The global virtual and augmented reality (VR and AR) technologies market should reach US$142.4 billion (€121.6 billion) by 2023, according to new data from US-based BCC Research.
BCC said that while gaming is the most immediate and dominant application for VR and AR technologies, the education sector is the fastest growing segment.
For the period 2018-23, BCC predicts VR and AR gaming will increase in value from US$5.3 billion this year to US$47.2 billion in 2023 (CAGR of 54.9%), while the VR and AR education market will climb from US$1.3 billion to US$17.9 billion (CAGR 69.3%).
“The growth of the VR and AR technologies market is driven by the decreasing cost of hardware and the increasing use of head-mounted displays systems in gaming, healthcare, education and other applications, resulting in increasing consumer awareness and a greater selection of content,” according to the report.
“The boost in the usage of smartphones and development of computer graphic systems is expected to play a significant role in growing the market. However, factors such as weak VR content, technological barriers and challenges, lack of VR familiarity and over-pricing are some of the major hurdles for the VR and AR market on its road to mass adoption in the consumer and enterprise space.”
To access BCC’s full ‘Virtual and Augmented Reality: Technologies and Global Markets’ report click here.