Gone into virtual: the pandemic benefited the virtual and augmented reality markets

the pandemic benefited the virtual and augmented reality markets

MarketTrends and forecasts

Natalia Solovieva | 01/22/2021

Gone into virtual: the pandemic benefited the virtual and augmented reality markets

By 2025, the total market value of the augmented reality market will exceed $ 140 billion, and the volume of the AR / VR device market by this time will grow by an order of magnitude and will amount to 43.2 million devices. These are
results of research carried out by ABI Research and TrendForce.

The Chinese virus pandemic has become an active stimulus for the development of some areas of IT. Among them is the augmented reality (AR) technology market. Possibilities of this technology
proved to be effective, and it was in high demand when organizing remote work, when teaching work processes remotely and assisting employees in their work. Market
The potential of AR technologies, given the growing vitality of the consumer market, is assessed as very significant.

ABI Research: augmented reality market will switch from enterprise to consumer

As experts from ABI Research calculated in their research, by 2025 the total volume of the augmented reality market will exceed $ 140 billion. They made such conclusions based on market data.
augmented and mixed reality.

“For the past several years, AR has been dominated by corporate use. By now, tech companies that are capable of changing markets globally are
already involved in AR. Many of them are planning more focused efforts on the hardware of these technologies over the next 2-3 years, which will eventually “switch” the leading market
augmented reality from enterprises to consumers. By increasing competition and maturity, this will benefit both parties, ”predicts Eric Abbruzzese, Director of Business
research by ABI Research.

AR hardware and content growth models will support this trend over the next five years. The fastest growing segments, along with retail and marketing, are consumer
Software, content and AR advertising. Along with this, Abbruzzese believes, the growth of enterprises does not slow down. Areas such as healthcare, manufacturing, and the automotive industry promise to demonstrate
a compound annual growth rate (CAGR) of 70 – 90%. In these areas, of course, there will be no such rapid influx of users as in the consumer market,
but the expansion of hardware capabilities will drive further adoption of AR content and technology, the expert continued.

Apple currently boasts a mature augmented reality ecosystem, with AR-based lidar sensors found in flagship iOS products and
ARKit, allowing you to work with different types of content. Google recently acquired smart eyewear maker North and still has its own app development tool
augmented reality ARCore. Facebook announced that it will continue developing AR with its affiliate Reality Labs, and plans to create smart glasses in 2021.

Players traditionally focused on working with enterprises will also continue to work in this direction. PTC, Atheer, Microsoft, Lenovo, Teamviewer and many more are increasing investment in
AR and focuses on these technologies, building pricing policies and business models that satisfy both short-term demand and the longer-term needs of their customers, growing over the course of
time. Offering free trials, as-a-service options, and a flexible portfolio have all been fueled by the coronavirus pandemic and are likely to remain so.

“Facebook, Google and Apple have been building the foundations of augmented reality for years, creating content and mobile devices, and predicting widespread use of these technologies by 2025.
The key requirements for AR are related to price, ease of use, and overall customer value, and the growth of this market is beneficial to the corporate space as well. Previously hidden value of deleted
AR capabilities have now been appreciated, and similar needs in the consumer segment will also drive wider adoption of these technologies. All this together
gives a significant impetus to the development of AR ”, – summed up Abbruzzese.

TrendForce: AR / VR Technologies Will Support Over 43 Million Gadgets In 5 Years

According to analysts, the global market for augmented / virtual reality (AR / VR) devices is expected to grow even more actively, almost explosively, in the coming years. For example, TrendForce agency on
Based on his research, he came to the conclusion that by 2025 the volume of the world market for AR / VR gadgets will grow by almost an order of magnitude.

So, according to the results of the past 2020, the total supply of AR / VR devices is expected to reach 5.12 million units. Thanks to the release of various options for glasses with virtual and
augmented reality from 2021 to 2022 the market will grow rapidly. This market will reach 53.1% CAGR between 2020 and 2025, and in 2025, it will reach 53.1%.
the projected volume of shipped devices supporting these technologies will amount to 43.2 million units.

According to TrendForce analyst Jason Tsai, the accelerating growth in the AR / VR market can be attributed to aggressive product strategies from manufacturers. According to forecasts,
glasses like AR / VR devices will be a popular choice for companies to expand their presence in the consumer electronics market. Between 2021 and 2022, new
more and more brands will release products with the support of this technology. For example, Apple, Huawei and Samsung, among others, may make glasses like AR / VR devices and, in
in turn, expand the market even more.

Given the strong demand in the consumer electronics market for product appearance and retail prices, AR / VR devices will be manufactured in lightweight optical designs. Considering that their
computing units and batteries will be stored in separate cases, smart glasses will resemble ordinary glasses, Jason Tsai is sure.

AR / VR devices designed for computing, network connectivity, or even applications from external connectivity to smartphones will be positioned and promoted as
peripherals for smartphones – smart watches, smart bracelets and TWS Bluetooth headsets. As a result, smartphone manufacturers are likely to take active efforts to develop
related products while driving the market forward.

Consumer AR / VR devices contain only a few key components, including optical components, projectors (which serve as their light source), and optical engines. To
to keep the miniature size, the projectors used in these devices are small LCD or Si-OLED displays. For example, AR glasses mainly use optical design.
birdbath, which projects light from a Si-OLED display mounted on top or side of glasses. The introduction of Si-OLED displays prompted manufacturers such as BOE and Seeya Technology to enter
this market segment and compete with already existing Si-OLED suppliers – Sony, Epson and Kopin.

TrendForce analysts believe that the AR / VR device market will grow rapidly in 2021 and 2022, when various brands begin to participate in the development of AR / VR devices and related key
components such as optical components and Si-OLED displays.

Virtual Reality (VR) Augmented Reality AR

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