AR Use Will Grow 30% This Year, VR Will Grow 110%: eMarketer
Taking its first look at the augmented reality (AR) and virtual reality (VR) video markets, research company eMarketer sees strong growth ahead in the U.S. In 2016, 30.7 million people used AR monthly, a number that will grow to 40.0 million in 2017 for a 30.2 percent increase. The company predicts 48.1 million users in 2018 and 54.4 million in 2019.
Those 40.0 million current AR users represent 12.3 percent of the U.S. population. In 2019, that will grow to 16.4 percent of the population. Most AR use comes from social networks.
“Users of Snapchat Lenses comprise the vast majority of our AR estimates,” says Chris Bendtsen, a forecasting analyst for eMarketer. “Snapchat growth will continue to contribute to AR users in the future, but in the next several years eMarketer also expects Facebook and Instagram Stories to be significant growth drivers of AR usage.”
AR enjoys stronger use in the U.S. than VR, and that will continue into the near future. In 2016, 10.7 million people viewed VR content monthly, which will grow to 22.4 million in 2017 (a 109.5 percent increase), 36.7 million in 2018, and 49.2 million in 2019. Most VR use is 360-degree photos and videos on YouTube and Facebook. In 2017, 9.6 million will view VR content through a headset, a category dominated by gaming. The high cost of headsets will keep adoption low, with only 2.9 percent of the population using a VR headset monthly this year.
Social video platform Snapchat is still paying for its unpopular redesign: It will lose users in the U.S. for the first time this year, dropping by 2.8%
Speakers from Magic Leap, Niantic, HTC, RYOT, and the Olympic Committee talked up immersive media and entertainment experiences made possible with 5G.
Facebook has been highly successful with video advertising, and will take in nearly a quarter of all U.S. video advertising in 2018.
Viewers want to see it all, but there are only so many hours in a day. To get more done, viewers increasingly surf on their phone or computer while watching video.
VR video gets a lot of attention, even though not many people are watching it. The requirements for consumers are still way too high.
The controlled environment of virtual reality is proving ideal for diagnosing and treating traumatic brain injuries. Learn why the Department of Defense is funding trials.
This is a good time to plan an IPO: Roku has risen to become the most popular video streaming device, while the Apple TV falls farther and farther behind.
BBC R&D is not convinced of the case for producing news in VR, and warns against the perils of relying too heavily on tech company sponsorship of branded 360° or VR news content
VR video will have uses beyond entertainment and gaming, offering something for every industry, but there are significant distribution problems to conquer first.
Sky is committed to seeing VR succeed where 3D failed, and has established the 10-person Sky VR Studio to spearhead innovation and content creation
Despite a year of content and production experimentation by studios and broadcasters, poor quality experiences could yet impede VR take-off