Post on 28-May-2020
1CONFIDENTIAL AND PROPRIETARY © 2017 by Frank N. Magid Associates, Inc. Any duplication, reproduction or usage of this document or any portion thereof without the written consent of the firm is prohibited.
WHERE INNOVATIVE RESEARCHFUELS LEGENDARY BUSINESSES
VR & AR – Consumer Perspective, Industry StatusFrom Here and Now to There and Then
3Market size
11.6
5.1
4.7
4.1
3.2
2.6
1.6
1.4
0.7
6.9
1.2
1.5
0.8
0.8
0.8
0.5
0.5
0.3
0 2 4 6 8 10 12 14
Video games
Healthcare
Engineering
Live events
Video entertainment
Real estate
Retail
Military
Education
Market in billion U.S. dollars
2025 2020
Note: Worldwide; 2016Further information regarding this statistic can be found on page 30.Source: Goldman SachsID 610112 8
PROJECTED SIZE OF GLOBAL AUGMENTED AND VR MARKET SEGMENTS 2020-2025FORECAST SIZE OF THE AUGMENTED AND VIRTUAL REALITY (VR/AR) MARKET WORLDWIDE IN 2020 AND 2025, BY SEGMENT (IN BILLION U.S. DOLLARS)
4Brands & platforms share
4,326
745
420
261
243
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Samsung Gear VR
PlayStation VR
HTC Vive
Google Daydream
Oculus Rift
Unit shipments in thousands
Note: Worldwide; 2016Further information regarding this statistic can be found on page 78.Source: SuperData ResearchID 705476 38
GLOBAL VIRTUAL REALITY HEADSET SHIPMENTS BY BRAND 2016
VIRTUAL REALITY DEVICE UNIT SHIPMENTS WORLDWIDE BY VENDOR/BRAND IN 2016 (IN 1,000S)
10
Content is King, but there is unlikely to be a moon landing moment to get the masses engaged.
It is likely to be a progression of many different exceptional VR content experiences rather than one—and location-based VR access will likely help the acceleration.
16
The Acceleration Study
A unique 8-month qualitative research initiative tracking the journey of VR Early Adopters from selection to purchase to usage over time.
17
WHO DID WE TALK TO?
• Taylor K., Plural, LA• Samsung Gear• Loves podcasts &
multitasking
• Brendan B., Millennial, ATL
• PS VR• 2 Kids & 2 dogs
• John P., Xer, NYC• Oculus Rift• Lifelong gamer
3
18-24
25-34
35+
5114
713
1818
WHAT ARE THEIR DEVICES?
TETHERED MOBILE
• Requires Samsung Galaxy S6, 7 or 8 phone
• Participants (6)Bin J.John-Michael P.Michelle W.Rebecca S.Robert L.Taylor K.
• Requires Google Pixel, Samsung S8, Moto Z or Huawei Mate 9 Pro phones
• Participants (2)Kat K.Mirandah R.
• Requires High-end PC
• Participants (2)Amber H.Steven D.
• Requires High-end PC
• Participants (3)Christopher L. John P.Kit N.
• Requires PlayStation 4
• Participants (6)Andrew C. Brendan B. David G.Jose H.Karley P. Marvin T.
19
VR Seen As Accessory
Across the board participants describe their VR headsets less as independent devices and more as accessories to their existing phones, consoles or PCs. This was true of both console and tethered users.
20
AFTER 4 MONTHS USAGE WANED, BUT EXCITEMENT REMAINED HIGH
Almost All Users Very/Somewhat Satisfied With Their VR Purchase
22
VIRTUAL REALITY MARKETING REVENUE IN CHINA 2017-2021FORECASTED VIRTUAL REALITY MARKETING SECTOR REVENUE IN CHINA FROM 2017 TO 2021 (IN BILLION YUAN)
Note: China; 2016Further information regarding this statistic can be found on page 8.Source: Greenlight Insights; iResearchID 736663
0.1
0.3
0.6
1.2
2
0
0.5
1
1.5
2
2.5
2017* 2018* 2019* 2020* 2021*
Rev
enu
e in
bill
ion
yu
an
2
23
ANNUAL GROWTH OF THE VIRTUAL REALITY MARKETING SECTOR IN CHINA 2017-2021FORECASTED ANNUAL GROWTH OF THE VIRTUAL REALITY MARKETING SECTOR IN CHINA FROM 2017 TO 2021
Note: China; 2016Further information regarding this statistic can be found on page 8.Source: Greenlight Insights; iResearchID 736646
233%
180.2%
102.1%
84.8%69.9%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
2017* 2018* 2019* 2020* 2021*
Year
-on
-yea
r ch
ange
2
26Verticals & segments
0.6
2.3
6.6
12.8
0
2
4
6
8
10
12
14
2014 2015 2016 2017
Spen
din
g in
bill
ion
U.S
. do
llars
Note: Worldwide; August 2014; forecastFurther information regarding this statistic can be found on page 35.Source: Socintel360ID 548285 14
AUGMENTED REALITY AD SPEND WORLDWIDE 2014-2017
AUGMENTED REALITY (AR) ADVERTISING SPENDING WORLDWIDE FROM 2014 TO 2017 (IN BILLION U.S. DOLLARS)
27Verticals & segments
725.4 884.011,255.17
3,345.66
6,218.23
10,598.08
15,497.53
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2016 2017 2018 2019 2020 2021 2022
Rev
enu
e in
mill
ion
U.S
. do
llars
Note: Worldwide; 2016 to 2017Further information regarding this statistic can be found on page 37.Source: TracticaID 608990 16
CONSUMER AR APP MARKET REVENUE WORLDWIDE 2016-2022GLOBAL REVENUE OF THE CONSUMER MOBILE AUGMENTED REALITY APP MARKET (STANDALONE/EMBEDDED) FROM 2016 TO 2022 (IN MILLION U.S. DOLLARS)
28
AR AND RETAIL
IKEA – VISUALIZE FURNITURE PLACEMENT AND BUY ON THE APP
MODIFACE – AR MAKE-UP COMPANY THAT RECENTLY PARTNERED WITH MAC
31
Think VR and AR, not VR vs. AR.
Each have their own strengths and use cases– AR brings data and things to you and VR takes you away to anywhere in the world and beyond. AR has more immediate applications, a newly available mass audience. VR will be a slower ascent, but offers escape, immersion and unprecedented engagement.
34
HEALTH – WELLNESS, MEDICINE, FITNESS
KOLIBREE – AR TO ENCOURAGE CHILDREN TO BRUSH THEIR TEETH
UNIVERSITY OF SF – JUNE 2017 RESEARCH ON VR AS A VIABLE SOURCE OF EXERCISE
36
NEW REALITIES OF TRAVEL
HOLOLENS TRAVEL EXPERIENCESYOUTUBE 4K VR VIDEO EXPERIENCE OF THE MALDIVES
39
MIKE BLOXHAMSVP Global Media and Entertainment,MAGIDmbloxham@magid.com
DEBBY RUTHSVP, Global Media and EntertainmentMAGIDdruth@magid.com