The most recent global research from the analytical firm CCS Insight for Virtual Reality (VR) such as PSVR and Augmented Reality (AR) indicates steady growth. CCS Insight extends to think that the segment has immense potential and will be able to deliver good growth in the next five years or more.
The turnover of smartphone VR devices continues to bring the lion’s share of unit volumes and CCS Insight anticipates around 14 million smartphone VR headsets to be sold in 2017 which will increase to 25 million in 2018. In the future, the growth is marked by an anticipated five times volume growth to 70 million to 2021. This segment is going to be worth $500 million in this year which may rise to approx. $1.4 billion by 2021.
As per Ben Wood, the Chief of Research at CCS Insight, the headphones designed for smartphones are the entrance point for many consumers when the issue is of VR. Here’s what he ha to say about it:
“Google’s Cardboard devices and Samsung’s Gear VR headsets have been the early market makers in this area. We expect the momentum to continue at Mobile World Congress next week, with Google’s Daydream headsets being a prominent part of many high-end smartphone launches.”
The committed headsets for VR for example HTC Vive, the Oculus Rift and Sony’s PSVR delivers essentially higher-quality compared with their smartphone VR cousins, however sales have been less as per expectations. CCS Insight has modified its budget to mirror the slow beginning. In the previous times, 2 million units were expected to be sold in 2016; the sales are now anticipated to be 1.2 million. Around 2021 CCS Insights expected the turnover of dedicated VR headsets to increase to 22 million units – this was an 800% increase over 2017. This will end up in the dedicated VR market which will be worth $7.7 billion by the year 2021. In order to calculate up more grains to the forecast, CCS Insight even expanded the segmentation of its gadget in order to incorporate both tethered and untethered dedicated VR answers. Here’s what Wood added and suggested to this,
“There’s no doubt that dedicated VR headsets can be a tough sell. The complete package of the headset and a high-end PC is out of reach for most consumers and even the PlayStation VR, which can be used with the PS4 games console, has failed to meet expectations. There’s a lot of work to be done on all aspects of the experience, but we still believe there’s tremendous potential. The technology continues to improve dramatically and 2017 will see the emergence of untethered solutions that will be more immersive than ever. Audiences will have access to a more diverse range of ever-richer content and experiences that we believe will further boost the market. The proliferation of VR experiences in theme parks, at cinemas and in other locations such as car showrooms and travel agents offering ‘look before you book’ experiences will only serve to educate users on the potential of the technology.”
The most recent projections by CCS Insight estimated that the whole VR device market (smartphone VR and dedicated VR) is going to be worth $1.5 billion in this year, 2017 and will increase to $9.1 billion in 4 years i.e. 2021. The increased cost of dedicated headsets will be seen considering for 85% of the total market value irrespective of making up just 24% of unit sales. Expectantly, they are going to prove to be famous among many gamers, other stakeholders and enthusiasts. It is believed by CCS Insight that in two years, 2019, VR devices will begin providing a relevant revenue benefaction to establishments which have commercial products in this sphere.
We have also seen in the past that many research firms were way off when predicting the sales of PSVR , which sold less than initially expected. This was largely due to the fact that the earliest iteration of PSVR was considered by many to be a gimmick. Some blame however also must go to the supply issues associated with PSVR.
The market of AR gadgets is also up for a slightly slow start. CCS Insight’s most recent forecast designates the primary essential unit sales will not occur until 2019 when the expected sales are to be 1.5 million units. The prediction is that this will rise to 5 million units in 2021 with a total market value of $2.5 billion. Here’s what Wood added to this;
“Although there are numerous very promising field trials underway, mass deployments of AR devices remain elusive, with a mere 100,000 units sold in 2016. The focus on enterprise uses and vertical market opportunities means longer sales cycles, exacerbated by the complexities of integration and compliance in workplaces. We don’t expect meaningful sales of AR headsets to start until the early 2020s.”