[March 16, 2017] |
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Worldwide Augmented and Virtual Reality Headset Market Expected to Grow at a Compound Annual Rate of 58%, Reaching 99.4 Million Units in 2021, According to IDC
New device launches, an expanding array of content for both consumer and
enterprise users, and lower price points will propel the worldwide
augmented and virtual reality headset device market at a breakneck pace.
According to data from the International Data Corporation (IDC)
Worldwide
Quarterly Augmented and Virtual Reality Headset Tracker, total
headset device shipments will reach 99.4 million units in 2021, up
nearly 10-fold from the 10.1 million units shipped in 2016. This results
in a compound annual growth rate (CAGR) of 58% across the five-year
forecast period.
"2016 marked an important step for the AR and VR headset market with
product finally arriving in end users' hands and on their heads," noted Ramon
Llamas, research manager with IDC's (News - Alert) Augmented
and Virtual Reality team. "While there was clear demand coming
primarily from technology enthusiasts, what became readily apparent were
the use cases for enterprise users across multiple verticals and for
consumers with gaming and content consumption. This sets the stage for
the multiple aspects of the market that device makers, platforms and
content providers, and developers will be addressing in the months and
years to come."
For enterprise users, AR and VR is expected to raise productivity,
allowing workers to see and interact with data, like a building
blueprint or the organs of a human being, instead of viewing a static
image on a screen. Changes and procedures can be mapped out ahead of
time before moving on to the actual work, saving companies two precious
resources: time and cost. Vertical markets, such as manufacturing and
design, health care, transportation, and retail stand to benefit the
most.
Meanwhile, for consumers, AR and VR will provide immersive experiences
to consume content. Already, content providers are developing solutions
to bring "as-if-you-were-there" experiences, like attending a concert or
sports event from the comfort of one's couch. Additionally, gaming on AR
and VR will transport players into outer space or the battlefield,
several steps beyond what they currently experience on a PC or
television screen. Layer on top of this the social element that users
will have sharing experiences and it becomes clear how AR and VR will
appeal to consumers.
Although AR remains as the minority portion of the market in terms of
shipments, these headsets are expected to bring in significantly more
revenue over the course of the forecast as the value of AR headsets
grows from $209 million in 2016 to $48.7 billion in 2021. Meanwhile, VR
headsets grow from $2.1 billion in 2016 to $18.6 billion in 2021. "With
all the technological enhancements, there will be a wide range of
products and price points," said Jitesh
Ubrani senior research analyst for IDC's Mobile
Device Trackers. "VR setups already range from sub-$100 to more than
$1000 and though it's too early to tell, the low-cost experiences may
prove to be inhibitors rather than promoters of the technology as they
can potentially disappoint first time VR users.
"On the other hand, due to the sophisticaltion of the hardware, most AR
headsets are expected to cost well over $1000," continued Ubrani. "This
makes the technology far less accessible to consumers intially, though
that's probably for the best as the AR ecosystem and wide social
acceptance are still a few years away."
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Worldwide AR and VR Headset Market, Shipments by Category, Market
Share, and 2016 - 2021 CAGR (shipments in millions)
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Segment
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2016 Shipments
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2016 Market Share
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2021 Shipments*
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2021 Market Share*
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2016 - 2021 CAGR*
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Commercial
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2.0
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20.1%
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38.3
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38.5%
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80.0%
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Consumer
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8.1
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79.9%
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61.1
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61.5%
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49.9%
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Total
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10.1
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100.0%
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99.4
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100.0%
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58.0%
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Source (News - Alert): IDC Worldwide AR/VR Headset Tracker, March 16, 2017
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* Forecast data
In addition to the table above, an interactive graphic showing worldwide
AR and VR headset shipments for the 2016-2021 forecast period is
available here.
The chart is intended for public use in online news articles and social
media. Instructions on how to embed this graphic can be found by viewing this
press release on IDC.com.
About IDC Trackers IDC
Tracker products provide accurate and timely market size, vendor
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC's Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.
For more information about IDC's Worldwide Quarterly Mobile Phone (News - Alert)
Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a wholly-owned
subsidiary of International Data Group (IDG),
the world's leading media, data, and marketing services company. To
learn more about IDC, please visit www.idc.com.
Follow IDC on Twitter (News - Alert) at @IDC.
All product and company names may be trademarks or registered trademarks
of their respective holders.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170316005366/en/
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