• Trend 3 >> Retail
AR/VR revenue for the retail sector is estimated to reach $500 million by
2020 and $1.6 billion by 2025. AR/VR is disrupting nearly every retail market in
which companies can garner a competitive advantage by using technology for
competitive advantage to increase market share. There are notable, near-term
opportunities in both the $180 billion home improvement market and the $260
billion fashion/apparel market. AR/VR can be used to increase topline revenue
and reduce the need for in-store displays (ultimately eroding the value of a
physical stores, much like during the Internet boom).
• Trend 4 >> Education
AR/VR revenue for the education sector is estimated to reach $300 million
by 2020 and $700 million by 2025.
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AR/VR also has the potential to be a
standard tool in education and may revolutionize the way in which students are
taught for both the K-12 segment and higher education (college and beyond).
Of particular note, is the fact that teachers can use AR/VR to enable students
to interact with objects and learn in a 3D environment. For example, students
can learn about the solar system, historical events, or sub-atomic structures by
interacting with critical structures and events in the virtual world. In fact, Google
now offers its low-cost VR tool, Cardboard, to schools for free – and has already
developed over 100 "virtual field trips."
Summary
AR/VR is a rapidly growing market opportunity poised to become the next
major computing platform. It will also impact numerous vertical industries. The
majority of historical VC investment in this sector has been focused on gaming,
media, and entertainment, however, these categories have become saturated and
19
"Profiles in Innovation: Virtual & Augmented Reality – Understanding the race for the next computing
platform." The Goldman Sachs Group, Inc., 13 Jan. 2016
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