AR and VR Market is accounted for USD 22,500 million in 2020, growing at a robust CAGR of 55.7% during forecast period.

Introduction of the AR and VR Market Report

Augmented Reality (AR) and Virtual Reality (VR) is a new-generation data and network technology field, which offers huge application space, vast industry capability, and extensive technological span. It is important to drive the revolution and update of core elements, extensive smart devices, web communication devices, telecom services, and industry information services.

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Market Dynamic

Key Drivers and Emerging Trends

A new technology has arrived in the digital world, from mobile internet to internet to augmented reality (AR) and virtual reality (VR). Both start-ups and leading giants across the nations are aligning themselves to take advantage of the imminent opportunity. The AR/VR industry has witnessed a major swing over the past five to six years due to the increasing number of start-ups across the globe. The growing penetration of 5G across developing nations has significantly driven the market. The high 5G bandwidth combined with ultra-low latency that 5G brings becomes crucial in enabling the use-cases. The increase in the number of gamers around the globe, especially in the Asia-Pacific region, has positively impacted the market. According to a report published by NewZoo in 2020, active 5G smartphones globally were 120 million in 2020 and are projected to reach 1,005 by the end of 2022, which is likely to create more demand for AR & VR devices and softwares.

Increasing demand for AR and VR devices in healthcare applications is another factor that is likely to drive market growth. Implementation of AR in healthcare can also be used to locate healthcare facilities. For instance, by using AR maps, users can define the nearest clinics or other healthcare institutions in an unknown area. AR maps save time spent searching for these facilities, which can be lifesaving in case of emergency.

Restraint in the AR and VR Market

However, data security and privacy concerns are significant factors that hamper the market’s growth. The primary reasons for the emergence of these issues are the unpredictability in AR programming and negligence and oversight of the developers and end-users of AR apps and devices.

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Application – Segment Analysis

Based on the application, consumer gaming holed the major pie of the market and is likely to maintain the dominancy in the market over the forecast period. Augmented reality gaming is becoming a big trend recently, and android smartphones, which can use Google ARCore can use the tech to enjoy AR games. The increase in the number of gamers, combined with the increase in average minutes of gaming per day after 2017, has increased respectively. For instance, according to a report published by OFCOM: Media Nations Report 2020, the average gaming time has increased from 2017 to 2020 by 9 minutes, which has contributed significantly to the augmented reality and virtual reality market.

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Regional – Segment Analysis:

Based on the regional coverage, Asia-Pacific is witnessed to grow at a higher CAGR in the market over the forecast period. The increase in smartphone penetration across regions, especially in countries like China, Japan, Singapore, and Indonesia, has surged the demand for AR and VR devices. For instance, a report published by NewZoo in 2021 states that Asia-Pacific is the largest region in terms of smartphone users accounting for more than half of the population, which is 56% of the global total. Aggressive investment activities are witnessed by the countries’ government bodies, which has driven the market. For instance, China’s Jiangxi stated that they plan to raise about USD 460 million for investment into companies focussing on AR and VR.

Top Market Players

Various notable players operating in the market, include, Samsung, Google LLC, Microsoft Corporation, Facebook, Intel Corporation, Sony Corporation, IBM, Oracle, NVIDIA, Xilinx, Inc. among others.

Key Developments:

• • In 2021, Samsung launched its AR app for galaxy user’s smartphone. However, it is compatible with most of its smartphones including, S21, S21 ultra, S20 ultra, A51, A71, among others. This application allows users to use tools and text brushes to crate AR objects using a camera viewfinder.
  • In 2020, Facebook launched VR remote work app, calling it a step to the ‘metaverse, where users of the company’s Oculus Quest 2 headsets can hold meetings as avatar versions of themselves. The beta test of Facebook’s Horizon Workrooms app comes as many companies continue to work from home after the Covid-19 pandemic shut down physical workspaces.

Segments covered in the Report:

The global AR and VR market has been segmented based on type, offering, application, and regions. Based on type, the market is segmented into AR and VR. Based on offering, the market is segmented into hardware and software. Based on application, the market is segmented into consumer (gaming), consumer (video), retail & marketing, transportation & automotive, education, manufacturing & CPG, healthcare, government, others (enterprise, utilities & energy).

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Key questions answered in this research report:

• • At what pace is global AR and VR market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in AR and VR market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global AR and VR market?
  • Which type generated maximum revenues in 2020 and identify the most promising type during the forecast period?
  • What are the various offering areas of global AR and VR market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2020
Market Forecast Period	2021-2028
Market Revenues (2020)	USD 22,500 Million
Base Year & Forecast Units	Value (USD Million)
Market Segment	By Type, By Offering, By Application, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Samsung, Google LLC, Microsoft Corporation, Facebook, Intel Corporation, Sony Corporation, IBM, Oracle, NVIDIA, Xilinx, Inc., among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation:

Global Augmented Reality (AR) and Virtual Reality (VR) Market by Offering

• • Hardware
  • Software

Global Augmented Reality (AR) and Virtual Reality (VR) Market by Type

• • VR
  • AR

Global Augmented Reality (AR) and Virtual Reality (VR) Market by Application

• • Consumer (Gaming)
  • Consumer (Video)
  • Retail & Marketing
  • Transportation & Automotive
  • Education
  • Manufacturing and CPG
  • Healthcare
  • Government
  • Others (Enterprise, Utilities & Energy)

Global Augmented Reality (AR) and Virtual Reality (VR) Market by Region

• • North America Augmented Reality (AR) and Virtual Reality (VR) Market (Option 1: As a part of the free 25% customization)

• • • By Type
    • By Offering
    • By Application
    • United States of America (US) Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Canada Augmented Reality (AR) and Virtual Reality (VR) Market All-Up

• • Europe Augmented Reality (AR) and Virtual Reality (VR) Market(Option 2: As a part of the free 25% customization)

• • • By Type
    • By Offering
    • By Application
    • United Kingdom (UK) Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Germany All-Up Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • France Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Spain Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Rest of Europe Augmented Reality (AR) and Virtual Reality (VR) Market All-Up

• • Asia-Pacific Augmented Reality (AR) and Virtual Reality (VR) Market (Option 3: As a part of the free 25% customization)

• • • By Type
    • By Offering
    • By Application
    • China Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • India Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Japan Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Rest of APAC Augmented Reality (AR) and Virtual Reality (VR) Market All-Up

• • RoW Augmented Reality (AR) and Virtual Reality (VR) Market (Option 4: As a part of the free 25% customization)

• • • By Type
    • By Offering
    • By Application
    • Brazil Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • South Africa Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Saudi Arabia Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • UAE Augmented Reality (AR) and Virtual Reality (VR) Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Augmented Reality (AR) and Virtual Reality (VR) Market All-Up

Major Players Operating the Augmented Reality (AR) and Virtual Reality (VR) (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Samsung
  • Google LLC
  • Microsoft Corporation
  • Facebook
  • Intel Corporation
  • Sony Corporation
  • IBM
  • Oracle
  • NVIDIA
  • Xilinx