Digi-Capital has just released the 2017 Augmented Reality and Virtual Reality Report. The report predicts that by 2021, the global VR/AR market will reach 1080 billion U.S. dollars, and mobile AR will become the main driving force for growth. By then, the AR market will reach 83 billion U.S. dollars, while the VR market will be about 2.5 million U.S. dollars.
VR/AR revenue
2016 Oculus Rift, HTC Vive, Gear VR 2, Playstation VR and Daydream View have come to market.
VR/AR installation base
Thanks to the success of "Pokemon Go", augmented reality has once again received people's attention. The release of "Pokemon GO" for the mobile AR market will bring in $600 million in revenue in just three months, surpassing the 2016 full year revenue of the VR game software market.
At the end of 2016, Snap released smart sunglasses Spectacles.
In 2016, the VR/AR market was 3.9 billion U.S. dollars, of which VR revenue was 2.7 billion U.S. dollars and AR revenue was 1.2 billion U.S. dollars.
VR is steadily developing, but AR still faces five major challenges: mainstream equipment, battery life, mobile connectivity, application ecology, and cross-subsidization for telecommunications.
VR/AR long-term business model
With the development of AR and VR, a diversified business model will be formed. While hardware sales are still important, advertising revenue, e-commerce sales, mobile web data, and in-app purchases will become increasingly important, and these together will account for 75% of AR/VR revenue.
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