Virtual reality to become a billion dollar niche

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In its 4th year of releasing TMT predictions with specific relevance to the MENA region, Deloitte continues to supply industry insights based on deep analysis, built around meetings with industry experts and field executives, as well as Deloitte’s proprietary programs of research with tens of thousands of consumers worldwide. Global TMT predictions focused this year on virtual reality, women in IT jobs, cognitive technologies, mobile ad-blockers, mobile games, and Gigabit Internet, European sports, and e-sports.

“A lot of energy has been poured into these predictions, as there are few other industries that are as exciting, fast-evolving, and game changing as TMT. More exciting than this is witnessing the Middle East adopt and create their own trends in the TMT space. Over the past five years, this region has made significant forays in broadband connectivity and speed, which have in turn enabled new categories of service to become mainstream,” said Emmanuel Durou, Partner and Technology, Media & Telecommunications (TMT) Leader at Deloitte Middle East.

“In 2016, we look forward to seeing some evergreen ideas finally take flight in the Middle East. These include virtual reality corporate applications, hybrid cloud adoption, or the take-up of cognitive technologies in enterprise software. We also see mobile everywhere – taking over in gaming and now payment with touch commerce,” he added.
The Deloitte TMT Middle East predictions explored in the report include four areas:

Virtual Reality

Deloitte predicts that most MENA revenues from Virtual Reality (VR) devices and services in 2016 will continue to be driven from video games. According to industry sources, the estimated MENA computer gaming market is currently around US$1.5bn and forecast to grow three-fold by 2020, the majority of which will come from the GCC region.

GCC countries have already witnessed companies beginning to sell commercial enterprise VR solutions and corporates incorporating VR solutions to help sell their products and services. Although currently at a low base, the VR market in the region is expected to grow at a rapid rate, driven as much by the corporate sector as by gaming.

Development of VR technology has spurred a global race to identify and capture the next major market opportunities. However VR still faces technological and user experience challenges before it can make the transition to mainstream adoption. So, will VR crossover from niche to mainstream? It is predicted that it eventually could, but not yet.

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