Spending on Virtual and Augmented Reality in Canada expected to hit US$500 Million in 2017
Aug 16, 2016
TORONTO, August 16, 2016 - According to the latest data released to the Worldwide Virtual and Augmented Reality (AR/VR) Spending Guide , International Data Corporation (IDC) expects sales of AR/VR hardware will generate more than 50% of total worldwide AR/VR revenues (hardware software and services) throughout the forecast period. AR/VR software revenues will also get off to a quick start, growing more than 200% year over year in 2016, but will quickly be overtaken by services revenues in the middle years of the forecast, as logistics and manufacturing demand enterprise-class support.
Globally, revenues for VR systems, including viewers, software, consulting services and systems integration services, are forecast to be greater than AR-related revenues in 2016 and 2017, largely due to consumer uptake of games and paid content. After 2017, AR revenues will surge ahead, hitting critical mass in healthcare delivery and product design and management-related use cases.
"From a Canadian perspective, because AR/VR technology is still in the early stages of adoption, we expect large year-over-year growth to the tune of over 230% annually throughout the forecast," said Manish Nargas, research analyst, Consumer and Mobility at IDC Canada. "While consumer VR adoption will see initial uptake in the Canadian market in the short term, it is the combination of AR and VR hardware in both consumer and commercial that will drive the overall market by 2020. 360-degree video viewing, social AR/VR gaming, and virtual shopping experiences are just some use cases that are at our 'virtual' doorstep."
"The concepts of virtual and augmented reality have been around for many years, but now with inexpensive mobile and PC hardware powering affordable branded VR headsets, and apps enabling simple AR experiences right on the mobile devices, we can expect to see the interest level increase," said Krista Collins, research director, Mobility.
"Pokémon Go has generated huge awareness for augmented reality in Canada and around the world, but it is just one element of much a broader AR/VR market development, and this is just the beginning," added Collins. "While much excitement has been covered in the consumer market, (Samsung Gear VR, Sony PlayStation VR, HTC Vive) the expected commercial applications represent great opportunities. Film and TV, retail, and product development are just a few of the fastest growing industries we expect to see in Canada."