Immersive virtual reality is the perception of physically being in the non-physical world that is created by the virtual reality systems by surrounding the user with videos, images, sound and other stimuli that provide a complete realistic experience of the artificial environment. To perceive the digital environment to be physically real, all the five senses must be perceptually fooled and this is achieved through panoramic 3D displays, surround sound systems, haptic feedback, and smell and taste replications. Numerous immersive technologies such as gestural controls, motion tracking, brain control interfaces and computer vision are used to track user’s actions, movements and thoughts to interact with the virtual environment.
The potential applications of immersive virtual reality systems are numerous. They can be used for information visualization in industrial sectors and to create augmented reality museums for educational purposes. In the military, these systems can be used to create simulated environments to train pilots, soldiers and crisis response teams for situations, which are dangerous to train by using live equipment. This technology can be used to create realistic experience while playing games or watching movies and in psychiatric care where the visualization of psychotic states can be used to gain increased understanding of a patient.
The market for immersive virtual reality systems is expected to cross 2 billion market by 2021. The market shares of devices that can offer complete immersion is expected to be dominant in the coming years. In terms of industry verticals, entertainment & gaming occupy a share of 42.10% in 2015, whereas the market penetration in Aerospace & Defense industry is expected to be significantly high over the next five years with a CAGR of more than 95%. In terms of devices, Head Mounted Display Devices hold the major share of the market with more than 50% in 2015, while Gesture Tracking Devices are expected to be the fastest growing over the forecast period 2016 - 2021. North America which is significantly advanced in terms of technology will hold the major share of the market over the coming years, while Asia-Pacific will witness a significant growth rate of close to 100% after 2018, once the technology becomes affordable. Growing customer preference towards 3D and more realistic entertainment experience, increasing demand in healthcare and educational sectors, proliferation of smart phones, a need to cut down the defense budget by simulating the training sessions are some of the factors that will drive the market.
But these VR systems can create detrimental issues such as simulation sickness and motion sickness which needs to be addressed by the vendors in order to gain customer acceptance. Companies are doing good in creating curved headsets that can offer 160 to 180-degree field of view, but developing gesture tracking devices remains a challenge. The computers should be able to instantaneously detect the user’s actions in the real world and respond without latency in order to avoid motion sickness and nausea. Lack of awareness and lack of content for these systems also act as restraints to this market. But increasing number of applications, booming consumer electronics industry in developing nations of Asia-Pacific such as China, India and Indonesia can be huge opportunities the manufacturers can look out for.
Major companies like Microsoft, Google, Sony, Samsung and Facebook (by acquiring Oculus Rift) realized the importance of virtual reality in the future and started investing in this technology. Even Apple after so much of silence is finally getting serious about VR systems, especially after Facebook started taking preorders for their Oculus Rift VR device. Few other companies that involve in releasing the virtual reality products are Avegant, Razer, Carl Zeiss, Archos, HTC and Panasonic. The market will further grow with the launch of these VR sets in the next couple of years and as they become affordable with advancements in technology, these immersive virtual systems are set to witness exponential growth.
The study, besides estimating the immersive virtual reality market potential between 2016 and 2021, analyzes on who can be the market leaders and what partnerships would help them to capture the market share. The report gives an overview of the dynamics of the market, by discussing various aspects such as drivers, restraints, Porter’s five forces, value-chain, customer acceptance and investment scenario.
The study in brief deals with the product life cycle, comparing it to the relevant products from across industries that had already been commercialized. It approximates the time for innovation, in order for the industry to maintain a stable growth over a sustained period. The report also details the potential for various applications, discussing the recent product innovations and gives an overview on potential regional market shares.
Key Deliverables in the Study
- Market analysis for the immersive virtual reality market, with region-specific assessments and competition analysis on a global and regional scale.
- Market definition along with the identification of key drivers and restraints.
- Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market on a global and regional scale.
- Extensively researched competitive landscape section with profiles of major companies along with their market share.
- Identification and analysis of the macro and micro factors that affect the immersive virtual reality market on both global and regional scale.
- A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
- A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market.
- Insights into the major countries/regions where this industry is growing and also identify the regions that are still untapped.
1.3 Study Deliverables
1.4 Scope of the Study
1.5 Research Methodology
2. Executive Summary
3. Market Overview
3.1 Current Market Scenario
3.2 Market Drivers
3.3 Market Restraints
3.4 Market Trends
3.5 Recent Innovations and Product Developments
4. Market Dynamics
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Power of Suppliers
4.1.2 Bargaining Power of Buyers
4.1.3 Degree of Competition
4.1.4 Threat of Substitution
4.1.5 Threat of New Entrants
4.2 Product Life Cycle Analysis
4.3 Value-Chain Analysis
4.4 Customer Acceptance/Adaptability
4.5 Comparative Analysis
4.6 Investment Scenario
5. Market Potential - Size, Forecast, Trends & Opportunities
5.1 Market Definition
5.2 Market Size Estimation
5.3 Potential Market Share of Various Applications
5.4 Regional Market Analysis
6. Competitive Landscape
6.1 Current Market Landscape
6.2 Potential Entrants
6.3 Brief Company Profiles
6.3.1 Facebook (Oculus VR)
6.3.7 Total Immersion