Sales of dedicated VR headsets will grow tenfold by 2020, with smartphone VR headsets growing fivefold, according to the latest CCS Insight research.
The research firm predicted that sales of smartphone VR devices - including Google’s Cardboard products and more advanced devices like Samsung’s Gear VR headset – have already exceeded earlier expectations.
CCS now predicts that 14.5 million smartphone VR headsets, worth over $500 million, will be sold in 2016, rising to 72 million by 2020.
Dedicated VR headsets like the HTC Vive and Oculus Rift are so performing well, according to CCS, with approximately 2 million of these devices to be sold in 2016, rising to 21 million in 2020.
“The momentum of 360-degree content is palpable and that’s driving sales of VR headsets. All major content providers are piling into this area, and user-generated content is poised to explode as more affordable 360-degree cameras come to market,” said CCS Insight chief of research, Ben Wood.
“Although it’s early days for dedicated virtual reality, it’s a promising market. HTC and Oculus VR struggled to meet demand when they launched their products and we expect a further wave of sales when Sony launches the PlayStation VR headset.”
CCS Insight estimates that the total VR device market will be worth $1.5 billion in 2016 and will climb to $11 billion by 2020.