According to IDC, the worldwide AR and VR headset device market will reach 99.4 million units in 2021, a rise of nearly 10-times from the 10.1 million units shipped in 2016. This represents a compound annual growth rate of 58% across the five-year forecast period to 2021.
IDC quoted the reasons for this forecast rise as being the launch of new devices, an expanding array of content for both consumer and enterprise users and lower prices.
Gaming with AR and VR devices will transport players into outer space or the battlefield, several steps beyond what they currently experience on a PC or on a TV screen. Adding to this is the social element that will allow users to share experiences with others.
In terms of shipments, AR devices remain as the minority portion of the market, but these headsets are expected to bring in more revenue over the forecast period as the value of AR headsets grows from $209 million in 2016 to $48.7 billion in 2021 according to IDC. VR devices, on the other hand, will grow from $2.1 billion in 2016 to $18.6 billion in 2021.
Due to the sophistication of the hardware, most AR headsets are expected to cost well over $1,000, and initially this makes the technology far less accessible to consumers. VR devices, on the other hand, range from sub-$100 to more than $1,000, although the lower prices devices may prove to be inhibitors rather than promoters of the technology.
