Explosive growth forecasted for virtual reality market
Market researcher ABI research is forecasted explosive market growth for Virtual reality. ABS estimates shipment of 90 million Head Mounted Display (HMD) in 2027, and by market revenue ABI estimates VR market to reach more than US$ 95 billion in 2027, the revenue includes the revenue from hardware software and services.
In recent past virtual reality was more of hype, rather than solid growth, that's not going to be the case now, present demand for virtual reality can be seen both in consumer and enterprise market.
ABA says "consumer interest in VR games and media continues to grow after COVID accelerated activity. At the same time, the need for worker enablement and immersive content in enterprise remains strong."
“The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase, the increased capability of VR hardware combined with, perhaps most importantly, demand for immersive content in numerous markets, presents a significant opportunity,” says Eric Abbruzzese, Research Director with ABI Research. “While the intense focus on metaverse is partly responsible for this increase, shorter term and smaller scale opportunities are driving the expected growth.
With a shipment of 79 million Standalone HMDs takes major share in 2027, a 40% growth in CAGR. Tethered and mobile-based VR devices make up the rest, with tethered favored for gaming by consumers and simulation and training for enterprises, as per ABI. Consumer shipments take a share of 80% in the total. Education market though only takes a share of 16% of total shipments but is growing at a very high CAGR of 88% through 2027. Other enterprise markets do not account for a significant portion of shipments. But will significantly grow in some areas. Location-based and Transportation and Automotive both will grow at over an 80% CAGR through 2027, according to ABI.
ABA shares this below-market data on specific products in the market: Meta’s Quest 2 remains the most popular VR device, standalone or otherwise, and by all accounts had a record breaking 2021. Sony’s PSVR2 has been confirmed and will target an impressive PlayStation 5 install base that has also set records despite supply shortages. Apple has a planned headset possibly launching in 2022, while Meta also has confirmed a new standalone device. Pico (recently acquired by Bytedance) and DPVR are worth watching on the affordable end, and Pimax is pushing capability at the high end. Mobile devices, such as the now abandoned Samsung Gear and Google Daydream, do still have presence in the market, although limited. The low cost and accessibility from these devices remain valuable and will still be treated as an option against the dominant standalone form factor.
“Hardware, software, and services must align with perceived value and demand to allow a new technology like VR to flourish. This has only happened in siloes and at small scale so far, such as with VR gaming, but cross-market investment and offerings are now being met with demand. The need for immersive visualization tools can only increase, and without the once glaring holes in enabling technology capability or value to users, the path forward is a promising one - not just in small segments but across ecosystems,” concludes Abbruzzese.
Author: Srinivasa Reddy N