Industry Reports

Virtual and Augmented Reality Markets Expect Booming Growth over the Next 7 Years

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The future of virtual and augmented reality markets looks bright, at least according to the latest report by Transparency Market Research. The market research specialists estimate that by 2024 the AR and VR markets will reach $547.2 billion.

 

No Surprises among the Current Industry Leaders

At the moment, the virtual and augmented reality markets are defined by large investments in research and development and a myriad of start-ups are being absorbed by the top industry leaders. Speaking of the top players in the VR and AR industry, the names are those everyone expects to find here: Google, Microsoft, Sony, HTC and Oculus.

The Transparency Market Research specialists expect that the massive investments will start paying off soon through the development of products, services and even new industry niches where virtual and augmented reality will find applications.

HTC Vive

A Fulminatory Growth

If the researchers’ predictions turn out to be true, then the virtual and augmented reality markets will have the most booming growth compared to any other sectors. Between 2016 and 2024, the compound annual growth rate (CAGR) for these markets will be 92.5%. This specialized term used in business and finances defines the mean annual growth rate of an investment or a business asset over a period of time which exceeds one year.

This massive growth is explained in great proportion by the continually dropping costs for software development. While the hardware component is a significant one, the greatest potential for market development is in the software area. With countless possibilities for specialization – from gaming to healthcare, to manufacturing and business processes – virtual and augmented reality software and applications will be the most in-demand products on these two conjoined markets.

 

Asia-Pacific Will Continue to Supply Affordable Workforce and Europe/North America the Consumption

The Asia-Pacific region is already the most active player in high-tech product and software development. From the many brands of mobile phones to the skilled software developers sought by top level companies, this area is the melting pot of talent, a huge potential workforce and the promise of affordable manufacturing costs.

At the other end of the transaction spectrum, the top consumers on the virtual and augmented reality markets remain Europe and North America. Financially sound and always seeking new technologies to put to use for entertainment or business, these two huge markets will continue to maintain their huge appetite for new gadgets and innovative software.

There are hopes that two emerging markets will join these two in the demand for VR and AR products and services: Middle East Africa and South America. At the present, they are insignificant players on the market, but a steady economic growth and increased political stability – which seem to be achieved in timid steps in these areas – are capable of making a significant change in the average consumer’s buying power.

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