Market research firm TrendForce predicts that the virtual reality industry will be generating $70 billion dollars in five years time--and they claim that is a conservative estimate.
"These explosive growth projections actually do not sufficiently reflect just how hot the VR industry is right now," says TrendForce wearable device analyst Jason Tsai. "The figures do not include the value of non-commercial uses of VR technology. For example, 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 [still] have a vital role.”
Tsai pointed out that the VR industry is at its infancy, so companies behind major social media platforms such as Facebook and YouTube will provide software tools and support services for the production of VR videos. People’s habit of creating, uploading and sharing their works on these platforms will result in the growth of user-generated VR content that will in turn attract more consumers. In sum, social sharing will make VR technologies more influential and more tied to social media platforms.
The firm predicts that in its first year of mainstream availability (2016), VR will generate $6.7 billion in revenue.