The global AR and VR market is predicted to reach $200.1 billion by 2030, growing at a CAGR of 24.2% between 2021 and 2030. This is due to the rising advancements in artificial intelligence (AI) and machine learning (ML) technologies, and the appealing designs and utility of AR and VR have attracted a big number of clients in a short period. Moreover, VR gadgets are popular among young people, and demand has increased as the cost of these devices has decreased since their inception in the industry.
The gesture control device category accounted for a prominent share of the market in 2021, and it is expected to grow at a substantial CAGR over the projected period. This is because users of this device may handle objects in virtual reality by using their hands and other parts of the body, due to gesture-based technologies. It creates a stronger bond between humans and computers than basic user interfaces like a mouse and keyboard.
Also, a number of enterprises have recognized the advantages and benefits of implementing high-efficiency gesture control systems. For example, during surgical procedures, a hand gesture recognition system enables doctors to edit digital pictures, whereas an automobile gesture control device simplifies the usage of built-in systems and reduces the chance of an accident by enabling drivers to maintain their focus on the road. These benefits are projected to offer lucrative opportunities for industry players in the coming years.
The handheld devices category is expected to grow at a CAGR of around 26.4% in the coming years. This growth can be ascribed to the surging adoption of handheld devices in the e-commerce and retail sectors. The rising penetration of smartphones and tablets is driving companies to take advantage of mobile AR technology and implement it to improve consumer experience and take an edge over the competition. Further, handheld devices with built-in mobile AR technology can help consumers try on products virtually before making a purchase decision. The rapid integration of this technology into social media platforms is expected to drive the market growth in this category.
With the development of interactive and immersive entertainment due to technologies like AR and VR, the gaming and entertainment sectors were the first to profit from the advent of digital reality. These technologies have changed the game thoroughly from enhanced gaming simulations to smartphone and new television applications. Virtual reality is a critical component of the media entertainment sector, which focuses on improving and developing video-based immersive media such as television shows, movies, and other types of video content.
Virtual reality is also being used in museums and art galleries to make tours more interactive and immersive by giving contextual information. In a similar vein, virtual rides for theme parks are being developed, which are frequently hard to duplicate in reality. While VR has gained popularity owing to its extremely immersive features, AR has shown to be a game-changer and profitable immersive technology that will fuel the growth of the gaming and entertainment industries in the long term.
Smartphones with camera filters on social networking platforms like Facebook, Instagram, and Snap Chat frequently employ AR technology. These filters employ computer vision technology, which classifies features using an active shape model and applies filters depending on the things captured by the camera using a human face recognition method. A virtual overlay has been employed by other AR entertainment smartphone apps, including Pokémon Go, to captivate and engage users in the industry.
The European market is projected to grow at a significant CAGR over the forecast period. This can be because of the extensive use of AR and VR technologies across a range of industries, majorly in the gaming and automotive sectors. A large number of gamers in Europe contributes to the rapid uptake of cutting-edge VR gadgets in the region. Moreover, the expansion of the regional market has been accelerated by the rapid development and adoption of VR equipment targeted at the gaming community in European countries.
Some major players operating in the AR and VR market are Google LLC, Microsoft Corporation, Sony Corporation, Samsung Electronics Co. Ltd., Facebook Technologies LLC., HTC Corporation, Apple Inc., PTC Inc., Seiko Epson Corporation, and Lenovo.