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Augmented & Virtual Reality Market to Reach $4 Billion by 2018

Augmented & Virtual Reality Market to Reach $4 Billion by 2018

Augmented reality and virtual reality usage is increasing at a rapid rate. New applications are being developed which provide immersive experiences to the consumers with the use of these technologies. It has been predicted that in the next three years, the market for these two technologies will reach $4 billion. The industry analyst firm, CCS Insight stated that virtual reality has the power to be one of the most disruptive technologies for ten years. The firm focuses on worldwide trends in mobile communications and the web. What does the report state?

Read Also – Disney Unveils Augmented Reality Wearable Toys

The Study by CCS Insight

According to the report released by CCS Insight, hardware shipping of VR devices alone will rise from 2.2 million in 2015 to 20 million in 2018. The rise in VR devices will tally with the rise in smartphones, with 90 percent of the total share being comprised of VR hardware compatible with phones. Around 12 million VR headsets are expected to be sold in 2017. The sales of augmented reality headsets is expected to be worth $1.2 billion the same year. Augmented reality device shipments will increase 16 times. The number is nothing compared to VR devices. AR devices are expected to increase from 300,000 to 4 million by 2018.

The Reason for the Growth

The release points out the reason for this growth in virtual and augmented reality market. Since most of the big players in the world of technology namely Sony, Facebook, Microsoft, Google and Samsung are now involved with augmented reality or virtual reality, it is obvious there will be a spurt in these technologies.

CCS believes we are now at the tipping point of the technology. Gaming is another area which will give a boost for companies. However, according to the firm, there will be other applications in VR and AR as well, which will play a significant role in taking up the market to reach the $4 billion figure.

Ben Wood, CCS Insight’s chief of research, said “We believe it has tremendous potential and it’s not just about expensive high-end devices such as the Oculus Rift. For only a few dollars, consumers can dip their toe in the water with an inexpensive cardboard holder for a compatible smartphone. We expect this democratization of the technology to deliver growth not just in affluent mature markets but also in emerging markets where smartphone penetration is stronger than ever.”

Wood added “Despite the reputational damage done to the consumer smart glasses segment by Google Glass, companies have realized augmented reality can be used to increase productivity and cut costs. Over the next two years we’re going to see the technology move out of trials into full-scale deployments. Companies that embrace augmented reality will gain a competitive advantage.”

The data has been taken from CCS Insight’s Augmented and Virtual Reality Device Forecast 2015-2019.

What do you think?

Do you think virtual and augmented reality will grow even more? Which one do you like more? Share your thoughts in the comments below.

Image & Article Source – wired.co.uk

 

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Some opinions expressed in this article may be those of a guest writer and not necessarily by augmentedrealitytrends.com

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