Standalone VR in Commercial and Enterprise to Spur VR Market Growth to US$24.5 Billion by 2024

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20 Feb 2020

The Virtual Reality (VR) market will surpass US$24.5 billion in revenues by 2024, quickly growing at a 45.7% CAGR (2019 to 2024), finds global tech market advisory firm, ABI Research. Standalone VR will be the main driver of this growth, expected to account for over 70% of shipments by 2024, as it finds the optimal balance between price, performance, and ease of setup.

In 2019 the successful launch of Oculus Quest HMD highlighted the capability of 6DoF standalone VR solutions to replicate the more immersive experiences of tethered systems while remaining portable. This is a key attribute for the commercial and enterprise markets where applications like training are gaining traction and acceptance.

By revenue, the commercial and enterprise markets are expected to eclipse the consumer segment by 2021, with healthcare, retail, AEC, education, and location-based VR seeing early traction and expected to continue pushing this market forward. “Training and 3D visualization are the most common use cases but other applications like virtual meetings and productivity will become increasingly common as hardware and platforms improve and evolve,” says Michael Inouye, Principal Analyst at ABI Research.  

“Overall, 2019 was a mixed bag for VR, but the good were solid steps forward. Some highs from new products like Oculus Quest and Rift S, HTC Vive Cosmos, Valve Index, and Varjo’s impressive enterprise HMDs, came along with some new lows, like Google ending development of Daydream and open-sourcing Cardboard, which leaves this segment in a bleak situation. But HMD viewers could, in time, help bring this segment back from the brink. The standout is standalone VR, which is shaping up well, addressing many of the early issues and is meeting early expectations, which bodes well for both the consumer and enterprise markets,” Inouye explains.

While VR has yet to live up to its early expectations, there is positive momentum and strong activity beyond the mainstream’s vision. Inouye concludes, “Gaming remains the main driver on the consumer side and with titles like “Half-Life: Alyx” soon to be released. Coupled with Sony’s continued support of VR, gaming is buoying the consumer side of the market. VR had a less than stellar start, and while it’s still a long-time horizon, some of the building blocks have solidified, affording VR the time it needs to reach its potential across verticals.”

These findings are from ABI Research’s Virtual Reality Market Data: Devices, Verticals, and Value Chain market data report. This report is part of the company’s Video and Cloud Services research service, which includes research, data, and Executive Foresights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

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