Virtual Reality: The Market Landscape and Opportunities - Gaming

Virtual Reality: The Market Landscape and Opportunities – Gaming

Over the next ten years, we predict that virtual reality will not only be associated with games – virtual reality and augmented reality will become an integral part of all major industry operations. Let’s see why.

Today, much of our lives can take place in the digital realm; our finances are completely online, telemedicine appointments have replaced traditional doctor’s offices, and the number of people working from home has never been higher. But now, a new race in cyberspace has begun to dominate digital conversations as tech giants and startups compete for market share in the metaverse through one thing: virtual reality.

With virtual reality (VR) devices expected to reach a volume of 112.62 million units shipped by 2026, virtual reality technology has carved out an important and growing place in the gaming industry. equates to a global market of $84.09 billion by 2028, illustrating a CAGR of 44.8%. Augmented reality (AR) technology is witnessing a similar increase as this market sector is expected to reach $88.4 billion by 2026. These increases are largely driven by innovations in 5G and interactive games, and are also propelled by growing investments in immersive. post-pandemic technologies have pushed everything online.

The global virtual reality and augmented reality market is expected to increase in value from $14.84 billion in 2020 to $454.73 billion by the end of this decade, with Allied Market Research reporting a possible CAGR of 40 .7%. And with this kind of rapid growth comes great opportunity, as VR and AR technologies are seeing increased implementation in automotive, manufacturing, education, healthcare, entertainment and businesses.

Over the next ten years, we predict that virtual reality will not only be associated with games – virtual reality and augmented reality will become an integral part of all major industry operations.

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As Crunchbase reported, investment in AR and VR technology is on the rise as the fourth quarter of 2021 was unlike any other in terms of venture capital interest. Nearly $2 billion in venture capital flowed into AR/VR software and hardware startups late last year, making this the largest investment of any quarter already.

The rebranding and repositioning of the company officially known as Facebook may not have directly impacted funding, but it could have something to do with this influx of interest in reality. Virtual. With Zuckerberg’s heightened enthusiasm for making the metaverse his own, he’s been leading the VR conversation with innovations in wearable technology, upgrades to Horizon Worlds, Project Cambria, and more. In fact, the company plans to spend at least $10 billion this year on research and development in technologies related to virtual reality, augmented reality and the metaverse.

Meta currently leads the pack in headset revenue, with IDC reporting that its Quest 2 accounted for 78% of all VR headset sales in 2021. Followed by Meta, DPVR with 5.1% global market share, Bytedance with 4.5% and upcoming VR pioneer HTC in fourth place. But other big companies are starting to invest in the hardware and software that powers VR and AR technologies, and Wall Street sees this increased interest creating a $1 trillion market.

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Tech players like Sony, Samsung, Google (think Google Glass or their upcoming AR glasses) and Microsoft (now merged with AR-based Pokémon Go maker Niantic) have already pioneered VR/AR technologies and should continue to innovate in the space, while others like Apple are announcing plans to launch AR glasses and related iPhone capabilities in the short term.

As investors continue to flood the market, smaller startups will begin to shake up cyberspace, especially in broader use cases unrelated to gaming. New entrants aim to create value for consumers, with many forgoing the metaverse entirely; AppliedVR has created a virtual reality related business model that can work without immersive worlds. ManageXR helps companies manage their VR and AR devices using their system, and their company has grown from just 30 customers to over 100 in just ten months, as companies increasingly seek to implement VR technologies in their daily lives.

While these companies are all busy building the next *big thing* in virtual reality, one thing is certain: whatever the use, the market for these technologies will be propelled forward by innovations in the systems behind their functioning. In other words.

Innovations in virtual and augmented reality components will drive competition in the market.

The large-scale implementation and deployment of these technologies requires advances in hardware, software, and processing, as well as improvements in the overall physical design of wearable virtual reality. Many of the issues Meta faces with creating VR headsets are that, to put it simply, the designs are too clunky and cumbersome to send to market. Additionally, creating wireless options is crucial in our increasingly cable-free world; it’s more difficult than just adding a rechargeable battery because that battery life is usually limited and graphics appear at a lower resolution. This underscores the need for advancements in graphics cards that can not only support these wireless designs, but can also make the VR experience so similar to human sight that the user has no distinction between the world virtual and physical.

Additionally, with the introduction of 5G, data processing in VR settings will see reduced lag, reduced data congestion, higher quality displays, and improved mobility. However, the quest for manufacturers now is to make the necessary advancements in the software behind virtual reality that can support the enhanced connectivity brought by 5G, 6G and beyond.

Improvements in overall design, motion tracking, and immersive imagery will push today’s VR platforms to look more like the fully connected devices of the future. And as computer processing power continues to grow and wireless connectivity expands, the capabilities of these machines will continue to expand. But so will the conflicts associated with them.

Innovation in the industry creates opportunities for complex litigation.

With the intensification of competition in the industry, many players will fight to become the best system. These frictions drive both innovation and litigation opportunities, particularly in cases of antitrust, patent infringement, theft of trade secrets, breach of contract, mergers and acquisitions, and shareholder disputes.

As the virtual reality and augmented reality markets continue to grow (both in and out of the metaverse), advancements in software and hardware coupled with the need for regulation in the space will create contention. We believe that battles over IP are among the most prevalent, as developers will need to start fiercely defending their IP when the market becomes more saturated. Additionally, major acquisitions occurring in the VR market will lead to mergers and acquisitions and the theft of trade secrets. We also anticipate debates over data retention and processing, particularly if industry regulations around consumer data protection come later than sooner.

If your business needs help preparing for these challenges, contact WIT for the best experts who can advise you on your strategy. Our teams of experts have been created to address what we anticipate will be the major areas of litigation in emerging video game content and technology.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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