Virtual and augmented reality headsets like Facebook's Oculus Rift and Microsoft HoloLens will start to shift onto smartphones and mobile devices beyond 2017, according to Telsyte.
The Telsyte Australian VR & AR Market Study 2016 said although demand for VR devices will be driven by gamers with one in two households owning a game console, the devices could be powered by smartphones.
“Telsyte predicts VR and AR will help revive the more mature smartphone and high-end PC markets,” Telsyte's MD, Foad Fadaghi, said.
Google Cardboard, where a user places their smartphone into a slot to see content on their phone through a VR lense, is one of the most popular devices consumers are interested in buying, according to Telsyte's research.
The firm surveyed a representative sample of 1,075 Australian consumers aged 16 years and over, and found the Samsung Galaxy VR, Sony PlayStation VR and Facebook Oculus Rift are also popular among consumers.
About 20 per cent of those surveyed want to purchase a VR device, with Telsyte predicting 110,000 VR headsets to be sold in Australia in 2016, which will grow to more than 500,000 unit per annum by 2020.
VR and AR will also move beyond the current strong gamer use case to more business applications, Telsyte said.
Telsyte said the VR and AR market in Australia will spawn an ecosystem of developers that can help businesses take advantage of this new interface, much like the boom in Web and mobile app development.
However, there are still some challenges to wade through before VR and AR really hit mainstream. Telsyte said many computers and smartphones need to be upgraded to be able to use VR and AR add-ons.
Also, the social, health and safety concerns of using VR devices for prolonged periods of time need to be properly addressed, Telsyte said.
Lastly, only one in five people are willing to spend more than $400 for a VR headset, which is substantially lower than the price of most first-generation products on the market today, according to Telsyte.
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