The VR/AR hardware market is expected to zoom soon as niche technologies and improved devices will widen its application, fuelling newer demands and expanding the market phenomenally!
The ability to create immersive real life milieu and enhanced sensory experience is making augmented and virtual reality gadgets an increasingly must-have device on consumers’ wish-list worldwide. While the VR/AR hardware sales projections by different research bodies differ, everyone agrees that VR/AR is the next big thing. One credible research projects global augmented and virtual reality hardware market (gadgets & devices) to grow to USD 59.5 billion by 2022. This would be a mindboggling jump of more than 60% CAGR over the expected 2018 market size of USD 7.3 billion.
So what’s giving rise to this optimism? Yes, the growing popularity of virtual and online gaming is a big factor and would remain the biggest application for headsets on the consumer side. In fact, video games and online gaming itself got a big boost with the advancements in VR/AR technology/gadgets as immersive technologies provided mind-boggling experience and exhilarating feel like never before (a la chicken and egg story here actually). But, are electronics and tech giants such Samsung, HTC, Sony, Facebook and Google investing big time simply to cash in on the rising popularity of gaming? Or is the market for VR/AR gadgets itself gonna see a huge expansion – both organic and inorganic?
The answer to both the posers is yes. Gaming would remain the biggest vertical and money spinner for VR/AR manufacturers but the technology and hardware is going to find big application expansion in fields like healthcare, military, sports and education. The biggest application growth would be in military and healthcare. (Please see the chart). Little wonder, corporate biggies and internet big guns have committed huge outlays for developing niche devices, newer experiences and acquiring promising startups in this field. The game has just begun!
Key Investment Pockets:
Growth By Application