Taken from our latest market-sizing analysis for the consumer Virtual Reality market (order the free report here), this article present our forecasts and assumptions for hardware revenues. VR hardware revenue encompasses head mounted displays (HMDs) and input system devices such as gloves, treadmills and bodysuits as well as haptic feedback outputs.
The first post in this series detailed the addressable markets in the VR hardware market along with penetration assumptions and unit sales forecasts. As a recap:
- Forecasted penetration for consumer VR headsets to reach 8.8% by 2015.
- Forecasted penetration for consumer VR Input Systems to reach 26.3% by 2015.
- By 2018 we estimate total HMD unit sales of almost 39m globally. This equates to a cumulative total of 83m HMD unit sales over the five year period.
- By 2018 we estimate total VR Input System unit sales of almost 10m globally. This equates to a cumulative total of 18m unit sales over the five year period.
Retail Price Points
Shown below is our assessment of the retail price for consumer HMDs from 2014 to 2018. Due to factors such as component economies of scale, commoditisation and discounting to drive market share, we anticipate a steady annual fall in the retail price of HMDs, from $350 in 2014 down to $100 by 2018.
By 2017 we also expect subsidised pricing plans offsetting the hardware cost with rental/subscription plans, similar to the mobile device market. A full list of companies currently developing VR headsets is here.
We expect Input Systems to be very popular and we’re already tracking this market via our Hardware Radar. Looking at the selling price for Input Systems (controllers, haptics, body suits, stereoscopic cameras etc), we expect similar downward pressure of pricing. Continue reading →