IDC Downgrades VR/AR Market Expected to reach US$143.3 Billion by 2020

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IDC Downgrades 2020 VR/AR Market Expected to Reach $143.3 Billion from Baidu VR

In August last year, the market research company IDC released the “Global Semiannual Report on Augmented Reality and Virtual Reality Expenditure”. It is expected that global augmented reality and virtual reality market revenues will reach US$162 billion by 2020. However, it may be affected by the cold winter of VR capital. In IDC's latest market forecast report, IDC lowered the 2020 augmented reality and virtual reality market size forecast, which is US$143.3 billion.

According to statistics, in the first quarter of 2016, the total financing size of the VR industry alone reached 816 million yuan, and 18 start-up companies obtained financing. However, in the second quarter after the VR winter came, only 5 new venture companies were newly acquired. At the end of last year, the market broke the news that EnvelopVR, Vrideo, Skully, Opto Technology, Zhongjing Vision, Storm Mirror and other VR and AR companies failed or layoffs.

However, there is also good news. IDC’s August forecast indicated that the global augmented reality and virtual reality market will have revenues of approximately US$5.2 billion in 2016, while actual revenues have reached US$6.1 billion, which is slightly better than expected. This time, IDC predicts that the world’s spending on VR and AR will reach US$13.9 billion this year, which means that users’ spending will double this year.

IDC said that games and entertainment will enable VR to continue its leadership in 2017 and 2018, but as the demand for healthcare and product design increases, the AR market will go beyond VR after 2018.

"In the VR space, content developers are jumping out of the game and launching new content that is more popular with mainstream consumers," said Tom Mannelli, vice president of the IDC equipment division, in a statement. "In the AR field, commercial entities are increasingly interested in this technology."

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