The emerging VR market will grow by $4.9 billion this year, according to SuperData.
The growth will be driven primarily by hardware, with software beginning to bring in more revenue. SuperData estimates that the market will be worth 437.7 billion by 2020.
The company says that ‘like most new technologies and platforms, VR has had a rocky, but predicable, start’.
The report states:
“Supply constraints limited access to headsets like the Oculus Rift in 2016, holding back both hardware and software revenue, but these issues have largely been resolved. Greater availability of both headsets and compelling content will drive consumers to spend more this year.”
A solidifying market
Consumers are becoming more aware of the range of devices available. SuperData are projecting a 30% reduction in Google Cardboard shipments in 2017. Premium device shipments. However, will triple as consumers become more open to new content and applications.
Other findings from the report:
– 83% of PC VR users have the space for room-scale VR
– 52% of millennial males are most likely to use console headsets
– retail demos are still the most popular way for US consumers to become interested
“There’s no doubt the VR and AR market will be an explosive new medium,” said Stephanie Llamas, SuperData’s head of VR/AR strategy.
“Like the early days of digital games – which itself will be a $95 billion market next year – VR need to begin the process of measurement and validation.”