We are pleased to share with you our latest Insight on Augmented Reality (AR) and Virtual Reality (VR). Enabled by cutting-edge developments in hardware and software technology, AR and VR are poised to transform the way people interact with entertainment, information and services. 2016 was a watershed year for VR, with the consumer launch of VR headsets from several leading industry players. Further refinements in user interface and the rollout of a "killer app" for VR will tilt the technology into the mainstream. Meanwhile, AR technology leaders, continue to lay the building blocks for broad consumer adoption while finding a near-term receptive audience in industrial and manufacturing. With a combined AR/VR annual market of over $200B by 2021, the rewards promise to be enormous for those companies able to establish pole position in these rapidly growing markets. This report takes a closer look into the major trends and players in the ecosystem as well as recent M&A and financing activity.