About This Report

Augmented Reality and Virtual Reality Market, by Technology (Marker-Based Augmented Reality, Markerless Augmented Reality, Non-Immersive Systems, Semi-Immersive Projection System, and Fully-Immersive Systems), by Offering (Sensors, Cameras, Displays and Projectors, Semiconductor Components, Position Trackers, AR Software Functions, Software Development Kits, VR Content Creation, and Cloud-Based Services), by Device Type (Head-mounted Displays, Head-up Displays, Gesture-tracking Devices, and Projectors and Display Walls), by Application (Gaming, Sports & Entertainment, Surgery, Patient Care Management, Fitness Management, Pharmacy Management, Medical Training and Education, Tourism & Sight-seeing, E-learning, E-commerce & Marketing, Aerospace & Defense, Manufacturing, Energy, Automotive, Agriculture, Construction, Transportation & Logistics, and Public Safety), and by Region (North America, South America, Europe, Asia Pacific, The Middle East and Africa) - Size, Share, COVID Impact Analysis, Growth, Outlook, and Opportunity Analysis, 2020 - 2028

Digital information is combined with the user's physical environment to create augmented reality (AR). AR technology creates a combined view by placing computer-generated visuals or information over the user's perspective of the real environment. Smart glasses, smartphones, tablets, and head-mounted displays (HMDs) are among the many of the gadgets that allow users to experience augmented reality (AR). For instance, a smartphone AR software may be used to scan an item from a store and then show the user further details on the item layered on the image of the actual object.

On the contrary hand, virtual reality (VR) describes a fully realistic computer-generated world that the user can interact with. VR technology creates an artificial environment that may be experienced as if it were real by using a headset or HMD that covers the user's eyes, ears, and occasionally other body parts. Through specialised input devices, such as portable controllers or motion sensors, users can engage with the virtual environment. VR has a variety of uses, including gaming, instruction, training, and imitation.

In 2020, the Augmented Reality and Virtual Reality market was valued at US$ YY million, and it is anticipated to be around US$ YY million by 2027. Over the forecast period, the market is expected to grow at a CAGR of YY%.

Increasing adoption of AR and VR in various industries, and advancement in technologies are the drivers while, High cost of AR & VR devices is a restraint

In sectors like gaming, entertainment, healthcare, education, and retail, augmented reality and virtual reality are becoming more widely used. As an illustration, AR technology is used in retail to enhance the consumer experience by giving product information and visualisation. For instance, A well-known augmented reality (AR) game called Pokémon Go allows players use their mobiles to capture digital Pokémon in actual areas. More than 1 billion people have downloaded the game globally. VR is utilised in healthcare to train healthcare professionals and in education to provide immersive learning opportunities. Also, the AR and VR replicate surgical procedures and enables medical personnel to develop their abilities without harming the safety of patients. For instance, in a Series B fundraising round in 2021, the virtual surgical training platform Osso VR raised $27 million.
More complex and realistic AR and VR experiences are now possible due to improvements in hardware and software technology. For instance, developments in haptic feedback might boost the sense of touch in VR environments, while innovations in eye-tracking technology can increase the accuracy of AR and VR experiences. For instance, to increase the realism of VR settings, businesses like HaptX and TeslaSuit are constantly investigating and creating new haptic feedback technologies. Furthermore, Companies like Tobii and Pupil Labs are constantly researching and developing new eye-tracking technologies to improve the accuracy of AR and VR experiences
However, the market is severely restricted by the high price of AR and VR accessories like headsets and glasses. Entry-level VR headsets can cost between $300 and $400, and more expensive models can cost over $1,000. Similar to that, AR glasses can set you back thousands of dollars.

Software expected to account for significant market share by Offering segmen

The global Augmented Reality and Virtual Reality market is mainly classified based on Technology, Offering, Device Type, and Application. By technology, the market is segmented into augmented reality, and virtual reality. Virtual reality is again sub-divided into non-immersive systems, semi-immersive systems, and fully-immersive systems. On the basis of offering, the market is divided into hardware, and software. Hardware is again classified into sensors, cameras, displays and projectors, semiconductor components, position trackers, and others. Software segment is further organized into AR software functions, software development kits, VR content creation, and cloud-based services.

Based on the device type, the market is classified into augmented reality, and virtual reality. Augmented reality is further categorized into head-mounted displays, and head-up displays. Virtual reality is again divided into head-mounted displays, gesture-tracking devices, and projectors & display walls. By application, the market is categorized into augmented reality, and virtual reality. Augmented reality is again divided into consumers, healthcare, commercial, aerospace & defence, enterprise, energy, automotive, and others. Virtual reality is further classified into consumer, healthcare, commercial, enterprise, aerospace & defence, and others.
On the basis of Offering, software segment is expected to hold the major market share globally. The main reason for this is that software, which offers the essential gadgets, tools, and algorithms for the development and deployment of AR and VR apps, is a crucial component of the apps themselves. In the software category, there are sites, software programmes, and tools for creation that are used to produce AR and VR content. A variety of industries, notably gaming, entertainment, healthcare, and educational institutions utilise AR and VR applications, and these solutions for software serve as tools by developers, designers, and content producers to create and deploy these applications. The companies are investing millions of dollars on the software and acquiring the various companies that are specialized in AR and VR solutions. For instance, Leading supplier of 3D content production software Unity Technologies has made significant investments in the AR and VR sectors. For $54.8 million in 2020, the company purchased the Canadian software development company Finger Food Advanced Technology Group, which specialises in AR and VR solutions.

