing a lot in VR technologies. However, in the Korean market, VR is mainly being developed by the three primary telecommunication companies (SK, KT, LG U+).
The VR content market is also developing along with VR technologies. According to SuperData, a U.S. market research company, global VR markets were estimated to be worth USD 4.5 billion (approximately KRW 5.04 trillion) in 2018. This amount doubled in the next year, increasing to USD 9.6 billion (approximately KRW 10.75 trillion) and finally reaching USD 14.5 billion (approximately KRW 16.5 trillion) in 2020.
Outlook of the Post-COVID-19 VR Market
In the aftermath of COVID-19, the concept of “a socially distanced economy” emerged and became practically omnipresent primarily due to social distancing policies. It is anticipated that AR (augmented reality) and VR-related industries will surge in value, since AR/VR technologies will continuously be used for online classes, online performances, and for those who have to work from home.
According to a report named, “The Short-Term and Long-Term Impact of COVID-19 on AR and VR markets,” the revenue for AR and VR-related hardware is expected to exceed USD 280 billion (KRW about 335 trillion) by 2025. It is also predicted that shipments of supplementary equipment will have a sixfold increase by that time.
VR Content Copyright
The VR content market, which is expected to be the core of the Fourth Industrial Revolution, is currently facing a crisis due to the lack of protection against content piracy and copyright issues. For example, Steam® is the largest VR content platform in the world, but it is located overseas, so it is impossible to get them under the control of Korean government agencies. Therefore, it is impossible to investigate the legitimacy of their content. In order to establish a self-sustaining content industry, it is imperative that we protect the intellectual property rights of content. Further, domestic and international monitoring is required to protect the intellectual property rights of VR and AR content creators.
Lack of Attractive Content
Despite the fact that numerous companies are manufacturing VR hardware, there is still not enough attractive VR content to properly use that hardware. The absence of an appropriate amount of content makes it difficult for consumers to get into the habit of continuously using a single VR device. This in turn leads to a vicious cycle: lack of interesting content leads to consumers not buying many products, so companies reduce their investment in content development, leading to even less interesting content being created, and so on. In fact, Google decided to discontinue its VR business operations in October of 2019. Ultimately, Google withdrew from VR research since they came to the conclusion that the VR market would not be profitable due to a lack of content and consumer interest.
Absence of VR Content Integration Platform
According to TrendForce, the VR market changed its direction from the mere distribution of VR devices (hardware) to the distribution of content as of 2018. Even though global companies like Oculus, Sony, and HTC are building their own content platforms and attracting users and content, there has not yet been a proper integrated platform to bring together the growing number of VR consumers and content-makers in Korea. With most of the apps sporadically maintained by individual operators, Korean consumers are flocking to larger global platforms to experience more diverse VR content. As such, content produced in Korea is being absorbed into these larger platforms. Given this trend, it is very urgent that we establish a platform that integrates Korean VR content into one place, so that Korea does not lose its chance to compete globally in a highly opportunistic market.
Dvision Team Objectives
The Dvision team aims to revolutionize the VR market by solving the issues mentioned above. They plan to create a new VR content ecosystem utilizing blockchain technology. The Dvision team wants to develop and further cultivate the VR industry by offering an ecosystem with three primary services:
- High-Quality Content: Meta-City
Meta-City is a public space where you can experience various metaverse content, such as gaming, shopping, or learning. You can even visit different exhibitions here.
2. Customizing a Virtual Space: Meta-Space
Meta-Space is a feature where business owners, designers, store owners, or other regular users can create a personalized virtual space as they see fit.
3. VR Ecosystem Expansion: NFT Market
The NFT Market is a platform where various items are traded. Those items are developed directly by users or created by third-party designers as requested.