Greenlight Insights has published a research report, in collaboration with the RoadToVR blog, which forecasts that total VR revenues will reach $7.2 billion globally by the end of the year. Some $4.7 billion of this value will be attributed to sales of head-mounted displays.
The research suggests that the VR industry will grow into a major global marketplace by 2021, reaching revenues of $74.8 billion, driven in part by the location-based entertainment industry and increased spending in several enterprise sectors. The research also indicates that rising utilisation rates will result in location-based entertainment centres becoming a $1.2 billion segment in 2021. These centres will represent a distinct market opportunity for VR content studios and hardware vendors.
This year, the research shows, that certain trends will occur that affect the VR industry. The trends are as follows:
- Demand by enterprise firms for VR-related hardware, software and services will increase with the introduction of new VR headsets powered by Microsoft’s Windows 10 operating system.
- A good-better-best pricing strategy for consumers will occur due to the introduction of new hardware platforms from top PC manufacturers in late 2017, and this will accelerate the availability of affordable headsets and VR-ready computers.
- Rapid proliferation of location-based entertainment centres, which emerged in 2015, will result in them becoming an early distribution marketplace for VR content producers.
Eddie Lou, China market analyst, Greenlight Insights, stated that before spending hundreds or thousands of dollars on equipment, new users are turning to location-based entertainment centres to experience VR inexpensively and much more immersive than they could with an in-home system. Niche accessories such as full haptic suits, sensory simulators, and specialised controllers will find a home in these centres as consumers will be less inclined to purchase expensive hardware.
The report, Virtual Reality Industry Report: Spring 2017, was released in partnership with Road to VR, as well as contributing firms iResearch (China) and MoguraVR (Japan), includes global hardware, software and services revenue forecasts.
Analyst Comment
We don’t know this company so cannot add any endorsement of the company’s conclusion. However, it’s clear from the work being done by iMax and others that location-based VR will be an interesting segment. (BR)
