2016 Trends in VR & AR
Today’s installment of our series of macro trend research posts focuses on virtual and augmented reality. As anyone who has spoken to me recently knows, I find the space fascinating and believe it has the opportunity to change almost all industries, from entertainment to education to real estate to energy.
Analysts see huge potential for the market. Digi Capital’s research shows the market reaching $150 billion by 2020. Goldman Sach’s recent report on VR predicts the market will be worth $80 billion by 2025. And that market is made up of much more than hardware. The biggest potential is in content and software. 2016 will see the release of a number of headsets (Oculus Rift, Playstation VR, HTC Vice, etc.), which will seed the market for content creators and innovative software to spring into being.
Like any other technology that relies on content for hardware adoption, VR & AR faces a chicken and egg problem. Without enough content available, why buy a headset? Without the tools to build enterprise applications, why buy a headset? Fortunately, enough big players (Fox) and startup studios (Penrose) see potential and are creating compelling experiences to draw people in to the technology.
The content problem is not the only one facing VR & AR adoption in 2016. Screen resoultion and expensive PC systems required to run the high end systems like Oculus’ Rift will make the experience either uninspiring or unattainable for many in the mass market. However, for an industry in its infancy, 2016 will prove a pivotal year that draws VC investment to the space and consumer experimentation.
Read more at http://www.slideshare.net/secret/ogLEEvTIO8rmxX
