Virtual Reality Devices: $4 Billion+ Business By 2018

microsoft-hololensIf you’ve been following the big gaming expo, E3 2015, which is taking place in LA this week, you can’t help but have noticed that there’s a lot of attention being garnered by the various VR and AR headsets on show.

With the likes of Microsoft, Sony, Facebook, Samsung and Razer all involved in the latest virtual reality revolution, it’s perhaps not surprising that the market is set to explode in popularity.

Industry analyst firm CCS Insight has just published a report – Augmented and Virtual Reality Device Forecast, 2015-2019 – stating the amount of AR and VR devices sold will rise from 2.5 million this year, to a whopping 24 million in 2018. It forecasts that the market will be worth more than $4billion.

“Most consumers find virtual reality a mind-blowing experience the first time they try it,” explained Ben Wood, CCS Insight’s Chief of Research.

“We believe it has tremendous potential and it’s not just about expensive high-end devices such as the Oculus Rift. For only a few dollars, consumers can dip their toe in the water with an inexpensive cardboard holder for a compatible smartphone. We expect this democratisation of the technology to deliver growth not just in affluent mature markets but also in emerging markets where smartphone penetration is stronger than ever.”

For the low-cost option, Wood is referring to the likes of Made for Google Cardboard headsets and the Samsung Gear VR range – devices that are powered by smartphones rather than PCs or consoles. The CCS report states that 90% of all VR headset sales in 2018 will be of this mould. >more