The global augmented and virtual reality market was calculated at $ 142.35 billion in 2020, and it is estimated to reach $ 582.42 billion by 2026, developing at a stunning compound annual growth rate of 63.3% annual from 2021 to 2026.
Augmented reality is a technology that uses the existing user environment and overlay digital or virtual information or content to deliver an immersive digital experience in a real-time environment. Virtual reality is a computer-generated 3D environment, which completely immerses end users in an artificial world without seeing the real world. Augmented reality applications are developed in special 3D programs, which allow developers to integrate contextual or digital content with the real world in real time. Virtual reality provides a realistic user experience of the artificial world in an interactive simulated environment
Augmented reality is an integration of digital information with the user's environment in real time and uses the existing environment to overlay new information on top of it. AR integrates the reality with the virtual world with the help of software platforms or software-defined kits. This technology is partially immersive, which means that the user can experience the real world and the augmented world at the same time. Using smartphones and tablets, the user can move around in any environment and thus combine the real world with the augmented world.
Augmented reality and virtual reality are immersive technologies that visualize a virtual environment through the use of a device or on a surface / platform. Virtual reality software is used to create an artificial environment and is presented to the user in a way that makes them believe and experience like a real environment. Virtual reality is experienced primarily through vision and audio.
The coronavirus pandemic is expected to positively impact the growth of the AR and VR market for healthcare applications, as healthcare professionals are supposed to primarily adopt AR and VR HMD’s as protective equipment in the near future. COVID-19 has negatively impacted the market's supply chain due to lockdowns and weak cross-border trade. Due to the coronavirus pandemic, the global AR and VR consumer market is likely to grow slowly in the coming years. The closure of consumer markets around the world has affected the sale of products such as projectors and HMDs. However, the virtual reality market is likely to regain full momentum by 2023.
Market Growth and Trends:
Semi and fully immersive technology to play an important role in the growth of the global augmented reality and virtual reality market
Most companies focus on developing immersive video games for users. Virtual reality headsets allow users to interact with the virtual world. The growing demand for semi-immersive and fully immersive virtual reality devices is the result of improvements in computer systems and electronic networks. Furthermore, innovations such as fully immersive HMDs with VR technology that provide a high resolution 360 ° field of view to the user are expected to drive growth in this market.
Software to play an important role in the growth of the augmented reality and virtual reality market
The AR and VR software market has seen strong growth in recent years and is supposed to dominate the worldwide market in the next 5 years due to the trend of VR content creation and AR games. Mass consumption is believed to contribute to the widespread adoption of AR and VR. Delays in the launch of new AR and VR hardware, coupled with declining AR and VR hardware sales, negatively affected revenue growth in the AR and VR software market.
Market Drivers and Restraints:
The increasing penetration of smartphones and mobile games and the rising adoption of virtual and augmented reality solutions in education are supposed to drive market growth. However, the lack of efficient user experience design and low growth in underdeveloped economies are estimated to hamper market growth during the outlook period. Rather, increasing investment in the market should be a virtual and augmented reality market opportunity.
The global virtual and augmented reality market is segmented based on application, organization size, vertical industry, and region.
In terms of application, the market is divided between consumers and businesses.
According to the size of the organization, the market is classified into large companies and small and medium-sized companies.
By vertical industry, the market is divided into games, entertainment and media, aerospace and defense, healthcare, education, manufacturing, retail, and others.
The regions that are expected to see significant growth in the global virtual and augmented reality market are North America, Europe, Asia-Pacific and LAMEA. Of these, North America and Europe are the major contributors to this industry while the Asia Pacific and LAMEA are anticipated to offer promising growth opportunities in the future.
Key market players:
The major players operating in the global virtual and augmented reality market analysis include Google Inc., Sony, Magic Leap, Inc., HTC, Microsoft Corporation, Osterhout Design Group, Facebook, DAQRI, Samsung Electronics Co., Ltd. and Wikitude.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Augmented and Virtual Reality Market, By Organization Size
6.1.1 Large Enterprises
6.1.2 Small & Medium Sized Enterprises
6.1.3 Market Size Estimations & Forecasts (2019-2024)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Augmented and Virtual Reality Market, By Application
6.2.3 Market Size Estimations & Forecasts (2019-2024)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 Augmented and Virtual Reality Market, By Industry Vertical
6.3.2 Entertainment & Media
6.3.3 Aerospace & Defense
6.3.8 Market Size Estimations & Forecasts (2019-2024)
6.3.9 Y-o-Y Growth Rate Analysis
6.3.10 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Organization Size
7.2.3 By Application
7.2.4 By Industry Vertical
7.3.1 By Country
188.8.131.52 Rest of Europe
7.3.2 By Organization Size
7.3.3 By Application
7.3.4 By Industry Vertical
7.4 Asia Pacific
7.4.1 By Country
184.108.40.206 South Korea
220.127.116.11 South East Asia
18.104.22.168 Australia & NZ
22.214.171.124 Rest of Asia-Pacific
7.4.2 By Organization Size
7.4.3 By Application
7.4.4 By Industry Vertical
7.5 Latin America
7.5.1 By Country
126.96.36.199 Rest of Latin America
7.5.2 By Organization Size
7.5.3 By Application
7.5.4 By Industry Vertical
7.6 Middle East and Africa
7.6.1 By Country
188.8.131.52 Middle East
7.6.2 By Organization Size
7.6.3 By Application
7.6.4 By Industry Vertical
8. Key Player Analysis
8.1 Google Inc
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.3 Magic Leap, Inc
8.5 Microsoft Corporation
8.6 Osterhout Design Group
8.9 Samsung Electronics Co., Ltd
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures