The augmented reality (AR) market is projected to grow from USD 15.3 billion in 2020 to USD 77.0 billion by 2025; it is expected to grow at a CAGR of 38.1% from 2020 to 2025. The increasing demand for AR devices and applications in healthcare, rising investments in AR market, and growing demand for AR in retail and e-commerce sectors due to COVID-19 are the key factors driving the AR market growth. The virtual reality (VR) market is projected to grow from USD 6.1 billion in 2020 to USD 20.9 billion by 2025; it is expected to grow at a CAGR of 27.9% from 2020 to 2025. The availability of affordable VR devices, growing adoption of HMDs in different industries, advancement of technologies and growing digitization, penetration of HMDs in gaming and entertainment sectors after COVID-19, and high investments in VR market are the key factors driving the VR market growth. Security and privacy issues associated with AR and VR, and health issues associated with excessive usage of AR and VR are some of the major restraints.
“Consumer application is expected to maintain its market dominance during forecast period for augmented reality”
The consumer application is expected to hold the largest share of the AR market in 2020; it is also expected to dominate the market during the forecast period. The consumer sector includes gaming and entertainment applications, in which AR is used in games for creating 3D visual objects in the real world. The high growth of the gaming and sports & entertainment sector boosts the growth of the AR market for the consumer application.
“Enterprise application is expected to grow at the highest CAGR during forecast period in virtual reality”
VR is used in the industrial vertical mainly for the training of personnel, providing information about the industrial facility, remodeling and redesigning, and industrial simulations. HMDs are used in industrial applications for designing, training, and simulation. Through HMDs, industrial users can be trained quickly and effectively, as they can learn real-life practices through the fully immersive and interactive virtual world. The use of HMDs is expected to grow in several areas of the industrial vertical in the coming years.
“North America holds a significant share of the market in 2020”
Key players in the AR & VR market, such as Google (US), PTC (US), Microsoft (US), Oculus (US), and Apple (US), are based in North America, which is the key factor contributing to the growth of the AR & VR market in the region. The growing use of smartphones, increasing adoption of smart electronic devices, and surging demand for AR & VR technology in healthcare applications are the major factors boosting the North American AR & VR market’s growth.
APAC is expected to lead the AR & VR market by 2025 due to the high demand for AR & VR devices in the region and the emergence of local manufacturers in China providing these devices at a low cost. Market players based in APAC are likely to grow through the growing use of HMDs in the healthcare and enterprise sectors.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key industry experts in the augmented reality and virtual reality marketspace. The break-up of primary participants for the report has been shown below:
- By Company Type: Tier 1 – 15%, Tier 2 – 50%, and Tier 3 – 35%
- By Designation: C-level Executives – 45%, Directors – 35%, and Others – 20%
- By Region: North America –45%, APAC– 35%, Europe – 12%, and RoW – 8%
The report profiles key players in the augmented reality and virtual reality market with their respective market ranking analysis. Prominent players profiled in this report are Google (US), Sony (Japan), Samsung Electronics (South Korea), Microsoft (US), HTC (Taiwan), Oculus (US), PTC (US), Seiko Epson (Japan), Lenovo (China), Wikitude (Austria), Magic Leap (US), Blippar (UK), Upskill (US), MAXST (South Korea), EON Reality (US), Vuzix (US), CyberGlove Systems (US), Leap Motion (US), and Sixense Enterprises (US). Apart from these, Nintendo (Japan), Psious (Spain), Marxent Labs (US), Inglobe Technologies (Italy), Meta Company (US), Niantic (US), Augment (France), Mindmaze (Switzerland), Firsthand Technology (US), Worldviz (US), Virtuix (US), Survios (US), Intel (US), RealWear (US), Merge Labs (US), SpaceVR (US), Virtually Live (Switzerland), Xiaomi (China), Panasonic (Japan), Dynabook Americas (US), Optinvent (France), WayRay (Switzerland), Scope AR (US), Continental (Germany), Visteon (US), Talespin (US), Craftars (Romania), Scanta (US), Appentus Technologies (India), and BIDON Games Studio (Ukraine) have also been profiled.
This research report categorizes the augmented reality and virtual reality market on the basis of technology, offering, device type, application, and geography. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the augmented reality and virtual reality market and forecasts the same till 2025 (including analysis of COVID-19 impact on the market). Apart from these, the report also consists of leadership mapping and analysis of all the companies included in the augmented reality and virtual reality ecosystem.
Key Benefits of Buying the Report
The report would help leaders/new entrants in this market in the following ways:
- This report segments the augmented reality and virtual reality market comprehensively and provides the closest market size projection for all subsegments across different regions.
- The report helps stakeholders understand the pulse of the market and provides them with information on key drivers, restraints, challenges, and opportunities for market growth.
- This report would help stakeholders understand their competitors better and gain more insights to improve their position in the business. The competitive landscape section includes competitor ecosystem, product developments and launches, partnerships, and mergers and acquisitions.
- The analysis of the top 25 companies, based on the strength of the market rank as well as the product footprint will help stakeholders visualize the market positioning of these key players.
- Patent analysis and technological trends that will shape the market in the coming years have also been covered in this report.