Virtual and Augmented Reality Set to Explode
The commercialization of virtual and augmented reality is predicted to explode in the coming years. By 2020, the initial five billion dollar forecast has been increased to a staggering 162 billion dollars. The Pokemon Go phenomenon and the rise in VR in the gaming and iGaming industries have seen predictions for VR soar.
Virtual reality is a concept that has been talked about seriously since the 80s, and finally the market is ready and technology good enough. Samsung has already launched a solution that lets you put your phone in a spectacle, thus making VR experience quite reasonable.
IDC (International Data Corporation) recently published its latest estimates for the development of the market for virtual reality. Quickly explained: VR “virtual reality” is a completely immersive computer-generated virtual reality and so called augmented reality, AR, “augmented reality” which is a mixture of the real world and computer graphics.
181 percent growth in Virtual Reality per year
IDC estimates the size of the global market for these technologies to be $5.2 billion this year. This revenue, according to IDC’s analysis forecasts explosive growth for the next five years. By 2020 it is projected that the global turnover from VR/AR revenue will surpass 162 billion dollars. This growth represents an average annual growth over the period (CAGR) of formidable 181.3%.
The emergence of new, less expensive hardware will place AR and VR within the reach of an increasing number of individuals and businesses, said Tom Mainelli, a senior analyst at IDC.
IDC predicts that over half of the estimated revenue will come from AR/VR headsets and other associated hardware technology. To play online casino games on casino sites like Guts, players need VR headsets. Many gamers who want to experience an online casino game in VR environment will scramble to get their hands on the right devices and technology.
However in iGaming, one must bear in mind that although the technology has now become both better and cheaper – it is still expensive and difficult to produce content for VR. The Game Developer’s ability and willingness to create interesting content will therefore be crucial in this market segment.
Meanwhile, revenue from the necessary software will also grow sharply. This year has seen growth of over 200% when compared to last year. This revenue will be overtaken by services supplied on an enterprise level. Health care other sectors stand to benefit from VR technology greatly.
VR first, then AR
IDC also predicts that VR will lead the way over AR in 2016 and 2017. This is because consumers are set to invest in games and other paid content during this period, such as gaming and interactive internet activities. After 2017, AR is set to lead the way. This is because professional use in sectors like health care, product design and management will start using it in their daily operations.
From a regional standpoint, IDC said that the United States, Western Europe and Asia will account for three-quarters of the global turnover of AR/VR technology.
There is still some public scepticism about prolonged use of VR goggles and Nintendo have themselves warned against the use of VR goggles for children under 6 years. On the other hand, research has shown that 3D and VR games greatly improve people’s short term memory when used in moderation.
We will know more about any positive and negative impacts from VR/AR usage as it infiltrates our professional and personal lives over the next few years.