Virtual and Augmented Reality Devices Market

Virtual reality

Main article: Virtual reality

2023

Augmented reality devices market in the world reached $12.77 billion at the end of the year

The volume of the global market for augmented reality (AR) devices in 2023 reached $12.77 billion, while a year earlier it was estimated at $10.34 billion. Thus, costs increased by almost a quarter. One of the key drivers is the introduction of AR technologies into enterprise applications for industries such as manufacturing, healthcare and retail. Market trends are addressed in the Market Research Future survey published in mid-August 2024.

The rapid development of technology makes AR headsets more affordable, powerful and functional. Due to this, their applications are expanded. In production, such devices can be used to provide workers with step-by-step instructions, overlay product information on the real world and simulate complex processes. In healthcare, AR glasses can be applied to provide surgeons with real-time data during surgery, to assist patients in rehabilitation, and to train medical students. In retail to trade , AR headsets are used to provide customers with product information, help find products in the store, and create interactive experiences.

The demand for the technology is growing in the field of games and entertainment. Such gadgets provide users with an exciting experience that is impossible with traditional displays. Other applications of augmented reality include education, tourism and marketing. The growth in sales of AR devices is stimulated by technological advances that allow you to create lighter, smaller and more convenient gadgets.

In 2023, the largest income in the global AR market was brought by the segment of games and entertainment - about $4.5 billion. However, one of the highest growth rates is demonstrated by the health sector. Geographically, North America dominates: advanced technology infrastructure, high disposable income and early adoption of new developments contribute to this. In Europe, the development of the industry is stimulated by the growing demand for immersive solutions in various areas. The Asia-Pacific region, especially China and Japan, has significant growth potential due to its large population and increasing investment in digital transformation. South America, the Middle East and Africa belong to developing regions.

By the type of displays used, the authors of the study divide all AR devices into three groups:, and MicroOLED AMOLED LCD. In 2023, the MicroOLED segment took the largest market share at 42.3%, followed by AMOLED at 34.5% and LCD at 23.2%. Among the leading manufacturers are named,,, HTC, Magic Leap Qualcomm Microsoft Vuzix,,,,,,,, RealWear Epson Samsung Rokid, Sony Google Apple Nreal, etc. Lenovo It is noted that large companies conduct active research and development to improve the characteristics and expand the functionality of their products. Major players focus on strategic collaboration and partnership to expand audience reach and strengthen positions. Significant funds are invested in marketing and advertising activities aimed at increasing brand awareness and improving demand.

Market Research Future estimates that global sales of augmented reality devices will reach $15.76 billion in 2024. Going forward, the CAGR (compound percentage CAGR) is expected to be 23.44%. As a result, by 2032 the volume of the industry will increase to $85 billion.^[1]

Global virtual reality market reaches $21.1 billion in a year

At the end of 2023, the global market for virtual reality (VR) technologies amounted to approximately $21.1 billion. In the future, rapid growth is expected, as stated in a study by BCC Research, the results of which were published at the end of 2023.

Analysts note that the demand for VR solutions is growing in many areas: the consumer base is gradually moving beyond the main scenarios for use in games and entertainment. In particular, the introduction of virtual reality in industrial enterprises is expanding. VR simulators allow you to recreate any equipment and conduct a training process without the risk of injury. This approach eliminates the likelihood of a breakdown of expensive equipment due to incorrect actions, and also makes it possible to organize a training process for a large number of students at once. VR systems are also used to practice emergency operations. Other areas of use include remote therapy and telehealth, virtual excursions, remote assistance of qualified specialists, joint development, etc.

VR market reaches $21.1 billion

ABI Research estimates that the global virtual reality market reached $16.6 billion in 2023. This amount includes the products themselves, the accompanying software and the services. Devices such as VR helmets accounted for approximately $6.9 billion. Another $9.7 billion - revenue from software and services. The most popular among consumers are autonomous VR headsets such as Meta 2, Quest Meta Quest Pro (the company Meta is recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited) and PSVR2, as well as new products like. In Apple Vision Pro total, such gadgets in 2023 accounted for 73% of sales in monetary terms and 78% in pieces (of the total number of VR products sold). Analysts expect that against the background of the development of metaverse, the demand for such products will increase.

It is said that the bulk of the global supply of virtual reality devices falls on developed markets - North America and Western Europe. In addition, the Asia-Pacific region makes a significant contribution, where by the end of 2023 approximately 5.1 million VR helmets were sold. According to ABI Research forecasts, by 2030 sales of VR headsets in North America will reach 36.4 million, in Western Europe - 20.4 million, in the Asia-Pacific region - 31.4 million.

One of the drivers of the industry is considered an area formations where VR technologies have a wide range of applications. There has been an increase in demand for immersive collaboration software and services using VR. In industry, retail to trade to power and aggregate annual growth rate (CAGR) will be around 70% until 2030. For manufacturers, the appeal of virtual reality lies in the ability to simplify complex workflows. Sales growth will also be facilitated by the emergence of new generation devices. Moreover, we are talking not only about VR gadgets, but also about advanced reality (XR) helmets.

BCC Research analysts believe that the CAGR indicator in the global VR market from 2023 to 2028 will be 26%. As a result, the industry will reach approximately $66.9 billion by the end of this period. VR systems are expected to be increasingly applied in areas such as retail, commerce and marketing, healthcare, architecture, design, construction, real estate, etc.^[2]

Russian schools and universities spent 1.83 billion rubles on VR glasses

Russian educational institutions in 2023 spent about 1.83 billion rubles on the purchase of VR glasses for educational purposes. This equipment was actively purchased for OBZH offices and virtual reality classes in schools and universities throughout the country. This is evidenced by the data of Roseltorg, published in June 2024.

According to this federal electronic platform, 652 purchases of VR devices were carried out in 2023 as part of the 44-FZ and 223-FZ procedures. In 2024, the trend towards an increase in procurement volumes remained - since the beginning of June alone, 140 purchases worth 374 million rubles have already been completed. The focus is on creating an environment for effective learning using the latest technology.

Russian educational institutions in 2023 spent about 1.83 billion rubles on the purchase of VR glasses

VR technologies, as explained by Artem Smolin, director of the ITMO Center for Usability and Mixed Reality, allow students to be immersed in various simulated situations that can be dangerous or difficult to reproduce in real life. This is particularly useful for learning in areas such as life sciences and scientific disciplines, where visualization and interactivity play a key role.

According to Alexei Kalenchuk, director of digital creative industries at the Skolkovo Foundation, three main types of VR glasses are presented on the Russian market: cardboards, VR desktop and autonomous VR glasses. Cardboards, which are the simplest cardboard structures into which a smartphone is inserted, are relatively inexpensive, but have limited capabilities. Desktop VR devices require a connection to a powerful computer, and autonomous VR glasses such as Pico and Vive are the most popular due to their independence from external devices and high interactivity.

At the Faculty of Computer Science of the Higher School of Economics, virtual reality kits are actively used in design work and research purposes. Olga Maksimenkova, associate professor of the Department of Software Engineering of the Faculty, noted that students and employees of the university use VR glasses to develop immersive simulators and computer games, as well as for researching user experience.^[3]

Global market drop of 23.5%

In 2023, shipments of augmented and virtual reality (AR/VR) headsets on a global scale decreased by about 23.5% compared to 2022. This is stated in the IDC study, the results of which were published on March 5, 2024.

