A report highlights growing video traffic and XR device demand, stressing the need for upgraded wireless networks to meet consumer expectations.
Quiver AI Summary
A recent report by InterDigital and Futuresource Consulting highlights the increasing demand for immersive content, particularly through XR (extended reality) devices, which are projected to quadruple to 83 million units shipped by 2031. In 2024, video alone accounted for 69% of all internet data traffic, significantly outpacing social media and gaming. While mobile gaming reached $85 billion in revenues by the end of 2024, 40% of consumers express dissatisfaction with current network performance, which is concerning as XR applications require even more robust infrastructure. The report emphasizes the need for significant upgrades in wireless technology, particularly with the upcoming 5G-Advanced and 6G systems, to support the expected rise of immersive experiences in various areas, from digital sports venues to augmented city guides. The transition to 6G capability by 2030 is essential for unlocking the full potential of XR and ensuring a satisfying user experience.
Potential Positives
- The report highlights InterDigital's leadership in addressing the anticipated surge in demand for immersive and XR content over wireless networks.
- Predictions indicate a quadrupling of XR device shipments by 2031, suggesting strong future market growth potential for InterDigital's technologies.
- The emphasis on 6G technology positions InterDigital to be at the forefront of developing next-gen wireless solutions that will cater to the evolving entertainment landscape.
- The company's involvement in pioneering wireless and video technologies may enhance its reputation and attract new partnerships in the rapidly growing XR market.
Potential Negatives
- 40% of consumers report dissatisfaction with current network performance, which may hinder the adoption of XR devices.
- The existing wireless infrastructure is described as inadequate for the demands of future XR technologies, signaling potential operational challenges ahead.
- The reliance on upcoming 6G technology to satisfy consumer demand raises concerns about current capabilities and readiness of the company to meet future market expectations.
FAQ
What percentage of internet data traffic is video in 2024?
Video accounted for 69% of all internet data traffic in 2024.
How many XR devices are expected to be shipped by 2031?
By 2031, the number of XR devices shipped is projected to reach 83 million units.
What are the current consumer concerns with wireless networks?
40% of consumers report dissatisfaction with current network performance regarding video demands.
When is 6G expected to be deployed alongside XR technology?
6G deployment is anticipated to occur between 2028 and 2032, coinciding with XR technology maturity.
What role does ultra-low latency play in XR experiences?
Ultra-low latency is essential for responsive interactivity and media synchronization in immersive XR experiences.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
- Video accounted for 69% of all internet data traffic in 2024, far surpassing social media (13%) and gaming (10%)
- By 2031, the number of XR devices shipped will quadruple to reach 83 million units
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Limitations of current networks are already apparent, with 40% of consumers voicing dissatisfaction
WILMINGTON, Del., May 27, 2025 (GLOBE NEWSWIRE) -- The exponential growth in immersive content consumption is set to put a major strain on today’s wireless infrastructure and make way for new enabling innovation, according to a new paper released by InterDigital, Inc. (NASDAQ: IDCC), a mobile and video technology research and development company, and market research firm Futuresource Consulting. The report reveals that as immersive and extended reality (XR) content becomes more accessible, current network architecture must evolve to cope with the demand.
The paper, titled “Media over Wireless: Networks for Ubiquitous Video , ” explores the escalating demands and trends around consumer behavior for video and immersive experiences over wireless networks. XR applications are placing new demands on wireless networks which, in their current form, will be unable to handle the next generation of immersive entertainment.
Today, demand for entertainment over wireless is voracious, whereby:
- Video accounts for 69% of all data traffic over the internet
- On smartphones, 74% of data consumption is video, driven by social media clips, embedded video, and streaming platforms
- 26% of consumers watch SVoD services (e.g. Netflix, Prime Video) on their smartphone, compared to 41% on TVs
- By the end of 2024, mobile gaming revenues reached $85 billion
However, the XR market is growing rapidly, and by 2031, it is expected that the number of XR devices shipped will increase 4x over 2025 levels, to reach 83 million units globally . Without significant upgrades to the network, the market risks facing stalled adoption of immersive devices—especially given that 40% of consumers today report dissatisfaction with network performance, where video demands are not as intensive as XR.
“The high demand for more immersive entertainment cannot be ignored. As XR devices become more accessible, we’ll move from simply watching video to stepping inside it—and future wireless systems need to be prepared for this staggering change,” said Milind Kulkarni, Head of Wireless Labs at InterDigital. “XR is a stress test for wireless networks, where the throughput and latency demands make it the defining use case for 6G and next-gen video codecs.”
5G-Advanced and forthcoming 6G architectures will be essential to unlocking the full potential of immersive and XR content. Futuresource predicts that 6G deployment will coincide with the projected maturity of XR hardware and software ecosystems, which is expected to take place between 2028 and 2032.
- The XR market is projected to hit 130 million 6G-enabled devices by 2037, up from near-zero today.
- By 2030, XR is expected to become the second major category (after smartphones) to integrate 6G capabilities.
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New experiences will reach the market, with immersive experiences on the go such as: city tours, live events, and public transport entertainment.
“The XR market is entering a pivotal phase, where immersive content is no longer a niche. As we get closer to 2030 and the release of the first 6G standards, XR entertainment is going to become an expectation, where we will see interactive digital sports venues to real-time augmented city guides and digital twins,” said Lionel Oisel, Head of Video Labs, at InterDigital. “But the success of these experiences will hinge entirely on quality of experience—whereby ultra-low latency, responsive interactivity, and consistent media synchronisation which are all essential to unlocking XR’s full potential.”
The full report, “Media over Wireless: Networks for Ubiquitous Video,” is available to download here .
About InterDigital®
InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com .
InterDigital Contact:
Roya Stephens
Email:
[email protected]
+1 (202) 349-1714
