new york, January 27, 2025 /prnewswire/ – Report on how AI is redefining the market landscape – Global Augmented Reality and Virtual Reality market size is: 44.29 billion USD According to Technavio, from 2024 to 2028. The market is estimated to grow at a CAGR of 50.22% during the forecast period. Rising demand for AR and VR technology is driving market growth, trending towards increased funding for startup AR and VR companies from investors. However, the high development costs associated with AR and VR apps are a challenge. Key market players include Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., Cyberglove Systems Inc., Eon Reality Inc., HP, HTC Corp., Innovega Inc., Lenovo Group Ltd. , Magic Leap Inc., Maxst Co. Ltd., Microsoft Corp., Ptc Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc..
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Augmented Reality and Virtual Reality Market Scope
report report
detail
base year
2023
historical era
2017-2021
Forecast period
2024-2028
Growth momentum and CAGR
Accelerating at a CAGR of 50.22%
Market growth 2024-2028
442,999.9 million USD
market structure
fragmentation
Yoy growth 2022-2023 (%)
36.1
regional analysis
North America, APAC, Europe, Middle East, Africa, and South America
Execution of market contribution
42% APAC
Major countries
US, China, Germany, UK, Japan
Introduced by major companies
Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., Cyberglove Systems Inc., Eon Reality Inc., HP Inc., HTC Corp., Innovega Inc., Lenovo Group Ltd., Magic Leap Inc. ., Maxst Co. Ltd., Microsoft Corp., Ptc Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc.
market driver
The augmented reality (AR) and virtual reality (VR) market is witnessing significant growth driven by trends in advanced technologies such as 3D environments and models, 5G networks, AI and gesture tracking devices. . AR technology is gaining traction in commercial industries including architecture, engineering, and manufacturing, with applications in consumer electronics, e-commerce, and entertainment. HMDs (head-mounted displays) and head-up displays are becoming common in aerospace and defense, healthcare, and industrial automation. VR technology is revolutionizing gaming, training simulations, and the treatment of mental illness. Investment activity is high in IT & Telecommunication, Media & Entertainment, and Tourism. Semiconductor components and network infrastructure are essential to the development of AR and VR hardware. Technical expertise is in demand in the software development and integration of SOC (CHIP Systems) for AR and VR applications. Overall, the AR and VR market offers vast opportunities for innovation and growth in various areas.
The global augmented reality (AR) and virtual reality (VR) market is witnessing significant growth due to increasing collaboration and partnerships among vendors. These strategic alliances allow companies to expand their product offerings and explore new applications for their AR and VR software platforms. For example, in March 2020Valve, Microsoft Corp., and HP Inc. have announced a partnership to develop a next-generation SteamVR headset named the HP Reverb G2. Such collaborations are expected to drive the growth of the AR and VR market during the forecast period. Vendors leverage these partnerships to enhance their product portfolios and meet the evolving needs of their end users.
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market challenges
Augmented Reality (AR) and Virtual Reality (VR) market is witnessing significant growth due to increasing demand from various industries. Challenges include creating 3D environments and models for the experience, integrating 5G networks with AR technology, and developing AR applications for aerospace and defense, architecture, and commercial industries. Hardware such as cameras, HMDs (head-mounted displays), and gesture tracking devices are essential for AR and VR. Consumer engagement is a key driver for the consumer electronics, consumer goods, e-commerce, and entertainment sectors. Industries such as healthcare, manufacturing, and IT & telecommunications are investing in AR and VR for training, simulation, and network infrastructure. Technical expertise and security compliance are essential for AR and VR adoption. Tourism, travel and tourism, and education are exploring AR and VR for innovative experiences. AR and VR technology has applications in gaming, mental illness, industrial automation, and infotainment industries. Semiconductor components and SOC integration are essential for AR and VR hardware development. Overall, the AR and VR market presents significant opportunities and challenges for businesses. AR and VR projects include various components such as hardware, software, and content creation. The cost of developing a VR app includes the cost of creating and distributing VR content, as well as the cost of hardware and software. 360-degree cameras are an affordable option for creating panoramic content, but more complex computer-generated graphics require a higher investment. Interactive content is essential to the success of VR games. Developing realistic VR content requires the use of 360-degree cameras, computer graphics, and high-end optical realistic cameras. The cost of creating VR content for your app is from USD50,000 to 100,000 USD. As professionals, it is essential to consider all the costs involved in creating engaging and AR and VR experiences.
