The virtual reality (VR) devices market will be worth over $9bn (£7.2bn) by 2021, up from $1.5bn in 2017, according to CCS Insight.
CCS' latest global forecast for augmented reality and VR shows that dedicated devices have not seen the uptake expected, but that smartphones and general mobile devices have been a gateway for users into the market.
Ben Wood, chief of research at CCS Insight, said: "Headsets designed for smartphones are the entry point for most consumers when it comes to virtual reality.
"Google's Cardboard devices and Samsung's Gear VR headsets have been the early market makers in this area.
"We expect the momentum to continue at Mobile World Congress next week, with Google's Daydream headsets being a prominent part of many high-end smartphone launches."
CCS said it had previously overestimated sales for dedicated VR devices in 2016. The market watcher anticipated products including the HTC Vive, Oculus Rift and the PlayStation VR to hit sales of two million units, but now estimates the figure was just 1.2 million.
Wood added however that these specialist devices are expected to add a "meaningful revenue contribution" to sales by 2019.
"There's no doubt that dedicated VR headsets can be a tough sell," he said.
"The complete package of the headset and a high-end PC is out of reach for most consumers and even the PlayStation VR, which can be used with the PS4 games console, has failed to meet expectations.
"There's a lot of work to be done on all aspects of the experience, but we still believe there's tremendous potential."
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