VR headset shipments will pass 1.5 million in 2018

According to a new report by research firm Canalys, VR headset shipments will pass 1.5 million in 2018, and grow with a CAGR of 140 percent to reach 9.7 million units in 2021.

The report said that Oculus, HTC, and Lenovo are launching new standalone headsets aimed at different market segments, which will drive rapid market growth. Standalone VR headsets are expected to help push the VR headset market to 7.6 million units in 2018, twice the shipments forecast for this year.

Oculus made a big move by unveiling the Oculus Go, its first consumer-ready standalone smart VR headset during Oculus Connect 4 on 11 October 2017. "Oculus Go, while a great move by Facebook to mobilize VR, will fail to get consumer attention when launched," said Canalys Research Analyst Vincent Thielke.

"The extra cost of the headset and the fact that a smartphone-based solution, such as the Gear VR, can offer a similar experience will inhibit initial consumer uptake. Also, missing the holiday season is a lost opportunity for Oculus to gain a strong base of early adopters. But there will be excited for this new category of VR headsets, and Oculus must ensure that its next mobile VR prototype, Project Santa Cruz, succeeds in attaining a high-quality level to remain relevant in VR."

The report said that the recently announced HTC Vive Focus headset with six-degrees-of-freedom (6DoF) tracking retails from $600 in China, a similar price to a premium smartphone there.

"With its new Vive Focus, HTC is well placed to attract high-value consumers and, more importantly, businesses to its VR platform," said Canalys Analyst Jason Low.

Virtual reality headset as a device with a display designed to be worn on the face that immerses the viewer in a virtual world, and it excludes simple viewers.

Canalys further said that a smart VR headset is a standalone, multi-purpose device that is designed to be worn on the face and not carried, runs an operating system, and can run third-party computing applications. A basic VR headset is a device serving a specific set of purposes that is designed to be worn on the face and not carried, cannot run third-party computing applications independently and is generally tethered by the cable to a desktop PC.