Virtual reality is expected to boost the value of the UK鈥檚 entertainment and media sector to 拢72 billion by 2021.
According to PwC鈥檚 Global Entertainment & Media Outlook 2017-2021, VR will be the fastest-growing area with revenue set to increase 76 per cent year on year.
It said VR could be worth 拢801 million to this country by 2021, making the UK market the largest in the VR industry in the EMEA region (Europe, the Middle East and Africa).
PwC鈥檚 UK head of entertainment and media Phil Stokes said most people will access VR using mobile devices.
鈥淲e forecast the number of virtual reality headsets in use in the UK will pass 16 million by 2021,鈥� he said.
鈥淎round 12 million of these headsets will be portable mobile VR devices that use a smartphone at their core as these are more affordable for consumers and benefit hugely from the fast evolution and replacement rate of smartphones.
鈥淒edicated home VR headsets 鈥� the higher end devices used for gaming and video 鈥� will account for three million consumer headsets.
“Portable dedicated headsets 鈥� a new category of self-contained device that are easier to use and have superior capabilities to smartphone-based devices 鈥� forecast to account for one million.鈥�
The UK鈥檚 video games industry is set to remain Europe鈥檚 largest market and the fifth largest globally behind the US, China, Japan and South Korea. By 2021 it is forecast to be worth 拢5.2bn.
UK consumer spend on video games is set to overtake all spending on books, which will reach 拢5bn by 2021.
Stokes added: 鈥淲ith the creative industry being identified as a priority area in the Government鈥檚 industrial strategy, entertainment and media, particularly digital services, will continue to innovate further and drive prosperity and culture throughout the country.鈥�
Advertising聽will be the biggest contributor to entertainment and media growth, accounting for a third of total revenue by 2021.
With the PwC Outlook forecasting 89m smartphones to be in use in the UK by 2021, advertising spend will be increasingly directed to mobile.
The UK is home to the largest internet advertising market in Europe, and will continue to be so for the next five years. Internet advertising revenues will surpass 拢10bn for the first time this year and are forecast to reach 拢14.4bn in 2021.
At that time mobile advertising will overtake wired advertising to account for more than half of total internet advertising revenue.
Stokes added: 鈥淭he UK鈥檚 entertainment and media sectors will play an important role in economic growth over the next five years.
鈥淭echnology and digital service continues to dictate growth with companies tapping into where and how consumers are spending their time online.
鈥淲ith consumers having more control and greater choice, companies will need to find new ways to stand out and engage with customers.鈥