Analyst firm, Telsyte, predicts strong demand from Australian consumers in the virtual reality (VR) headset market in 2016.
Findings based from a recent study showed that 110,000 VR headset units will be sold in 2016, with sales predicted to grow to more than 500,000 units per annum by 2020.
The head-mounted wearable device displays a computer-generated 3D virtual world and Telsyte segments the headsets into four categories of computer, mobile, console and standalone.
Augmented reality (AR) headsets such as Microsoft’s HoloLens, work similarly as the device interacts with the real world, but with visual overlays.
Telsyte said both devices will grow in popularity and introduce different applications for entertainment and work productivity.
Telsyte managing director, Foad Fadaghi, mentioned that strong market growth will come in 2017 and 2018 as manufacturers ramp up production and more ‘must have’ use cases emerge.
“The strongest pent-up demand is coming from gamers, who clearly see the VR as the next frontier in immersive entertainment,” he added.
Based on the study, the analyst firm also said VR consoles will have the largest market value in the next two years.
The firm said in Australia, it expects the VR and AR market to spawn an ecosystem of developers looking to help businesses take advantage of the new devices.
Fadaghi said that while some will take a leading position, it is more likely that a wait-and-see approach will be adopted by most organisations to substantiate the non-gamer user base and for the current range of products to mature.
“As with smartphone penetration, it could take up to a decade for VR to reach mainstream levels, but there is clearly pent-up demand from early adopters,” he added.