Augmented and virtual reality reap real world rewards as revenue forecasts hit $162bn for 2020
Augmented and virtual reality revenues are set to soar with analysts predicting that the sector will command revenues of $162bn by 2020.
This exponential rate of growth guarantees bumper times ahead for a market which commanded a mere $5.2bn in revenues for 2016.
Chris Chute, vice president, customer insights and analysis, The International Data Corporation (IDC), who published the figures said: “For many years augmented and virtual reality were the stuff of science fiction. Now with powerful smartphones powering inexpensive VR headsets, the consumer market is primed for new paid and user generated content-driven experiences. Recent developments in healthcare demonstrated the powerful impact augmented reality headsets can have at the industry level, and over the next five years we expect to see that promise become realized in other fields like education, logistics, and manufacturing.”
Breaking down this revenue growth IDC reckons hardware will account for 50 per cent of revenues over the forecast period whilst software revenues, despite growing 200 per cent year over year in 2016, will be overtaken by services income in the middle years of the forecast.
VR is expected to account for the lion’s share of this growth up until 2017 on the back of enthusiastic uptake from gamers, but thereafter AR will take the lead due to logistics and manufacturing demand.