New innovations in Virtual Reality (VR) took 2015 by storm, moving out of just the gaming world and into the mainstream. The potential market for home VR systems could reach $10.4 billion by 2020. So what are the predictions for 2016?

We asked experts to weigh in on trends in VR for 2016.

Leading players to launch key VR products in 2016

Juniper Research Ltd.

Juniper has identified 2016 as the watershed year for VR headsets, both in terms of product launches and consumer roll outs. Oculus, Sony and HTC are among the leading players expected to launch key VR products over the next 12 months. The recent attention to and investment into virtual reality is helping to revitalize the industry, and with major brand commercial launches imminent, there is huge potential for rapid market expansion.

As a result, Juniper expects significant VR uptake over the next five years as consumers benefit from a combination of improved VR technology allied to immersive applications, as well as reduced prices. Consequently, the technology is now poised to transform the entertainment industry, including gaming and video, over coming years whilst offering the potential to quickly expand into other markets, such as industrial and healthcare.

Low-cost hardware will make VR a household technology

Endri Tolka, cofounder of YouVisit, LLC

In the past, costly equipment has kept VR out of our living rooms. While headsets such as the Oculus Rift are set to release in the first quarter of 2016, their high price tag will only encourage early adopters to make a purchase. However, with new, affordable headsets, such as the Samsung Gear VR now on the market, we can expect to see more people take the VR plunge in 2016. With a price tag of $99 or less, headsets are now more affordable than an iPhone, meaning we can expect the majority of homes to have one by the end of the year. In fact, Business Insider predicts VR headset sales to double annually for the next five years, with 26.5 million units expected to be sold in 2020.

While new affordable headsets will help to drive the adoption of VR, we will also see a rise in the adoption and frequent use of Google Cardboard. These headsets, which can cost anywhere between a few dollars to $25, will drastically increase adoption, as it lowers users’ entry cost to almost nothing and allows VR app developers to create content that will live in popular app stores like the Google Store and iTunes. It is through these devices that we can expect businesses to drive new content in order to better engage with consumers on a regular basis.

VR will become mainstream with gaming

ProKarma, Inc.

Analyst firm CCS Insight forecasts that augmented and virtual reality technology will be a $4 billion-plus business by 2018. A recent report outlines how virtual reality is positioned to be one of the most disruptive technologies for the next decade, with the potential to deliver transformative experiences in both the consumer and enterprise setting.

Facebook, Google, Sony and Samsung are investing big-dollar amounts in the acquisition and development of VR technology.

CCS Insight analysts also envision that consumers will adopt VR technology first through exposure to virtual gaming and video, with augmented reality wearables following suit in the enterprise as a way to cut costs and increase employee productivity.

VR will become a key feature of business marketing initiatives

Endri Tolka, cofounder of YouVisit, LLC

While we will see more headsets in living rooms in 2016, VR use will also expand to more public platforms. As more people begin to use VR, we will see a rising number of companies place VR headsets in their brick-and-mortar stories in order to offer an alternate way to enhance the in-store experience.

With ecommerce continuing to dominate the retail sector, brick-and-mortar stores are searching for new ways to make the in-store experience comparable to the one found online. Some retailers have already begun to use VR in their stores, including The North Face, which installed a VR station in its Manhattan store, allowing people to virtual experience what it’s like to explore California’s Yosemite National Park and the Moab desert in Utah — and, hopefully, excite consumers enough that they are influenced to purchase outdoor gear for their next adventure.

Brands will also use VR to better promote their brand image, especially as it relates to how they serve their community. The shoe company, TOMS Shoes, LLC, which donates a pair of shoes to a child in need for each pair purchased, has already started using VR to do just this. Over the summer, it placed VR headsets in its flagship store and allowed shoppers to see what it’s like to travel to Peru to hand out shoes to children in need.

VR and wearables will intersect in advertising

ProKarma, Inc.

Wearables will be another avenue for disruptive tech in 2016. In fact, Microsoft spent a large sum of money to purchase the maker of the video game Minecraft. This might seem like an arbitrary pairing, but Forrester Research, Inc.’s James McQuivey, who tracks the digital disruption of traditional businesses, speculates the companies may be envisioning an entirely new and highly effective advertising opportunity.

And according to Ilan Mochari, senior writer for Inc. magazine, “An advertiser’s audiences will no longer be a passive spectator to an advertisement, but an active participant in it,” Mochari says. He predicts that advertisers will utilize wearable gaming devices, such as headphones, to orchestrate an experience in which targeted players interact with a brand in the virtual sense, adding another level of meaning to the term “captive audience.”

VR experiences will become more measurable for marketers

Endri Tolka, cofounder of YouVisit, LLC

The ability to track and measure the effectiveness of VR campaigns is paramount to business adoption. Without it, even the savviest marketer or advertiser will have difficulty proposing a long-term virtual reality campaign. In 2016, as the technology is adopted, we’ll see more brands tackle this issue and industry standards and benchmarks emerge.

Specifically in 2016, we will see more companies examine how to align the benefits they receive from VR campaigns with their overall marketing ROI. As this type of insight becomes more common, VR campaigns will become moneymakers in their own right, rather than just a marketing expense. With the ability to use heat maps to see where users’ attention is focused, not only will advertisers be able to better target their message, but content creators will be able to craft better VR experiences.

Photo by Pixabay