Analysts note that the current macroeconomic situation has a negative impact on the market, which provoked a high level of inflation and a decrease in purchasing power. In addition, consumers began to purchase less electronics in general. Against this background, many AR/VR device developers chose to rely on outdated products that were previously presented. All this led to a decrease in demand for double-digit percent during 2023.

Shipments of augmented and virtual reality headsets decreased by approximately 23.5%

The largest decline was observed in the first half of 2023, while in the second half of the year there were signs of a recovery in the industry. In particular, in the fourth quarter of 2023, the global AR/VR market grew by 130.4% on an annualized basis. IDC analysts say macroeconomic factors are putting pressure on both the consumer and commercial segments. On the one hand, the release of new gadgets can stimulate sales. But, on the other hand, new devices usually come at a high price, which can alienate potential buyers.

Experts predict that AR headset sales will grow at a slower pace compared to VR products. IDC also identifies another category of devices - the so-called auxiliary reality headsets: such gadgets simply display content within the user's field of view, without reference to the environment. It is assumed that such products will be able to occupy a certain share of the AR/VR market. In addition, the development of the direction of mixed reality devices is expected.^[4]

2022

Reducing investment in immersive reality technologies in the world by 2 times to $16 billion

In 2022, global investments in immersive reality technologies amounted to approximately $16 billion. This is half the result for 2021, when costs in this area reached a maximum of $32 billion. In 2018, the figure was approximately $14 billion, as reported in a McKinsey study, the results of which were released on July 20, 2023.

By means of immersive reality, McKinsey analysts mean various levels of unification of virtual and real worlds. These are augmented AR (), virtual () VR and mixed (MR) reality platforms. It is noted that sales of AR/VR devices increased significantly in 2021 amid restrictions related to the pandemic. COVID-19 However, in 2022 there was a decline: the demand for such products decreased on an annualized basis by 12%. At the same time, the number of installed AR applications for smartphones tablets continues to increase: their number jumped from 1.03 billion in 2016 to 6.06 billion in 2022.

Despite the decline in investment in immersive reality technologies, the number of vacancies in this market is growing. This area brings together a wide range of technical and creative specialists, as well as management managers. In particular, software developers, engineers in the field of hardware platforms, designers, scientists, etc. are in demand. In 2022, the number of ads on the search for employees in these areas increased by 10% compared to the previous year.

Among the key difficulties negatively affecting the immersive reality industry, McKinsey highlights security and privacy issues, as well as the need to improve the hardware and software of gadgets. In particular, reducing the weight of devices, improving the accuracy of sensors, increasing battery life, reducing heat dissipation and improving the comfort of use are required.^[5]

The revenue of Russian developers of AR/VR technologies almost doubled

The total revenue of Russian ARVR developers/technologies in 2022 reached 1.9 billion, rubles which is 83% more than a year earlier. Such data [2] were published by Modum Lab in June 2023.

Among other things, analysts studied the activities of the 21st company for the development of VR simulators. In 2022, such developers increased revenues by a third, to 541 million rubles. According to the analyzed period, development was quite slow, since there is high competition in the Russian market with the market for classical learning. Each market participant has its own share and is growing steadily in volume, and the development itself becomes less complex and acquires many new tools at an expensive price. The revenue of all companies in this area amounted to 56 million rubles. in 2022.

Against the background of the general growth in the digitalization of the Russian economy, suppliers of VR simulators also observed an increase. Some companies that used to develop training stands and computer simulators create divisions for the development of replicated virtual simulators. Modum Lab analysts conclude that the availability of replicated solutions will give a significant increase in revenue and profit. This finding by Modum Lab confirms more than double the growth among the leaders of the PC and VR simulator market - Sike and Programmatic. Both companies have many replicable solutions in their portfolio - these are mainly modern 3D simulators, but VR simulators occupy a considerable share of the portfolio. The SPC "Novatrans" in 2022 increased more than 2.5 times.

In the Russian segment , Modum Lab has identified two companies that do not fall under any of the categories where non-standard solutions are created. Varwin and VR Concept, in fact, the market for their solution has not yet been formed, and the companies have no direct competitors. At the same time, these companies were able to form a demand for their solution and justify the value of using VR.

In the field of school education in the VR industry is the VR School project, which showed revenue growth of 18% in 2022 compared to 2021. In general, the dynamics of the development of companies that develop digital products for schools and VR solutions in schools is positive. But it is too early to associate this growth with the introduction of VR technologies, it is said in the Modum Lab report^[6]

The global market fell 21% to 8.8 million units. Leaders

At the end of 2022, the global industry of virtual (VR) and augmented (AR) reality devices decreased by 20.9% compared to 2021. Such data are provided in the IDC study, the results of which were published on March 8, 2023.

In total, it is estimated that 8.8 million AR/VR gadgets were sold in 2022. For comparison: a year earlier, deliveries amounted to about 11.1 million devices. It is noted that such a significant decline was not completely unexpected, given the limited number of suppliers, the difficult macroeconomic environment, the high inflation rate and the lack of mass interest in AR/VR platforms from consumers.

Analysts also note that in 2021 there was a boom in sales of virtual headsets augmented reality against the background of the release of the company's Quest 2 device (Meta recognized as Russia an extremist organization; activities on the territory of the Russian Federation are prohibited). In addition, users actively spent money on entertainment in the face of pandemic restrictions. In COVID-19 2022, the industry returned to calmer development, and spending in the consumer and corporate sectors shifted towards other products. This caused a significant drop in demand for AR/VR devices.

Despite the downturn in the overall market, Meta led by nearly 80% in 2022. In second place is ByteDance (devices), Pico which occupied approximately 10% of the industry: this company continued to expand its product range and focus on markets where Meta was absent or little known. In addition, the top five AR/VR headset suppliers included DPVR, and. HTC iQIYI IDC analysts also single out a company that Xreal took sixth place in the global AR/VR market, but was among the leaders in the augmented reality segment, shipping almost 100 thousand corresponding gadgets during 2022.

While Meta and ByteDance compete in the VR segment, Nreal was able to gradually expand its presence in the AR sector, targeting mobile players. Even though the AR/VR industry is in its early stages of development, Meta has been able to build itself a fortress moat with a variety of content, including from third-party vendors. Other players, such as Sony and possibly Apple, can provide meaningful competition in this area, although in the long term this will put pressure on ByteDance and Nreal, said Jitesh Ubrani, head of research at IDC Mobility and Consumer Device Trackers.

In IDC, another promising area is distinguished - this is a mixed reality. Devices of this type can switch between augmented and virtual reality, so that the user receives the advantages and capabilities of both technologies. The concept of mixed reality has already been implemented in gadgets such as Meta Quest Pro and HTC Vive XR Elite. Analysts believe that other market participants will also present their own versions of mixed reality devices.

The concept of mixed reality can prove attractive to customers in the commercial sector who require different uses - from employee training to teamwork. However, given the immaturity of the augmented and virtual reality industry, it can take a long time before mixed reality gadgets become a truly mainstream product, said Ramon T. Llamas, research director for IDC's AR/VR mobile devices and gadgets division.[7]

Sales of AR/VR headsets in the world sank 13%

On December 20, 2022, the analytical company IDC presented the results of a study of the global market for augmented (AR) and virtual (VR) reality devices. Several factors have a negative impact on the industry, including the difficult macroeconomic situation and price increases.

