According to a recent report conducted by ResearchAndMarkets.com, the Virtual Reality (VR) market, currently worth nearly $7B, is poised to become a $28B industry by 2030, growing at a compound annual growth rate (CAGR) of 13% over that period.
The report, titled Virtual Reality - Thematic Research, traces the VR market back to the 1950s and follows it through present day.
At several points over the last sixty-plus years, VR has been touted as the next big thing in consumer technology, without ever fulfilling its potential. Facebook's $2B acquisition of Oculus in 2014 prompted another wave of interest, with adherents, eager to forget VR's checkered past, dubbing the new generation of devices that followed in the wake of this deal VR 1.0.
Devices from Oculus, Sony, Samsung, Google, and HTC (among others) gained a foothold in the market, but VR 1.0 remained a niche concern, popular primarily with affluent early adopters and hampered, like previous iterations of VR, by technical drawbacks and unrealistic expectations. Consequently, the industry finds itself in transition once again, moving between VR 1.0 and a second generation which holds the potential for more mainstream adoption.
Aided by custom silicon, untethered headsets, robust business models, new content, and enterprise applications, the nascent VR 2.0 already appears more dynamic and results-oriented than the previous generation. The integration of artificial intelligence (AI), cloud services, motion tracking, eye tracking, 3D audio, and haptics should enable second-generation VR devices to deliver truly immersive experiences.
According to the report, Analysis of VR tends to focus on the consumer market, but enterprise adoption is also accelerating, with notable activity in areas like retail, tourism, and healthcare. VR companies are developing domain-specific tools for functions such as training, education, and data visualization.
ResearchAndMarkets researchers added, “At the same time, consumer-focused VR companies continue their search for the semi-mythical killer app that would make VR a mainstream hit. The market remains heavily gaming-oriented but is gaining traction in areas such as live streaming and social media. Over the next few years, players in this sector will face a battle for supremacy against related technologies, especially augmented reality (AR).”