AR and VR will combine to form $71 billion in annual revenue by 2021, up from $6 billion this year. This is according to Activate, in new data presented at last week’s Wall Street Journal D.Live conference (chart below).
As for a breakdown, the biggest chunk of that revenue (66 percent) will go to enterprise AR, followed by consumer VR (16 percent), consumer AR (12 percent) and enterprise AR. Enterprise AR’s dominance isn’t surprising and aligns with our past analysis.
Activate also looked at consumer VR adoption as a function of price. Similar to our recent data release on that same topic, it points out that prices are falling with competitive pressure and slower than expected sales. And adoption interest spikes below $400 (chart below).
Activate also predicts consumer VR won’t reach ubiquity soon, maxing out around 1 percent of the global population (about 60 million people). Mobile AR will scale though, with AR compatibility approaching 100 percent of global smartphones by 2020 (again, just like our findings).
See the rest of the data below, and stay tuned for lots more data and analysis.
Disclosure: ARtillry has no financial stake in the companies mentioned in this post, nor received payment for its production. Disclosure and ethics policy can be seen here.