The global AR and VR market is expected to reach $94.4 billion by 2023, progressing at a CAGR of 58.1% during 2018–2023. The soaring demand for AR and VR in the retail and e-commerce sectors, rising demand for gesture and haptic control, greater adoption by enterprises, and increasing penetration of smartphones and tablet computers are the key factors supporting the growth of the market, worldwide.
Insights into market segments
On the basis of component, the hardware category held the larger share in the AR and VR market in 2017. This can be attributed to the surge in the demand for high-performing AR devices, decreasing product costs, and growing end-user base. To meet the growing demand, companies involved in the manufacturing of AR hardware, such as Kopin Corporation (a display device manufacturer) and Lumus Ltd. (a transparent display and HMD manufacturer), are working toward maintaining a balance between product and cost.
Based on application, the enterprise category is expected to witness the fastest growth in the AR market during the forecast period. Businesses across the globe are increasingly realizing the importance of AR in this digital era. Enterprises can benefit from AR in a number of ways, such as optimized productivity, enhanced learning outcomes, real-time data and analytics visualization, efficient warehousing and logistics, and effective collaboration with remote workers.
Market is expected to witness the fastest growth in Asia-Pacific (APAC)
Geographically, APAC is expected to the witness fastest growth in the AR and VR market during the forecast period, owing to a rise in the adoption of technologically advanced solutions, increase in AR and VR application areas, and surge in the penetration of smartphones in emerging economies, such as China and India. China is expected to account for a prominent share in the region, owing to technological advancements, growing smartphone adoption, and presence of a large number of gaming enthusiasts.
Surging demand for AR and VR in the retail sector escalates growth of the market
Developments in technologies are set to change the retail landscape in the near future and drive the AR and VR market. Retailers and e-commerce vendors across the globe are increasingly adopting AR and VR technologies to provide the best possible experience to their customers. AR and VR allow customers to make more-informed choices, when they visit stores after experiencing the products in the AR format on their devices, which increases the buyer conversion rate. Moreover, AR and VR can be used to assist customers find product information, navigate a store, and gain store rewards as they move around, which further enhances customer satisfaction.
Integration of AR and VR is offering immense growth opportunity to the market players
The integration of AR and VR is expected to offer ample growth opportunities to device manufacturers and technology and content developers in the coming years. Mixed reality combines the most beneficial aspects of both AR and VR. It facilitates the integration of virtual objects in the real environment, and at the same time, allows the user to interact with virtual objects they would with the real ones. It is considered a hybrid technology that is still evolving and is likely to be the future of VR and AR. For instance, Microsoft HoloLens works on the principle of mixed reality and enables users to communicate and collaborate more effectively. Many start-ups, such as Magic Leap Inc., are working on this technology to leverage the potential AR and VR market.
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
AR and VR market competitiveness
Major players in the AR and VR market, through calculated strategic developments, such as product launches and partnerships, are looking to strengthen their market position. For instance, in October 2017, EON Reality Inc. launched a VR level crossing safety application for Network Rail, the owner, operator, and developer of Britain’s railway infrastructure. The app provides safety information through story-driven VR scenes and interviews with family members and experts. The app lets its users experience risky rail transport situations themselves.
Some of the key players in the global augmented reality and virtual reality market are Samsung Electronics Corporation Limited, Qualcomm Technologies Inc., Intel Corporation, Microsoft Corporation, Himax Technologies Inc., Seiko Epson Corporation, Sony Corporation, Google LLC, PTC Inc., and Vuzix Corporation.
Augmented Reality and Virtual Reality Market Segmentation
Market Segmentation by Device Type
Market Segmentation by Component
Market Segmentation by Application
Market Segmentation by Geography