Virtual and augmented reality will grow in value by more than 160 billion in 2020

The total gain for virtual reality (VR) and augmented reality (AR) is projected to increase from $ 5.2 billion in 2016 to exceed $ 162 billion in 2020, according to IDC. More than half of the profits will come from sales of VR / AR hardware devices. In addition, service revenues are projected to increase during the period as demand grows along with the business class.

From here on I will refer to virtual reality and augmented reality with VR and AR, respectively. VR by Virtual Reality and AR by Augmented Reality.

 

RA systems will contribute more to profits than RV systems. Games and content payment will be strong sources of revenue for RV systems, especially in the next two years. However, these revenues will be eclipsed as AR systems are incorporated into health care, product design, and administration-related uses.

Most of the profits in 2020 will come from the United States. The United States, Western Europe and Asia Pacific (excluding Japan) are projected to generate three quarters of the gains for RV and RA. The United States is expected to contribute much more over time.

Future of virtual reality

Adoption of AR and VR viewers will be driven primarily by the introduction of less expensive models in the market, first powered by smartphones before they are popularly adopted by themselves. While the first adapters will generate the initial buzz wave, sustainable growth will come with more possibilities through VR and AR application developers building a robust, coupled content ecosystem that can accommodate slower adapters. Finally, as the underlying technology of these devices increases, so will capabilities, creating new use cases in entertainment, workplaces, and education.

The technology industry has promoted the prospect of RV over the last few decades. But only now, with viewers being backed by big names like Sony and Facebook, VR is finally becoming a concrete product with massive market potential. While VR technology is widely associated with the video game industry, the platform offers a new variety of content opportunities in entertainment, advertising and more.

VR viewer manufacturers are driving the development and distribution of VR content by investing significant technical and monetary resources in developers in an effort to build a unique content library.

High demand for VR displays by mobile and console players will drive demand for VR content. The VR content market will take an increased share of the mobile gaming software industry.

Beyond gaming, VR entertainment will keep flying low until demand for VR displays increases.
Featured ads on VR viewers are more likely to receive better impression-to-view rates compared to conventional video ads.

Other industries are also beginning to experiment with VR content. Travel companies, publishers, e-merchants and social platforms are beginning to see the potential in this new category.

The contents of VR face major obstacles that could keep developers from investing. The VR experience should be good enough for people who use the devices. Additionally, developers need to know if a user base exists to know if it can be profitable to invest in VR content.

And you, what do you think of virtual and augmented reality? Do you think they can be the future of technology? I personally believe that as long as it complements current technologies, it will be an industry that will help to improve our lives and not only provide a lot of entertainment, but also create job opportunities and play an important role in health care and The education.

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