Key statistics for Virtual and Augmented Reality technology in 2021

Key statistics for Virtual and Augmented Reality technology in 2021

Technologies are the factors which have made people’s life simple nowadays. Right from the emergence of software technologies, businesses have found an easy way to manage and handle their daily activities with them.

Similar to the popular technologies such as the Internet of Things, Cloud Computing, Data Analytics, presently a couple of technologies- Augmented Reality and Virtual Reality are changing the way the world is operating!

It is 2021, and the future has arrived already before anyone realizes it! Things which people dreamt of being inaccessible are now made possible with technological innovation. The list of these unprecedented technologies still continues as a long chain out of which we’ll explore more about Augmented Reality (AR) and Virtual Reality (VR) here!

Popular and mind-blowing statistics which you should know about AR and VR:

Augmented Reality:

Augmented Reality (AR) is a term that has been in the mainstream public seamlessly for a few years. With all its promises, it has made its way by increasing the usage of smartphones in recent times.

AR is simply used to offer an enhanced view of real life by overlaying computer-generated content. This computer-generated or Virtual content can be anything such as 3D models, videos, dynamic web contents, etc and it can be triggered by an image, location, or sometimes both!

The major reason why businesses are leveraging Augmented Reality (AR) is since:

  1. Augmented Reality increases engagement and interaction thereby providing an enhanced user experience. 
  2. Research shows that AR increases the perceived value of the products and brands to a greater level. 
  3. Well implemented AR activity can result in innovation and responsiveness from forward-thinking brands.
  4. AR is present as both mobile and personal and hence remains hugely accessible to the rapidly growing smartphones market.
  5. Moreover, it is also an inexpensive alternative to other media platforms since there is no specific need to be purchased.
  6. Brands can have complete access to detailed analytics which offers them to truly understand their audience.

Let’s have a close look at the powerful statistics related to Augmented Reality:

  • 61 per cent of customers say they prefer retailers with AR experience

Usually, customers are looking for detailed information about the product before purchasing it to check whether it rightly fits their needs. When it comes to furniture, it requires customization in accordance with the room decor. IKEA has released an application with AR integration that allows customers to visualize furniture in their space with real-time customization. 

  • 71 per cent of customers say they would shop more often if they use AR

AR comes with an ability to communicate details about the look and feel of the product which traditional photos can’t offer! With AR, customers can make better decisions and can go with confident choices which can lead to increased customer satisfaction and loyalty. 

  • AR market is expected to grow up to $50 billion by 2024

As the AR market is already growing, the estimated AR market will increase at a value of $50 billion by the year 2024. AR has the potential to impact every corner of the economy, right from the medical industry to automotive and entertainment! Facebook has acquired Scape, a popular AR company that is building a digital 3D map of the physical world. As long as these big giants invest in AR, the market will boom.

Read Also: How AR is Shaping a Better Tomorrow in a Post-Pandemic World?

  • 40 per cent of customers say they would pay additionally for a product if it is customized with Augmented Reality 

When a customer enters the store, they are able to touch and feel the products before they actually purchase. This helps them in making good decisions whether it fits them or not. However, this decision becomes flattered when it comes to online purchasing where customers won’t be able to experience it. This can lead to lower customer satisfaction and frequent product returns. 

On the other hand, by leveraging Augmented Reality customers who are shopping online can get a chance to visualize their product and regain the complete experience of an in-store shopping visit and would further visualize how the product will suit them, their kitchen, their office, etc. For online retailers, this means higher margins on existing spending and higher quality with more hands-on customer experience. 

  • 5 per cent of AR use will be in Retail by 2022

In the past few years and recent times, we can view the increased usage of Augmented Reality in the Entertainment industry. But the truth is that AR will become a more and more integral part of life in the upcoming years as well! 

The retail industry is expected to account for 5 per cent of AR by the year 2022. This can promise the growth of businesses to a greater level than with the adoption of Augmented Reality they can gain enhanced customer experience!

  • 67 per cent of advertising agencies claim they are making use of Augmented Reality 

Advertisers have come to know that AR can boost their profits and sales. A report from Vibrant Media states, Augmented Reality ads are enabling brands to bring their products to the limelight in front of customers. Popular industries such as Travel, Automotive, and Entertainment are expected to experience bigger profits from AR ad campaigns. 

  • 70 per cent of customers existing within the age of 16 to 44 years old are aware of AR

70% of consumers between the ages of 16 and 44 are well-known about Augmented Reality and its benefits. The most impressive factor about Virtual Reality is that it has become visible and available for customers in the recent few years. Moreover, the adoption rate with AR with increased accounting rate with the eCommerce industry. 

  • 40 per cent higher conversion rates with Augmented Reality 

Using 3D technologies in business shopping experience can increase their conversion rates up to 40%. Making use of Augmented Reality can give customers the confidence to buy, increase their purchase and product satisfaction, and reduce return rates.

  • 26 per cent of smartphones are ARKit or ARcore compatible 

With ARKit and ARcore becoming available to most smartphone owners, AR has been quickly integrated into many applications. What many brands of today aren’t aware of is most web browsers ship with WebVR and other 3D technologies. That means that combining an AR or VR experience into your online store doesn’t require users to have extra software to be installed other than their browser. 

