Global Virtual Reality (VR) Industry To Reach US$11.2 Billion By 2020 The

by Karen Lydelle Linaja / Oct 13, 2016 06:33 AM EDT

Global VR Industry To Reach US$11.2 Billion By 2020

Data showed on Monday showed that the global virtual reality (VR) market will reach US$11.2 Billion in 2020.

According to the data from industry tracker HIS, South Korea aims to become a global powerhouse in the VR industry. The estimated market for VR headsets will reach around $7.9 Billion that will result to a success in the VR Entertainment to garner $3.3 Billion by the year 2020.

"While the VR headset-installed base will escalate significantly to $81 million by 2020, we predict that expensive, higher-end headsets will dominate the content market," IHS said.

The IHS also said that the global market for VR headsets will be $1.6 billion in 2016, and strengthened by the launch of high-end headsets from popular players like HTC, Oculus, and Sony Corp. Meanwhile, VR Entertainment's market value is forecast to gain $310 million in 2016 and increase to $3.3 billion in 2020.

The South Korean government announced earlier this year that it will push through the development of the VR industry in the country together with eight other key IT fields as new growth engines.

The Ministry of Science, ICT, and Future Planning said that it plans to stabilize the use of technology with the United State's market leader by 2020.

A total of 400 billion won will be spent in the VR industry by 2020 because the government needs to work with R&D efforts from different firms and government institutions according to the ministry. Samsung Electronics Co. was forecasted by the industry tracker to have the biggest installed base out of branded headsets in 2016 with sales of 5.4 million units. In 2014, Samsung launched the Gear VR with the cooperation of Oculus Vr which connects the high-end smartphones of Samsung. The Gear VR ranked second in the most sold VR products in the US market with more than 1 million units sold in Japan.

Google's Daydream View, which is the new smartphone VR headset, is predicted to slowly counter the dominant market position of Samsung in the VR and smartphone production. According to the forecast of IHS, the Daydream View will become the most popular headset for VR by 2019 and Google will beat Samsung's Gear VR due to its wide industry support.