A new report by GlobalData, data and analytics company has predicted that the global spending on virtual reality (VR) is expected to reach $28bn by 2030 from $7bn in 2018.
In the report titled ‘Virtual Reality – Thematic Research’, GlobalData noted that the VR market will grow at a compound annual growth rate of 13 percent over the forecast period, from 2018 to 2030.
This growth, according to the company will be driven by developments such as custom chips, untethered headsets, robust business models, new content and notably, enterprise applications.
“Virtual Reality has been around, in one form or another, since the mid-1950s, and being touted at various times as the next big thing in consumer technology without ever fulfilling its potential. Now, instead of a mainly consumer market focus, enterprise adoption is accelerating, with notable activity in areas such as retail, tourism and healthcare. VR companies are also developing domain-specific tools for functions such as training, education, and data visualization,” said Ed Thomas, Principal Analyst for GlobalData’s Technology Thematic Research Team.
Thomas further explained that the first generation of the VR market was a niche concern, popular primarily with affluent early adopters, but hampered, as with previous iterations of the technology, by technical drawbacks and unrealistic expectations. The new nascent VR 2.0 will be more dynamic and results-oriented than the previous generation, with the integration of artificial intelligence, cloud services, motion tracking, eye tracking and 3D audio enabling these second-generation VR devices to deliver truly immersive experiences.
Virtual Reality software accounted for two-thirds of total market revenue in 2018, with the remainder coming from hardware sales. Games account for the largest share of software revenue (68 percent in 2018), with enterprise software contributing a further 30 percent and non-gaming consumer software about 2 percent.
Wikipedia defines Virtual reality as a simulated experience that can be similar to or completely different from the real world. Applications of virtual reality can include entertainment and educational purposes. Other, distinct types of VR style technology include augmented reality and mixed reality.
