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

1. Video will account for 69% of all internet traffic in 2024. 2. XR devices are expected to quadruple to 83 million by 2031. 3. 40% of consumers are dissatisfied with current network performance. 4. 6G deployment is essential for supporting growing XR content demands. 5. InterDigital is poised to lead innovations in wireless and video technology.

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Why Bullish?

The increasing demand for XR aligns with InterDigital's technological focus, likely boosting revenue.

How important is it?

The article positions InterDigital as a key player in the evolving XR market.

Why Long Term?

As XR adoption grows, InterDigital's innovations may significantly enhance future revenue streams.

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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 unitsLimitations 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 internetOn smartphones, 74% of data consumption is video, driven by social media clips, embedded video, and streaming platforms26% of consumers watch SVoD services (e.g. Netflix, Prime Video) on their smartphone, compared to 41% on TVsBy 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

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