Augmented reality and virtual reality is growing even more as new developments are taking place. Google Glass was the first headset which garnered quite a lot of attention. Now, you will see other developments like Facebook’s acquisition of Oculus, Google’s investment into Magic Leap, an AR startup and recently the announcement of Microsoft’s Hololens. VR and AR in 2015 are still new and it is being predicted that by 2020, the market for these technologies will reach $150 billion. 2016 is being expected to be the year when things get going.
Augmented Reality is Chalk and Virtual Reality is Cheese
Stereo 3D HD video and audio can be obtained from VR and AR headsets, but there is a huge difference between these two technologies.
VR is fully immersive and closed, whereas AR is partially immersive and open, you can feel the real world along with the digital world when using augmented reality, unlike virtual reality. VR immerses people in a virtual world and AR augments the real world by inserting virtual images there.
This difference could give AR an edge over VR as well as over the entire tablet and smartphone market.
VR is great for 3D films and games and AR also provides fun to the gaming addicts, though it might not be as much fun as using VR. However, this weakness could make AR more popular among consumers. There are many potential uses of this technology apart from its use in games. You could use AR in web browsing, voice calls, consumer apps, theme park rides, advertising, TV/film streaming in 2D and 3D, and more.
The Market by 2020
It is being predicted that by 2020, AR/VR market could reach $150 billion, where augmented reality will hold the major share of $120 billion and virtual reality will have $30 billion.
The market for VR is primarily 3D films and core games. There are also niche enterprise users for this technology. There could be tens of millions of users for VR. It is anticipated that economics of consumer software/services will be similar to the present films, games and theme parks. However, additional voice or data revenues from VR cannot be expected. Enterprise revenues from VR could be substantial but it is expected that AR will be more popular in that area.
AR on the hand will have a market similar to tablet or smartphone. So, AR could have hundreds of millions of users having hardware points similar to tablets and smartphones. This means, large hardware revenues from device makers could be generated.
The economics of the mobile market that is present today could be same as that of AR software and services. With a large AR base, enterprise, TV/film, etc. would get a large revenue source. The data and voice businesses of mobile networks would get a bonanza from augmented reality.
If VR and AR can overcome the difficulties it is facing now, we can expect the market to hit $150 billion by 2020. So, companies thinking of investing in augmented or virtual reality could do so now. You can read the full report here.
What about you?
Are you going to use augmented reality for your business? Do you think AR and VR can hit $150 billion by 2020? Share your thoughts in the comments below.
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