VR revenues ‘to reach $7.2bn this year’

Total virtual reality revenues will reach US$7.2 billion globally by the end of 2017, according to new research by Greenlight Insights.

The virtual and augmented market intelligence company said it anticipates modest industry growth in the short term, but expects the VR industry to reach US$74.8 billion in global revenues and become a “major global marketplace” by 2021.

Of this year’s anticipated VR revenues, Greenlight said it expects head-mounted displays to account for US$4.7 billion. By 2021 it said it expects revenues to be driven in part by the increased spending in several enterprise sectors and in the location-based entertainment industry.

“We saw mixed results in the global VR industry in 2016 — initial sales volume by some high-end manufacturers didn’t quite live up to the hype, while PlayStation VR, Samsung Gear VR, and low-cost headsets continued to gain traction,” said Greenlight Insights CEO Clifton Dawson.

“There are turbulent times ahead, but our analysis points to VR achieving critical mass in many markets by 2019, building to a considerable global marketplace five years from now.”

The debate over the use of VR as a medium for content produces continues to rage on, meanwhile, and was a hot topic of discussion at MIPTV last week.