Virtual reality applications in business and industry will drive 11-fold growth and create a global market worth £132 billion by 2028.
Digital transformation will power the use of virtual reality applications and offer lucrative growth opportunities for key verticals including media and entertainment, industrial and manufacturing, retail, health and wellness, education and training, and carpeted offices according to a new report by Frost & Sullivan
Growth of the metaverse and increasing demand for immersive experiences is driving the market with virtual reality (VR) and augmented-mixed reality (AR-MR) at the heart of digital transformation.
VR/AR-MR hardware and software technologies are the primary gateways to access the metaverse. This, and increasing demand for immersive experiences, has seen a big rise in funding of and investment in virtual reality projects.
A new Frost & Sullivan industry report – VR and AR-MR Market – finds that continued development and funding in the metaverse space is attracting more interest and funding to VR/AR-MR projects. The VR and AR-MR market was worth £11.9 billion in 2021 and is forecast to reach £132 billion by 2028 with exponential growth at a compound annual growth rate (CAGR) of 40.9 per cent in terms of revenues.
“The wider availability of VR/AR-MR endpoints, the proliferation of mobile devices, continued improvement in connectivity, and the wider recognition of the metaverse as a social and cultural destination are expected to continue to act as main drivers for the VR/AR-MR market,” Alaa Saayed, ICT research director and fellow, said.
“Additionally, the increasing popularity of the gaming industry is further boosting the VR/AR-MR market. The gaming industry will continue to advance, with video game platforms and publishers continuously growing their VR/AR-MR content catalogues as ways to engage their audience and refresh their platforms.
“North America (NA) and Asia-Pacific (APAC) are the top two regions generating VR and AR-MR revenue. Advanced connectivity, high technology exposure, and high mobile device penetration are the main factors contributing to the market’s expansion in NA. Similarly, the presence of many display panel manufacturers, a growing number of VR participants, and personal and commercial AR-MR demand contribute to the sector’s growth in APAC.”
The move toward Industry 4.0, the increased usage of internet of things (IoT) devices, and the growth of 5G will be main drivers for adoption of VR/AR-MR technologies in industrial and manufacturing sectors, while in Media & Entertainment VR will make video games more immersive, create new virtual venues and add extended reality (XR) components to real-world attractions.
