The global augmented reality (AR) and virtual reality (VR) market stood at $37.0 billion in 2019, from where it is expected to reach $1,274.4 billion in 2030. The increasing penetration of smartphones and tablet computers, rising demand for gesture and haptic control devices in automation, and increasing adoption of these technologies in the retail and e-commerce sector are some key factors expected to drive the market growth in the forecast period (2020–2030).
Due to the current coronavirus pandemic crisis, the AR and VR market growth has witnessed a dip in 2020. Several governments around the world have imposed strict nationwide lockdowns to curb the spread of the virus. Due to this, the supply chain has been disrupted on the global level, which has further affected the supply of raw materials and components, as well as the manufacturing of the finished products, to a large extent. There is a steep decline in the interest of people in non-essential goods, as their low purchasing power has prompted them to reduce their expenses during these crunch times.
VR Category Held Larger Market Share during Historical Period
Based on type, the VR category held the larger share during the historical period (2014–2019). This can be attributed to the increasing application of VR in various industries, especially gaming, and declining prices of VR devices. VR offers an immersive experience to users, and hence, businesses, particularly in the gaming sector, have incorporated such features into their products and services to lure customers.
Enterprises are expected to be the most promising application area for AR and VR in the coming years. They are already benefiting from AR and VR in a number of ways, such as optimized productivity, enhanced learning outcomes, real-time data visualization and analysis, efficient warehousing and logistics, and effective collaboration with remote workers. For example, Volkswagen AG and DHL International GmbH have been using the Glass Enterprise Edition of Google LLC as a productivity enhancement tool.
Asia-Pacific (APAC) is expected to record the fastest growth in the AR and VR market during the forecast period. Being home to several developing economies and a large number of display panel and other hardware manufacturers, APAC is expected to witness an increasing adoption of the AR and VR technologies in the coming years. In addition, the rising investments in the commercial and defense sectors and growth in the healthcare and automotive industries in Japan, China, India, and South Korea are expected to boost the growth of the AR and VR market in the region.
Product Launches Rank High among Important Strategic Developments
Players operating in the AR and VR market are investing increasingly in the industry, thus resulting in the development and launch of new, technologically advanced products. Companies are focusing on coming up with products with better aesthetics and features, to lure customers, as such developments help them consolidate their position in the market.
For instance, in March 2020, EON Reality Inc. announced the launch of new remote AR and VR packages, named Remote Classroom 3.0 and Remote Industry 4.0, for the education, government, and industrial sectors. It also stated that the basic features of its AVR platform would be free for use till the end of the COVID-19 pandemic.
Similarly, in January 2020, Himax Technologies Inc. announced the launch of ImageSensor for artificial intelligence of things (AIoT) and computer vision applications. The product was launched for the smart home, smart building, healthcare, smartphone, and AR/VR device markets.
Alphabet Inc., Facebook Technologies LLC, Vuzix Corporation, Himax Technologies Inc., Seiko Epson Corporation, HTC Corporation, PTC Inc., Wikitude GmbH, EON Reality Inc., Visteon Corporation, Magic Leap Inc., Qualcomm Incorporated, Microsoft Corporation, Sony Corporation, and Samsung Electronics Co. Ltd. are the major global AR and VR market players.