Augmented & Virtual Reality Market Forecasts to 2030 – Global Analysis By Device Type (Augmented Reality Devices and Virtual Reality Devices), Component (Hardware and Software), Enterprise, Technology, Application, End User and By Geography

Augmented & Virtual Reality Market Forecasts to 2030 – Global Analysis By Device Type (Augmented Reality Devices and Virtual Reality Devices), Component (Hardware and Software), Enterprise, Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Augmented & Virtual Reality Market is accounted for $56.55 billion in 2023 and is expected to reach $694.99 billion by 2030 growing at a CAGR of 43.1% during the forecast period. Augmented Reality (AR) enriches the real-world environment by overlaying digital content, such as 3D models, text, or animations, onto our view of the physical world. Different gadgets, such as smart phones, smart glasses, or heads-up displays, can be used to experience augmented reality. Whereas, Virtual reality (VR) isolates people from the real world by submerging them in wholly computer-generated settings. Specialised VR headgear with high-resolution screens, motion tracking sensors, and frequently hand controllers are usually used to do this.

According to International Data Corporation, AR/VR generated revenue of US$ 12 billion in 2020, which is projected to increase to US$ 72.8 billion in 2024. Currently, 80% of the revenue is contributed by the gaming industry and there are 57.4 million VR consumers & 90.9 million AR consumers in the United States.

Market Dynamics

Driver

Rising demand for augmented reality in retail and e-commerce

The integration of AR in retail and e-commerce is driving innovation and creating a more engaging and interactive shopping experience. AR applications can provide valuable data on customer behaviour, preferences, and interactions. Also, offering AR features can lead to increased customer loyalty. AR technology can break down geographical barriers, allowing retailers to reach a global audience. Additionally, its personalized recommendations, 3D product representation and interactive shopping experience are propelling the growth of the broader AR/VR market.

Restraint

Privacy and security issues

AR/VR devices often collect sensitive data about users, including their location, behaviour, and preferences. Users might inadvertently share personal or sensitive information while using AR/VR applications. Some AR/VR devices have the capability to record audio, video, and interactions. In addition, AR/VR devices are often connected to the internet, which makes them vulnerable to hacking and unauthorized access. Therefore, protecting this data from unauthorized access and ensuring user privacy can be challenging.

Opportunity

Penetration of HMDs in training

Devices and technology for virtual reality may be used to monitor a factory's workflow, ensuring that tasks are completed on time and that product is produced. The supervisor can utilize virtual reality technology to protect the safety of the employees by tracking their whereabouts and receiving alerts for potentially hazardous areas. With the use of VR, a manager or supervisor in a factory or industry may also lead training sessions for the employees. This creates an opportunity for virtual reality to expand.

Threat

Risk of health problems

Gamers' excessive usage of AR and the development of new gaming hardware and technology are both contributing to an increase in the occurrence of AR-related disorders. Because AR games are so compelling and addicting, they might lead to issues including anxiety, eye strain, weight gain, and inattentiveness. The immersive quality of the technology makes extended usage of the AR headset potentially stressful or tense. They are exposed to dangerous electromagnetic radiation. All these elements hinders the market growth.

Covid-19 Impact

The COVID-19 pandemic has significantly fostered the growth rate of the market owing to the increased shift toward the adoption of virtual and augmented reality technologies as a greater number of businesses have turned to remote work. Moreover, the need for online education has grown as a result of the closure of schools, universities, and other educational institutions. In addition, augmented and virtual reality are being used in new healthcare applications including telehealth, point-of-care, and home-based care. This presents a potential opportunity for the industry in the wake of the epidemic.

The virtual reality devices segment is expected to be the largest during the forecast period

The virtual reality devices segment is estimated to have a lucrative growth, due to the rising healthcare and gaming applications. Gesture-tracking devices indeed play a crucial role in virtual reality devices segment. These devices capture and interpret the gestures and motions made by the user and translate them into commands or interactions within a virtual reality (VR) or augmented reality (AR) setting. The intuitive nature of gesture controls has opened up new possibilities for game play, making it a central feature in many VR and AR gaming applications.

