ABI Research, in its Virtual Reality Market Data: Devices, Verticals, and Value Chain market data report, predicts revenues to boom with a 45.7% compound annual growth rate over the 2019 to 2024 period
➨ Much of this growth will be down to the success of new standalone VR headsets
➨ They are key for the commercial and enterprise markets
➨ Healthcare, retail, architecture, engineering, construction, education and location-based VR are seeing early traction
The global VR market will surpass $24.5 billion in revenues by 2024, with commercial and enterprise expected to eclipse the consumer segment as early as next year, according to tech market intelligence firm ABI Research.
ABI Research, in its Virtual Reality Market Data: Devices, Verticals, and Value Chain market data report, predicts revenues to boom with a 45.7% compound annual growth rate over the 2019 to 2024 period.
Much of this growth will be down to the success of new standalone VR headsets, such as the Oculus Quest, which demonstrated the capability of 6DoF (six degrees of freedom) untethered solutions to replicate the more immersive experiences of tethered systems while remaining portable.
This is a key attribute for the commercial and enterprise markets—whose revenue ABI Research expects to outpace the consumer segment by 2021—where applications such as training are gaining traction and acceptance.
Healthcare, retail, architecture, engineering, construction, education and location-based VR are seeing early traction and are expected to continue pushing the commercial and enterprise markets forward.
Michael Inouye, principal analyst at ABI Research, commented: “Training and 3D visualisation are the most common use cases but other applications like virtual meetings and productivity will become increasingly common as hardware and platforms improve and evolve.”
He continued: “Overall, 2019 was a mixed bag for VR, but the good were solid steps forward. Some highs from new products like Oculus Quest and Rift S, HTC Vive Cosmos, Valve Index, and Varjo’s impressive enterprise HMDs, came along with some new lows, like Google ending development of Daydream and open sourcing Cardboard, which leaves this segment in a bleak situation. But HMD viewers could, in time, help bring this segment back from the brink.”
“The standout is standalone VR, which is shaping up well, addressing many of the early issues and is meeting early expectations, which bodes well for both the consumer and enterprise markets,” Inouye explains.
Inouye concluded: “Gaming remains the main driver on the consumer side and with titles like Half-Life: Alyx soon to be released. Coupled with Sony’s continued support of VR, gaming is buoying the consumer side of the market. VR had a less than stellar start, and while it’s still a long-time horizon, some of the building blocks have solidified, affording VR the time it needs to reach its potential across verticals.”