Clay Bavor, vice president of virtual and augmented reality at Google said that smartphones will include Samsung's Galaxy S8 family products and LG Electronics' flagship models for 2017,

Asustek is likely to launch its first Tango-enabled smartphone in the third quarter of 2017.

More than 150 VR applications supporting the Daydream have come online and over 10,000 360-degree VR videos have posted on Youtube, Bavor said.

Google has launched its Visual Positioning Service (VPS), and an integration of VPS and GPS functionalities is expected to bring in new applications and demand in the AR commercial market, Bavor said.

Google plans upgrade the support for VR by its Chrome OS in 2017 to enable better VR content development through the OS, he said.