5G VR Market Overview
The market for 5G VR is estimated to grow to $6.1 billion by 2026, with a CAGR of 40.4% from 2021 to 2026. The market is driven by the increasing popularity of Augmented & Virtual Reality Devices due to better user engagement with high recall rate. The commerce industry saw a huge change when e-commerce concept gained mass adoption. Prominent companies such as Walmart, Blockbuster suffered when people began purchasing products online, and players such as Amazon, eBay and Netflix gathered the majority of market share. Owing to such demand, 5G virtual reality market is gaining traction. 5G VR tools inhibits the confinement of human physical possibilities and relishes one’s quest for all sorts of endeavours. Augmented reality market and virtual reality market growth is not only fuelled by entertainment content but also expands to healthcare, aviation, and defense sectors in particular. The varying types of devices ranging from Head Mounted Displays and Gesture Recognition devices for applications ranging from Internet of things implementation, video streaming enhancement and cloud computing will propel the market growth.
The report: “5G VR Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the 5G VR Market.
By Type –Hardware, Software and Services
By Device Type- Head Mounted Display, Gesture Control Device, Projector and Display Wall
By Technology: Non-Immersive, Semi-Immersive and Fully Immersive
By End Use Industry – Aerospace and Defense, Retail, Gaming and entertainment, Medical, Commercial and Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Australia and Others), South America(Brazil, Argentina and others), and RoW (Middle east and Africa).
- One of the major drivers is the rise in adoption of smartphones. Hence, Mixed Reality devices incorporated/enabled with smartphones offering plug and play features would cause a paradigm shift to the mixed reality devices market. For instance, Lenovo has developed a new smartphone “Phab 2 Pro” enabled with Google Tango which offers mixed-reality features to an extent.
- Virtual Reality technically elaborates the scope of E-Commerce and took the interaction to a whole new level altogether.
- As per IndustryARC research, more than 60% of online shoppers prefer to purchase items that offer Virtual Reality on websites in one way or the other. It’s inarguable fact that both AR and VR have increased user interaction for many companies and helped them to upsurge their user base.
5G VR Market, By Type, 2020
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5G VR Market Segment Analysis - By Device Type
In Device Type Segment, Video/Display Walls stood as the fastest growing subset with an estimated CAGR of 45.2% during the forecast period. Microsoft is now selling development versions of its mixed-reality visor called the HoloLens and Magic leap which is a new start up based in Florida has also come up with smart glasses technology, a pair of transparent glasses, which are capable of sending the user into a mixed reality world. Augmented reality in combination with 5G virtual reality is going to be a next big thing in APAC tourism industry. A country like China is investing a huge amount of money in their tourist industry by developing various novel technologies to stand out and attract tourists. Mixed reality in industrial & construction applications, is predominantly used for quality control in production and holographic non-destructive testing, which is a form of fracture testing. Usage of mmwave based 5G technology along with increased deployment of Radio Access network will drive integration of 5G with VR.
5G VR Market Segment Analysis - By End Use Industry
Engineers can use VR headsets for on job improvisation cantered to the fact that the human mind processes technical information more efficiently presented in a 3D format faster than having to translate it from a 2D perspective. 5G VR is becoming an integral backbone of numerous drill programs for future accident and emergency doctors, aiding for better preparation of practitioners for surgery using VR systems, before having to commence actual patients. A classic business application example of AR headsets can be derived from the manufacturing process of Boeing, 78-7 Freighter. Google Glass is being employed by aircraft engineers during wire assembly process to visualize the information right before their eyes, with video and voice instructions, for efficient and faster operations. Amazon, uses AR technology to allow customers to project versions of furniture and electronics into their households to help analyze physicality. Aerospace and military training is well optimized with the application of augmented and virtual reality devices to create real-life situations for trainees and also to keep a detailed tracked of their performance. 5G VR device’s convergence with IoT can transform the situations to be more genuine and apt for effective learning.
5G VR Market Segment Analysis - By Geography
Being one of the most advanced settlement in terms of cutting-edge technology being implied in all its industrial operations, North America is reckoned to be dominating the global virtual reality market demand. This region, housing some of the pioneering players such as Google Inc., Microsoft Corporation, and Facebook, is responsible for a substantial 34% of the global demand as of 2020. Such dominance can be attributed to its existing healthcare, aerospace, defense, and retail management sector already equipped with sound technologies compatible for the adoption of 5G irtual reality devices such as smart glasses and virtual retinal display.
5G VR Market Drivers
Rising Investment from Market Leaders
The market for 5G VR is rising due to increased investment from market-leading players. Facebook integrating augmented reality ads into its application: Facebook will be providing users an augmented reality experience via advertisements in the application. Users of the application may view fashion goods such as eye glasses and shoes, and try them on virtually.
IKEA introduced a AR and VR app named Place, which enables Apple users to set IKEA furniture in their apartments and preview an interior before buying products. Thanks to this solution potential customers can choose furniture easier.. eBay collaborated with local firm to open virtual stores in Australia. eBay was one of the first movers in the market, when the industry began developing applications for this technology. Amazon is also offering VR experiences in select cities. Amazon is trialling VR with a view to boost their Prime Day sales. Another e-commerce giant, eBay did the same in 2016 in Australia. We can expect these big players raise the awareness of the technology through such events before potential app launches thus driving market awareness and thereby the market.
Rising Focus on Improving Customer Experience
Augmented Reality & Virtual Reality is a perfect mix of technologies to engage a customer. A memorable happy experience often leads to a satisfied customer. VR technologies are likely to give an enriching experience to the customer which increases the chances of customer satisfaction significantly. As this technology is meant to make it easy and memorable for customers, it is likely to have an upper hand in leading to satisfied customers for companies as well. Customer engagement and Interactivity is not only required after onboarding the customer but is important to aware and attract as well. These 5G VR technologies can extensively be used as marketing tools to spread awareness about a product. This enhanced customer experience offered through 5G VR solutions will drive market growth.
5G VR Market Challenges
Lack of Awareness of VR Content
The biggest challenge with VR is the lack of awareness of VR content from consumers beyond basic applications. 5G VR content can come in many forms, and this could be a cause for confusion. There’s still not much clarity over whether consumers are aware these tools are available to them, or if they realize they’re engaging with VR when they use them. In a recent research study conducted by GWI in the UK and U.S., we found that over 90% of consumers in these markets are aware of VR, Awareness of VR hovers between the 95-100% mark among the 16-44 age group, but drops dramatically among 45-54s (80%) and 55-64s (65%). By gender, males (90%) display a notably higher level of awareness of VR compared to women (75%). This has resulted in limited focus on the VR market especially for applications outside gaming.
5G VR Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the 5G VR market in Commerce. Key Companies operating in the market include Amazon, Ikea, Facebook, Sephora, BMW, Harley Davidson, Sotheby and various other companies.
- In April 2021, Inpixon announced the acquisition of a suite of augmented reality (AR), computer vision, localization, navigation, mapping, and 3D reconstruction technologies, including patents, trademarks, software and related intellectual property from Visualix.
- In April 2021, Facebook announced it has acquired Downpour Interactive, the studio behind the hit multiplayer military simulator Onward.
Report Code: ITR 0093
Report Code: ITR 0083
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