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Segment overview
This Augmented Reality and Virtual Reality Market report extensively covers market segmentation
Technology Applications 2.1 Consumer 2.2 Enterprise Geography 3.1 North America
3.2 APAC 3.3 Europe
3.4 middle east and Africa
3.5 south america
1.1 AR – The Augmented Reality (AR) segment is witnessing significant growth due to increasing new product launches, expanding application areas and increasing investments in AR technology. AR is an interactive experience that overlays digital information onto the real world, available through apps and web-based platforms. Widespread use in corporate, retail, healthcare, media, entertainment, and education sectors is driving demand. Major players, including Alphabet and Microsoft, are developing software kits and platforms to accelerate the adoption of AR. For example, Microsoft’s mesh service enables collaborative AR applications. Technological advances in AR hardware and software, such as smartphones with AR capabilities, are making AR more accessible. The need for remote collaboration and training solutions, accelerated by the Covid-19 pandemic, is also driving the adoption of AR. Major vendors such as Microsoft, Google, and Apple offer AR technology for enterprise applications such as remote assistance, training, and product visualization. Growth in the AR segment will continue due to increased adoption across the industry, technological advancements, and the democratization of AR with accessible hardware and software.
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research analysis
Augmented Reality (AR) and Virtual Reality (VR) technologies are revolutionizing various industries by providing experiences. AR overlays digital 3D models onto the real world to enhance information and interaction. Smartphones and smart glasses serve as popular platforms for AR, while heads-up displays provide real-time information about the vehicle. VR, on the other hand, transports users into a fully 3D environment and is a hit in games, simulations, and infotainment. AR and VR investment activity is surging, providing significant funding for VR gaming and technology development. Industries such as manufacturing, industrial automation, self-monitoring devices, and healthcare are adopting these technologies for training, design, and treatment. Engineers use AR and VR for prototyping, while SOC integration improves performance and power efficiency. VR exposure therapy is a promising application in the mental health field.
Market research overview
Augmented Reality (AR) and Virtual Reality (VR) are transformative technologies that integrate digital 3D models and environments with the physical world. AR technology overlays digital information onto real-world environments using cameras, HMDs, or smartphones to enhance consumer engagement in industries such as commercial, consumer electronics, e-commerce, and entertainment. While AR applications include information retrieval, gaming, and industrial automation, VR technology completely immerses users in digital 3D environments, revolutionizing industries such as aerospace and defense, architecture, engineering, healthcare, and manufacturing. brings. 5G networks and cloud-based AR applications enable seamless experiences while hardware such as HMDs, gesture tracking devices, and position trackers enhance user interaction. VR technology finds applications in gaming, entertainment, simulation, and the treatment of mental illnesses. The IT & Telecommunication, Infotainment, and Tourism industries are also benefiting from these technologies, with growth in investment activity and technological expertise. While semiconductor components and network infrastructure are essential to hardware development, software solutions enable a customized experience. AR and VR technologies are poised to revolutionize various sectors, offering new opportunities for innovation and growth.
table of contents:
Executive SummaryMarket LandscapeMarket SizingHistorical Market SizeFive Forces AnalysisMarket SegmentationTechnology ApplicationsGeography
North America
APAC
Europe
middle east and africa
south america
Customer Landscape Geographical Landscape Drivers, Challenges, Trends Company Landscape Company Analysis Appendix
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