Virtual and Augmented Reality Market To Reach $162 billion by 2020
Sim Champs before you know it AR and VR technologies will become a mandatory part of our healthcare educational programs. The opportunities to learn and train in high-cost risk-heavy environments in a safe and affordable manner will continue to expand through advanced learning technologies like augmented and virtual reality. HealthySim will continue to report tidbits of progress in this arena as its applications to healthcare become ever clearer. Today, we share the expectations of the industries growth to demonstrate the upward trend in utilization:
BusinessInsider.com reports that the total revenue for virtual reality (VR) and augmented reality (AR) is projected to increase from $5.2 billion in 2016 to over $162 billion in 2020, according to the IDC:
- More than half of the revenue will come from VR/AR hardware sales. Additionally, service revenues are projected to increase over the period as demand grows for enterprise-class support. Software was also mentioned as a smaller, but notable revenue source, growing more than 200% year-over-year (YoY) in 2016. Nevertheless, services revenue will quickly surpass it, largely due to demand in the enterprise segment.
- AR systems will ultimately contribute more revenue than VR systems. Games and paid content will be strong sources of revenue for VR systems, particularly in the next two years. However, this revenue will be eclipsed as AR systems are integrated into healthcare, product design and management-related uses.
- Most revenue through 2020 will come from the US. The US, Western Europe, and Asia Pacific (excluding Japan) are projected to account for three-quarters of revenue for VR and AR. The US is projected to contribute a larger amount as time progresses.
The adoption of AR and VR headsets will be driven primarily by the introduction of less expensive models to the market, first powered by smartphones before mainstream adoption of stand-alone headsets. While early adopters will drive the initial wave of purchasing, sustainable growth will likely come from VR and AR app developers building a robust and engaging ecosystem of content that entices slower adopters. Lastly, as the underlying technology powering these devices increases, so too will the capabilities, creating new use cases in entertainment, workplaces, and education.