Skip to main content

Augmented Reality and Virtual Reality Market Upside

​The augmented reality (AR) and virtual reality (VR) markets are experiencing increased growth potential, from new devices and new content, to existing content that's being adapted to make use of the emerging communication medium.

According to the latest market study by ABI Research, head mounted displays (HMDs) will be the prevailing form-factor for both AR and VR devices. That said, AR will see varied form-factors as the technology progresses into more diverse user applications.

"Among the three categories of devices -- which are standalone, mobile-reliant, and tethered -- mobile-reliant devices such as the Samsung Gear VR will see the most success early," said Eric Abbruzzese, research analyst at ABI Research.

Meanwhile, tethered devices such as the Oculus Rift -- and standalone devices like those manufactured by ODG for industrial applications -- will need more time to mature before establishing a large user base.

Virtual reality will be most popular in the gaming market, because of the high level of immersion possible in VR, as well as the high demand for interactive experiences.

Augmented reality will be most successful in the enterprise market, for applications in logistics, engineering, and automotive. Applications such as education, travel, and design are served well by both AR and VR, and success depends more on specific needs than general application.

New content mediums, such as interactive VR video, are becoming more popular and catching the attention of content creators as a potentially viable medium.

Existing software solutions, such as CAD software, can be outfitted to support AR and VR devices, and open a new approach to using the software. As the market grows, major content networks such as sports networks and video creators will start supporting AR and VR devices, and more consumers will migrate to the market.

There is a lot of excitement and hype focused on getting consumers to try out virtual reality, including the LG G3 shipping with an HMD in some markets, and the Mattel View-Master AR toy.

These early experiences will be like any new toy-novel for a while and then fall off in use, with new content potentially driving periodic re-engagement.

According to the ABI assessment, for true breakthrough products to be embraced, technology, usability, and content must meet at the critical time. For AR & VR, the inflection isn't likely to occur until 2016.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th