San Francisco, CA, November 5, 2019 - Enterprise virtual reality spending is on pace to total US$1.83 billion in 2020, an increase of 79% from 2019, according to the latest forecast from Greenlight Insights.
“Spending by enterprise firms on virtual reality will continue to grow unabated in most industry verticals and regional markets to reach nearly US$2 billion in 2020,” said J.C. Kuang, analyst at Greenlight Insights. “The increased awareness on the benefits of virtual and augmented reality and the acknowledgement that immersive capabilities are one of the enablers of digital transformation are boosting virtual reality spending.”
Virtual reality head-mounted displays (HMDs) will attract the most spending from enterprise firms in 2020 as both companies emphasis using HMDs to train and re-skill their workforce. Greenlight Insights analysts will describe how enterprise leaders can advance innovation and human-capital management strategies at the Greenlight Insights Experiential Enterprise Summit, which will next take place April 2020 in Boston, MA.
Leaders in the Architecture, Engineering & Construction, Educational, and Military & Defense industries are investing in virtual reality programs and capabilities like training, remote collaboration, and 3D model visualization,” said Mr. Kuang (see Table 1). In addition, the global talent shortage has put immersive technologies as a top investment priority for executive leaders, therefore increasing spending on XR-related training and knowledge exchange programs locally.”
Table 1: Enterprise Virtual Reality Spending by Industry Sector, 2019-2020 (Millions of U.S. Dollars)
|Government & Military||231||431|
|Energy & Utilities||8||13|
|Architecture, Engineering & Construction||172||301|
Due to rounding, figures may not add up precisely to the totals shown.
Source: Greenlight Insights (October 2019)
Greenlight Insights analysts also warn that the Enterprise VR market stands at a critical crossroads. “The trajectory of enterprise VR continues to be driven by innovation in hardware, unlocking subsequent applications and addressable markets for solutions providers,” said Mr. Kuang. “While standalone virtual reality HMDs and 5G's 2020 emergence may prove to be accelerators of enterprise adoption, our tempered outlook is attributable to a global slowdown in corporate IT spending”.
Healthcare Virtual Reality, Immersive Design Software Spending Are Fastest Growing Segments in 2020
Healthcare organization spending on virtual reality is expected to total $US50 million in 2020, an increase of 250% from 2019. “By 2023, medical simulation applications using virtual and augmented reality HMDs will place 1 in every 3 medical school student in the virtual duplication of activities they will be required to perform as healthcare professionals,” said Clifton Dawson, CEO and principal analyst at Greenlight Insights.
In 2020, streamlining and refining CAD-to-VR pipelines will be an area of increased market growth, as various sectors of the 3D content creation industry, from CAD software providers to traditional game engines, facilitate more direct cooperation in service of VR developers. “This trend toward immersive 3D CAD capabilities by firms across numerous sectors will facilitate the emergence of third-party solutions specifically geared towards direct interaction with CAD data in VR for verticals such as construction and industrial design,” said Mr. Kuang.
Greenlight Insights’ 2019 Virtual Reality Industry Report, Enterprise Edition is available now. For more information on this report, or to become a subscriber to the Virtual Reality Intelligence Service, visit greenlightinsights.com or email firstname.lastname@example.org.
About Greenlight Insights
Greenlight Insights provides market intelligence on smart, virtual reality, and augmented reality display technologies through proprietary data, insights, and analysis. Greenlight Insights delivers critical strategic insights to the world's leading technology companies, publishers, service providers, institutional investors, and government entities.
Based in San Francisco, with offices in Los Angeles, Boston, and Denver, Greenlight Insights comprises a diverse team of highly skilled industry professionals who offer deep expertise about next-generation displays. For more information, visit greenlightinsights.com.