The augmented reality and virtual reality market size is projected to reach US$ 646.50 billion by 2031 from US$ 52.40 billion in 2023. The market is expected to register a CAGR of 36.9% during 2023–2031. 5G integration and mixed reality are likely to remain key trends in the market.
AR and VR technology provide numerous unique opportunities for both new and established enterprises and commerce. AR technology allows people in numerous professions to see computer-generated graphics in their field of view. Both technologies are widely used in several industries, including healthcare, media, gas and oil, tourism, education, gaming, entertainment, military, marketing, e-commerce, and retail.
The global AR and VR industry is experiencing rapid expansion due to increased demand for mobile devices and R&D investments. AR/VR technology has poor demand and adoption compared to other consumer devices because of its high cost and visual impact. Leading multinational tech corporations are investing in VR/AR research and development to advance the technology.
AR/VR in the automobile industry is increasingly becoming a standard due to the numerous applications and benefits it provides. It simplifies and improves the vehicle purchase and driving experience for all parties concerned. The automobile industry is aggressively adopting AR/VR to improve driving and vacation experiences. In fact, among all the major sectors, the automotive sector invested the most in AR and VR technologies. Some industry heavyweights, like Porsche, Chrysler, Hyundai, Mitsubishi, and Tesla, have already integrated the two technologies into various stages of vehicle production, marketing, and sales. This is driving the demand in the augmented reality and virtual reality market.
The virtual reality entertainment sector has had a significant impact on how consumers consume media, causing a paradigm change in everything from video games to films, live shows, and amusement park experiences. VR/AR (Virtual Reality/Augmented Reality) technology is already beginning to have an impact on broadcasting and streaming media. VR/AR broadcasting and streaming may provide viewers with a fully immersive experience, allowing them to interact with material in new and intriguing ways. This technology may be utilized to produce captivating experiences such as 360-degree films, interactive sports coverage, virtual reality music events, and much more.
Key segments that contributed to the derivation of the augmented reality and virtual reality market analysis are technology, component, and end-user Industry.
The geographic scope of the augmented reality and virtual reality market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
North America dominated the augmented reality and virtual reality market share in 2023. The region has countries such as the US and Canada, which are technologically advanced. The startup landscape in the US is continuously evolving, with emerging players getting breakthroughs in state-of-the-art AR and VR technologies.
The regional trends and factors influencing the Augmented Reality and Virtual Reality Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Augmented Reality and Virtual Reality Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 52.40 Billion |
| Market Size by 2031 | US$ 646.50 Billion |
| Global CAGR (2023 - 2031) | 36.9% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Augmented Reality and Virtual Reality Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Augmented Reality and Virtual Reality Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The augmented reality and virtual reality market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the augmented reality and virtual reality market are listed below:
The “Augmented Reality and Virtual Reality Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
North America dominated the augmented reality and virtual reality market in 2023.
The rising applications in the automotive sector and rising healthcare applications are expected to drive the augmented reality and virtual reality market.
5G integration and mixed reality are likely to remain key trends in the market.
Immersive Gaze, Google LLC, EON Reality, Vuzix Corporation, Blippar Group Limited (Layar B V), Innovega Inc., imulanis Solutions Private Limited, Kanda ApS, YeppAR, Groove Jones, Quytech, The Intellify, Niantec, Microsoft, Apple, VironIT, Appricotsoft, Varwin, Monkhub Innovations are among the leading payers operating in the augmented reality and virtual reality market.
The augmented reality and virtual reality market size is projected to reach US$ 646.40 billion by 2031
The augmented reality and virtual reality market is expected to register a CAGR of 36.9% during 2023–2031