Transparency Market Research foresees a highly challenging and aggressive environment in the global virtual and augmented reality market, which is expected to grow at a rapid CAGR of 92.5% from 2016 to 2024. The market is wide open for both small-scale niche competitors as well as leading technology giants of the world, while some could cash in on their staggering global reach, great monetary support for R&D, and prevalent brand recognition. These established players include Google, Inc., Oculus VR LLC, HTC Corp., Microsoft Corp., and Sony Interactive Entertainment LLC.
However, new entrants are capable of posing equal competition in the market with constant investments in technology R&D to create a high investment scenario by larger companies. IT and technology businesses making strategic alliances and partnerships at a significantly higher rate have also added to the threat of new entrants, although it is presently low. More players could get drawn to the market as dynamic advancements in the technology field see a rise.
What is the role of recent technological advancements in the global market?
Virtual reality (VR) and augmented reality (AR) will soon be prevailing as mainstream in the digital realm. It is mainly due to significant expectations from the global market in terms of some of the most compelling technological developments of the current time. Besides this, there has been a wide range of applications already used to good advantage in different sectors, such as consumer goods, healthcare, retail, education, and many more sectors are anticipated in the near future.
It is expected of the VR and AR domains to become more bankable and richer with extensive investments by tech firms and faster advancement of hardware and software components on the basis of technology. If the hardware sector is considered, it is projected to clasp a large measure of the market’s overall revenue during the course of the forecast period. The global market is shaped and improved far better than other technology-driven markets with a greater pace of the introduction of novel revolutions and technological breakthroughs in VR and AR fields. For instance, Manus VR hand gloves and virtual reality goggles by Fove Inc. have proved the potential of the market in the foreseeable future.
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How are high cost of devices cutting short the adoption in emerging and underdeveloped economies?
Since cost is the most significant litmus test for any market to gauge adoption or buying power in a particular economy, it is projected that the prices of hardware components will gradually come down. The gradual decrease in price is by virtue of broad investment and high concentration aimed at the manufacture of inventive products. The adoption of VR and AR devices in underdeveloped and emerging countries and regions is due to their high cost compared to traditional electrical devices.
How will developed nations fare in terms of adoption?
With a steady progression but lower potential for revenue growth, South America and the Middle East and Africa (MEA) will not be much in the limelight for the global VR and AR market. Instead, North America, Europe, and Asia Pacific (APAC) are futuristically deemed to be great opportunities. APAC is expected to touch an astonishing 116.8% CAGR by 2024. North America dominated the global market with a 79.0% share in 2015; Europe too exhibited dominance in the same year by holding the leading share in the media and entertainment application segment.