VR headset revenue set to hit $660m

US sales of virtual reality headsets are projected to reach 2.5 million units in 2017, up 79% compared to 2016, according to the Consumer Technology Association.

The CTA’s latest ‘US Consumer Technology Sales and Forecasts’ report claims that virtual and augmented reality will be among the tech sector’s “overwhelming leaders” in year-on-year growth in 2017, with VR headset sales projected to reach US$660 million in revenues, up 43%.

The report also identified 4K ultra-high definition TVs as one of the industry’s fastest growing segments, driven in part by next-generation technologies such as high dynamic range and wide colour gamut.

“Growth of the 4K UHD market significantly outpaces the transition to high-definition television, with just three years since introduction; cumulative sales of 4K UHD displays are forecast to hit 18.6 million units, while sales of HDTVs reached 4.2 million units in their first three years on the market,” said the CTA.

Shipments of 4K UHD displays are projected to reach 15.6 million units in 2017, a 51% increase, and earn US$14.6 billion in revenue, up 38%.

Overall, the CTA predicted US sales of connected devices will reach 600 million units in 2017 – a record high and a 5% year-on-year increase from 2016.

This was across all categories tracked by CTA’s forecasts, and include smart home devices, digital assistants like Amazon Echo and Google Home devices, and drones.