VR devices are in full swing, Gartner predicts shipments will grow 10 times in 2016

According to Gartner’s wearable device sales forecast report, the global market for wearable electronics saw a significant boost in 2016, with an 18.4% increase in sales compared to the previous year. The report highlighted that VR and AR headsets reached 1.4 million units in 2016, while smartwatches sold over 50 million units, generating $17.5 billion in revenue by 2019. In 2016 alone, global wearable device sales exceeded 270 million units, up from 232 million in 2015, with total revenue reaching $28.7 billion. VR and AR shipments experienced explosive growth, increasing tenfold from 140,000 units in 2015 to 1.4 million in 2016. Gartner predicted that this trend would continue, with VR/AR headset shipments jumping to 6.31 million in 2017. At the 2016 CES conference, VR was a major highlight, with several high-profile headsets like the HTC Vive, Oculus Rift, Sony PlayStation VR, and Microsoft HoloLens set to launch. Brian Blau, a research director at Gartner, noted that these releases would drive early adoption and help VR move from niche to mainstream. While HMDs are still emerging, Gartner expects them to gain traction in both consumer and enterprise markets by 2016. Consumers and businesses alike anticipate using VR for entertainment, gaming, and immersive experiences. Filmmakers and sports leagues are also exploring how HMDs can enhance traditional content, offering more interactive and personalized experiences. By 2018, Gartner forecasts a 26% growth in enterprise applications of head-mounted displays. Companies will use them for tasks like equipment repair, inspection, and maintenance, with employees accessing work instructions through the devices. Despite the potential, challenges remain. Brian Blau pointed out that developing immersive content and user interfaces for HMDs is still a big hurdle. Most current software is designed for 2D screens, making it difficult to adapt for fully immersive experiences. Smartwatches, on the other hand, showed strong growth. In 2016, they generated $11.5 billion in revenue, accounting for about 40% of the wearable market. Gartner estimated that smartwatch sales surpassed 50 million units in 2016, with projections of $17.5 billion in revenue by 2019. Angela McIntyre, another Gartner researcher, noted that smartwatch adoption increased by 48% between 2015 and 2017, largely due to Apple's role in promoting wearables as a lifestyle trend. Apple Watch, in particular, combined style and technology, helping to drive consumer interest. Other factors contributing to the rise in smartwatch sales include convenience. Many users prefer receiving notifications via their wrist rather than constantly checking their phones. Future models are expected to support voice commands, IoT integration, and even contactless payments. Although smartwatches are the fastest-growing segment, they still lag far behind smartphones. In 2016, smartphone sales in mature and emerging markets reached over 374 million units, including in cities like Hong Kong and Singapore.

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