|Status : Published||Published On : Aug, 2021||Report Code : VRICT5010||Industry : ICT & Media||Available Format :||Page : 192|
The global augmented reality (AR) and virtual reality (VR) market is estimated to generate revenue of USD 28.2 billion in 2020 and is expected to reach USD 165.3 billion by 2027, witnessing 50.6% CAGR during the forecast period. Increasing responsiveness about this technology among the consumers in both developed as well as developing an economy, rapid acceptance of AR and VR technology among various industry domains along with an amalgamation of AR and VR to develop the mixed reality that can be implemented for prospective applications, propelling the growth of the market.
VR enables utilization of computer technology in order to develop a simulated environment. On the contrary, AR coats computer-generated developments over an existing reality that enhances interaction ability of this system.
Insight by Component
Based on component, the global augmented reality and virtual reality market is divided into data hardware and software, wherein hardware category accounted for largest share in 2020. However, the software category is expected to witness faster growth during the forecast period owing to the increasing demand from media and entertainment industry to meet the evolving needs of the consumers such as that of simulation games which are based out of AR technology.
Insight by Device Type
On the basis of device type, the global augmented reality and virtual reality market is categorized into AR devices and VR devices. Among the two categories, the AR devices category is expected to witness faster growth during the forecast period owing to high demand for AR and VR technology from healthcare and retail domain in a developed economy that enables doctors and nurses to identify vein locations in patients.
Insight by Application
Based on application, the global augmented reality and virtual reality market is categorized into AR applications and VR applications. AR application is further categorized into consumer, commercial, aerospace and defense, enterprise, healthcare, and others. Among these categories, the consumer application accounted for largest share in the market. Further, VR application is also categorized into consumer, commercial, aerospace and defense, enterprise, healthcare, and others. Among these categories, the commercial application accounted for largest share in the market.
Introduction of gaming consoles by major players such as Sony Corporation and Google, mobile applications and development of novice virtual and augmented reality-based devices are some of the major trends observed in AR and VR market across the globe. Moreover, easy and versatile utilization of these devices along with a high degree of mobility and flexibility are the key factors that are pertaining towards the growth of AR and VR market across the globe.
Global augmented reality and virtual reality market has been driven by several key factors, predominantly rapid growth in adoption of tablet computers and smartphones, technological development, excessive concentration of major tech players in the AR and VR system along with extensive mobility and versatility. It has been observed that the AR and VR systems are becoming accessible to consumers through various mediums such as platforms and devices. Furthermore, smartphones are extensively being utilized as input expedients for monitoring the VR situation, especially for the virtual reality gaming applications.
Moreover, the increasing penetration of smartphones and tablet computers is extensively contributing towards the growth of the augmented reality and virtual reality market across the globe. The tablet-based and mobile-based AR and VR technology is observing rapid application form the key players operating in education, interior designing, e-commerce, architecture, and furnishing. These factors are thereby attributing towards the rapid growth of the AR and VR market globally.
Key factors hindering the growth of the augmented reality and virtual reality market are progression of user-friendly VR systems along with alarming health concerns due to the use of AR and VR technology. Certain health concerns that are observed from the use of this system include motion sickness, eyestrain, and nausea that are usually drastic for health for a longer lifespan due to the prolonged effect on the eyes. Moreover, due to these health impacts, the demand for AR and VR technology is impacting in a negative manner.
Globally industry players of global AR and VR market are leveraging market growth through mergers and acquisitions, technological developments and strategic developments. The rapid development of new products is thereby fueling the demand for AR and VR market globally. For instance, Samsung along with Oculus VR has recently developed virtual reality devices for extensive utilization of huge mass along with key smartphone players. These accomplishments are thereby exaggerating the growth of AR and VR market across the globe.
Asia-Pacific is observed to witness significant growth in the global augmented reality and virtual reality market during the forecast period. The growth of this market is attributed towards increasing investment in defense and commercial domain in this region. The existence of a large number of display board industrialists along with technological enhancements are the key factors bolstering the growth of AR and VR market. Furthermore, accentuating growth in automotive and healthcare domain in a country such as Japan is expected to further drive the growth of AR and VR market in the near future.
Market players in the global augmented reality and virtual reality industry are leveraging market growth through mergers and acquisitions, technological developments and strategic developments. These players are also launching new products to cater to the demand of different organizations. For instance, Samsung along with Oculus VR has recently developed virtual reality devices for extensive utilization of huge mass along with key smartphone players.
Some of the key players operating in the global augmented reality and virtual reality market are Alphabet Inc., Oculus VR, LLC, Microsoft Corporation, Qualcomm Technologies Inc., Intel Corporation, Himax Technologies Inc., Samsung Electronics Co. Ltd., PTC Inc. and Sony Corporation.
Source: VynZ Research
Source: VynZ Research