Virtual reality has been hailed as the next ‘thing’ that will catch consumer attention and drive innovation and growth in the technology industry. While it’s easy to see why VR might play out stronger than say 3D, the size of the burgeoning market appears to be massive. According to market analysts, Strategy Analytics, the virtual reality headset market will top $895 million. For an industry that is just really getting started, this is great news.
As expected, much of the value comes from the expensive Oculus Rift, HTC Vive and Sony PlayStation VR which are all going to release this year. With prices of $600, $800 and $400 respectively, it’s easy to see why the market is so big. The expectation is that these high-end headsets will account for 77% of the total revenue but only 13% of shipped units. After all, around 2.2 million Sony units would be enough to match the entire market value. Cheaper headsets like those based on smartphones will continue to see more though and be the VR most likely experienced by consumers.Furthermore, Strategy Analytics expects that VR will help drive a race in display resolution, storage and GPUs. This is due to the stringent and hefty requirements necessary to run VR games. Going forward it will be interesting to see what kind of hold VR will take and whether or not it will supplant traditional forms of content interaction.