OYSTER BAY, NY – The total head mounted display market is expected to ship around 65 million units in 2020, with a CAGR of 88%, says ABI Research.

Augmented and virtual reality represents the next revolution in consumer electronics, and at the forefront of AR and VR is HMD, the research firm says.

With the large and expanding install base of smartphones in all markets, the potential install base for Mobile VR is high.

“Tethered VR devices, such as the Oculus Rift, will be outpaced by mobile-reliant VR devices, such as the Samsung Gear VR, thanks to lower barriers to adoption in price and hardware requirements,” said Eric Abbruzzese, research analyst at ABI Research.

Revenues for mobile-reliant HMDs are expected to hit $1.6 Billion in 2020, with 25 million expected units shipped.

While forecasted hardware revenues for mobile HMDs are lower than tethered VR units, due to higher tethered ASPs, the larger install base and lower cost of entry for mobile VR will drive more interest from the larger public.

“Smartphone manufacturers such as LG, Motorola, Xiaomi, and Huawei can embrace VR through their own smartphone housing, similar to Samsung and their Gear VR. As more companies do this, the market will begin to see VR advertised as an accessory to smartphones, encouraged by user interest and lower cost,” Abbruzzese said.

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