Countless reports in recent years have claimed virtual reality is on the verge of its big break. Figures have remained lackluster, but International Data Corporation (IDC) earlier this month reported worldwide shipments of VR and AR headsets hit 2.3 million units in the first quarter of this year. IDC added that triple-digit growth is expected for the full year thanks to some product releases coming in the second half, but a new report from Parks Associates seems to cast doubt on whether or not that prediction will come to fruition.
In its new report, “Virtual Reality: Disrupting the Entertainment Experience,” Parks Associates reports that while purchase intentions have almost doubled from 5 percent early last year, only 9 percent of U.S. broadband households are planning to pick up a VR headset in the next 12 months. The vast majority of respondents indicate they plan to use their VR headset to play video games, though a significant number also say they will use it to watch entertainment videos and virtual tours.
“The budding virtual reality market is just in its infancy,” Parks Associates Researcher Hunter Sappington observes. “VR has the potential to breathe new life into important CE device categories that have reached saturation, but challenges are hindering wider adoption.”
One of those challenges, Sappington says, is familiarity with the technology. Only about 13 percent of consumers have experienced VR firsthand, he notes. Fragmentation is also an issue for both content and innovation, Sappington adds, as multiple players independently evolve their own headsets and ecosystems.
Still, Parks Associates forecasts approximately 24 million households worldwide will own at least one virtual reality device by the end of 2017, a figure that is expected to grow to 77 million households by 2021.
Parks Associates’ full report can be found here.