2016 was an integral year for the virtual reality sector, according to Forbes, with nearly 100 million virtual reality units shipped. That said, much of that growth came thanks to Alphabet’s (NASDAQ:GOOGL) Google Cardboard, representing 96 percent of those shipments.
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, Advanced MP states that it’s expected to increase from $5.2 billion in 2016 to $162 billion in 2020. Meanwhile, Zion Market Research indicates the market was valued at $2.02 billion in 2016, and should reach $26.89 billon by 2022, representing a compound annual growth rate of 54.01 percent between 2017 and 2022. According to Digi-Capital’s Augmented/Virtual Reality Report 2017, the VR/AR market will grow to $108 billion by 2021.
Up in Canada, the virtual reality sector has still yet to make a significant impact on a global scale. 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: $50.71 million; current share price: $0.31
Spectra7 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.
In March, the company announced a collaboration with eSight Corporation, a company that produces electronic glasses that enable sight for the legally blind. In August, Spectra7 announced its financial results for the second quarter of 2017, highlighting revenue of $3.1 million, which represents a 16 percent increase from the previous quarter and an 18 percent increase for the same period the year prior.
Victory Square Technologies (CNSX:VST)
Market cap: $31.6 million; current share price: $0.65
Formerly Fantasy 6 Sports, Victory Square Technologies specializes in gaming, hardware and immersive experiences. The company’s primary focus is on virtual reality, augmented reality, mixed reality, artificial intelligence, blockchain, personalized health, gaming and film.
In late 2016, when it was still called Fantasy 6 Sports, the company announced a partnership with Immersive Technologies to launch a virtual reality arcade in the Gastown district of Vancouver, called Arcade 360. A prototype was expected to open in the spring of 2017, but there have been no details or updates regarding the arcade since the initial release. Arcade 360 will be British Columbia’s second VR lounge, after the UNIVRS gaming lounge in Richmond, BC.
Market cap: $10.30 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.
In July, the company announced it had teamed up with a Brazilian cancer hospital to create “gamified” experiences by using virtual reaelity to teach teenagers about early diagnosis’ and preventions.
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.