Though virtual reality (VR) and augmented reality (AR) have been getting increasing amounts of attention as the market has grown and the potential for the technology has become more common knowledge, it is still VR in videogames that are driving the growth of the VR/AR market according to a report by Future Markets Insight.
The report points to a number of factors that are driving development in the VR and AR sectors, such as the advances in smartphone technology and the prevalence smartphones encouraging companies to invest in AR and VR technologies.
The report estimates that more than one third of the AR and VR market revenue globally will be accounted for by the technology’s use in videogaming applications in 2017. However, the report projects that AR and VR in media and entertainment will rapidly catch up over the next couple of years.
Currently, the report states, VR is the more prevalent technology compared to AR, with VR-based applications accounting for the majority of revenue in the global market. AR is expected to begin catching up soon and witness rapid growth as the technology becomes more effective. For both VR and AR, head-mounted displays are still considered the best way of experiencing the technology by most consumers.
According to the Future Markets Insight report, the market for AR and VR in the Middle East and Asis is the area that is expected to see the fastest growth over the next few years, though North America is also projected to grow at a rapid pace. The market in North America is expected to remain the dominant market, with an expected value of over $43 million by 2025.
VRFocus will continue to keep you updated on VR and AR market reports and developments.