May 07, 2018 (Altair VR ) - Altair VR has conquered the Russian franchise market in VR education, with 23 franchisees as of today, and continues to expand into the West.
By the end of this year the company plans to enter the US market, and by the end of 2019 there may be over 100 franchisees in the country. In addition to the project's proven high margin (70%), another major factor here would be the level of interest in VR education in the US. It is many times greater than such interest in CIS countries. In 2015 alone, VR-related startups raised about 658 million dollars in funding as part of 126 funding rounds just in Silicon Valley.
The virtual reality industry is gaining steam. According to DigiCapital estimates, the VR field's global market cap will reach $120 billion as early as 2020. And the majority of that will be focused specifically on North America, particularly the west coast, due to the large volume of venture capital, concentration of companies, and the tech giants' presence.
Furthermore, many large companies are already actively using VR technology for training. For example, Wal-Mart trains its employees using special simulators that make it possible to not just impart knowledge, but also evaluate employee behavior in various workplace situations.
The same model works for students. In a recent study into the effectiveness of augmented reality in anatomy education in the US, the technology demonstrated 91.7% suitability for rendering organs in 3D format, as well as 86.1% suitability for education.
According to estimates by the International Air Transport Association (IATA), using VR during training increases material retention fourfold by simultaneously increasing motivation and engagement. And this is one of the main arguments cited by schools and colleges in the US when integrating virtual reality into the educational process.
In this environment, Altair's ambitions appear quite justified, and the company's seven-years' experience of working with this business model will only serve to accelerate the process of conquering new markets. One year has passed since the project was launched in Russia, and as of now there are 21 franchises operating on the basis of Altair's technologies and two more are in the process of being launched.
"The unique 'Virtual Encyclopedia' product, along with our own online business management system that tracks every action online, create favorable conditions for entering the US market," comments Altair CEO Konstantin Urvantsev. "How it works is very simple: our partner comes to a school, hands virtual reality glasses out to the kids, presses a button, and the kids are all simultaneously immersed in the chosen show. It can be astronomy, history, life science, physics, or any other subject. It pays for itself in 6 months. The risks are low, the launch goes quickly, and the profitability is high thanks to a business model that we have been perfecting for seven years."