According to analysts, global deliveries of AR/VR headsets by the end of 2022 will decrease by 12.8% on an annualized basis, amounting to 9.7 million units. Meta (recognized as an extremist organization; activities in the Russian Federation are prohibited) for a long time dominated the market thanks to its relatively affordable Quest 2 device: in the first three quarters of 2022, the gadget captured 84.6% of the global AR/VR market. The next closest competitor was the ByteDance Pico headset with a 7.4% share. The top five also included DPVR, HTC and iQIYI with results of 1.8%, 1.1% and 0.9%, respectively. But in 2023, each of these companies will face increased competition in light of the entry into the market of the giant Apple, as well as due to the release by Sony of a new generation headset (PSVR2).

Given the Quest 2 "s increased value and expected high prices for Apple's PSVR2 and headset, consumers are likely to be more subdued in their spending for the foreseeable future. In the coming years, the growth rate in the commercial segment will outstrip the consumer sector, as enterprises begin to use virtual reality headsets to train employees and other purposes, as well as against the background of how new devices will begin to penetrate the field of augmented reality, offering end-to-end capabilities, "said Jitesh Ubrani, IDC Research Manager.

In general, according to experts, the global AR/VR market will return to growth in 2023, when supplies will increase by 31.5%, reaching 12.8 million units. Over the next years, an increase in shipments is predicted at 30%: as a result, in 2026, sales may reach up to 35.1 million units.

At the same time, researchers say, the AR segment may face new difficulties amid big brands like Shadow Creator, Mad Gaze and Microsoft struggling to maintain growth. On the other hand, this situation will create prerequisites and opportunities for the next generation headsets to enter the market, as well as for the emergence of new competitive players. However, this will probably not happen until 2024, and the truly development of the AR sector will most likely resume in 2025.

In 2022, augmented reality solutions accounted for only a small part of the total AR/VR market in piece terms. This picture will continue over the next years: analysts believe that in 2026, AR headsets will account for less than 5 million in total shipments. At the same time, at an average cost, AR and VR devices will be approximately on the same level.

Augmented reality has long been an area of ​ ​ autonomous headsets focused on commercial use: such devices, in particular, help companies change the methods of training their employees. While such headsets were difficult to use, in certain working environments their form factor also became a problem. In the future, we expect AR devices to be more reminiscent of conventional glasses in terms of design and usability. In doing so, they will retain the functionality of current gadgets or even surpass them in capabilities, IDC researchers say.[8]

How the market for virtual and augmented reality technologies is developing in Russia and what prospects it has. TAdviser Overview

The Russian technology virtual reality market (VR) and (augmented reality AR) are still young. Analysts differ in estimates of its volume and growth rates. Market participants themselves do not undertake to evaluate them either. It is understandable that the pandemic made adjustments to the forecasts made before March 2019: COVID-19 its "waves," successive, were too shaky to build plans for the future. Nevertheless, the lack of fresh analytical data on the state of the AR/VR market in does not prevent Russia Russian players from developing software platforms and solutions, educating customers from different industries and implementing projects in this area.

About what was the year 2021 for the VR and AR market in Russia, what its participants expect from the future and what support they expect from the state , we are talking about in the TAdviser review.

2021

VR and AR headset market reaches $29.48 billion

At the end of 2021, the market for virtual and augmented reality devices reached $29.48 billion. This became known from the report of the analytical company ResearchAndMarkets in August 2022.

One of the factors that seriously affected the industry was the COVID-19 pandemic. Due to the coronavirus, travel was limited, social distance requirements were tightened, and the presence of staff in offices decreased sharply. Under these conditions, VR and AR technologies have become a great help for enterprises. In addition, during the pandemic, their use in the retail sector expanded as customers switched to using online platforms, researchers at Facts and Factors note.

Amid the high demand for 3D imaging from the healthcare sector, the VR and AR headset market is experiencing an unprecedented rise. Increasing digitalization, especially in developing countries, combined with increased attention to technology, as well as the further development of the Internet of Things, create opportunities for market growth and profit. In addition, the upward dynamics are stimulated by the increasing popularity of online commerce.

At the same time, experts see obstacles. Concerns about data security and privacy are hampering the adoption of virtual and augmented reality technologies. Analysts also include large research and development costs in creating high-tech solutions, a lack of qualified specialists and a technological base, especially in developing and underdeveloped countries, and differences in infrastructure quality around the world.

However, in general, forecasts for the VR and AR headset market are quite optimistic: in 2022, revenue on it should exceed $37 billion. It is also expected that in the next five years the market will continue to grow by an average of 27.18%, and by 2027 its volume in money will approach $125 billion.

The list of the largest manufacturers of VR and AR solutions includes, Atheer Blippar, Daqri,, Dynabook Americas Google Infinity Augmented Reality,,, Intel Lenovo Magic Leap, Marxent Labs, Maxst, (Meta Russia recognized as an extremist organization and banned), Microsoft Niantic, Optinvent, Pristine, PTC Realwear, Seiko Samsung Electronics Epson, Sixitude Entertainment, Upskill, Wikuzix.^[9][10]

The global market for AR and VR headsets soared 92.1% over the year

The global market for headsets for virtual () VR and augmented reality () VR in 2021 reached 11.2 million units, an increase of 92.1% compared to a year ago. Analysts IDC released such data on March 21, 2022.

The main contribution to this rise was made by the fourth quarter, which accounted for almost half of the device shipments for 2021. There have been no such results since 2016, when the market began to actively fill inexpensive VR gadgets without built-in displays (to display the picture, you need to install a smartphone, for example, the Samsung Gear VR model).

File:IDC AR VR Headset Shipments Grew Dramatically in 2021, Thanks Largely to Meta's Strong Quest 2 Volumes, with Growth Forecast to Continue, According to IDC - 2022 Mar -F-1.png

TrendForce analysts estimated the global AR/VR device market at 9.86 million units in 2021. This is almost twice as much as a year earlier, when shipments of these products were measured a little more than 5 million pieces.

According to IDC research, the most popular AR/VR device in the world at the end of 2021 was the Quest 2 helmet - its market share was 78%. In second place is the popular DPVR headset in Asian markets with a presence rate of about 5.1%. Closed the top three VR model Pico VR from ByteDance, which enjoyed success not only in Asia, like DPVR, but also in the markets of North America and Western Europe. The share contribution of the device in 2021 amounted to 4.5%, the report says.

Also, experts included the Taiwanese company HTC and the Chinese online platform IQiyi in the top five AR/VR brands.

The market leader in virtual and augmented reality devices Meta [the company is recognized as an extremist organization in Russia, its activities are banned in the Russian Federation] offers a very affordable headset and goes beyond the gaming audience, attracting those who are not interested in computer games, as well as business clients, says IDC analyst Jitesh Ubrani. - So far, no one can seriously compete with this company, but in the next 12-18 months, the situation is likely to change, as Sony prepares to enter the market a new virtual reality helmet. PSVR2 We are also still waiting for the debut of headsets from Apple and other smartphone brands that can attract the attention of end users.

The report also cites the words of Tom Mainelli, vice president of Device & Consumer Research at IDC. He notes that augmented reality headsets in 2021 still accounted for a small part of the entire AR/VR headset market, and the main deliveries went to the corporate segment.

Consumer augmented reality is still largely an area of ​ ​ smartphones and tablets and is likely to remain so in the near future. Meanwhile, the metaverse discussion is causing a stir and driving investment in AR, VR and a host of related technologies. However, one should not expect that this hype will greatly affect the supply of headsets in the near future, the specialist believes.