The media & entertainment segment is expected to have the highest CAGR during the forecast period

The media & entertainment segment is anticipated to witness the highest CAGR growth during the forecast period. Augmented Reality (AR) and Virtual Reality (VR) have had a substantial impact on the media and entertainment industry. They have transformed the way content is created and consumed, providing immersive experiences for users. AR and VR have significantly expanded the possibilities for creativity and audience engagement in the media and entertainment industry.

Region with largest share

North America is projected to hold the largest market share during the forecast period owing to the widespread acceptance of AR devices among enterprise users to enhance productivity and accuracy. North America also took the lead globally in terms of the size and revenue generated from VR applications. Additionally, numerous global companies specializing in AR devices and solutions, such as PTC Inc., Magic Leap, Microsoft, and Google, have established their presence in the United States. These factors collectively position North America as the dominant player in the global AR market.

Region with highest CAGR

Asia Pacific is projected to have the highest CAGR over the forecast period. China stands as one of the world's rapidly growing economies. The emergence of numerous start-ups within China has positioned the nation as a major player in the AR & VR market. Additionally, South Korea and Japan were well-represented, particularly in the gaming and entertainment industries. India was starting to emerge as a prospective market, as interest in AR/VR technology grew. Further, high population density, with the widespread mobile internet population and collaborations with the Virtual Reality and Industry Application Integration Development are serving as a pivotal growth driver.

Key players in the market

Some of the key players profiled in the Augmented & Virtual Reality Market include Google, Microsoft, Sony Group Corporation, META, Samsung, HTC Corporation, Apple Inc., PTC Inc., Seiko Epson Corporation, Lenovo, Xiaomi, Panasonic Corporation, Intel Corporation, ByteDance, CyberGlove Systems Inc., EON Reality, Wikitude, Scope AR, Continental AG and Marxent Labs LLC.

Key Developments

In July 2023, Google and Taito are collaborating to create Space Invaders, an immersive AR game in which you may protect the Earth from your neighborhood. The game is driven by our ARCore and Geospatial APIs, which design entertaining levels in the real world with AR and on the screen solely with 3D using the player's immediate surroundings as well as adjacent buildings, landscapes, and other architectural aspects.

In June 2023, Apple introduced the Apple Vision Pro, an innovative spatial computer that effortlessly merges digital content with the real world, enabling users to remain engaged and connected with others. Vision Pro establishes an expansive platform for applications that extends beyond the limitations of a conventional screen, introducing a completely three-dimensional user interface driven by the most instinctive and natural inputs available — a user's gaze, gestures, and voice.

In June 2023, PTC and Rockwell Automation extended their collaboration, with a particular emphasis on encouraging manufacturing companies to embrace the Internet of Things (IoT) and augmented reality (AR) software. Rockwell Automation will persist in offering PTC's ThingWorx IoT software and Vuforia AR software to both current and prospective customers in the discrete and process manufacturing sectors.

In May 2023, Lenovo introduced the ThinkReality™ VRX, an all-in-one virtual reality (VR) headset designed specifically for business purposes. Exclusively targeted at enterprises, the Lenovo ThinkReality VRX is tailored to serve as the ideal VR solution for professionals across various fields. Whether it's enhancing employee training effectiveness, fostering virtual teamwork, or broadening the scope of 3D design and engineering tasks, XR technologies are increasing significance for businesses, empowering workers to achieve more.

Device Types Covered
• Augmented Reality Devices
• Virtual Reality Devices

Components Covered
• Hardware
• Software

Technologies Covered
• Augmented Reality Technology
• Virtual Reality Technology

Components Covered
• Hardware
• Software

Applications Covered
• Consumer
• Enterprise

End Users Covered
• Consumer Electronics
• Media & Entertainment
• Healthcare
• Retail
• Aerospace & Defense
• Automotive
• BFSI
• IT & Telecommunication
• Education
• Manufacturing
• Real Estate
• Travel & Tourism

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements