The global virtual and augmented reality market is dominated by the leading technology firms in the industry while also incorporating a few small-scale niche companies, finds Transparency Market Research (TMR) in a report. Owing to this circumstance of the global market, industry players are exposed to a tremendously aggressive and testing competitive environment. The prominent players in the market are observed to take advantage of their mammoth funds for research and development activities, long-existing brand images, and peerless international reach. Some of these players are HTC Corp., Google, Inc., Microsoft Corp., Sony Interactive Entertainment LLC, and Oculus VR LLC.
The report by TMR predicts the global market for virtual reality (VR) and augmented reality (AR) to rise on the back of profit-making opportunities in a swelling set of applications. The analysts foresee the global market to expand to US$547,207.68 mn by 2024, marking a mounting CAGR of 92.5%, from US$2,904.5 mn in 2016. By end-use application, the market will ride on the colossal revenue contribution of media and entertainment and a faster growing CAGR of the automotive sector. Geographically, North America is anticipated to earn a revenue share of 48.5% in 2024 while Asia Pacific and the Middle East and Africa are expected to emerge as lucrative markets.
Unceasing Innovation in Hardware Components Offer Scores of Opportunities
Constant innovation in technology is making the international VR and AR market more lucrative. The hardware component market is experiencing a perpetual drive with novelty upgrades in devices such as headsets and controllers. For instance, the infrared based eye-tracking sensor containing headset launched by Fove, Inc. in 2016 and high-end data hand gloves by Manus VR which bring intuitive interaction to virtual reality.
It is anticipated that headsets and controllers will become more compact and smaller in size and provide the mobile device integration option. This will in turn impact the market for VR and AR hardware with better ergonomic values, longer battery life, and wireless devices.
In 2015 and 2016, the global VR and AR market saw heavy investments coming from technology specialists such as Samsung Ventures, QUALCOMM Ventures, and Google Ventures. The idea was to partner and invest with startups to marginalize the competition. The investment scenario is projected to boost further as private venture capitalists take interest.
Costly Innovations and Chipset Price Threaten Market with High Pricing
The only setback envisioned for the world VR and AR market is the high initial cost of devices such as headsets, head mounted displays (HMDs), projectors, and glasses. The high cost in the market is mainly driven by the introduction of new technology and price of chipset. This has caused the price of hardware components to reduce at a slow rate as a high innovation environment influences the global market.
Howbeit, the price is expected to decrease on account of the rising adoption of VR and AR headsets and other components and consideration of the historical cost of consumer-oriented electronic devices. The introduction of mixed reality is envisaged to offer lucrative opportunities in the augmented reality solution application market. The application of artificial intelligence in both VR and AR technologies is projected to augment in the automotive, education, manufacturing, and aerospace sectors. More opportunities are foretold to arise from the enhancement of 3D printing in sectors such as construction and manufacturing.
The study presented here is based on a report by TMR, titled “Virtual and Augmented Reality Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global VR and AR market has been segmented in the following arrangement.
- Head Mounted Display
- Head Up Display
- Other (Camera and Projector)
By End-use Application
- Media and Entertainment
- Defense and Aerospace
- Others (Manufacturing and Energy)
- North America
- Asia Pacific
- Middle East and Africa
- South America
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