Virtual Reality Is Estimated To Generate $5.1 Billion This Year

According to research firm SuperData Research (via IGN), the virtual reality industry is expected to generate sales in excess of $5.1 billion this year, with an install base of 38.9 million consumers.

The report also predicts that Europe will see the most virtual reality adoption with $1.9 billion in sales. By contrast, the firm estimates North America finishing 2016 with $1.5 billion in revenue, Asia with $1.1 billion, and the rest of the world at about $0.6 billion. In 2016, VR generated $660 million, mostly through acquisitions and development kit sales.

The firm breaks the virtual reality space into four segments, counting the market share percentage and units sold for each. “Light mobile VR,” including Google Cardboard will account for 71% of the market, or 27.1 million units. “Premium mobile VR,” like Samsung Gear VR will account for 7%, or 2.5 million units. “PC VR” like the Oculus Rift and the HTC Vive will account for 17% of the market, or 6.6 million units, and “Console VR” like the PlayStation VR will make up 5%, or 1.9 million units.

The report notes that investors have sunk a lot of money into VR since 2013, and want the technology to start seriously making money:

“Following a combined $6.1B in investment in the sector over the last three years, investors are eager to see some initial proof of concept, hoping that consumers will quickly take to the new technology. In late November, the Samsung Gear VR did well when it was first released, selling out within 48 hours. And, with the pre-sales of the Oculus Rift just now underway and its Touch controllers slated for the second half of this year, this will be a historic year for virtual reality gaming.”

This prediction comes hot on the heels of Oculus Rift preorders opening and revealing a price of $600. We also learned earlier this week that the Rift will require a beefy computer to run. While the HTC Vive Pre was also announced this week, there have been no details on its release date, or the hardware necessary to run it. PlayStation VR did not make an appearance at Sony’s CES presentation, either.

Are you buying any virtual reality hardware this year? Or is the technology too expensive and too hyped? Let us know in the comments.