Daily Management Review

Market of VR-devices is growing faster than forecasted


09/05/2016


The market of virtual reality devices is developing more quickly than expected, say experts of research firm CCS Insight. 14.5 million VR-headsets for smartphones are expected to be sold this year for a total sum of $ 500 million. By 2020, sales in units should be increased five-fold, and reach 72 million units.



Nan Palmero
Nan Palmero
CCS Insight analysts have revised forecast for supply of VR-headsets for smartphones upward. The company’s recent study reported that the most popular devices like Google Cardboard and Samsung Gear VR will amount to 14.5 million shares worth $ 500 million this year. 

CCS Insight projected sales volume of all VR-devices at $ 1.5 billion in 2016, and will amount to $ 11 billion in 2020. Headsets in tandem with smartphones will occupy the largest market share in terms of volume and money. Helmets like Oculus Rift or HTC VIve will grip a large proportion, and provide 85% of total revenue in the industry. The company that customers will buy about 2 million of these gadgets in 2016, and about 21 million devices - in 2020.

Augmented reality device are developing more slowly than expected. CCS Insight attribute this to immaturity of the technology as such, as well as the fact that producers of AR-gadgets are focused on the corporate market. Given lack of mass adoption, analysts believe that sales of AR-devices in 2016 will not exceed 200 thousand pieces.

Still, CCS Insight continues to believe AR is a promising direction, and predicts that the volume of this market will reach 7 million units, or $ 3.8 billion in 2020.

It is also noted that volume of sales of VR- and AR-devices in 2020 will be measured by 100 million units, or $ 15 billion.

PricewaterhouseCoopers (PwC) previously issued a report "Global entertainment and media outlook 2015-2019". The paper states that 2016 will be marked by a breakthrough in the field of virtual reality, which will attract a greater number of users in 2017 and 2018. Oculus, Sony and HTC will release their luxury VR-set, and other manufacturers will follow them.

Analysts of Digi-Capital company forecast that the world market for production of VR-content in different directions will exceed $ 30 billion in 2020. More than half of this amount will be spent on VR movies, TV shows and games.

It is believed that the main industries, where new technologies can make a breakthrough, are computer games, sporting events and pornography. "Initially, virtual reality has been invented as part of computer games, but it is increasingly finding application in other areas", - said Maximilian Schenk, Managing Director of the German Association of producers of interactive entertainment software (BIU), which is co-organizer of Gamescom.

Schenk presented results of a representative survey conducted recently among 2,000 Internet users in Germany. "40 percent of users may imagine that they would choose a place for their next vacation with the help of virtual reality technology," - says Schenk. "Wearing VR glasses, they could, for example, take a walk on a beach in Italy, or look into a Parisian cafe", - he explained.

source: dw.de, digitaltveurope.net






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