Augmented/Virtual Reality Revenue to hit $120 Billion by 2020

According to consulting firm  Digi-Capital, Virtual Reality will be big soon, but Augmented Reality will be bigger, even though “it might take longer to get there“.

At the start of 2015 it looked like consumer AR could launch in 2016. AR now appears largely focused on enterprise users this year, with most consumer AR expected to launch around 2017. This effectively pushes AR consumer market revenue back by 12 months, with AR now forecast to hit $90 billion by 2020. VR’s topline remains largely unchanged, with $30 billion forecast by the end of the decade.

Whereas VR largely remains an entertainment market driven by hardware, games, video and theme parks, with non-entertainment apps driving a meaningful minority of revenue by 2020, AR market will be dominated by hardware revenue, followed by augmented commerce, data, voice, video, enterprise, theme park, advertising, apps and games revenues.

Digi-Capital forecasts that Asia (China, Japan, South Korea, others) could drive AR/VR revenue by 2020, followed by Europe and North America. This geographic potential has not escaped the notice of entrepreneurs and investors, as everyone tries to figure out where to place their bets.

Source: Digi-Capital

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