The state of virtual and augmented reality industry is one which would make any investor happy: the technology is becoming more and more mainstream, with high adoption rates among consumers and fields of business and industry. The boom of AR and VR devices continues on the same growing trend started in 2016 and is encouraged by new startups and creative product ideas. Of course, not all of them materialize, but those that do have the power to create a substantial change (see the case of Magic Leap).
What Drives the Demand for AR and VR Devices?
The increasing market share of virtual and augmented reality industry is fueled both by private consumers and by companies. Smartglasses and VR headsets are now used in a wide range of fields:
As more technology enters the market, it becomes more and more affordable. For instance, in 2016 the Oculus Rift cost $799. The recently launched Oculus Go costs $199.
Let’s focus now on the raw data available.
Statistical Data for Virtual And Augmented Reality Industry
1. How much will VR and AR device market be worth?
The VR and AR device market will be worth $1.8 billion in 2018, according to CCS Insight. According to the senior analyst for wearables at CCS Insight, George Jijiashvili, “Virtual reality headsets have been the main source of growth in unit sales to date, and we expect this will continue, particularly headsets that use a smartphone.”
2. Which segments will drive global AR and VR spending?
Global AR and VR spending in 2018 will focus on the following segments:
- 15.6% consumer hardware
- 6.6% virtual reality games
- 5.1% augmented reality games
- 3.1% onsite assembly and safety
- 2.9% retail showcasing
- 66.6% others
“Virtual reality will continue to drive greater levels of spending in the next 12-18 months, as both consumer and commercial use cases gain traction,” explained Tom Mainelli, Program Vice President for Devices and AR/VR at the International Data Corporation.
3. How much will the number of active virtual reality users grow in 2018?
There will be an increase of active virtual reality users in 2018 compared to last year (the numbers below are expressed in millions of users):
- 114 early majority compared to 58
- 41 early adopters/light gamers compared to 23
- 16 hardcore gamers compared to 9
This growth is explained by the rich variety of VR content available on the market: there are games for children, racing games, sports games, action and adventure games, and more. As the virtual and augmented reality industry becomes more mature, it will be able to cater to more tastes and preferences.
4. How many times will shipments of augmented reality glasses increase?
Shipments of augmented reality glasses will increase 10 times, from 340,000 in 2017 to 3,716,000 units in 2018. This latter number is expected to double in 2019 and reach 22,801,000 in 2022. This is not a surprising growth rate, because the augmented reality industry is now involved in most of the top industries in the world, including automotive, product design, warehousing, architecture and healthcare, to name a few.
5. Which sectors will see the most investments in virtual and augmented reality content?
Sectors that will see the most investments in virtual and augmented reality content are as follows:
- healthcare and medical devices
- real estate
- marketing and advertising
- live events
- military and defense
- movies and television
- manufacturing and automotive
These percentages are in line with the current state of the virtual and augmented reality industry, the key focus being entertainment (games, live events, movies and television), followed by education, healthcare and retail marketing.