The virtual reality market in the manufacturing industry is expected to grow at a compound annual growth rate or CAGR of 39.2% in 2019, according to a report by Bengaluru based research firm Fortune Business Insights.
The market size stood at $924.7 million in 2018 and is projected to reach a staggering $14.9 billion by 2026 according to the ‘Virtual reality in the manufacturing industry report and forecast 2019-2026’.
North America will likely emerge as the top destination for virtual reality solutions for manufacturing. This is due to a well-established IT infrastructure and a culture of early adoption of the latest technological trends. In 2018, the North American VR market was worth $359.5 million out of the $924.7 million globally, a 37%, or more than a third share of the global market size for virtual reality.
The Asia Pacific region is also expected to witness considerable growth backed by growing VR-integrated technologies. Some of the key players in the segment include the likes of video game developers Unity Technologies, and heavyweights Microsoft, Google, Sony and HTC Corporation.
In virtual reality, users are completely immersed in a computer-generated environment. This is different from augmented reality where computer graphics are overlaid on the real world. Mixed reality sits between VR and AR.
The future of Virtual reality looks promising and enterprises across the world seem to be working on AR/VR solutions to improve productivity and reduce the possibility of accidents. The augmented reality (AR) and mixed reality (MR) market is expected to reach close to $19 billion by 2024, Dublin-based research firm, Research and Markets, recently said in a separate report.
Indian businesses are especially keen on using the latest solutions. About 81% of Indian businesses are open to the idea of day-to-day immersion in virtual and augmented realities, while the number is only 56% globally, a recent study from Texas headquartered computing giant Dell Technologies recently said.
Around 87% of businesses would automate tasks and 74% of the leaders surveyed in India said they would welcome people being fitted with technology that controls computers with their mind (brain computer interfaces). The number was 56% globally, according to the report ‘The future of connected living.
Telecom companies are among the major adopters of employ AR and VR solutions as the technology is used to skill employees and reduce costs. Massachusetts based IT company Virtusa recently rolled out AR-based test and diagnostic capabilities to improve the efficiency of the on-field force.