‘Exponential’ Growth Hitting AR, VR Market With $547B Value By 2024
These figures are no fantasy – they’re reality.
The overall virtual and augmented reality market, inclusive of all components – hardware and software across all industries – is expected to see unprecedented growth between now and 2024.
A new report released by Transparency Market Research will expand at an incredible 92.5% CAGR between 2016 and 2024, reaching $547.21 billion. Of that, the hardware sector will account for the largest chunk of the market’s overall revenue. In 2015, North America dominated the global market accounting for almost 79% of the share.
North America will be followed by Europe, Asia Pacific, Middle East and Africa, and South America in market share.
It’s the constant innovation of hardware that will drive the market, the report shows, but will also be the reason behind not pushing the market even farther. With the average price of a virtual reality head-mounted display coming in at more than $696 in 2015, and augmented reality glasses priced at more than $1,500, cost has hindered adoption across cash-strapped economies, the report said. But as other electronics have shown – television, smartphones, tablets, etc. – prices will begin to fall as the technology continues to grow.
The AR and VR technologies are designed to allow people to be more productive, not replace human capabilities, said ABI Research Senior Analyst Ryan Martin earlier this year. For enterprises to truly get on board and transform how business is done with these burgeoning technologies, it will be imperative to educate everyone in the business from executives to end-users on how to use the components to their advantage.
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