In the business segment, the dominant positions of the HoloLens 2 augmented reality headset from Microsoft, the cost of which exceeds $1000 and can reach $3.5 thousand. Analysts noted that in a market focused on commercial users, more attention is paid to the advantages of integrating hardware and software, so here manufacturers with strong positions in commercial systems, software and platforms have the advantage.^[11]

2020

Augmented Reality Technology Market Valued at $12.56 Billion

The volume of the augmented reality (AR) market in 2020 amounted to $12.56 billion. Such data in August 2021 led analysts. At the same time, they did not specify the dynamics in comparison with 2019, but said that the cost of AR solutions is increasing.

Analysts included the following companies among the largest participants in the AR market:

• Kopin Corporation;
• Seiko Epson Corporation;
• Vuzix;
• Sony Corporation;
• Lenovo Group Limited;
• Samsung Electronics.

At the same time, the market shares of manufacturers in the free sample for the study were not disclosed.

Grand View Research estimated the global augmented reality market at $17.67 billion at the end of 2020 and named the following leaders:

• Microsoft;
• Google;
• Apple;
• Sony;
• Blippar;
• Infinity Augmented Reality;
• Niantic;
• Zappar;
• Magic Leap;
• Wikitude.

Most of the revenue (about 65%) in the market under consideration in 2020 came from wearable helmets and smart glasses. At the same time, the highest growth rates are expected in the segment of devices that you need to use your hands. This is due to the growing number of AR projects in retail and online retail.

According to experts, the main catalysts for the growth of the AR product market were the availability of technology and the simplicity of smart devices. In addition, the COVID-19 coronavirus pandemic helps, in which people limited physical contacts and began to use technologies more often for remote communication, education and work.

The coronavirus pandemic shows that working with the constant presence of all employees in the office can be not only economically ineffective, but also dangerous. The development of a new generation of tools to organize collaboration or training of people physically located in different parts of the world is one of the main modern expectations of AR technologies.

The largest market for augmented reality in 2020 remained the United States. A large number of large AR technology developers are based in this country, including Microsoft, which sells its Hololens system in several countries.

Analysts note that augmented reality is useful as an expansion of interaction with brands, to attract customers and increase profits. In addition, AR can be used after sales to increase customer satisfaction and loyalty. An example of the first is the IKEA Place app, which pushes people to make a purchase through a realistic display of goods. And the second is instructions for electronics, which help users maintain a presence of spirit when you need to deal with complex interfaces.

According to researchers, the global market for augmented reality technologies will grow by 37.66% per year, and by 2026 its volume will be measured at $85.47 billion.

Gartner notes that immersive applications based on fifth-generation communications () 5G raise the highest expectations for increasing retail profitability. The new standard of data transfer will be useful in rendering immersive video in real time, reducing download time, as well as, as a result, moving brand interactions outside stores.

Facial recognition technologies allow stores to unobtrusively "recognize" customers and provide them with quick access to all the necessary information: from fashion novelties, to the fastest route for shopping in accordance with a pre-prepared list at home. Such information can be promptly displayed on the client's smartphone, used as a "store guide." Also, the transfer of information from product labels to virtuality has great prospects.^[12]

The Russian VR and AR market grew by 16% to 1.4 billion rubles - TMT Consulting

The volume of the Russian market for augmented (AR) and virtual (VR) reality technologies at the end of 2020 amounted to 1.4 billion rubles, which is 16% more than in the previous year. This is evidenced by the data of the analytical agency TMT Consulting.

Most of the sales in 2020 fell on VR products - 1.1 billion rubles. The augmented reality segment, thus, recorded a volume of 300 million rubles, but the growth here of 40% was higher compared to the costs of virtual reality, which increased by 10%. The low dynamics in the VR segment is due to the consequences of the COVID-19 coronavirus pandemic, due to which there are much fewer festive and other events, as well as marketing initiatives and projects in the field of entertainment content.

The study notes that the main demand for virtual and augmented reality solutions in Russia is formed by commercial organizations. More than half of the projects in 2020 fell on production enterprises and companies of the fuel and energy complex.

Industrial AR/VR projects in Russia are focused primarily on supporting mass training in terms of soft skills: simulators and simulators for training equipment specialists (operators, repairmen), pilots, digital instructions, as well as remote examination.

Approximately 70% of sales of AR/VR products and related content at the end of 2020 fell on the company. The share of the public sector in such purchases was 20%, and consumer solutions occupied the market by only 10%. In the segment of private users, the spread of virtual reality is constrained by the high cost of equipment and limited choice of content - you can expect to develop in this segment as commercially available quality products appear. At the same time, the use of AR applications on smartphones in Russia at the end of 2020 could be called a massive phenomenon, the researchers emphasize.

According to them, separate programs are being implemented in government agencies, including AR/VR technologies in the fields of education, health care and culture.

The report concluded that the Russian AR/VR market was at an early stage of development by the end of 2020, most of it was formed by individual projects. At the same time, the number of such projects is growing, an extensive pool of developers has formed, including software developers and custom-made solutions, hardware creators - from small studios to divisions in leading domestic system integrators.

TMT Consulting says that the global market also has high activity of telecom operators offering their own and partner products: VR video and games, AR books, AR applications for shopping and interior selection, pilot projects are being implemented with industrial enterprises, educational and cultural organizations. We can expect that in the future Russian operators will also become prominent players in this market.

AR The market/in VR Russia the coming years will grow by an average of 37% per year. This data was shared on February 19, 2021 by the company based on the Huawei results of an analytical market study conducted jointly with "."TMT Consulting

One of the key prerequisites for this is the introduction of new technologies: FN5G for home and 5G - for mobile scenarios. It is the fifth generation of mobile and fixed communications that will allow Russian operators to provide customers with the latest augmented and virtual reality services, said Wang Huaxin, director of Huawei's integrated video solutions and business department in the Eurasia region.

Konstantin Ankilov, General Director of TMT Consulting, by 2025 predicts a fivefold increase in revenue in the market - up to 7 billion rubles. The most common scenarios of AR/VR application in Russia are training, digital instructions for assembly and configuration, visualization of design work. Konstantin Ankilov stressed that virtual and augmented reality services are one of the main drivers of the transition to tariff plans and devices that support fifth-generation networks.

Alexander Chernyaev, an expert on integrated video solutions and business in Huawei in the Eurasia region, said that 5G infrastructure will make AR/VR cloud services available everywhere. The main potential revenue sources for operators from AR/VR in the B2B segment are cloud platforms, network as a service (NaaS), advertising, app hosting, etc. In the B2C segment, experts call services such as VR games/entertainment, immersive events, high-speed and low-latency network connectivity for virtual applications the most promising in terms of profitability for operators.

In the next five years, Russia may become a prominent player in the international arena of AR/VR solutions, analysts say. Unlike the global market with a significant share of the B2C segment, Russia pays special attention to the development of AR/VR technologies for the business segment. It is expected that the Russian market will mainly be formed by the growth of demand in the B2B segment, whose share will grow to 72% by 2025. Huawei is confident that AR/VR has great potential and deserves attention from Russian operators.

Oculus is the market leader in VR/AR devices (53% of sales)

The volume of the global market for extended reality equipment (Extended Reality, XR), which includes helmets and headsets of virtual and augmented reality (VR/AR), decreased by 9% in 2020, and Oculus was able to strengthen its leadership by recording 53% of device sales against 44% in 2019. Such data are provided by Counterpoint Technology Market Research.

According to analysts, they expected a deeper decline in the XR technology market, but the final results were better largely due to strong demand for the Oculus Quest 2 VR system in the pre-New Year season.

