Interestingly, the firm finds that by 2021, the vast majority of augmented reality shipments, 83%, will be used in commercial applications, while the vast majority of VR will be in the consumer market.
IDC projected that AR and VR headsets will grow from just under 10 million units in 2016 to almost 100 million unites in 2021 with a compound annual growth rate of 57.7 percent. "And the introduction of additional motion tracking and hand tracking will help further blur the line between digital and physical reality".
Research firm IDC today weighs in on the market for virtual reality and augmented reality, predicting that despite somewhat limited sales to date of things such as Sony's (SNE) "PlayStation 4" with "PSVR" headset, that the market is set to soar in coming years.
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IDC last offered its views on the matter three weeks ago, when it reported that consumers are "cautious" about buying into VR and AR. PC upgrades will also stimulate headset sales. ODG, Meta and Intel are also AR players.
In terms of dedicated devices, AR continues to sit slightly in the background of VR. "We believe that many industrial jobs will fundamentally change because of AR in the next 5-years and these are much more opportunistic markets for dedicated AR headsets than the consumer market". Last year, 162,000 AR headsets were shipped, but that is expected to grow to more than 24 million by 2021, according to IDC.
Commercial markets accounted for more than half (68%) of AR devices shipped past year and that segment is expected to grow to more than three quarters (83%) by 2021, according to IDC.
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