Virtual Realty Could Increase 10x In Five Years

Once only a dream in sci-fi movies, the virtual reality market is becoming an industry with high valuations. According to market researcher TrendForce, the total value of the virtual reality market may increase 10x from next year’s estimate of $6.7 billion to $70 billion in 2020.

In a statement seen on Recode, Jason Tsai, a TrendForce wearable device analyst, said, “These explosive growth projections actually do not sufficiently reflect just how hot the VR industry is right now...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.”

In the Recode article, Ina Fried references the growing trend of virtual reality by commenting on Facebook Inc.'s FB sizable investments in the market. Notably Facebook acquired virtual reality hardware maker Oculus for $2 billion in March 2014. In response to comments regarding the purchase Mark Zuckerberg said that while mobile is the platform of today, it is important to look forward and anticipate the next generation’s platform. He sees Oculus and the virtual reality industry as having the ability to create one of the most social platforms the world has seen.