NEW YORK, Oct. 8, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The Global Augmented Reality and Virtual Reality Market size is estimated to grow by USD 442.99 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 50.22% during the forecast period. Growing demand for AR and VR technology is driving market growth, with a trend towards growing funding in startup AR and VR companies from investors. However, high development costs associated with AR and VR apps poses a challenge – Key market players include Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., CyberGlove Systems Inc., Eon Reality Inc., HP Inc., HTC Corp., Innovega Inc., Lenovo Group Ltd., Magic Leap Inc., Maxst Co. Ltd., Microsoft Corp., PTC Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc..
Technavio has announced its latest market research report titled Global augmented reality and virtual reality market 2024-2028
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2017 – 2021 |
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Segment Covered |
Technology (AR and VR), Application (Consumer and Enterprise), and Geography (North America, APAC, Europe, Middle East and Africa, and South America) |
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Region Covered |
North America, APAC, Europe, Middle East and Africa, and South America |
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Key companies profiled |
Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., CyberGlove Systems Inc., Eon Reality Inc., HP Inc., HTC Corp., Innovega Inc., Lenovo Group Ltd., Magic Leap Inc., Maxst Co. Ltd., Microsoft Corp., PTC Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc. |
Key Market Trends Fueling Growth
The global Augmented Reality (AR) and Virtual Reality (VR) market is witnessing significant growth due to increasing collaborations and partnerships among vendors. These strategic alliances enable companies to enhance their product offerings and explore new application areas. In March 2020, Valve, Microsoft Corp., and HP Inc. Collaborated to build a next-generation SteamVR headset, HP Reverb G2, focusing on innovative product development. Similarly, in February 2020, NexTech AR Solutions partnered with Poplar, a UK-based AR collaborative platform provider, to utilize each other’s advanced technologies for AR campaign creation and product integration. I2 Industrial Innovation Srl, an industrial AR technology pioneer in Europe, partnered with Upskill in July 2018, delivering its suite of AR products on Upskill’s Skylight AR software platform to support European enterprises’ Industry 4.0 initiatives. These collaborations and partnerships are expected to drive the growth of the global AR and VR market by enabling companies to stay competitive with innovative products and applications.
The Augmented Reality (AR) and Virtual Reality (VR) market is experiencing rapid growth, with trends such as security compliance and self-monitoring devices driving innovation. Semiconductor components and SoC integration are crucial for delivering high-quality AR and VR experiences. In the consumer space, shopping, simulations, and smartphones are key areas of focus. Technical expertise in AR and VR technology, including 3D environments and models, is in high demand. Virtual Reality is revolutionizing industries like tourism and travel & tourism, offering experiences. VR technology is also making strides in aerospace & defense, architecture, and virtual reality gaming. AR applications are gaining traction in commercial industries, particularly in consumer electronics and AI. 5G networks are set to revolutionize AR and VR experiences, enabling real-time data transfer and low latency. Smart glasses are becoming increasingly popular for AR applications, while cloud-based AR applications offer greater accessibility. Virtual Reality exposure therapy is a promising area for mental health applications. In conclusion, the AR and VR market is buzzing with innovation, driven by trends in security, self-monitoring, semiconductors, consumer engagement, and more. Technical expertise and advanced components are essential for delivering high-quality experiences. The future looks bright for AR and VR, with applications in various industries and use cases.
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Market Challenges
• The development of Augmented Reality (AR) and Virtual Reality (VR) projects involves various components, each with its associated costs. VR content creation entails expenses for 360-degree cameras, computer graphics, and high-end photorealistic cameras. The cost of creating panoramic videos is generally lower than computer-generated graphics. The value of VR games relies on interactive content. Developing VR software for various platforms, including web, mobile, and individual systems, also adds to the project cost. The development cost of VR applications varies based on the type of app and the company size. For instance, a non-gaming mobile VR application may cost between USD35,000 and USD75,000, while a mobile VR game may range between USD45,000 and USD100,000. Software development costs also impact the overall project cost. Moreover, the high cost of AR and VR gadgets, such as smart glasses and headsets, acts as a significant barrier to market growth. For instance, the cost of an AR headset ranges from USD500 to USD4,000, while an AR smart glass costs between USD500 and USD1,000. Microsoft Corp.’s HoloLens 2, launched in November 2019, costs around USD3,500. These high development and hardware costs challenge the growth of the global AR and VR market.
