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BizReport : Trends & Ideas archives : December 07, 2015

TrendForce: Social will have key role in growth of virtual reality market

The reality of virtual reality will be very apparent in the next five years. According to TrendForce's latest market research, the virtual reality market is forecast to increase ten-fold by 2020.

by Helen Leggatt

Research from TrendForce suggests that next year the virtual reality market will reach $6.7 billion followed by significant growth over the next five years. As soon as 2020, virtual reality will become a $70 billion a year industry with hardware accounting for $20 billion and the remainder from software.

However, according to TrendForce wearable device analyst Jason Tsai, those impressive figures don't even account for non-commercial virtual reality technology. "For example," says Tsai, "the industry is currently pushing the development of free software and do-it-yourself apps. While these projects do not immediately generate revenue for the developers, they have a vital role in the promotion market growth and innovations."

Facebook's acquisition of Oculus VR, a maker of virtual reality goggles, for $2 billion last year makes even more sense in light of these new figures. Zuckerberg's "long-term bet that immersive, virtual and augmented reality will become a part of people's daily life" doesn't look too far in the future.

In fact, according to Tsai, social media will have a significant role in the growth of user-generated virtual reality content and attract more consumers.

"In sum," he said, "social sharing will make VR technologies more influential and more tied to social media platforms."

Image via Shutterstock

Tags: data, forecast, virtual reality

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