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Strategy Analytics: ‘AR/VR To Take Off As We Adjust To A New Normal’

According to the latest forecasts from market research firm Strategy Analytics, the global AR/VR markets will have a strong recovery in 2021, following the COVID-driven contraction in 2020, as we adjust to the new normal of a post-COVID world.

“We have raised our longer-term forecast for XR hardware as a result of new work and life patterns in the ‘new normal’. Work at home, training, education, and collaboration will all benefit from AR/VR,” said David MacQueen, Director of the Virtual Augmented Reality Service at Strategy Analytics.

“We expect that the launch of smartphone-tethered AR headsets, such as those from Nreal and Samsung seen at CES at the start of the year ramp up in late 2020/early 2021.”

Strategy Analytics predicts that total XR shipments (that is, combined VR and AR headsets) will increase six-fold through 2025, and estimates that XR hardware revenues will surpass $28 billion per annum that year.

Source: Strategy Analytics

Samsung, start-up Nreal and other vendors are tipped to commercialise lightweight, consumer-friendly AR headsets, which will drive strong growth from the mid- and low-tier markets once these smartphone-tethered devices are launched.

However, Strategy Analytics has revised their anticipated shipments of console-tethered VR down, in light of Microsoft’s decision to not support VR in the next generation Xbox.

“Initially attracting a ‘hardcore’ gaming audience willing to spend for a good quality experience, the audience for these devices has since broadened to include enterprises as well,” said David Kerr, VP at Strategy Analytics. “The use of a fully immersive 3D environment started to prove its worth in design, particularly in the fields of engineering, automotive and architecture. Training and education are other verticals where VR has found a home.”

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