Investments in the augmented and virtual reality industry have soared in the past one year. According to Augmented/Virtual Reality Report 2016 by Digi-Capital, $686 million of investments were made in AR/VR in 2015. The investment growth in this department has been for 6 straight quarters. In Q4 2015 alone, a quarter of a billion dollars were invested. The rate is six times compared to that made in mid-2014. The numbers are quite impressive as a large part of investment for Magic Leap in 2014 and 2015 have not been included in the report.
Where Have the Investments Been Made?
The investments have been made in sectors where long and short term opportunities are there for investors. They include AR/VR games, videos, services/solutions and head-mounted displays. AR/VR consumer apps, advertising, tech, etc. saw low investment last year as they were in early stage. Now, investors are well aware about their potential. This means, in 2016, we can expect more number of investments.
The report also stated that $311 million of AR/VR M&A exits were made in 2015. This was half the level of early investments made in 2015. AR/VR investments made from 2011 to 2015 have given back 128% of all the money that have already been invested.
Another fact that the report stressed upon was that some big acquisitions are in line this year as “major players try to leapfrog the competition”
Next Big Shift
The next big shift to AR/VR could occur in 2020 where its growth could reach $120 billion. This will be the best time for entrepreneurs in this VR/AR space, to offer something special. Things are getting better for those who like augmented, virtual reality or mixed reality. The report has quite a bullish outlook regarding the growth of virtual or augmented reality in the future.
We can only wait and watch till we get a clear idea how much the AR/VR market is growing in the coming days.
What’s your thought?
What do you think about this change in AR/VR industry? Have you experienced any of these technologies yet? Share your thoughts in the comments below.
Image Source: vrworld.com