Hardware revenues from virtual reality headsets, peripherals and 360-degree cameras are set to increase tenfold over the next five years, according to Juniper Research.
The study claims that hardware revenues will climb from an estimated $5 billion this year to more than $50 billion by 2021, driven by the widespread adoption of VR by smartphone users, and high unit prices for PC and console headsets.
Juniper predicts that the VR market will be “triggered” by the launch of the PlayStation VR headset this October, and Microsoft’s upcoming 4K and VR-capable console, dubbed Project Scorpio, in 2017.
Juniper say that while console VR will only make up 27 per cent of VR hardware shipments, it will account for more than 50 per cent of VR hardware revenues.
"We expect 2017 to be the biggest year for console-based VR revenue growth, as there are several units coming into the market which are not feeling the impact of price competition," Juniper said.
"This means we will see a rise in [average selling price] across both 2017 and 2018 as the newer models come into the market, and only adjust to each others' presence over the course of a year or two, insulated to a degree by ecosystem lock-in."