The report forecasts the global VR content market to grow at a CAGR of 127.97% during the period 2016-2020.
Technological advances in the video content market have led to the introduction of VR and 360-degree videos. VR is the new trend in the entertainment domain and it is making its way to various digital arenas, particularly the digital video content market. VR is emerging as one of the mainstream platforms, leading to the technological transformation of the digital world. In 2016, Facebook launched its flagship VR device Oculus Rift, Sony launched Morpheus, and HTC launched Vive.
According to the report, there is intense competition among vendors such as Samsung Electronics, HTC, Sony, Oculus, and Google. The presence of these brands in the market is expected to increase the awareness of VR technology among consumers. The acquisition of Oculus in July 2014 for $2 billion by Facebook and Google's investment in Magic Leap are some of the major developments in the VR market in the past two years. In addition, leading smartphone vendors introduced VR headsets that can be integrated with smartphones to provide an enhanced viewing and gaming experience to users. Samsung Electronics introduced Gear VR and HTC introduced Vive.
Further, the report states that technological advances have led to the development of advanced VR headsets by a large number of global players. Companies such as Samsung Electronics, Sony, HTC, and Oculus have manufactured VR headsets that give users an experience of the virtual world. These devices are priced very high. Some of the most renowned VR headsets are HTC Vive, Samsung Gear VR, PlayStation VR, and Oculus Rift, which are priced between $399 and $899. In addition, these headsets are limited to their supporting display devices. For instance, PlayStation VR, which is likely to be launched in October 2016, will be compatible only with PlayStation 4. Similarly, Oculus Rift will support Xbox One. As video game players already spend a significant amount on gaming consoles, investing in VR headsets becomes a challenge for them.