Total value of Virtual Reality market to reach $70 billion by 2020: Report
Mumbai: A report published by global market intelligence provider TrendForce pointed out that total value of Virtual Reality (VR) technology—both software and hardware—would reach $70 billion by the end of 2020.
According to the market intelligence provider, more companies have started investing in VR devices, as customers seek enhanced audiovisual experience. Currently, companies have been burning the candle at both ends to generate enhanced VR technology in various fields.
All big tech firms such as Google, Amazon, Microsoft, Facebook, and Apple are constantly trying to integrate VR technology to further improve their technology and services.
The latest report by TrendForce indicated that the total value of VR market would reach $6.7 billion in 2016, which will further skyrocket to $70 billion in 2020.
Source: TrendForce
“These explosive growth projections actually do not sufficiently reflect just how hot the VR industry is right now,” said TrendForce wearable device analyst Jason Tsai.
“The figures do not include the value of non-commercial uses of VR technology. For example, the industry is currently pushing the development of free software and do-it-yourself apps. While these projects do not immediately generate revenue for the developers, they have a vital role in the promotion market growth and innovations,” he added.
Social media to be a huge driving factor
The report also pointed out that social media platforms would be huge driving factors in exposing consumers to advanced VR technologies.
According to Tsai, the VR industry is presently at its budding stage, so a lot depends on social media giants like Facebook and YouTube, who have the potential to provide appropriate software tools and support services for the production of VR videos.
Additionally, social sharing will make VR technologies more influential and more tied to social media platforms. Facebook’s acquisition of virtual reality technology providers Oculus VR doesn’t seem quite as crazy now.
Diverse usage of VR technology
Even other media and entertainment organisations have started experimenting a lot more with VR technologies.
The National Basketball Association (NBA) recently introduced VR broadcasting this season for providing a realistic experience to all the fans sitting at home. Additionally, News media giant New York Time (NYT) has also launched NYT VR— a free smartphone app that provides 360 degree, VR news videos.
However, the development of VR industry is not entirely dependant on wearable devices launched by major hardware vendors such as Sony, Oculus and HTC. Independent developers have also stepped up their efforts considerable, as they keep on adding news apps to the VR industry.
“Major device vendors are therefore aggressively courting these independent developers. Collaboration with academic institutions is also another way for the industry to diversify the VR content to create more value,” Tsai concluded.
