Global Augmented Reality and Virtual Reality Market – Industry Trends and Forecast to 2031

Global Augmented Reality and Virtual Reality Market, By Technology (Augmented Reality Technology and Virtual Reality Technology), Offering (Hardware and Software), Device Type (Augmented Reality, Head-mounted Displays, Head-up Displays, Virtual Reality, Head-mounted Displays, Gesture-tracking Devices Projectors, and Display Walls), Vertical (Consumer Electronics, Media and Entertainment, Healthcare, Retail, Aerospace and Defence, Automotive, BFSI, IT and Telecommunication, Manufacturing, Education, Travel and Tourism, and Real Estate) – Industry Trends and Forecast to 2031.

Augmented Reality and Virtual Reality Market Analysis and Size

The augmented reality and virtual reality market continues to see significant advancement, offering a plethora of benefits across various sectors. From revolutionizing education and training through immersive simulations to enhancing customer experiences in retail and gaming, VR and AR technologies are driving innovation. Their widespread adoption promises increased productivity, improved learning outcomes, and unparalleled immersive experiences for users worldwide.

The global augmented reality and virtual reality market size was valued at USD 5.97 billion in 2023, is projected to reach USD 397.20 billion by 2031, with a CAGR of 69.00% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation       

Market Definition

Augmented reality (AR) overlays digital information in the real world, enhancing the user's perception by blending virtual elements with the environment through devices such as smartphones or glasses. Virtual reality (VR) creates immersive digital environments that users can interact with, often through headsets, completely replacing the real world with a simulated one. Both technologies offer unique experiences, from enhancing real-life scenarios to transporting users to entirely virtual realms.

Augmented Reality and Virtual Reality Market Dynamics

Drivers

• Increasing Demand in Entertainment and Gaming

The entertainment and gaming industries are witnessing a surge in demand for immersive experiences fueled by augmented reality (AR) and virtual reality (VR) technologies. For instance, the success of games such as Pokémon GO, which seamlessly blends AR with real-world exploration, demonstrates consumers' appetite for interactive entertainment. This increasing demand drives the development of innovative AR/VR content and devices as companies strive to meet the evolving expectations of their audiences.

• Rise of 5G Technology

The advent of 5G technology heralds a new era for AR and VR applications, offering lightning-fast data speeds, reduced latency, and enhanced capacity. For instance, in mobile gaming, 5G enables real-time multiplayer experiences with seamless interaction, enriching immersion. Moreover, in telemedicine, surgeons can utilize AR-assisted procedures remotely, relying on the high-speed, low-latency connectivity of 5G networks for precise and responsive guidance, ultimately improving patient outcomes.

Opportunities

• Increasing Adoption of Head-Mounted Displays (HMDs)

The increasing availability of affordable and advanced Head-Mounted Displays (HMDs) such as Oculus Rift, HTC Vive, and Microsoft HoloLens is propelling consumer adoption of augmented reality (AR) and virtual reality (VR) technologies. For instance, Oculus Quest 2 offers high-quality VR experiences at a relatively low price point, attracting a broader audience and driving market growth by making immersive experiences more accessible to consumers.

• Integration with IoT and AI

The integration of AR and VR with IoT and AI amplifies their potential, creating personalized, context-aware experiences. For instance, AR glasses synced with IoT devices can overlay real-time data on objects, aiding in maintenance tasks. AI algorithms enhance user interactions by analyzing environmental cues and adapting content accordingly. Together, these technologies enable the seamless integration of virtual and physical worlds, revolutionizing fields such as industrial maintenance, training simulations, and personalized retail experiences.

Restraints/Challenges

• Privacy and Security Concerns

The integration of Augmented Reality (AR) and Virtual Reality (VR) technologies raises considerable apprehensions about data privacy and security. Users express concerns about potential misuse of personal information and tracking of behavior within virtual environments. Addressing these issues is paramount to fostering trust and guaranteeing the ethical and responsible utilization of AR and VR technologies, crucial for their sustainable adoption and advancement in the future.

• High Initial Cost

The adoption of AR and VR devices is hampered by their steep initial costs, deterring widespread consumer uptake. Additionally, the expense associated with creating content for these platforms dissuades many creators. These financial barriers hinder accessibility and impede market growth. Addressing cost concerns and incentivizing content creation are crucial steps to foster broader adoption and spur innovation in the AR and VR industry.    

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In June 2023, DPVR and Clique Games announced a partnership to elevate virtual reality gaming. DPVR, a leading VR device provider, teams up with Clique Games, renowned for VR game publishing and arcade operation. Their goal: introduce fresh and inventive gaming encounters to enthusiasts globally, promising an enhanced VR landscape
• In March 2020, Epson America, Inc., a branch of Japan's Seiko Epson Corporation, forged a collaboration with 3D HoloGroup (U.S.), specialists in AR software architecture and integration. This strategic alliance facilitated the sale of Epson's AR glasses, amplifying accessibility and adoption of augmented reality technologies across diverse markets

Augmented Reality and Virtual Reality Market Scope

The market is segmented on the basis of technology, offering, device type, and vertical. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Technology

• Augmented Reality Technology
• Virtual Reality Technology

 Offering

• Hardware
• Software

 Device Type

• Augmented Reality
• Head-mounted Displays
• Head-up Displays
• Virtual Reality
• Head-mounted Displays
• Gesture-tracking Devices Projectors
• Display Walls

 Vertical

• Consumer Electronics
• Media and Entertainment
• Healthcare
• Retail
• Aerospace and Defence
• Automotive
• BFSI
• IT and Telecommunication
• Manufacturing
• Education
• Travel and Tourism
• Real Estate

Augmented Reality and Virtual Reality Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, technology, offering, device type, and vertical as referenced above.

The countries covered in the market report are U.S., Canada, and Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

North America is expected to dominate the market, driven by robust demand from various industries such as gaming, entertainment and media, aerospace and defense, retail, and manufacturing. Major players such as Google, Facebook, and DAQRI, among others, who offer innovative solutions, contribute to North America's leadership. Additionally, businesses in the region have made significant investments in augmented reality, virtual reality, and simulation technologies, fostering growth and advancements in this dynamic market.

Asia-Pacific is expected to experience rapid growth in the augmented and virtual reality markets, driven by several factors. The region's adoption of AR and VR technologies has been fueled by the widespread introduction of 4G technology and high-speed communication infrastructure, facilitating seamless connectivity and immersive experiences. In addition, the increasing number of smartphone users in Asia-Pacific has opened up new avenues for AR and VR applications. With a large consumer base and a thriving tech ecosystem, the region presents immense potential for the expansion and innovation of AR and VR solutions across various industries.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Augmented Reality and Virtual Reality Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Google (U.S.)
• Sony Corporation (Japan)
• Apple Inc. (U.S.)
• Samsung (South Korea)
• Microsoft (U.S.)
• HTC Corporation (Taiwan)
• Oculus (U.S.)
• PTC (U.S.)
• Seiko Epson Corporation (Japan)
• Lenovo (China)
• Wikitude (Austria)
• Blippar Group Limited (U.K.)
• MAXST CO., Ltd. (South Korea)
• EON Reality (U.S.)
• Uil VR Solutions BV(US)
• CyberGlove Systems Inc. (U.S.)
• Nintendo (Japan)