Author: Alex Hadwick XR Industry Insight Report 2019-20202 | VRX Industry Insight Report 2019-2020 2 2019 VRX Conference 44 .2%), healthcare (42 .3%), manufacturing (39 . 6%) and automotive (36%) . Gaming is now viewed with far less interest by companies working to provide XR technology compared to 2018s results . In that years survey, 50% of respondents said that 6 | VRX Industry Insight Report 2019-2020 6 2019 VRX Conference 55 .9%) and motion tracking (55 . 6%) capabilities . For VR, 94 .2% of respondents think that it will take at least two years for consumers to make it a regular part of their technology diet, and a slightly lower 91 . 1% think the same for AR/MR . The majority of our survey population believe that it will take four or more years for AR to move from predominantly occurring on peoples smartphones to becoming headset- based, with 51% taking this viewpoint and 44% believing that it will occur in the next two-to-three years . Observer Analytics estimates that weekly retention for consumer VR apps has dropped by an average of 7% between Q4 2018 and Q1 2019 . However, consumer entertainment content creators in the XR space continue to find value in XR . Among this segment 75 .9% reported that VR had had a very or somewhat positive impact on their business and 72 .3% said the same for AR/MR . 82 .3% of content creators were planning to increase their output of XR content in the medium term . Of these 63% were sure of their plans to expand XR production and 19% said that they were likely to do so after further testing . On top of this a further 15% said that they were considering doing so, leaving just 3% who reported that they were not intending to increase production . There needs to be a shift in the consumer-facing side of the business, however, from VR to AR . 38% said that they created content only for the VR space, 7% for only AR/MR content and 55% for both types, despite being twice as likely to say that AR/MR had more potential to disrupt the entertainment sector than VR . This is particularly so in the face of major product and developer kits that will enable easier production and dissemination of AR content particularly over social media, with Facebook, Google and Snapchat all making major enhancements in 2019 . The clear market leaders for headset usage are the Oculus Rift and the HTC Vive, which have market shares of 45% and 41% among consumers, respectively .7 | VRX Industry Insight Report 2019-2020 7 2019 VRX Conference & Expo December 12-13, 2019 | San Francisco, USA For more information: vr-intelligence/vrx | Email: kbloxhamvr-intelligence 600+ Attendees 70% Decision Makers 80+ Expert Speakers 50% End Users 10+ Industry Verticals 1 AREAS OF GROWTH 1.1 Growth Trends XR is establishing itself quickly and strongly in supporting enterprise but still struggling to gain a major foothold for consumers these are the findings from our major industry survey looking across the entire XR space . Consequently, the companies underpinning the immersive technology space are powering up their support and investment for enterprise, foremost through the deployment of VR technologies, followed by AR and MR, which are showing high growth rates . This is not to say that there is not a market for consumer XR but rather that the depth of interest, use cases and overall market value are currently greater in the enterprise environment, which will lead the way for the penetration of immersive technologies overall . We can see this in growth rates in 2019, where there was a noticeable divide in the market dynamics between XR for enterprise and for consumer segments . Whereas around three quarters of hardware, software and third-party content creators for immersive technologies surveyed said that growth had matched or exceeded expectations, this fell to just under half for consumer VR and 58 . 7% for AR/MR in the consumer segment . Just 25 . 7% said that growth in the VR for enterprise segment had been weaker than expected, compared to 49 .2% who said the same for the consumer side . Furthermore, 46 .2% said that enterprise VR has exceeded their growth expectations in 2019, rating growth as strong or very strong, compared to just 24 . 1% who said the same for consumer VR . AR/MR areas showed similar patterns but to a lesser degree . Just under half (47 .3%) said that AR/MR for enterprise had seen strong or very strong growth, above the 30 .5% who said the same for consumer-facing AR/MR applications . Overall, these growth trends are broadly positive for the industry, even if there are disparities in expected and realised growth . In our 2018 version of this survey, which can be downloaded for free here, we found lower rates of strong or very strong growth being reported for those working with enterprises compared to 2019 results, marking an improvement in market conditions . In 2018 38% said that they were seeing strong or very strong growth in VR for enterprise, compared to 46% in 2019s survey . Similarly, 47% had experienced strong growth in AR/MR