Commentary

Augmented Reality Set To Overtake VR

Money has been flowing into virtual reality and augmented reality, with the latter now catching the eye of investors.

In the last 12 months, $1.8 billion was invested in AR and VR, according to the latest tracking numbers from Digi-Capital.

However, the last quarter marked the start of a transition from VR-driven investments to the new mobile AR market

Venture capital and corporate investment types are now looking for mobile AR opportunities, according to Digi-Capital.

In the short term, up to 2019, Apple will have the lead in AR.

However, by 2020, the situation will change, with Google taking the lead in augmented reality, surpassing Apple’s AR revenue, according to the forecast. Key points from the report:

  • Smart glasses remain the long-term future for AR and VR, but could take into the next decade to become a mass-consumer market
  • VR’s market potential has been diminished by the emergence of mobile AR as a rival platform
  • Premium VR might not accelerate until second-generation, standalone VR headsets break out starting in 2019

The big shift is a significant upgrade in the prospects for augmented reality and a major downgrade for VR.

And that’s the new reality.

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5 comments about "Augmented Reality Set To Overtake VR".
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  1. Thomas Kennon from Free Radicals, October 27, 2017 at 5:34 p.m.

    Not sure who Digi-Capital is or how they run their analysis but bravo to them for their report. This has been obvious to many for a while. VR will NEVER enjoy more than niche growth because its use case is inherently unsocial. It's an immersive aka alienating individual experiece lacking all the sharability, community and scalable social distribution of other successful new technology kit. Key ingredients which led to the exponential adoption and shared additiction gained by breakout tech innovations like games, social networks, music/video services etc. Also: we still look like vulnerable clueless idiots with the headsets on. ;)
       

  2. Chuck Martin from Chuck Martin replied, October 28, 2017 at 11:22 a.m.

    Points well taken, Thomas. VR has been around for a very long time and still no mass traction.

  3. John Grono from GAP Research, October 27, 2017 at 6:07 p.m.

    I look foward to the launch of RR - Real Reality.   I've heard it is very good and astouningly life-like.
     

  4. Thomas Kennon from Free Radicals replied, October 27, 2017 at 7:21 p.m.

    I dunno John. I was once as hopeful. Then I started reading lots and lots of Deleuze. "Real" aint.

  5. Chuck Martin from Chuck Martin replied, October 28, 2017 at 11:22 a.m.

    That may be coming, John. Stand by.

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