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RESEARCH, ANALYSIS & TRENDS

COVID accelerated interest in VR

games and media

total. Education accounts for 16% of total shipments
but is growing the most quickly at an 88% CAGR
through 2027. Other enterprise markets do not account
for a significant portion of shipments but will
significantly grow in some areas: Location-based and
Transportation and Automotive both will grow at over
an 80% CAGR through 2027.

Meta’s Quest 2 remains the most popular VR device,
standalone or otherwise, and by all accounts had a
record breaking 2021. Sony’s PSVR2 has been
confirmed and will target an impressive PlayStation 5
install base that has also set records despite supply
After years of slow but steady growth in limited shortages. Apple has a planned headset possibly
use cases, Virtual Reality (VR) is facing a market launching in 2022, while Meta also has confirmed a
explosion over the next five years. Consumer new standalone device. Pico (recently acquired by
interest in VR games and media continues to Bytedance) and DPVR are worth watching on the
grow after COVID accelerated activity. At the affordable end, and Pimax is pushing capability at the
same time, the need for worker enablement and high end.
immersive content in enterprise remains strong.
Mobile devices, such as the now abandoned Samsung
According to global technology intelligence firm ABI Gear and Google Daydream, do still have presence in
Research, over 90 million Head Mounted Display the market, although limited. The low cost and
(HMD) shipments in 2027 will power total VR market accessibility from these devices remain valuable and
revenues to reach over US$95 billion in the same year will still be treated as an option against the dominant
across hardware, software, and services. standalone form factor.

“The virtual reality market is no stranger to false starts, “Hardware, software, and services must align with
with identifiable efforts in VR dating back to the 1980s perceived value and demand to allow a new technology
and 1990s. While the technology never found like VR to flourish. This has only happened in siloes
purchase, the increased capability of VR hardware and at small scale so far, such as with VR gaming, but
combined with, perhaps most importantly, demand for cross-market investment and offerings are now being
immersive content in numerous markets, presents a met with demand. The need for immersive visualization
significant opportunity,” says Eric Abbruzzese, tools can only increase, and without the once glaring
Research Director with ABI Research. “While the holes in enabling technology capability or value to
intense focus on metaverse is partly responsible for this users, the path forward is a promising one – not just in
increase, shorter term and smaller scale opportunities small segments but across ecosystems,” concludes
are driving the expected growth.” Abbruzzese.
Among devices, standalone HMDs make up most These findings are from ABI Research’s Virtual Reality
shipments in the forecast, with 79 million expected Market Data: Devices, Verticals, and Value Chain
shipments in 2027, growing at a 40% CAGR. Tethered report which is part of the company’s Augmented and
and mobile-based VR devices make up the rest, with Virtual Reality research service. ◊
tethered favored for gaming by consumers and By MediaBUZZ
simulation and training for enterprises. Among these
shipments, consumer shipments make up 80% of the

4 August 2022: Immersive Technologies in Marketing