Revenues from Virtual Reality (VR) and Augmented Reality (AR) are forecast to reach $120 billion by 2020, according to Digi-Capital.
With rapidly changing technologies like VR & AR predictions of future revenue are always going to be challenging. Digi-Capital had previously predicted that viable consumer AR technology would launch in 2016. While enterprise adoption of AR technology has taken place in 2016, consumer AR tech still looks more likely to be realised in 2017. This meant that Digi-Capital has had to adjust their prediction of VR revenues back by twelve months.
Digi-Capital suggest that Sony Playstation VR, along with mobile VR, will be the largest initial drivers of consumer VR technology. Digi-Capital also predicts that VR will be primarily driven by entertainment in the near future. This will include video, games and theme parks. But, by 2020 a significant, although minority, percentage of VR revenue will come from non-entertainment VR experiences.
Asia looks to be the future of AR / VR, according to Digi-Capitals findings. AR / VR revenue on a per user basis likely to be highest in North America, Japan, South Korea and Western Europe. However, total numbers of users of AR / VR technology are predicted to be higher in China, Japan and South Korea. It is the Asian market therefore that will likely drive the AR / VR from 2020 onwards.