Oculus leadership was strengthened by advantages in terms of product characteristics against the background of competitors, namely more memory, higher battery life and increased resolution and image refresh rate.

Thanks to strong positions in the supply channel and the brand's high reputation in the gaming segment, Oculus remained the largest brand in the XR market in 2020, capturing half of the supplies, says Karn Chauhan, senior analyst at Counterpoint Technology Market Research, whose words are quoted in a press release. - Sony came in second thanks to its vast base of PlayStation users who buy PlayStation VR five years ago. HTC, DPVR and Pico took third, fourth and fifth places, respectively. Corporate sales, such as in schools and training centers, have helped Chinese players grow in 2020.

According to the study, Sony accounted for about 11.9% of the global market for equipment designed for immersion in virtual and augmented reality. HTC has a 5.7% presence rate. DPVR has 5.5%, Pico has 4.8%.

As for specific models, the above-mentioned Oculus Quest 2 headset became the market leader in XR solutions at the end of 2020, sales of which amounted to 35% of the total. The second place was shared by Sony PlayStation VR and Oculus Quest devices, whose shares in 2020 amounted to a little more than 10%.

Microsoft was not among the top five leaders in the XR device market due to the fact that the company promotes such products in the corporate sector, where unit sales are not as large as in the consumer segment. However, Microsoft is increasingly focusing on consumers, which should help it maintain a strong growth rate in the market, the researchers said.

It also follows from the report that the entire XR equipment market was partly helped by the COVID-19 coronavirus pandemic, due to which people began to stay at home more often and spend money on games and entertainment content.

VR headsets accounted for more than 90% of the supply of equipment for mixed reality at the end of 2020. Counterpoint Technology Market Research Director Peter Richardson connects high interest in gadgets that allow immersion in virtual reality primarily with the ability of these devices to play content without connecting a third-party source (computer, smartphone, etc.). In addition, such devices have significantly improved their characteristics, design and functionality, and prices have become lower.

In addition, good quality content is becoming more accessible across platforms. Virtual reality users are limited to the gaming community, but corporate clients from the education and training sectors have shown some interest during the [COVID-19 coronavirus] pandemic, Richardson said.[13]

2019

653 million rubles were spent on state support for VR/AR projects in Russia

In 2019, state financial support was provided to 23 projects in Russia related to virtual and augmented realities. In total, we are talking about 653 million rubles of state funds, said Sergey Nakvasin, director of Digital Technologies at the Digital Economy ANO, during an expert discussion of the development of the VR and AR market in the context of the COVID-19 coronavirus pandemic.

According to Nakvasin, Russia has been actively supporting the VR/AR industry since 2019, when several competitions were held.

Promoting the technological development of Russia  is one of the important tasks of the Digital Economy organization. In the context of the coronavirus, the task of accelerating the introduction of digital solutions comes to the fore , and the suspension of the real sector contributes to the development of the digital economy around the world, he said.

Earlier, the Ministry of Telecom and Mass Communications announced a roadmap for the development of "end-to-end" digital technology VR/AR. In accordance with this document, the amount of budgetary funds required for the development of developments in   the field of virtual and augmented reality in Russia should reach 28.2 billion rubles by 2025. The amount of extra-budgetary funds required was estimated at just over 38 billion rubles.

According to forecasts of the Ministry of Telecom and Mass Communications, the volume of the Russian VR/AR technology market in 2024 will amount to 40 billion rubles, and its average annual growth rate is 109% against 29% in the world.

 Skoltech Dmitry Teteryukov, head of the laboratory of intelligent space robotics, professor of the master's program "Space and Engineering Systems," believes that VR and AR specialists in Russia need to provide jobs and popularize new technologies, and not promote old ones. It is also necessary to scale our training courses on these technologies in various educational institutions, but so far only Skoltech students have such an opportunity, he said.

The market for industrial VR/AR solutions in Russia is waiting for 11-fold growth. TAdviser study

• Main article: Industrial VR/AR solutions market in Russia (TAdviser study)

In June 2019, the analytical center TAdviser and CROC VR, a business unit of the IT company CROC"," specializing in the use of immersion technologies in industrial industries, presented a study of the Russian industrial/solution market VRAR. According to the optimistic scenario, the volume of this market over 4 years may increase by 11.7 times with a CAGR of 85%. More. here

2018

ARtillry Market Assessment: XR Global Revenue Forecast

VR Device Market Falls 50% to 15 Million - Strategy Analytics

Sales of virtual reality equipment in 2018 amounted to $1.8 billion, down from $1.9 billion a year earlier. Device deliveries decreased even more during this time - by 50%, from 31 to 15 million units, according to data from analysts at Strategy Analytics (released on August 5, 2019).

The main reason for the fall in the VR technology market, experts called the weakening of consumer interest in inexpensive models of virtual reality headsets, such as Google Cardboard, Google Daydream and Samsung Gear VR, which are often supplied as free add-ons to smartphones and other devices.

Brands and marketing agencies have shifted budgets from VR to new AR services like Snapchat, so the distribution of Cardboard headsets by companies such as the New York Times and McDonalds has stopped, says David McQueen, executive director of the VAR (virtual and augmented reality) research program at Strategy Analytics.

Samsung and other manufacturers have largely stopped selling VR helmets bundled with smartphones, the analyst said. At the same time, the study showed that consumers who have already tried virtual reality are enjoying it and are looking for more high-end gadgets that can provide even better opportunities, McQueen said.

The market has been dragged down by a decline in demand for solutions at the forefront with Google Cardboard, Google Daydream and Samsung Gear VR. This state of affairs did not fail to affect Google's controlled share, which decreased from 21 to 11% over the year.

These data show that the VR market has experienced a turbulent year, and it is in transition, says David Kerr, vice president of Strategy Analytics. - A host of telecom operators around the world see virtual reality as one option to showcase the potential of 5G networks, but using VR as a marketing tool to promote 5G technology could prove challenging. The right go-to-market strategy can identify winners and losers when it comes to VR and 5G.

As for positive factors, Strategy Analytics refers to the growing demand for expensive solutions that work in conjunction with personal computers, game consoles, etc. In this segment, PlayStation VR headsets  from Sony are in greatest demand.

The Japanese corporation became the leader in the entire VR equipment market in 2018, recording a share of 30%. They followed Facebook HTC with results of 25% and 22%, respectively. Thus, the leading three accounted for about 77% of sales of virtual reality devices.

HTC and Facebook will continue to divide the segment of VR equipment for computers, where demand is shifting from consumers to companies. The latter are increasingly using virtual reality devices for design, training and training. These destinations are expected to help the VR product market grow in 2019 and beyond.

According to TrendForce analysts, deliveries of VR devices on a global scale amounted to 4.65 million units, and in 2019 they will reach 6 million units (an increase of 29%).

The IDC estimated that in 2018, about 4.2 million virtual and augmented reality devices entered the global market, an increase of 31% compared to 2017. In the next five years, the market will grow by about 88% per year and will reach a volume of 53.1 million units by the end of 2022, the researchers predict.

Growth in the number of sales of computers with VR in Russia by 192% in unit and 180% in monetary terms

On April 4, 2019, Svyaznoy reported the results of an analysis of the sale of personal computers with virtual reality support in the Russian market in 2018. From January to December 2018, sales of this category of goods in comparison with 2017 increased by 192% in unit terms and by 180% in monetary terms. Read more here.