Virtual Reality:

Virtual Reality is yet another twin technology that is in the recent headlines with its hype and benefits among businesses. Right from its existence, this technology has interested most customers. With the introduction of VR, real home-based phones are now in the stage of extinction.  However, the usage of mobiles has made life easier.

As the name suggests, Virtual Reality creates a digital three-dimensional environment via advanced computer technology. It places users in a simulation and allows them to immerse themselves in an entirely different world. This is done by using special devices such as headsets, gloves, goggles, and more which allows users to interact with these virtual worlds and their elements. 

The major reason why businesses are leveraging Virtual Reality is that:

  1. Virtual Reality helps with impressive visualization which one can be sure about. If you wear a VR headset, you can experience the best quality visualization. Additionally, it allows students to get engaged where it is difficult for the teachers to conduct classes with classroom interaction in this pandemic era. 
  2. VR has made watching more enjoyable than reading. Technically, it is extremely interesting and engaging to gain new experiences. This helps customers to visualize everything easily. 
  3. The language barrier has been the most common problem which can be solved by implementing AR. Virtual Reality lists the possible languages by making use of suitable software. 

Let’s explore the statistics associated with Virtual Reality in the market :

  • Virtual Reality: Future predictions on economy and employment 

A recent research report from PricewaterhouseCoopers, a leading consulting service provider has predicted that the tech is capable of injecting approximately $1.83 billion into the world economy by the end of this decade. It has been suggested that VR will lead to a growing number of job opportunities. 

Currently, there are fewer than half of a million jobs all around the world that are impacted by Virtual Reality. Within the next ten years, this will change with as many as 23 million jobs set to be using AR and VR in one way or the other and customer service purposes by the year 2030.

Read Also: Future of Virtual Reality: How VR will transform the Education sector?

  • Growth of Virtual Reality in the Gaming industry

As we are already aware of the role of VR in the gaming market, there are no surprises that it will grow at a higher rate in the future where more and more companies would start adopting this technology as the demand for it grows.

According to the latest Virtual Reality statistics, by the year 2027, its market size is forecast to reach $92.31 billion which marks a compound annual growth rate of 30.2 per cent in the seven years from 2020 to 2027.

  • The consumer VR market all over the globe is predicted to reach $3.7 billion by the end of this year 2021

Although the COVID-19 pandemic has disrupted the worldwide market, Virtual Reality will be growing at a greater phase. VR statistics for 2021 indicate that the consumer Virtual Reality which includes both hardware and software market size is projected to experience an increase of $1.1 billion compared to the previous year 2020.

  • Virtual Reality is gradually gaining ground in the eCommerce industry 

Virtual Reality Statistics for 2021 shows that the adoption of VR in the eCommerce industry can boost online shopping conversion by the rate of 17%. To compare it, the average eCommerce conversion rate is 2%. VR experiences can significantly influence the purchasing options of the customer.

  • The demand for standalone VR devices will grow over 16 times between 2018 and 2022

A recent forecast claims that the sales of standalone devices were growing from nearly zero in 2017 to more than half of the total AR and VR device markets in 2022 which accounts for 29 million units. Tethered headsets which usually require a connection with a computer, smartphone,  or gaming console for use will stay around for a while with sales of 18 million units in the year 2022.

  • VR video gaming revenues are expected to reach $2.4 billion by 2024

For the present year 2021, VR gaming revenue is around $1.1 billion. This value is predicted to grow up to $1.6 billion by the year 2022 and would reach around $2.4 billion by the year 2024 it seems!

  • The number of VR Startups has increased by 14% within a year

A report from AngelList states the number of VR Startups worldwide was around 2270 in 2020 with a great jump from 1800 in May 2018. The list also includes 978 investors which mean, there are a higher number of Startups which have managed to figure out significant funding to develop their projects. 

  • 43 per cent of manufacturing companies say VR will become mainstream in their organization within the next three years 

According to this survey, manufacturing companies from all over the globe accounting for 38 per cent believe it will be the mainstream technology in their organization in the next three to five years. No doubt that Virtual Reality will rule the manufacturing industry. 

  • 80 per cent of customers feel positive about experiencing branded VR tactics 

This has been great news for marketers. Consumers nowadays are keen on trying out new formats that allow them to experience brand stories in a more intimate manner. This Virtual Reality report on marketing shows that the environment is ripe for marketers to move fast and higher to grab the audience interest.

  • The Engineering industry will gain greater benefits with the adoption of VR 

According to the VR statistics for the year 2021, the implementation and development of VR in engineering can reduce the model design time by 10 per cent and construction time by 7 per cent. This results in an increase in overall efficiency. 

Conclusion:

As these technologies have already made a great impact on the present economy, we can expect them to rule over the future years as well. Thus, the future scope of AR and VR is completely high and businesses which are leveraging them can experience a positive impact.

Read Also: AR and VR get a big boost in Australia

Idya, the company filled with leading AR and VR experts can help various businesses in implementing these couple of technologies and gain profits for them instantly! You can get in touch with us if you have any unique business requirements with them!

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