Adoption of augmented- and virtual-reality technologies, the nascent Indian AR/VR market is expected to grow at a compound annual growth rate (CAGR) of 76 per cent over the next five years fuelled by demand from business and consumer sectors. The past few years has witnessed the emergence of 170 AR/VR start-ups in the country,
60 per cent of which set up shop in the past 24 months. Bengaluru takes the lead, attracting 27 per cent of these start-ups, followed by Delhi at 25 per cent and Mumbai at 13 per cent, according to a Market Pulse Report on AR and VR, by Growth Enabler, a data and intelligence firm on disruptive technology/digital start-ups.
Various industry estimates peg the global AR/VR market at $100-120 billion by 2021.
“In India, of the 100 AR start-ups, only 5 per cent have received any form of capital investment of $1-1.5 million. Of the 70 VR start-ups, only a handful have raised any seed/angel capital. Even the top 15 AR/VR start-ups that Growth Enabler has identified based on over 50 parameters, have collectively raised under $3 million in funding. But all that is going to change in the next five years.
The Karnataka government is actively promoting AR/VR start-ups by providing incubation, mentoring, idea validation by experts, opportunities to deploy pilots with various departments, along with fund support for eligible ones. “We have around 50 start-ups in the AR/VR space in our physical and virtual incubation programmer” said Priyank Kharge, Karnataka IT Minister.
Israel’s thriving tech ecosystem, innovation in AR and VR is the byproduct of research and development in both the public and private sectors. The Israeli Air Force has pioneered the development of head-mounted display (HMD) systems, and Israel’s widely acclaimed strengths in video and computer vision – developed by such companies as Mobileye, Elbit, and Verint – have been a boon to immersive technologies. Multinational corporations and startup accelerators have capitalized on Israel’s prowess in the sector – from the Israeli engineers developing Apple’s AR technology to the accelerator Mass Challenge’s partnership with PTC Israel to build out Mass Challenge’s strengths in AR.
Israeli companies excel in providing cutting edge technologies and enhance R&D services are visiting India for business opportunities either for joint venture and in look out for distributors for their technology. Companies in India can benefit from the advanced Israel technology. Relevant companies, interested to learn more on potential collaboration are invited to contact the Economic and Trade Department at the Israeli Consulate General in Bengaluru.
For further queries, contact : Kavitha Saravanan, Trade Officer, Bengaluru.