Global market sank 20% due to smartphone-dependent devices - CCS Insight

In early December 2018, the analytical company CCS Insight released a study in which it reported that in 2018 the market size of headsets virtual reality (VR) and (augmented reality AR) will subside by 20% due to smartphones device-dependent devices - from 10 million devices sold in 2017 to 8 million in 2018. However, CCS Insight expects that the situation will level out, and 14 million devices will be sold in 2019, and up to 52 million in 2022.

CCS Insight highlights the challenges facing VR and AR headset manufacturers. Despite the enthusiasm for augmented reality devices, analysts believe that developers have serious work to do to improve user experience, software platforms and content availability.

According to CCS Insight, the VR market has gone through several stages, and if the first wave of buyers simply helped manufacturers understand the potential of the media, the limited use of VR and AR headsets led to a rapid decline in interest. Attention turned out to be paid to smartphone-dependent devices such as Samsung Gear VR and Zeiss One Plus VR. They have raised the awareness of potential buyers about the new market, but interest in these devices has also waned, as indicated by a sharp decline in sales, despite price cuts and wide promotions held in the last 12 months.

Analysts believe that the device market has left an early wave of cheaper and less functional VR devices dependent on smartphones and is ready to move on to the next - the development and sale of specialized devices that offer a more attractive use experience. The advent of autonomous VR headsets, according to CCS Insight, will help resuscitate the market. Analysts believe that devices such as Facebook Oculus Go and, Oculus Quest which are offered at retail prices of $200 and $400, respectively, are good examples of the future VR market.

CCS Insight expects standalone devices to be key to VR's advancement over the next few years, both by private consumers and businesses. According to the latest forecast, demand for such devices will grow 16 times from 2018 to 2022. Despite the excitement over autonomous devices, CCS Insight still believes PC and smartphone-dependent devices such as the Sony PlayStation VR, HTC Vive or Oculus Rift, which require additional computing hardware or a game console, should play an important role. They will remain an important part of the market, especially when they become wireless.

CCS Insight predicts that 5 million VR headsets will be sold in 2019, and 18 million in 2022. These devices are well suited to the needs of gamers who want to get the most interesting experience. Sony, which CCS Insight considers the most successful VR headset maker to date, intends to continue its strategy of promoting VR headsets as an add-on to the PlayStation.

The latest CCS Insight forecast also estimated the market for AR devices that require a smartphone connection to operate. AR finds its main application in business operations such as customer service, logistics, remote service, design and other applications. Businesses are cautious about AR devices, initially focusing on experimental data, but CCS Insight believes the market is growing and evolving. However, analysts warn that despite the visible progress, the real growth of the AR devices market will take time, and the total sales are unlikely to exceed 1 million worldwide until 2021.^[14]

Global AR Market Participants

2017

Companies refrain from buying smart glasses - only 24 thousand devices sold

On April 9, 2018, the analytical company CCS Insight released the results of a study that showed weak business interest in smart points. In subsequent years, the situation may change.

According to experts, in 2017, companies around the world purchased only 24 thousand sets of augmented reality (AR) glasses.

The potential of this technology is obvious, but so far most companies are testing a small number of devices to understand how they fit into their activities, "said CCS Insight analyst George Jijiashvili, whose words are quoted in a press release.

Experts predict that within a few years, organizations will move from testing smart glasses to full commercial implementation, and their sales in the corporate sector will reach 1 million units in 2022. The growing demand for such gadgets is pushing electronics manufacturers to master this market. According to unofficial data, Apple is preparing an AR device.

Augmented reality has become "one of the hottest new areas of smartphone technology," so interest is growing in it, says George Dzhidzhiashvili. Billions of dollars are being invested in the technology, he said, and significant improvements in the size, mass and design of smart glasses could be seen in 2017-2018.

CCS Insight predicts that in 2018 global sales of virtual and augmented reality headsets will amount to 22 million units worth $1.8 billion. By 2022, the sale of such equipment will jump fivefold and reach 121 million units.

Most often, such gadgets are bought for games. The study showed that 70% of users of Oculus Rift, HTC Vive, Sony PlayStation VR, etc., purchase games for these devices, and among owners of VR helmets for smartphones, more than 50% of people download free and paid games.^[15]

Investors love virtual reality

Investments in the VR and AR entertainment sector (virtual and augmented reality) increased in the second half of 2017 to $2.3 billion, according to The Venture Reality Fund^[16]This is 79% more than in the same period last year, the fund clarifies and predicts that the trend towards investments in the industry will only intensify^[17]

In total, as part of the study, the foundation analyzed 450 companies leading today in development in the field of software, tools, as well as platforms and applications for VR and AR. Most of all, they showed an increase in investment in enterprises - the fund estimated it at 69%. Investments in tools and platforms increased by 56%, and in stereo display infrastructure - by 47%. The market for virtual reality-based games grew by 40%.

The market is moving from common 360-degree videos to real virtual reality. Experts believe that the release of autonomous Oculus HTC Vive Go and Focus helmets will positively affect the development of VR and AR in 2018. Also, the development of the sector is influenced by the interest of Hollywood companies, Disney DreamWorks Animation, Sony Pictures, HBO, Viacom and AMC.

Apple has contributed to this segment by purchasing the augmented reality headset company Vrvana. According to TechCrunch, the deal amounted to $30 million. Apple plans to release its own augmented reality headset, while the technology for the new gadget will not depend on the smartphone - the headset will have its own operating system running on a separate microchip.

In addition to the entertainment segment, VR and AR are used in business; in particular, developers offer their clients virtual tours of apartments.

According to Venture Reality Fund, a venture capital firm operating in Silicon Valley, and Lucid Web, the number of firms operating in the European market in the field of virtual reality has almost reached 300^[18].

The VR Fund data, in particular, was obtained from research during meetings and telephone conferences with regional representatives of the company throughout Europe.

VR Fund specialists studied about 300 startups and selected 116 of them for the first part of the report. Research has shown that games represent the most competitive industry, including well-funded companies - such as, for example, nDreams (UK), Resolution Games (Sweden), Solfar Studios and CCP Games (Iceland). Computer reality management technologies, virtual projects for the real estate market, as well as helmets for immersion in the virtual world are also invested. Medical centers and fitness companies, in turn, apply the capabilities of virtual systems for training, psychological treatment and rehabilitation of patients.

Survey of 247 executives in Russia about awareness of the possibility of VR and AR in enterprises

The project was implemented by the participants of the VR Consortium: CROC and the Institute of Contemporary Media (MOMRI) together with the Vesti Ekonomika portal from March to May 2017. During the study, 247 managers and specialists of various profiles were interviewed, representing more than 200 largest companies in Russia from all key sectors of the economy. Interviews with study participants were conducted between March and May 2017. In total, 247 managers or specialized specialists from more than 200 largest Russian companies in the following industries were interviewed as part of the study:

• oil and gas industry;
• mechanical engineering;
• metallurgy and mining;
• electric power and energy supply;
• chemical and petrochemical industries;
• agro-industrial complex and food industry;
• wholesale and retail;
• financial institutions;
• transport;
• telecommunications and information technology;
• industrial and housing construction.

The study was attended by representatives of three professional areas: HR managers and specialists, managers and specialists from the field of "PR, marketing, sales" and specialists and managers from the field of "IT and engineering.

The main result of the study is that the level of awareness of representatives of the largest Russian companies and industries about the possibilities of using virtual reality technologies in business is high, both in the real sector and in the service sector.

