Virtual reality and augmented reality are exciting - Google Glass coming and going, Facebook’s $2 billion for Oculus, Google’s $542 million into Magic..
Look i'm all for talking about how much potential there is for AR and VR but this is above and beyond what is reality IMHO. These numbers imply it is bigger than the PC market on an annual basis. I think TechCrunch should have done some comparison.
Also I'm really not a fan of calculating the market size of a technology (as a whole), eg AR and VR are merely technologies - what they are used for will determine the overall market opportunity size.
What is nice about this article though is it gives a breakdown to how the market size is computed.
What it is missing is all the future opportunities AR and VR are not yet used for. For example, it's missing AR for AEC/BuildingIndustry - this in itself could be a significant opportunity (maybe this is covered by Enterprise AR) but my point is there could well be a few "killer" use cases that suddenly change things dramatically. Thus understanding each market size is key to judging the market opportunity for AR/VR and your apps.
For VR it's even more obviously, currently they have VR Games as the biggest market - this could easily be very different in a few years. For example, they dont even list VR Retail (!) which i'm seeing (and others) are seeing as a huge growth area.
Final thought - if you want to get some real numbers that will accurately tell you how big your potential markets are - talk to me. Speak with authority, especially when speaking with investors. It's really easy to delude ourselves with massive numbers that sound great - but wouldnt you rather have big number that are real - and are achievable - this is better. Understanding your market size helps you focus your product and reach your market, it helps you be predictable with your sales and helps you grow your business.
Contact me to find out more, be it about market sizing, AR/VR, or finding the best market for your product to be so most successful it can be.