Following a slow start, VR and XR is poised to accelerate as adoption increases, according to SuperData Research. Driven by AR, MR and successful titles, the XR market will reach a combined $7.7 billion in 2018 across hardware and software.
Image: SuperData Research
AR and MR revenue will more than double to $3.2 billion this year, with most of these earnings coming from mobile AR apps.
Games will earn 58% of VR software revenue in 2018, analysts say. Consumers are willing to pay for games whereas they are still reluctant to spend on content like VR videos. Non-gaming entertainment will need to rely more on advertising than direct revenue to make money.
According to SuperData, Bethesda titles topped the VR gaming charts in 2017, with top earners Fallout 4 on PC and Skyrim VR on PlayStation VR. Despite a disappointing release for Doom VFR, ports of Bethesda RPGs still beat out other VR games in 2017.
Image: SuperData Research
Nearly half of enterprise VR users are educational companies and institutions. Schools and hospitals are using VR but can have limited spending power. A smaller number of major conglomerates in fields like retail and automotive are willing to invest substantially in VR.
AR and MR are on track to pull in $1.4 billion of the $1.9 billion invested in immersive technology this year. The proliferation of mobile AR solutions and the development of compelling MR technology is becoming a more interesting proposition to investors.
Image: SuperData Research
Analysts also say that mobile AR will be the primary driver for revenue through 2021, earning roughly twice as much as software for AR/ MR headsets. AR and MR headsets will remain costly for the general population in the next few years, making it difficult for the audience to reach critical mass and generate significant software earnings in the near future.
Analyst Comment
The chart showing the balance between the supply side push and demand side pull for VR services is very interesting, with only Education and healthcare showing some balance. In all the other areas, all the initiative is coming from the supply side. To change that, potential uses will need convincing that there are real benefits to the adoption of the technology. (BR)
