NVIDIA Corporation (NASDAQ:NVDA) GPU operations can scale new highs following the rapid development in the virtual reality video gaming industry. This market is projected to generate almost $5 billion in sales in 2016, which is considerably up from $660 million in FY2015.
The VR gaming industry will surge up to $8.9 billion in FY2017 and $12.3 billion in FY2018, and the company has already introduced new products in an attempt to tap the same. NVIDIA’s Quadro M5500 GPU will enable its PC associates to introduce virtual reality workstations in an attempt to offer a premium experience to virtual reality users.
With market share of 70% in gaming GPUs and immense opportunities seen in self-driving cars, NVIDIA is on track to withstand its strong growth momentum in the long-run. It gets revenue of over 68% from these two divisions while GPUs alone make for 62%. Yet company looks well-set to take on another chance in the gaming division in the form of virtual gaming.
According to Digi-Capital, the virtual reality and augmented market across the world is projected to post revenue of $120 billion by 2020. The augmented reality industry will account for revenue of $90 billion and the virtual reality industry is seen at $30 billion. More precisely, this industry is projected to generate revenue of almost $5 billion in 2016, which is considerably up from revenue of $660 million in 2015.
Now, the development in the virtual reality gaming market will be led by a growth in device shipments going forward. The virtual reality devices are expected to be 38.9 million by the end of 2016, recording hardware revenue of over $5 billion this year as stated earlier. Hence, the target market of NVIDIA has jumped nearly eight times in 2016 as compared to the last year. Importantly, the hardware market in virtual gaming industry is projected to record further growth in coming period, achieving a size of $8.9 billion next year and $12.3 billion in 2018.