subscribe

VR Headsets to grow at 140% CAGR

Canalys, an analyst, has forecast that standalone VR headsets will see a CAGR of 140% to reach 9.7 million units in 2021, from 1.5 million in 2018. The company expects 70% of sales next year to be in the US and China.

Canalys Research Analyst Vincent Thielke said:

“Oculus Go, while a great move by Facebook to mobilize VR, will fail to get consumer attention when launched. The extra cost of the headset and the fact that a smartphone-based solution, such as the Gear VR, can offer a similar experience will inhibit initial consumer uptake. Also, missing the holiday season is a lost opportunity for Oculus to gain a strong base of early adopters. But there will be excitement for this new category of VR headsets, and Oculus must ensure that its next mobile VR prototype, Project Santa Cruz, succeeds in attaining a high quality level to remain relevant in VR.”

The company sees HTC as being well positioned with the Vive Focus which will sell in China for CNY3,999 ($600) – pricing equivalent to a high end smartphone.

“With its new Vive Focus, HTC is well placed to attract high-value consumers and, more importantly, businesses to its VR platform. HTC is clearly not chasing volume, but moving toward the more important value segment, which is the future of VR. Consumer adoption of VR beyond gaming is still shaky but business use-cases are emerging quickly. Positional tracking has been on every VR headset vendor’s radar but especially challenging for inclusion in standalone VR headsets. Pico’s next headset is expected to retail at a higher price point than the Goblin, underlining the premium strategy of Chinese vendors,”

said Canalys Analyst Jason Low.