What They Say
ARtillery Intelligence has published its forecast for VR revenues, with a view that it will more than triple from $8.3 billion in 2021 to $28.8 billion in 2026, a 28.3% compound annual growth rate.
Consumer spending (hardware and software) holds a leading share of VR revenues with an estimated $7.25 billion in 2022. This is driven by gaming’s dominance as a VR use case but will broaden to other categories over time, including entertainment and communications. Enterprise spending trails with $4.73 billion, due to relatively-narrow applicability in industrial settings.
What We Think
This all feels very fragile to me. Meta is spending as though VR has never even got into fashion. With its revenues dipping down and stock price falling, it will come under increasing pressure, I think. I have seen estimates that Meta may lose as much as $15 billion next year. I can imagine some growth with the PlayStation 5 VR introduction, but a big drop in the investment by Meta will surely have an impact. (BR)
