People keep on asking us differences between augmented reality and virtual reality. So we decided to write an article where we will cover the major questions and try to answer those in terms of latest development and the research prediction of the major research companies like IDC, Goldman Sachs, and McKinsey.

Q1- Please define augmented and virtual reality?

Augmented reality is computer-generated graphics on top of the real world. It is the augmentation of the virtual objects onto the real objects.

Virtual Reality is computer-generated graphics to create an entire virtual world.

Q2- How big the VR and AR will become in the future?

Both technologies have the potential of becoming the next big computing platform. Both of the technologies are in early stage of development. Below we list down all the predictions from the major research companies.

As per Goldman Sachs, as per their accelerated uptake scenario, the total market value could reach up to 182 USD Billion (110 Software, 72 Hardware) by 2025.

As per IDC, total market size could reach $143 billion by 2020.

Q3- Which sectors or industries will adopt AR and VR?

AR has unlimited applications in lifestyle, entertainment, gaming and many others. VR has many applications in video games, live events, video entertainment, retail, real estate and many others.

As per Goldman Sachs, initial adoption will in the sectors like gaming, live events, video entertainment, retail, healthcare, education, military and real estate. Of these Video games, live events, video entertainment, and retail will drive the initial adoption.

Q4- How will the headsets of AR and VR look like in the future?

Augmented reality AR will use clear headsets with the information that overlays the real world.

Virtual Reality VR will use opaque headsets with complete immersive virtual world experience.

Q5- Are headsets of VR and AR available in the market?

Yes, many hardware companies have already developed hardware for the corresponding technologies.

VR hardware sets – Oculus by Facebook, Sony Playstation VR, HTC Vive, Samsung VR

AR Hardware sets — Microsoft HoloLens, Google Glass, Magic Leap.

Q6- Are VCs investing in VR and AR companies?

Yes, Rothenberg Ventures is leading the trend with 32 investments. Closely followed are by VCs like Y Combinator, TechStars, Presence Capital, Venture Realty Fund, 500 Startups.

Q7- Are there any corporate investments in VR and AR companies?

Yes, HTC has been the leader in the category with 28 investments in AR and VR companies. Closely following them are Intel, Qualcomm, Alphabet/GV, Comcast.

Q8- Any acquisitions in the domain of AR and VR companies?

Facebook is leading this category with 11 acquisition in total. Their famous one was of Oculus in 2014. Other companies like Intel, Starbreeze, Alphabet, Deloitte have also already acquired few companies.

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