Virtual Reality, or VR, is the use of computer technology to create a simulated environment that can be explored in 360 degrees. Unlike traditional interfaces, VR places the user inside the virtual environment to give an immersive experience.
Here are some statistics on virtual reality and its impact on the market:
- The combined augmented reality and virtual reality markets were worth $12 billion in 2020 with a massive annual growth rate of 54%, resulting in a projected valuation of $72.8 billion by 2024.
- Meanwhile, another report from Research and Markets appraised the virtual reality market at $6.1 billion in 2020 with an annual growth rate of 27.9%, projected to reach $20.9 billion by 2025.
- In terms of VR spending by sector, consumer spending leads the way at 53%, followed by distribution and services (15.8%), manufacturing and resources (13.8%), public sector (12.7%), and infrastructure (3.2%).
- In terms of AR/VR spending in 2020 by region, China leads the world with $5.8 billion, followed by the US ($5.1 billion), Western Europe ($3.3 billion), and Japan ($1.8 billion). Meanwhile, the rest of the world spent $2.8 billion on AR/VR.
- China accounted for 38.3% of the global AR/VR share in 2020. It will increase to 56% in 2021.
- However, the IDC sees China’s share decline to around 36% by 2024 while the US and Europe close in with CAGRs of 75.1% and 72.8% through 2024, respectively (IDC, 2020).
- Meanwhile, the commercial use cases that are foreseen to obtain the biggest investments in 2024 are training ($4.1 billion), industrial maintenance ($4.1 billion), and retail showcasing ($2.7 billion).
- Factors Hindering Adoption:
- When it comes to factors hindering VR adoption, content offerings (27%) is the top obstacle, followed by user experience (19%), business and consumer reluctance (19%), regulation and legal risks (12%), the cost to consumers (11%), and financing and investment (9%).
- The biggest concerns for investors in VR start-ups include the lack of an established market for technology (46%), untested technology (38%), slow business adoption (38%), slow consumer adoption (32%), and lack of trusted teams and technologies to invest in (13%).
- As far as VR/AR and other immersive technologies going mainstream is concerned, 37% of businesses think it will happen in two to five years, 25% within 2 years, 17% in the next 5-8 years, 15% in less than 2 years, and 6% in 8-10 years.
- COVID-19 helped accelerate the CAGRs of AR and VR to 38.1% and 27.9%, respectively.
- AR accounts for $4.2 billion in revenue in 2021 while VR rakes in $3.5 billion, making AR a bigger avenue for innovation.
- General User Statistics:
- By 2022, the number of AR users in the US will jump to 95.1 million.
- 19% of adults in the US have tried virtual reality.
- As of January 2021, the official YouTube Virtual Reality channel has more than 3.4 million subscribers.
- 55% of VR users found the experience to be extremely or moderately satisfying.
- VR will reach 25% (70.2 million) of internet users in the US by 2023.
- From 2018 to 2022, the number of monthly users of VR will have increased by 75.7%.
How can Visual reality impact business around the globe?
- VR can accomplish many business tasks, some as small as making a sale, and others on the scale of restructuring an organization.
- When VR is used in employee education, it can completely replace lectures and hands-on training with designated trainers.
- Using virtual solutions helps reduce risks that workers are subjected to and is very convenient in terms of preparation.
- Most enterprise VR apps simulate dozens if not hundreds of work situations, so development can be quite long without an efficient framework.
- The level of immersion provided by VR can eliminate or reduce the need to showcase a product in physical form – consumers can get useful interactions digitally.
- Many use cases of VR have not even been imagined yet, and the hardware and software are getting better every year.