The Canadian virtual reality sector is expected to reach $7.1 billion by 2021; here, INN looks at three Canadian stocks focused on virtual reality technology.
Virtual reality (VR) stocks may be but a whisper in Canada but some say the volume is about to get turned up in a matter of a few years. While excitement for VR grows, admittedly slower than expected, many see the technology as the next evolution of entertainment.
Research from Advanced MP Technology highlights that advancements in virtual reality has largely come from the video game industry, although it is also making a splash in markets such as medicine, business, architecture and manufacturing.
In terms of overall revenue, there’s mixed estimates out there. Advanced MP states that it’s expected to reach $162 billion in 2020. Meanwhile, Zion Market Research indicates the market should reach $26.89 billion by 2022, representing a compound annual growth rate of 54.01 percent between 2017 and 2022. According to a Digi-Capital Augmented/Virtual Reality Report, the AR market could reach between $85 billion and $90 billion by that time, while VR is expected to reach $10 billion to $15 billion in revenue by 2022.
Up in Canada, the virtual reality sector has still yet to make a significant impact on a global scale. This could present an opportunity to get in early with virtual reality stocks. According to the International Data Corporation, Canada comes in seventh out of eight countries the IDC looked at in terms of spending. By 2021, the firm expects the Canadian virtual reality sector to reach $7.1 billion.
With that in mind, here the Investing News Network (INN) takes a look at three publicly traded Canadian virtual reality stocks.
Spectra7 Microsystems (TSX: SEV)
Market cap: $28.22 million; current share price: $0.17
Spectra7 is a virtual reality stock that manufactures virtual reality hardware like head-mounted displays (HMDs). Their patented VR-9 DreamWeVR design is an industry first; an integrated cable, connector and embedded chip product line. Spectra7’s chips allow virtual reality and augmented reality devices to drive 4K UHD and 5K resolutions.
Last year, the virtual reality stock announced a partnership with Luxshare-ICT, a large Chinese cable and connector manufacturer. In March, Spectra7 announced its financial results for the fourth quarter and full year of 2017, highlighting an annual revenue of $10.6 million, which represents a 23 percent increase from the previous year.
Victory Square Technologies (CSE: VST)
Market cap: $1297.89 million; current share price: $2.05
Formerly Fantasy 6 Sports, Victory Square Technologies specializes in gaming, hardware and immersive experiences. The virtual reality stock’s primary focus is on virtual reality, augmented reality, mixed reality, artificial intelligence, blockchain, personalized health, gaming and film.
In December 2017, Victory Square announced its new membership at Blockchain Investors Consortium. The membership is intended to provide the virtual reality stock with early access to up and coming ventures in the cryptocurrency space. “This will further strengthen Victory Square’s position as a pioneer in investment in blockchain enterprises both in Canada and abroad.”
YDreams Global Interactive (TSXV: YD)
Market cap: $13.41 million; current share price: $0.17
YDreams is positioning themselves “in the new post-digital reality” that integrates augmented and virtual reality technology with design and narrative. The company’s clients include Coca Cola, Qualcomm, Adidas Intel and Cisco. YDreams has developed a diverse array of projects: an award-winning display that enables children to create and care for their own virtual pet fish; interactive retail displays showing product information when a customer picks up merchandise; immersive Virtual Reality games; and much more.
Most recently, the company announced in November 2017 that it had appointed media technology expert, Jeffrey L. Thompson to its Blockchain, ICO and Cryptocurrency advisory committee.
Which virtual reality stocks are you excited about?
This is an updated version of an article originally published on the Investing News Network in 2017.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: YDreams is a client of the Investing News Network. This article is not paid-for content.