New research reveals immersive content will stretch wireless networks to breaking point, paving way for video and 6G innovation

Rhea-AI Summary

InterDigital and Futuresource Consulting's new research reveals that the surge in immersive content consumption will significantly strain current wireless infrastructure. Video currently accounts for 69% of internet data traffic, with social media at 13% and gaming at 10%. The study projects that XR device shipments will quadruple to 83 million units by 2031. Current networks face challenges, with 40% of consumers already expressing dissatisfaction with network performance. The research indicates that 6G deployment will align with XR hardware and software ecosystem maturity between 2028-2032. By 2037, the market is expected to reach 130 million 6G-enabled XR devices. The study emphasizes the critical need for network evolution to support next-generation immersive entertainment and XR applications.

Positive

• XR device shipments projected to quadruple by 2031, reaching 83 million units
• XR market expected to reach 130 million 6G-enabled devices by 2037
• Strong current market position with video accounting for 69% of internet data traffic
• Mobile gaming revenues reached $85 billion by end of 2024

Negative

• 40% of consumers report dissatisfaction with current network performance
• Current network architecture inadequate to handle next-generation immersive entertainment
• Risk of stalled XR device adoption due to network limitations
• Significant network upgrades required to support future XR demands

Insights

Technology Research Analyst

InterDigital's research shows video/XR growth will strain networks, positioning them strategically in 6G and video codec development.

InterDigital's new research with Futuresource Consulting highlights the impending infrastructure challenges as immersive content consumption grows exponentially. The study reveals video already accounts for 69% of all internet data traffic and 74% of smartphone data consumption. These statistics showcase the foundation for InterDigital's strategic positioning in next-generation wireless technologies.

The most significant insight is the projected 4x growth in XR device shipments by 2031, reaching 83 million units. This growth trajectory creates substantial opportunities for InterDigital, whose core business revolves around developing and licensing technologies for mobile communications and video compression. Their research explicitly identifies that current networks are inadequate for these emerging demands, with 40% of consumers already reporting dissatisfaction with network performance.

InterDigital is strategically highlighting the need for advanced video codecs and 6G technologies - precisely the areas where they hold valuable intellectual property. This research effectively frames InterDigital as a key enabler for the future of wireless communications, particularly as 6G deployment (2028-2032) aligns perfectly with XR market maturation.

The company is essentially signaling to investors that their R&D investments in advanced wireless and video technologies position them to benefit from these emerging trends. By quantifying both current demands ($85 billion in mobile gaming revenue) and future growth projections (130 million 6G-enabled XR devices by 2037), InterDigital is highlighting the growing addressable market for their intellectual property portfolio and technology solutions.

• 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
• 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.
• 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: Roya.Stephens@InterDigital.com
+1 (202) 349-1714

FAQ

What is the projected growth of XR devices according to InterDigital's research?

According to the research, XR device shipments are expected to quadruple by 2031, reaching 83 million units globally, and the market is projected to hit 130 million 6G-enabled devices by 2037.

How much of current internet data traffic is video according to IDCC's study?

Video accounts for 69% of all internet data traffic, with social media at 13% and gaming at 10%.

When is 6G deployment expected to align with XR ecosystem maturity?

The research indicates that 6G deployment will coincide with XR hardware and software ecosystem maturity between 2028 and 2032.

What percentage of consumers are dissatisfied with current network performance?

40% of consumers report dissatisfaction with current network performance, even before the more intensive demands of XR technology.

What are the current video consumption patterns on smartphones according to InterDigital?

On smartphones, 74% of data consumption is video, with 26% of consumers watching SVoD services on their smartphones compared to 41% on TVs.