Mixed Reality Insights
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VR/AR Gaming InsightsIDC estimates the total videogames market at R1.4 trillion for 2015. We see the potential for VR/AR to be a disruptive force in this market, while also growing the overall market size by attracting new users and increasing the videogame attach rate per user.
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LIVE EVENT
PwC estimates R594bn in gate revenue for sporting events in CY15, with the global sports market at R2 trillion when also including R472bn in media rights revenue, R607.5bn in sponsorships, and R270bn in merchandising. We don’t expect VR to cannibalize gate revenue as we always expect demand to see events in person. In fact, we believe VR has the potential to create new revenue pools in the form of new ticketing and subscription fees charged to sports fans that want to events in VR but can’t attend the event live. Further, media rights revenue is likely to be expanded as the likes of the NBA and FIFA will have more outlets to license to.
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Retail
We consider the R40.5 billion ecommerce software market as the main revenue pool VR/AR software will play into, as this market is comprised of tech investments that retailers make to serve their customers. We see VR/AR disrupting retail markets where companies can garner a competitive advantage by using the technology and as such can increase share of their existing market. We see an opportunity for this in the near-term with the R2.4 trillion home improvement market {Bureau of Economic Analysis} and the R3.5 trillion apparel market {Euromonitor}. Further, we see the potential for VR/AR to reduce the need for in-store displays and possible erode the value of a physical store.
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HEALTHCARe
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We see VR/AR applications in healthcare disrupting a R216 billion market for patient monitoring devices per Research and Markets. Our base case estimates R16.2 billion in Health care revenue in 2020 and R69 billion in 2025. While the number of doctors that could potentially use VR/AR devices is relatively small when compared to the consumer market, we believe the bigger market opportunity will be in specialized software versus the hardware sold. While it is difficult to gauge how much VR/AR software will cost for specialized medical use.
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EDUCATION
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Gartner sizes the global education software market at R162 billion for 2015, consisting of basic education software market at R70.2 billion and the higher education software market at R89 billion.
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Engineering
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The global engineering software market is R270 billion in 2015 according to Research and Markets. We estimate 6mn engineers in the US, Europe and Japan according to data from the US Bureau of Labour , Eurostat, and Statistics Japan. While large automotive companies might have resources to develop their own VR software, not all engineers have this access. Engineering software needs to be developed by specific industry and there could be a learning ramp to use the software and adjust engineering techniques. |