The future landscape of the Internet of Things will be largely occupied by virtual reality and augmented reality products and services.
With new entrants on the consumer hardware side like Sony’s just-released PlayStation VR, which is expected to sell millions of units by the end of the year, the VR and AR markets are growing.
The VR and AR market is forecast to grow by almost 30 times its size after 2020, according to a new study from Citi’s Global Perspectives and Solutions group.
In the next four years, the AR and VR market is forecast to grow to $80 billion. However, the market will grow to $2.16 trillion by 2035, according to Citi.
Another recent study by Machina Research forecasts the entire IoT market to reach $3 trillion by 2025. Almost half ($1.3 trillion) of that revenue will come directly from end-users paying for products and services, according to that study.
By 2025, Citi projects the AR and VR market to reach $692 billion. Most of the growth in the coming years will come from VR hardware like head-mounted displays.
Another recent study by IDC forecasts the AR and VR market to reach more than $162 billion by 2020.
Numbers aside, the one consistent projection across studies is that the growth in the short-term will come from virtual reality hardware.
Many companies are currently battling for market-share on the VR devices front for the holiday season. Samsung recently released an updated version of its Gear VR headset, although some of the smartphones that can actually drive the headset have been recalled.
Google also recently announced its Daydream VR platform, along with the first Daydream-ready phone and Daydream View, which is a viewer similar to Samsung’s Gear VR, but with wireless connection and a controller. Both devices are scheduled to be available before the holidays.
On the high-end immersive VR spectrum, Oculus is bringing additional controllers and room-scale VR capabilities to the market later this fall, as well as working to reduce the cost barriers for VR-enabled PCs.