• Augmented Reality (AR) and Virtual Reality (VR) markets are experiencing significant growth due to increasing demand from commercial industries. AR technology enables 3D models to overlay real-world environments, revolutionizing industries like architecture, engineering, and manufacturing. Challenges include developing 3D environments for AR applications, integrating AI for enhanced user experience, and the need for 5G networks for seamless connectivity. HMDs (Head-mounted displays) and gesture-tracking devices are key hardware components. AR has applications in consumer electronics, e-commerce, entertainment, and healthcare. Investment activity is high in IT & telecommunication, media & entertainment, and aerospace & defense sectors. AR technology is transforming industrial automation, consumer goods, and real-estate firms through cloud-based applications, heads-up displays, and infotainment industry integration. Network infrastructure and position trackers are crucial for AR’s success.
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Segment Overview
This augmented reality and virtual reality market report extensively covers market segmentation by
Technology
1.1 AR
1.2 VR
Application
2.1 Consumer
2.2 Enterprise
Geography
3.1 North America
3.2 APAC
3.3 Europe
3.4 Middle East and Africa
3.5 South America
1.1 AR- The Augmented Reality (AR) and Virtual Reality (VR) market is experiencing significant growth. Companies are integrating AR and VR technologies into their business strategies to enhance customer experiences and streamline operations. AR allows digital information to be overlaid onto the real world, while VR creates entirely new environments. These technologies are being used in industries such as retail, healthcare, and manufacturing to improve training, product visualization, and remote collaboration. The market is expected to continue growing as more businesses recognize the benefits of these innovative technologies.
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Research Analysis
Augmented Reality (AR) and Virtual Reality (VR) are revolutionary technologies that have been gaining significant traction in various industries. AR overlays digital 3D models onto the real world, enhancing user experience in areas like gaming, simulations, infotainment, shopping, and self-monitoring devices. AR can be accessed through smartphones, smart glasses, and heads-up displays. Virtual Reality, on the other hand, immerses users in a completely digital 3D environment. Head-mounted displays (HMDs) are the most common device for accessing VR. The technology is popular in gaming, simulations, VR exposure therapy, and industrial automation industries. VR technology and AR technology have been seeing increased investment activity due to their potential to transform industries and provide new experiences. Engineers and professionals in manufacturing industries are using these technologies for SoC integration and information search. VR technology is also being used for training and education purposes. The infotainment industry is leveraging AR and VR for creating experiences for consumers. VR gaming and AR gaming are becoming increasingly popular, offering unique experiences that cannot be replicated in the real world.
Market Research Overview
Augmented Reality (AR) and Virtual Reality (VR) are revolutionary technologies that transform the way we interact with our environment. AR overlays digital 3D models onto the real world, enhancing consumer engagement in various industries. 5G networks enable seamless AR experiences, from consumer electronics to commercial industries like aerospace & defense, architecture, and engineering. AR applications extend to e-commerce, gaming, and education, while VR offers experiences in entertainment, healthcare, and training simulations. HMDs (Head-mounted displays) and gesture-tracking devices bring AR and VR to life, with hardware advancements including SoC integration and semiconductor components. The IT & telecommunication sector invests heavily in AR/VR technology, while the manufacturing industries leverage AR for industrial automation and self-monitoring devices. Network infrastructure, position trackers, and cloud-based AR applications further expand the possibilities, with real-estate firms and tourism businesses exploring new opportunities. AR and VR technology also address specific needs, such as mental illnesses, security compliance, and technical expertise. Overall, AR and VR are transforming industries and offering innovative solutions for consumer goods, infotainment, and more.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Technology
Application
Consumer
Enterprise
Geography
North America
APAC
Europe
Middle East And Africa
South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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