April 11, 2022

Alger is widely recognized as a pioneer of growth-style investing.

AR/VR: More than Fun and Games

Augmented reality (AR) and Virtual reality (VR) are expanding beyond late-night videogames fueled by pizza and soda. AR/VR has broad applications including training, education, social interaction, marketing and ultimately the metaverse.

Alger On the Money

Inspired by Change, Driven by Growth.

Alg

er is a signator

y to the PRI and carbon neutr

al.

•

VR is the simulation of inte

ractive 3D images and AR involves overlaying images on someone’s

view of the real world. Adoption of AR/VR was initially sluggish, but based on headset sales, it

is accelerating (see above).

•

Improving functionality and lower prices are key drivers of headset sales. However, AR/VR

utilization isn’t just consumers playing games, exercising and chatting. For example, medical

device companies are using it to provide surgeons with assistance in the operating room.

Companies are also using AR to assist employees during the complex aircraft manufacturing

process.

•

Many innovative technology companies believe the next computing platform after the

smartphone may be internet-connected augmented reality glasses.

•

Many companies that help others create or utilize AR/VR services may potentially benefit from

the trend including media software companies, social media platforms, chip makers, medical

device companies, and those th

at enable smaller and more functional batteries and displays.

AR/VR: More than Fun and Games

Augmented reality (AR) and Virtual reality (VR) are expanding beyond late-night video

games fueled by pizza and soda. AR/VR has broad applications including training, educa

tion, social interaction, marketing and ultimately the metaverse.

Source: TrendForce and Statista. CAGR is compound annual growth rate. Forecast is as of February 2022.

Sales of AR/VR Headsets

(Millions of Units)

Real Life Growth of Augmented and Virtual Reality

43% CAGR

2023E

2022E

2021E

2020

2019

Fred Alger & Company, LLC

100 Pearl Street, New York, NY 10004 / www.alger.com

800.305.8547

(Retail)

/ 800.223.3810

(Institutional)

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