Australian analyst firm Telsyte has released its Australian VR & AR Market Study 2017. It predicts 115,000 VR headset units will be sold in the second half of 2016 with sales rapidly growing to more than 500,000 units in 2017.

It says that this year 46% of sales will be console-based VR systems, 46% mobile VR and 8% PC-based systems. By 2020, it estimates more than 3.3 million units of all types will be sold in Australia as more consumers are drawn in by the immersive attraction of virtual reality.

Telsyte managing director Foad Fadaghi says, “Entertainment will be the main driver of VR adoption in Australia. However, organisations of all types are excited by the prospects of developing VR applications.”

Telsyte research shows that:

• About 75% of Australians aged 16 +are now aware of VR (up from 49% last year). The backing of multinational brands such as Google, Facebook and Sony has helped lift awareness and created pent-up demand in Australia.
• Sony’s PlayStation VR (PS VR) will be the lounge room leader given the 1 million existing PlayStation4 home consoles capable of utilising PlayStation VR.
• About 65% of VR hardware revenue will be generated by PlayStation VR this year based on surveys that 20% of PS4 users indicate a desire to buy a VR headset.
• Mobile VR is expected to also generate strong sales, but current technological limitations (e.g. not having full 3D head tracking) will limit its use with video games.
• Mobile VR will remain a gateway for many consumers for VR movies, and 360 video applications such as documentaries, eCommerce, and education.
• About 76% of those interested in buying a VR unit want to have an enhanced gaming experience.
• About 66% are interested in non-gaming uses like movies, education, sports viewing, events, and eCommerce.

According to a Telsyte Survey, March 2016 for the Interactive Games Entertainment Association, 28% have expressed a desire to purchase a VR headset, and 40% of these want to purchase a VR headset in 2016. Telsyte estimates that there are more than five million regular video games buyers in Australia, making for a vibrant pool of potential early adopters across PC, console and mobile VR platforms.

Telsyte conducted additional research with Australian and New Zealand chief information officers and IT decision-makers in August 2016, indicating that 60% had already begun developing, or were considering developing VR applications, for either internal and external (customer facing) uses.

Despite the technological developments in VR, there remain some concerns about the health impacts of prolonged use.

• About 33% indicated they were concerned about the health effects of VR.
• Of these the main concerns relate to the impact on eyesight (52%) and “not enough knowledge of health effects” (48%).