Virtual and augmented reality: what the market will represent in 2025

by bold-lichterman

Featured products at the last CES in Las Vegas, new division at Facebook… the virtual reality and augmented reality markets are attracting tech players. Over the past two years, $ 3.5 billion has been invested in companies specializing in virtual reality and augmented reality according to the study “Virtual & Augmented reality, the next big computing platform”Produced by Goldman Sachs Research and published last February.

We also learn that the company Oculus, bought by Facebook for $ 2 billion in 2014, has planned to develop 20 virtual reality games for 2016 alone.

A balanced market between hardware and software

  • 75% of the market should concern virtual reality (that is to say solutions which immerse the user in an imaginary world, created from scratch). 25% of the market will be augmented reality (that is, devices that add layers of digital imagery to the real world).

  • 80 billion dollars: this is the potential of the virtual reality and augmented reality market by 2025, in the baseline scenario of the study. The revenues break down as follows: $ 45 billion in hardware and $ 35 billion in software. It should be noted that in the most pessimistic scenario, the market presents a potential of 23 billion dollars (15 billion dollars in hardware, 8 billion dollars in software).

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  • Companies positioned on virtual reality and augmented reality applied to video games are aiming for a potential 216 million users. The authors of the study estimate the potential of the video game market at 11.6 billion dollars, or 15% of the potential of the global market.

  • Beyond the games sector, the study estimates that it is the real estate, retail and health sectors that will be the next sectors concerned for the authors of the study, generating $ 9.3 billion in cumulative revenue by 2025 (respectively $ 5.1 billion for health, $ 2.6 billion for real estate and $ 1.6 billion for retail).

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  • 60% of income related to software activity should come from B2C, the remaining 40% would come from B2B.

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READ also: Augmented Reality: Magic Leap reveals some secrets about its technology, AOL buys start-up Ryot to bring virtual reality to the Huffington Post and With Dassault Systèmes, HTC wants to bring virtual reality into businesses

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