Almost two-thirds - 65% of respondents know about the possibility of using VR and AR technologies in enterprises. The greatest awareness of the real cases of embedding VR in technological and business processes was demonstrated by representatives of industries such as metallurgy, mechanical engineering, the construction industry, power, transport companies, as well as the financial sector and IT/Telecom. As examples of the real use of virtual and augmented reality technologies, the study participants named solutions for industrial, construction and engineering design, sales of residential real estate, virtual reviews of production facilities, the use of VR in training employees (simulators and simulators).

Almost a quarter - 24% of Russian business representatives said that their companies have already implemented or are planning to introduce virtual reality technology (15% of those who took part in the survey reported that similar technologies are already being implemented or implemented in their companies, and 9% of respondents said that such implementation is planned in the foreseeable future). 41% of respondents said that although virtual reality technologies are not implemented in their business, they are familiar with examples of such implementations in other companies. 35% of respondents did not hear about the use of VR in business. Most of the enterprises already working with VR and AR technologies represent the real sector of the economy (mechanical engineering, mining and processing, power). The main areas of technology implementation included personnel training, design and marketing. This means that in the very near future the share of VR projects in the corporate segment will increase in the Russian market and the demand for VR devices and professional visualization systems will increase.

Representatives of companies that do not yet work with VR technologies have moderate optimism: 70% of them consider the use of virtual reality within their organization and industry possible and promising, and almost two-thirds (65%) named specific examples of the use of this technology in other companies. At the same time, managers often talk about the potential for introducing VR, while experts express skepticism, not understanding exactly how the technology can be used in their professional activities. Among those who plan to develop VR technologies within their companies, in addition to the production sector, are telecom, retail, and financial organizations. Potential areas identified by respondents are wide - from design and training to marketing tasks, sales, communication with customers. Augmented reality is also of interest, which has a fairly high growth potential in the business segment and the b2b2c (business-to-business-to-consumer) sector due to a shorter period of development of AR-application content and penetration of mobile devices.

The study also revealed objective factors that interfere with the introduction and widespread adoption of virtual reality technologies in the corporate sector. The main obstacle, according to respondents, is the high cost of solutions and technologies, and at the same time the lack of a clear correlation with economic efficiency. In addition to high costs, respondents also cited technical limitations and the high complexity of introducing VR technologies. This indicates the lack of a sufficient number of qualified specialists on the market who can implement and maintain professional VR systems.

CCS Insight: VR headset sales could grow fivefold by 2021

Sales of virtual reality devices for smartphones continue to account for the lion's share of sales in the VR segment of the market. CCS Insight 'in its research predicts that 14 million VR headsets will be sold in 2017, and up to 25 million in 2018. Moreover, analysts expect fivefold sales growth by 2021 - up to 70 million headsets. The volume of this segment of the VR market will amount to $500 million in 2017 and will grow to $1.4 billion by 2021^[19].

The total market size of VR-compatible devices is estimated at $1.5 billion in 2017 and $9.1 billion by 2021. According to analysts, by 2019, special devices will begin to generate significant revenue for companies that offer commercial products in this area.

The AR device market will grow relatively slowly. Significant growth is not expected until 2019, with sales of 1.5 million units. By 2021, up to 5 million units with a total value of $2.5 billion will be sold. Despite the potential of the technology, until it receives mass distribution - in 2016, only 100 thousand units of devices were sold. Significant growth in AR headset sales is not expected until the early 2020s.

2016

Sold 10 million AR and VR helmets for $6.1 billion. Growth forecast to 2021

Augmented and virtual reality (AR/VR) devices continue to gain strength in the mass market. According to the forecast of June 2017 IDC, the global supply of specialized AR and VR helmets will grow from almost 10 million units in 2016 to just under 100 million units in 2021, demonstrating a five-year CAGR of 57.7%.

The bulk of deliveries are for virtual reality devices, and the most popular in this category are VR devices without their own display (screenless viewers), using the capabilities of a smartphone, as the cheapest option. In the second half of 2016, there was an increase in deliveries of three highly publicized models - PlayStation VR from Sony, HTC Vive and Oculus Rift from Facebook.

As for specialized devices, augmented reality helmets continue to lag slightly behind virtual reality devices. The reason is not that AR is less in demand, but that it is more difficult to achieve. IDC believes VR helmets will continue to lead the supply through the forecast period, however AR will have a much greater impact on the industry as a whole. Consumers are likely to get their first idea of ​ ​ augmented reality on a mobile phone or tablet, and not in a specialized helmet, and Apple's recently proposed ARKit toolkit only confirms this.

IDC believes that there is a great opportunity for specialized AR helmets in the commercial segment. If we talk about vertical markets for health care, production, field maintenance personnel and design design, then there is a huge level of interest and investment is already being made. This is facilitated by a wide range of products, some of which are already available for purchase, but most are made outside the United States.

The global augmented and virtual reality (AR/VR) market will reach $13.9 billion, an increase of 130.5% from $6.1 billion in 2016, according to IDC in early 2017. AR/VR spending growth is expected to accelerate in the next few years, and the CAGR (Compound Percentage, CAGR) will be 198.0% during the forecast period 2015-2020. As a result, the amount of expenses will reach $143.3 billion by 2020.

The consumer market will be the largest segment of augmented/virtual reality during the forecast period, and global spending on equipment, software and services in 2017 will reach $6.2 billion, an increase of 130.5% compared to last year, IDC believes. The second most expensive sector will be the industrial sector, where virtual and augmented reality applications are gradually finding their daily use. Discrete (piece) production and retail are expected to be the only two segments where spending on AR/VR solutions this year will exceed $1.0 billion. By 2020, retail, demonstrating a five-year growth rate (CAGR) of 238.7%, will outperform the discrete manufacturing segment, becoming the largest in terms of AR/VR spending. Similarly, continuous production will come in third place in 2020, ahead of the personal and consumer services segment. Transportation (CAGR 233.7%) and health care providers (CAGR 231.8%) will show the highest post-retail growth rates during the forecast period.

Virtual reality spending, including glasses, software, consulting and system integration services, will exceed AR spending in 2017 and 2018. mainly due to consumer interest in games and paid content. After 2018, spending on augmented reality systems will take off, especially in healthcare delivery, product design and management-related applications.

Geographically, the US will account for $4.3 billion of all AR/VR spending in 2017; Asia-Pacific without Japan (APeJ) ($2.6 billion) and Western Europe (almost $2.5 billion) follow. The consumer market will be the largest segment of AR/VR spending in all three regions in 2017; individual and consumer services in APeJ and discrete production in the USA and Western Europe follow. By 2020, discrete production will become the largest segment by spending in the United States, and retail will become the second largest in APeJ.

VR devices, software and content market in Russia - 1.2 billion rubles

According to MOMRI, the Russian consumer market for devices, software and virtual reality content by the end of 2016 was estimated at 1.2 billion rubles. At the same time, the market for VR-solutions for business reached 348.2 million rubles by the end of 2016. In the ^[20]

2016 has become largely decisive for the VR industry: consumer versions of VR headsets from Oculus, HTC, Google and Sony have been released, and many major gaming publishers and studios have released or announced VR games of various genres and formats. In many countries, including Russia, the first industry associations were created, the purpose of which was the consolidation of marketing and content assets, the development of uniform technological standards.

The number of VR companies in Russia has grown more than 3 times over the year - from several dozen to more than a hundred companies. There are also more than three hundred mobile creative teams on the market, consisting of 2-5 people producing VR content or aggressively marketing VR solutions. Geographically, the VR industry is mainly concentrated in metropolitan metropolitan areas - more than half of the companies are located in Moscow and St. Petersburg.

