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Propelled by Increasing Penetration of Smartphones and Tablet Computers, Augmented Reality (AR) and Virtual Reality (VR) Market to Surpass $94.4 Billion by 2023

Published Date:   June 2018

The augmented reality (AR) and virtual reality (VR) market is expected to reach $94.4 billion by 2023, progressing at a CAGR of 58.1% during 2018–2023. The software category is expected to witness faster growth in the market during the forecast period, based on component. The increasing demand for AR and VR software from the media and entertainment and gaming industries is one of the major factors driving the growth of this category.

Increasing penetration of smartphones and tablets aiding the market growth

The increasing penetration of smartphones and tablets is providing a substantial platform to these technologies. With the rapid increase in smartphone ownership across the world, these devices are being considered a potential hardware interface for AR and VR products. Thus, companies operating in the AR and VR market are increasingly tapping the resourcefulness of these mediums to launch their products through smartphone and tablet manufacturers.

Rapid technological advancements offering growth opportunities to market players

Technological advancements, in the form of better hardware and software, are providing ample growth opportunities to the AR and VR market players. With the advancements in technology, companies are offering a better user experience, improved user interaction and controls, superior displays and motion-tracking systems, and better battery life in their offerings. Besides, they are developing devices that support higher resolution, transparent displays, and greater field of view.

Segmentation Analysis of AR and VR Market

Augmented Reality and Virtual Reality Market

  • The AR device category is predicted to record faster growth in the AR and VR market during the forecast period, based on device type. The surging requirement for better interaction methods, for navigating and controlling the content, is expected to push the sale of these devices during the forecast period.
  • The consumer category held the largest share in the global VR market in 2017, based on application. This can be attributed to the increasing demand for VR devices in gaming and entertainment applications.

Geographical Analysis of AR and VR Market

Together, North America and Europe are expected to account for over 60.0% share in the AR and VR market by 2023. Advancements in technology, heavy usage of smartphones and the internet, and early adoption of emerging technologies are the key factors supporting the growth of the market in these regions. APAC is expected to witness the fastest growth in the market during the forecast period. Swift economic growth, rising adoption of technologically advanced solutions, surging penetration of smartphones in developing countries, including India and China, and expanding application area of the technologies are driving the growth of the regional market.

Competitive Landscape of AR and VR Market

The global AR and VR market is highly competitive, as a result of the presence of a large number of players. In recent years, many of them have taken several strategic measures, such as product launches and partnerships, to strengthen their position in the market. For instance, in October 2017, PTC Inc. launched the Vuforia Chalk AR app, which enables people from different locations to share the live view of their environment and draw annotations called Chalk Marks, which appear on app anchored to objects and surfaces in the environment.

Browse report overview with detailed TOC on "Augmented Reality (AR) & Virtual Reality (VR) Market by Devices (AR Devices [Head Mounted Display, Head Up Display], VR Devices [Head Mounted Display, Gesture Control Devices, Projection Based Device]), by Component (Hardware, Software), by Application (Commercial, Consumer, Aerospace & Defense, Healthcare, Enterprise) by Geography (U.S., Canada, Germany, U.K., France, Spain, Japan, China, India, South Korea, Brazil, Mexico, U.A.E) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/augmented-reality-and-virtual-reality-market

Furthermore, in February 2017, Qualcomm Technologies Inc. introduced a VR development kit (VRDK) for the Qualcomm Snapdragon 835 mobile platform, to help developers create VR games, 360⁰ VR videos, and a variety of interactive applications.

Some of the major players operating in the AR and VR market are Himax Technologies Inc., Qualcomm Technologies Inc., Intel Corporation, Sony Corporation, Microsoft Corporation, Seiko Epson Corporation, Samsung Electronics Corporation Limited, Google LLC, PTC Inc., and Vuzix Corporation.