Interesting Facts of Augmented Reality and Virtual Reality Market

• The gaming sector is anticipated to hold a sizable proportion of the AR and VR market in the next years, making it one of the key market drivers.
• The Asia-Pacific region is predicted to experience the highest growth in the AR and VR industry due to the increasing use of mobile devices and the presence of numerous major competitors.
• Businesses are increasingly utilising AR and VR to create immersive and interactive experiences for their customers in marketing and advertising.
• The development of 5G networks will likely accelerate the adoption of AR and VR technologies since these networks will be quicker and more dependable, allowing for more smooth and thrilling experiences.
• The AR and VR market is anticipated to grow significantly in the healthcare sector, where companies are already utilising the technology for training, simulation, and patient care.
• The market for AR and VR is expected to develop significantly in the education sector since these immersive technologies may offer students fun and interactive learning opportunities.
• AR and VR are additionally utilised in sectors including retail, real estate, and automotive for enhancing customer experiences and operations, in along with gaming, healthcare, and education.

Asia Pacific will account for the largest share of the Augmented Reality and Virtual Reality industry

Asia Pacific is predicted to hold the biggest market share for augmented reality (AR) and virtual reality (VR) due to a number of variables. One of these is the area's significant population, which offers an enormous prospective client base for AR and VR technology. Additionally, there are chances for AR and VR technologies to improve the online shopping experience because to the rising popularity of smartphones and tablets as well as the expanding e-commerce sector. The market in the region is expanding as a result of the strong demand for AR and VR technology in gaming and entertainment as well as the growing use of these technologies in healthcare and education. A significant market for VR gaming experiences is provided by the booming gaming industry in APAC.
Governments in nations like China, South Korea, and Japan have aided in the development of AR and VR technology, fostering a positive business environment. For instance, the Chinese government has declared the intention of investing $15 billion over the duration of the following five years in the AR and VR sector in an effort encourage innovation and advance the nation's advances in technology. While South Korea has actively invested in the construction of 5G networks to enable the expansion of AR and VR applications, Japan has also declared plans to leverage AR and VR technology to enhance tourism experiences. The dominance of APAC in the AR and VR market is due in part to the presence of major corporations in the area, like Samsung, HTC, and Sony.

Global Augmented Reality and Virtual Reality Market key Players:

Some of the major competitors in the global Augmented Reality and Virtual Reality market include Augmented Pixels Inc, Blippar, DAQRI LLC, EON Reality Inc, Facebook Inc, Google LLC, Hewlett-Packard Company, HTC Corporation, Magic Leap Inc, Microsoft Corporation, PTC Inc, Samsung Group, Sony Corporation, Terminal Eleven (SkyView), Virtalis Limited, Visteon Corporation, Wikitude GmbH, and Zapper Limited.
The Augmented Reality and Virtual Reality is extremely competitive with aggressive market strategies of global and regional companies looking to strengthen market position through new product launches and facility expansions. The following are some recent market developments:

• Qualcomm announced the launch of Snapdragon XR2 5G, a new platform for AR and VR devices, in April 2021. The platform is intended to provide stronger AI capabilities, enhanced visuals, and faster performance.
• Microsoft announced its acquisition of the UK-based virtual reality training solutions company The Marsden Group in March 2021. Microsoft's position in the enterprise VR market is anticipated to improve as a result of the acquisition.
• Apple is developing a new augmented reality (AR) glass, with a 2023 or 2024 release date being suggested. Additionally, the business has made available ARKit, a developer platform for building AR experiences for iOS devices.
• Facebook released the Oculus Quest 2, a new VR headset. The headset is made with better hardware and software than its forerunner and is targeted towards the consumer market.
• Unity Technologies, a top supplier of AR and VR development tools, made its initial public offering (IPO) in December 2020 and raised $1.3 billion. Since then, the company's stock has increased dramatically, showing the strong interest from investors in the AR and VR business.

Frequently asked questions about global Augmented Reality and Virtual Reality market

Q: What is the current size of the global Augmented Reality and Virtual Reality market?
Ans: The Augmented Reality and Virtual Reality market was valued at YY million US$ in 2020 and is projected to reach XX million US$ by 2027, at a CAGR of YY% during the forecast period.

Q: What are the major opportunities in Augmented Reality and Virtual Reality industry?
Ans: Integration of AR and VR with artificial intelligence (AI) and Internet of Things (IoT) technologies are the major opportunities.

Q: What is major growth driving factor for Augmented Reality and Virtual Reality industry?
Ans: Advancements in hardware and software technology leading to more complex and realistic AR and VR experiences is major driving factor.

Q: Which region is expected to have the largest share of the Augmented Reality and Virtual Reality market?
Ans: Asia Pacific region is expected to have the largest share of the Augmented Reality and Virtual Reality market

Q: Which Offering segment will dominate the Augmented Reality and Virtual Reality market?
Ans: Software segment will dominate the Augmented Reality and Virtual Reality market, by offering segment