Augmented And virtual reality investment Hits $1.1 Billion In 2016

With smartphone penetration accomplishing an all-time high and sluggish tablet gross sales, the tech business and pundits are looking for the tech with a purpose to be the “subsequent giant factor” and spur innovation and consumer adoption as much because the iPhone and different handsets did almost a decade in the past. If interest from main tech firms and lengthening funding into new applied sciences is anything to go through, the industry believes that subsequent big factor may just very smartly be augmented and virtual truth gadgets.

Annual funding in augmented and virtual truth companies hit an all-time excessive with a record breaking $1.1 billion being invested into AR and VR companies in 2016 up to now this 12 months, in line with a new report issued through Digi-Capital.

“Augmented truth and digital fact investment reached $1.1 billion within the first 2 months of this 12 months,” Tim Merel, founder and CEO of Eyetouch truth and Digi-Capital, said in a statement. “that is the first time that AR/VR investment has topped one billion greenbacks in any yr (let alone 2 months), and shows unbelievable boom compared to the $seven hundred million invested all the way through all of 2015.”

It should be stated that just about $800 million of the $1.1 billion investment in AR and VR this year went to 1 company: Magic soar, however $300 million has already long gone to smaller corporations in the AR/VR products and services, hardware, promotion, distribution, and leisure markets. “Even with out Magic soar, funding is up 20% in Q1 2016 in comparison with the $250 million invested in q4 2015,” Merel said. “Plus there may be some other four weeks left for buyers to raise AR/VR this quarter.”

The increased funding in AR and VR technology comes at a time when nearly each main tech participant is engaged on coming into the market. The fb-owned Oculus Rift and HTC’s Vive will probably be released this spring. Microsoft is releasing its HoloLens building package to developers at the finish of the month. playstation VR will be popping out later this 12 months. Even secretive Apple is rumored to have a crew exploring VR technology.

but the hobby from major tech players must be no surprise making an allowance for augmented and digital fact revenue is forecast to hit $a hundred and twenty billion annually by using 2020.