virtual reality - insights from the industry
TRANSCRIPT
Sony’s VR capable PlayStation 4 with > 53m consoles sold has created a unique position
VIRTUAL REALITY (VR) INDUSTRY INSIGHTS
TECHNOLOGY SECTOR
The biggest opportunity from VR will be for players who move “up the stack” and think of VR as the fourth generation platform after PC, Web and Mobile. VR players will need to weave content and devices together through platform plays – FTI Consulting’s point of view
Respondents from FTI’s recent VR executive survey believe, near term VR opportunities will be :
• Gaming • Healthcare • Military • Sports • Enterprise Apps
Training • Travel/Real Estate
60%
believe partnerships are necessary to advance the industry
50% of respondents are involved in partnerships, allowing them to explore broader range of business models
of respondents believe areas such as hardware, price, usage time, and mobility need improvement 60%
Nitin Kumar Michael Knott Senior Managing Director Senior Managing Director +1 408 915 8627 +44 (0)20 3727 1297 [email protected] [email protected] Results are based on surveying several VR business leaders in the technology sector, FTI’s experience, and industry reports. The views expressed herein are those of the authors and not necessarily the views of FTI Consulting, Inc., its management, subsidiaries, affiliates, or other professionals. FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.
About FTI Consulting FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. FTI Consulting professionals, located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
©2017 FTI Consulting, Inc. All rights reserved.
Total addressable market for VR is estimated to be in the range of $21B to $30B by 2020 1
6 Lowe’s home improvement stores featuring “holorooms” to help customers visualize their remodeling projects
$52B worth of commissions in the US real estate market prone to VR disruption, Sotheby’s commences showing of luxury homes in VR.
$21B
6
$52B
100 + VR games in development by Oculus
$3.5B worth of VR/AR venture capital investments made in the last two years $3.5B
1Based on industry reports
$30B to
100
“There is interest on the content side, but it seems that the hardware side needs to be resolved first”
“The general consensus is that gaming will be the starting point… the gateway to VR becoming a mass product”
Investment outside of devices and content have been limited, space is still emerging
Market Estimates on VR Customer Mix and Trends2
Executive quotes from FTI’s VR survey
Key VR insights from the industry
Market opportunities
Average sales price of AR/VR
headsets expected to
drop 30-35% between 2017
and 2021
Head mount display
shipments expected to surge from
12m in 2017 to 43m in 2020
2Based on industry reports
Enterprise VR revenues expected to grow 235% between 2020 to 2025, while consumer revenue will grow only 122%. B2C will still comprise 54% of market share