There are numerous researches indicating virtual and augmented reality market to grow in exponential rates. A recent report by Citigroup is taking this even further.
The analysis unit of the investment group, Citi GPS claims virtual and augmented reality technology can be a trillion-dollar industry by the year 2035.
“Given the global e-commerce and m-commerce market is currently around $1 trillion, and is expected to rise to $4 trillion by 2030…Forecasting out to 2035, we believe AR could grab about 25% of the m-commerce market which would equate to almost $1.3 trillion” says Kathleen Boyle, CFA Managing Editor of Citi GPS.
“Consumer behavior with AR devices is likely to be similar to that of smartphones, so we anticipate that consumers will increasingly use their AR headsets for commerce.” Boyle explains.
Citi GPS VR/AR report forecasts hardware — mainly headsets — will be the first driver of industry growth. But by 2020, software and services market is expected to overtake the hardware market.
Citi GPS analysts put the market size at 10 million units in 2017, 30 million around 2020 and 40 million around 2025. They think the long-term equilibrium will be 40 million annually, and that the unit price will ultimately fall to less than $200.
The report claims that augmented reality (AR) has greater commercial potential and the market growing will be larger than that for virtual reality (VR).
Primary VR content will initially be game software, but that the market will then expand to include concerts, zoos, and theme parks, sports match, movies, TV programs, and music.
AR is likely to be trialed in areas with special needs, such as design work, construction sites, warehouses, and medicine from around 2020 and gradually spread from there.
Image Credit & Article via: Haptical / Citi Research