In virtual reality, the user's actual surroundings is swapped by a digital or virtual one. Virtual reality is mostly utilized for leisure and gaming purposes. A user's actual environment is overlaid with digitally manufactured content in augmented reality. Sales and inventory information can be projected via augmented reality onto merchandise that is displayed on store shelves.
COVID-19 Impact and Market Status
Due to an increased shift towards the deployment of VR / AR technology as more organizations have shifted to remote work, the COVID-19 pandemic has considerably accelerated the market growth rate for augmented and virtual reality. For instance, HTC declared that its 2021 developer conference would be hosted online and in virtual reality. The 2020 China Cloud Auto Show, in contrast, used a combination of AR, big data, Web 3-dimensional, panoramic multimedia, and other technology to present cutting-edge products and technologies from various angles. Additionally, AR and VR are being used in new health industry applications like telehealth, point-of-care, and home-based care. This offers a latent and potential prospect for the market in the wake of the pandemic.
The large enterprises segment is likely to grow faster in the coming years
Due to growing usage in the automotive, industrial, retail, and healthcare industry verticals, the large enterprise segment, based on organisation size, is anticipated to dominate the global augmented and virtual reality market share.
Consumer segment to project the maximum share in the market
Due to the rapid acceptance, testing, and deployment of these technologies in work-related areas, the consumer segment will have the highest growth rates compared to the business segment.
Gaming segment is accounted for the highest share
Owing to the growing popularity of AR/VR-based games, the gaming segment is predicted to experience significant rise in the market share for augmented and virtual reality, depending on industry verticals.
North America Leading the International Market
Due to the demand from the sports, sports & media, aerospace & defense, retail, and manufacturing industries, North America leads the virtual and augmented reality market. Vital companies that offer pioneering solutions, such as Google, Facebook, DAQRI, and others, also come from North America. Additionally, businesses in this area have made investments in simulation, AR, and VR. Nevertheless, during the projection period, APAC is projected to experience the highest growth rate. The popularity and acceptance of AR and VR in this region have been fuelled by the overview of 4G expertises, high-speed communication, and a rise in smartphone users.
The need of the AR and VR market is increasing because of the convergence done by various businesses and organizations. Many firms today operate in digital Augmented And virtual Reality, and clients choose to use these goods.
Artificial intelligence (AI), edge computing, and other technological developments are likely to deliver individualized, readily available, and very well experiences that are anticipated to further accelerate market growth.
According to organization size, the major business segment in the virtual and augmented reality market had the largest growth in 2020, and it is anticipated that it would continue to hold a sway in the years to come. In 2022, the global AR and VR products and services market was worth USD 22.84 billion, and by 2029, it is expected to grow to USD 200 billion, with a CAGR of 35%.
Additionally, the introduction of a 5G network is expanding the usage of AR or VR displays for teaching, gaming, and entertainment. Due to 5G's low - and high network capabilities, the growth of online gaming like e-sports, which demand a live interactive experience, is also booming. Virtual and augmented reality (AR and VR, respectively) connect the digital and physical worlds. They give you the chance to absorb knowledge and stuff visually, much like you do when you see the outside world.
The primary drivers of the global AR and VR market are the expansion of the mobile gaming sector and rising internet connectivity. Additionally, the expansion of the worldwide virtual and augmented reality markets is anticipated to be fuelled by the increased use of consumer electronics devices.
The downside of AR is that the use is not as simple and obvious as it first seems. The creation of an AR experience for the user that feels natural takes a lot of work, and there are numerous ways in which customers can misuse your product. However, the market is expanding as a result of the expanding use of such a technology for instructional training, particularly for instructing engineers, technicians, aircraft, field workers, defence fighters, and specialists in the industrial and oil and gas industries.
The key industry players include Google, Microsoft, Sony Corporation, Samsung Electronics, HTC, and Apple. These companies are leading in the Artificial Intelligence and Virtual Reality market as their constant urge to innovate and execute is never-ending. These companies play a vital role in the entire AR/ VR market and generate a ton of revenue. Companies like these also promote newcomers and help them by paving a way to go ahead.
Latest Innovations in the Global AR and VR Products and Services Market: A Snapshot
- The innovation of the metaverse has created virtual reality software that bridges the gap between reality and virtuality and is working on creating an extravagant experience for the users and making its way forward.
- The introduction of geospatial API by Google is allowing developers to create unique experiences linked to specific geographic locations of the space. The other example of the geospatial API is the Apple ARKit which has been in the game for a while.
- Autonomous driving is a huge innovation that is being made possible by the use of AR and VR technologies with the help of artificial intelligence software.
- Remote assistance and care services are being provided by making use of AR and VR technologies. This lets technicians and other users experience on-site situations without having to be present at that spot physically.
AR and VR Products and Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 22.84 billion|
|Growth Rate||CAGR of 35 % during 2021-2028|
|Segment Covered||Organization Size, Application, End-User, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Google, Microsoft, Sony Corporation, Samsung Electronics, HTC, and Apple.|
Key Segments of Global AR and VR Products and Services Market
Organization Size Overview, 2019-2029 (USD Billion)
- Large Enterprises
- Small & Medium-Sized Enterprises
Application Overview, 2019-2029 (USD Billion)
End-User Overview, 2019-2029 (USD Billion)
- Entertainment & Media
- Aerospace & Defence
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa