Virtual reality industry is still in its infancy. However, Goldman Sachs, the American multinational investment banking firm, has predicted that by 2025, the industry will see a boom. Heather Bellini, analyst at Goldman Sachs said that the VR industry could reach $80 billion by 2025 and it will go beyond entertainment and gaming, which are the two main aspects of virtual reality right now.
Estimates by Goldman
On Wednesday, Goldman Sachs released a research note which predicted that by 2025, $35 billion will be the revenue coming from software, whereas hardware revenue will be at $45 billion. The present hardware market for notebooks is at $111 billion while $14 billion revenue comes from the video game console market, as per estimates made by Goldman Sachs.
Bellini said “It’s really going to change, I think, many aspects of our life and be completely disruptive. 2016 isn’t going to be the year we see all of this play out, but certainly over the next 10 years, it’s going to take off.”
Goldman stated in the note that much of the growth will come from entertainment and gaming. But interior designers, car makers and retailers will also be using VR technology in the future.
Bellini said “If you work with an interior designer for your house, you’re going to be able to envision what that piece of furniture or what that tile might look like in your house before it actually ever gets installed.”
How Virtual Reality has changed from The 1990s
The research note says, regarding the change in virtual reality from the 90s- in the early 1990s, early efforts in VR like Virtuality arcade machines or Nintendo Virtual Boy had caused high expectations in comparison to what could be actually delivered through 3D graphics.
The note states, that now, computers are quite powerful and can deliver super-immersive graphics which can make virtual reality or augmented reality work like we want. Also, the displays and sensors that are required have been made standard enough by the smartphone industry so that they can build the devices at a cheaper rate.
This means that virtual or augmented reality headsets will pave the way for a new form of computing.
Goldman Sachs wrote in the note: “Fundamentally, virtual/augmented reality creates a new and even more intuitive way to interact with a computer. In the world of virtual/augmented reality, the controls of the computer become what we are already familiar with through gestures and graphics.”
However, Bellini said that the flourishing industry has also got some challenges to face. Technological barriers like faster wireless connections and better battery life should be overcome, before virtual technology hits mainstream.
What’s your take?
What’s your thought regarding this? Do you think virtual reality will boom? We would like to hear from you.
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