The MOMRI study showed that the largest Russian companies show a noticeable interest in VR technologies and solutions, but the number of real projects is small - for the whole of 2016, no more than 20 companies began to introduce VR technologies into their business.

The most important factor in the formation of the VR market in 2016 was the growth of investment by almost 3 times - they are estimated at 730 million rubles against 190 million in 2015.

The widespread distribution of VR devices and VR content in the consumer market is still hampered by the relative high cost of VR gadgets, a lack of high-quality content and massive biases of people who fear virtual reality. Meanwhile, the total number of VR headsets sold in Russia from various manufacturers reached about 560,000 by December 2016. Industry experts expect the number of Russian VR users to double annually and reach 5.4-5.6 million by 2020.

IDC: Companies use 20% of virtual reality devices in the world

On March 16, 2017, analysts at International Data Corporation (IDC) released some results of research on the augmented equipment (AR) and virtual reality (VR) market. One in five such devices in the world is used by companies for commercial purposes.

According to IDC, 10.1 million devices were released globally in 2016, providing immersion in augmented or virtual reality. Analysts do not give dynamics regarding 2015, but note that in 2016, AR and VR devices actually just began to get to end users.

Although it is obvious that the main demand is for technology lovers, there is also the use of devices by corporate users in various markets and consumers for gaming and content purposes, says IDC analyst Ramon Llamas. - This sets the stage for tasks that device manufacturers, developers, platform and content providers will solve in the coming months and years.

According to the researchers' forecast, in 2016-2021, the global AR and VR equipment market will increase by an average of 58% annually and will reach 99.4 million units by the end of this period. It turns out that in 5 years the market will grow almost 10 times.

Although the consumer segment will remain the largest in the augmented and virtual reality devices market, delivery of solutions for companies will grow faster - by 80% per year against a 50% increase in product shipments to consumers.

In 2016, organizations and enterprises received 2 million AR and VR devices, which corresponds to 20% of the total market volume. In 2021, this segment will rise to 38.3 million units, analysts predict.

Augmented and virtual reality helps businesses increase productivity and save time and money, the study says. Analysts see the greatest prospects for the introduction of such technologies in production, design, healthcare, the transport industry and retail. to trade^[21]

Data from PwC, Digi-Capital, Goldman Sachs

Google, Facebook or Samsung are betting big on virtual reality and this technology has all the signs that it could soon revolutionize our lives. As a result, some areas of business can seriously change. For example, tourism (virtual travel without getting up from the couch), education (watching historical events instead of cramming naked facts in a textbook or traveling inside the human body in anatomy lessons), the entertainment industry (movies starring you) and many others.

The range of virtual reality applications is wide: it is used for entertainment (cinema and video games), in the field of medicine (surgical operations and examinations), in engineering and production. Virtual reality not only simplifies activities, but also opens up new opportunities that are previously unavailable.

The most famous VR devices released on the market in 2016 were: Oculus Rift from Oculus VR (bought by Facebook in 2014), HTC VR from HTC, Steam VR and Playstation VR from Sony. Despite the abundance of products, the path of virtual reality technology is just beginning, and we will see real achievements in this area in the future.

Consulting and research companies predict the rapid growth of the VR and AR market in the next 5 years. In particular, the company's PricewaterhouseCoopers (PwC) report "Entertainment and Media Industry Overview: Forecast 2015-2019" said that a breakthrough in virtual reality is expected in 2016, which will attract more users in 2017 and 2018. In 2016, the first luxury VR helmet kits from Oculus, Sony and HTC for immersion in virtual reality will be released, after which other manufacturers will present similar equipment.

Digi-Capital analysts predict that in 2020 the global market for the production of VR content in different directions will exceed $30 billion. At the same time, more than half of this amount will be spent on films, television programs and games in virtual reality format.

According to Goldman Sachs and Venture Beat, in 2016, about 250 startups and technology companies in the field of virtual reality were launched in the world and more than 18 million VR devices were sold.

The number of companies in the AR/VR market in Russia has grown 3 times to 183

The number of actively developing companies in the country has grown 3 times: from 60 to 183. At the location and activity of 105 companies are located in Moscow, 25 in St. Petersburg, the rest are located in cities throughout the country.

The AR/VR market is experiencing a clear rise not only in the number of companies, but also in the level of projects being implemented compared to the beginning of 2016. This is facilitated by the interest of investors, both venture capital funds and business angels, who together invested more than 700 million rubles in AR/VR companies in 2016. For comparison, in 2015, the total investment amounted to about 200 million rubles. Deal sizes vary widely from a $15,000 seed investment to $2.5 million from the Sistema VC Venture Fund in the MEL Science education project.

As a result of the analysis, the Association presented the Map of the Russian market for augmented and virtual reality and told how this market is now developing in Russia.

Augmented and Virtual Reality Market in Russia

The map was compiled based on the results of the survey of participants and the study of the activities of companies from open sources. The market map includes companies that independently develop AR/VR projects that already have products released on the market or have prototypes.

The main drivers of the industry are small studios (3-20 people) with expertise in AR/VR technologies and leading advanced developments in this technological direction. Large Russian companies are eyeing technology, but so far few have announced their own developments. As an exception, it should be noted that Mail.ru released a prototype of its first VR game in September 2016; Avrorus is developing a virtual reality social platform VR Timvi; The Avto24 TV channel (Content Union Holding) has implemented a new media format: a VR24 mobile application, where it is possible to become direct participants in the report and a car drive test (shooting in 360 degrees format).

Virtual reality is turning from hype into a business industry. Over the past year, projects using AR/VR technologies have been implemented for many large customers, for example, Sberbank, Sibur, Rosatom, Gazprom, VDNKh park, a large Moscow developer of the PSN Group, museums: Museum of Architecture and Pushkin Museum, and others.

If in 2015 the main activities of the companies were the creation of advertising and marketing projects to order, then in 2016 Russian AR/VR companies began to pay special attention to the development of their own AR/VR products for educational, entertainment, architectural and other areas. There was also a large audience of users for the projects being created. For example, the number of downloads of games from the Fibrum platform exceeded 4 million, and the Vizerra application downloaded more than 300,000 users in the first days of launch.

Shooting in 360 degrees is gradually entering both the film industry and the use of technology by the masses. In 2016, the first VR Film Festival EMC VR Film Festival was held, which showed consumer interest: more than 1,750 people visited the festival in 3 days. 360-degree shooting began to be used in both marketing and educational areas.

In 2017, the industry is expected to develop even more intensively and the emergence of world-class projects for users, as well as the wide integration of VR solutions into business processes, education and industry.

2015: Launch of the first consumer VR helmet Oculus Rift CV1

On January 6, 2015, pre-sales of the first production consumer virtual reality helmet Oculus Rift CV1 began. To say that the release was expected is to say nothing. The entire first batch of helmets was sold out in 14 minutes.

This marked the symbolic beginning of the VR technology boom and the explosive growth of investment in this industry. It is since 2015 that virtual reality technologies have become a truly new technological Klondike.

2012: Startup Oculus raised $250,000 in 4 hours for the release of a VR helmet

The real boom in VR began on August 1, 2012, when the little-known startup Oculus launched a fundraising campaign on the Kickstarter platform for the release of a virtual reality helmet. The developers promised users a "full immersion effect" by using displays with a resolution of 640 by 800 pixels for each eye.

The necessary 250 thousand dollars were collected in the first four hours.