Virtual and Augmented Reality (VRAR): Market Opportunity, Emerging Ecosystem and Leading Use Cases
The "Virtual and Augmented Reality (VRAR): Market Opportunity, Emerging Ecosystem and Leading Use Cases", a thematic research, examines the current state and outlook of the VRAR markets, emerging use cases as well as the evolution of the provider ecosystem. Driven largely by massive investments from the world’s leading technology competitors including Facebook, Microsoft, Google and Sony, the technology has become accessible to both consumers and businesses. Still, the adoption and usage of VRAR is minimal, and the penetration of VRAR headsets is extremely low. In this report, we explore growth drivers and key trends shaping the global VRAR market and identify leading use cases across consumer and business markets.
Development of the virtual reality and augmented reality (VRAR) markets turned the corner in 2016-2017, fuelled largely by an infusion of capital from leading tech companies and other investors. Despite robust momentum on the supply side, the VRAR market is still nascent, with the penetration of VRAR headsets very low relative to other computing devices. Consequently, leading players are focused on evolving the technology toward more friendly, wireless form factors, boosting device affordability and improving the user experience. The creation of a seamless solutions and apps ecosystem is key to VRAR market expansion. Now their focus is to develop compelling content offerings to drive users to their proprietary or open source platforms. As a result, VRAR applications are emerging across the industry to address a variety of use cases. The universe of potential VRAR apps is nearly limitless, from pure entertainment (gaming) to business productivity (virtual collaboration), all the way to life-saving tools (disease diagnosis and treatment). The market shift is creating opportunities for Telcos and other technology players in VRAR content creation, as well as content platforms and services.
The report is structured as follows:
- Section 1: The global VRAR market. This section provides an overview of the revenue opportunity, growth drivers and key trends shaping the global VRAR market, such as the increasing emphasis on device mobility and affordability, and the proliferation of VRAR solutions for Enterprise engineering, sales, operations and productivity.
- Section 2: The VRAR ecosystem. This section examines the VRAR ecosystem with a focus on headset and platform providers, and key use case applications showing potential in the near term.
- Section 3: Findings and recommendations. We conclude the report with a summary of VRAR market and ecosystem dynamics and opportunities for telcos in VRAR.
Some of the findings of the report include:
- The nascent VRAR market is fueled by large investments from technology players and the need for businesses to digitalize operations, combined with growth of the digital-first population. Early industry entrants face the typical challenges of new technology businesses, namely procuring device usability, overcoming user barriers, attracting content developers and identifying effective business models.
- Despite the strong momentum seen on the supply side, both the VR and the AR markets are still in the early growth stages. Adoption and usage of VRAR by consumers is still minimal, and the penetration of VRAR headsets is extremely low relative to other computing devices, such as smartphones and gaming consoles.
- The emerging VRAR solutions ecosystem is being shaped by six key trends and six leading device/platform providers. The industry is seeing early successes in leisure/entertainment, medicine, advertising, commerce, education and manufacturing, among other segments. Enterprises and public service organizations such as hospitals are testing VRAR applications as a means to improve service delivery and reduce costs.
- Telco stakes in the future of VRAR go beyond broadband connectivity. Participation in various segments of the VRAR solutions value chain can help Telcos accelerate 5G monetization to offset the huge impact that VRAR services will have on network traffic.
Reasons to buy
- This report provides an examination of the current state and outlook of the VRAR markets, emerging use cases as well as the evolution of the provider ecosystem.
- The report highlights VRAR market trends and opportunities or emerging applications across industries along with use cases which can help service providers to identify target markets and create new revenue streams.
- The report discusses concrete opportunities for VRAR, providing a number of actionable recommendations for telcos.
- Report scope
- Market taxonomy
- State of the market
- Market opportunity
- Growth drivers and inhibitors
- Six trends to watch
- Solutions landscape
- Leading ecosystem competitors
- Leading use cases and applications
Section 3: Findings and recommendations
- Companies mentioned
Exhibit 2: The reality continuum
Exhibit 3: Definitions of alternate realities
Exhibit 4: Mixed and augmented reality components
Exhibit 5: Core elements of virtual reality solutions
Exhibit 6: Current state, virtual vs. augmented reality
Exhibit 7: Global VRAR revenue, 2017
Exhibit 8: VRAR revenue forecast, 2015 - 2020
Exhibit 9: VRAR revenue by vertical segment, 2025
Exhibit 10: VRAR disruption potential over smartphones
Exhibit 11: Driving forces behind VRAR growth
Exhibit 12: Selected VRAR investments by tech players
Exhibit 13: Hurdles faced by VRAR market participants
Exhibit 14: Key trends to watch in VRAR
Exhibit 15: VR headset price cuts
Exhibit 16: VR content and software revenue
Exhibit 17: Recent announcements, VR headsets
Exhibit 18: Leading VR gaming platforms
Exhibit 19: BMW’s VR retail applications
Exhibit 20: VRAR investment plans, telcos
Exhibit 21: Key solutions in VR and AR/MR realities
Exhibit 22: Players leading VRAR
Exhibit 23: Google’s Daydream platform partners
Exhibit 24: Facebook’s VR product lineup
Exhibit 25: Samsung’s VRAR product lineup
Exhibit 26: HTC’s main VRAR revenue streams
Exhibit 27: Selected Microsoft VRAR developments
Exhibit 28: Sony’s top VR videogames
Exhibit 29: Selected Apple ARKit applications
Exhibit 30: VRAR use cases and applications by type
Exhibit 31: Leading leisure applications for VRAR
Exhibit 32: Leading VRAR use cases for business
Exhibit 33: Life enhancing applications for VRAR
A selection of companies mentioned in this report includes:
- Black River Studios
- British Telecom
- British Museum
- Carnival Cruises
- Children’s Hospital of Los Angeles
- China Mobile
- China Telecom
- CITIC Guoan Group
- Climax Entertainment
- Deutsche Telekom
- Duke University
- Ford Motor Company
- Formula One
- Global VR Association
- Khronos Group
- Live Nation
- Magic Leap
- Marriott Hotels
- Medical Realities
- Mercedes Benz
- Minority Media
- Mira AR
- New York Times
- Osterhout Design Group
- Oxford University
- Sequoia Capital
- SK Telecom
- Streem Inc.
- USA Today
- VR Americas
- VR Venture Capital Alliance
- Wall Street Journal