Virtual Reality (VR) is about to become mainstream and could surpass $40 billion market by 2020, according to a new report from iGate Research. Virtual reality involves the creation of a virtual world that interacts with consumers. This virtual world is designed in a way that it appears more realistic to the users, while they can’t differentiate between the real and virtual.
The technology giants are making huge investments in the virtual reality market landscape, such as Facebook’s $2 Billion acquisition of Oculus virtual reality (VR) headset. Samsung, through innovation with Oculus VR, has also produced virtual reality devices for use, along with its top smartphones.
The major growth driver of virtual reality market includes growing digitization, advancement of technology, increasing demand for head mounted displays in gaming and entertainment industries, and rising investment in virtual reality market among others. However, high cost of devices and lack of technical expertise are the factors among others which are hindering the VR market growth, the analysts said.
The report also includes several key highlights:
- The VR hardware component accounted for maximum share of the market in 2016.
- The virtual reality market for software components is expected to grow at the highest rate during the forecasting period.
- The head-mounted display (HMD) captures maximum share of the virtual reality hardware market.
- The video games application captured largest share of the virtual reality software market.
- During 2016, the PC segment accounted for the largest revenue share of the global VR content market.
- The big giants like Sony, Facebook, Google, and Samsung dominate virtual reality, with over 50 percent market share in 2016.
- Samsung’s Gear VR is the biggest product in the smartphone-based VR market today.