The global augmented reality and virtual reality market size was US$ 18.2 billion in 2021. The global augmented reality and virtual reality market is forecast to grow to US$ 301.2 billion by 2030 by growing at a compound annual growth rate (CAGR) of 31.1% during the forecast period from 2022 to 2030.
COVID-19 Impact Analysis
The COVID-19 pandemic has positively impacted the global augmented and virtual reality market. During the pandemic, a significant shift toward the adoption of virtual and augmented reality technologies has been seen. Various businesses turned to remote work in order to tackle the situation. As a result, it offered lucrative opportunities for the service providers to outgrow in the market. The 2020 China Spring Cloud Auto Show incorporated AR technology, big data, Web 3D, panoramic content, and other technologies in order to unveil cutting-edge technologies and products from multiple perspectives. Thus, such advancements depict how augmented reality and virtual reality have been beneficial for the end-use industries.
Augmented and virtual reality also expanded its reach to the emerging healthcare applications, including patient management, telehealth, point of care, etc. Thus, it will be opportunistic for the vendors during the forecast period.
Factors Influencing the Market
Growing investments in the AR and VR industry are forecast to escalate the growth of the overall augmented reality and virtual reality market. For instance, Hinduja Group spent a massive $100 million on a Switzerland-based start-up company, MindMaze, with the aim to develop VR software and hardware.
The significance of AR and VR in the medical sector will offer lucrative growth opportunities for the global augmented reality and virtual reality market. The technology is widely used in medical training, surgical suites, offices, etc. Apart from that, growing healthcare expenditure and improving infrastructure will drive the global augmented reality and virtual reality market forward.
Massive investments by governments will also contribute to the growth of the global augmented reality and virtual reality market. For instance, Innovate U.K. spent nearly $269,367 on the national AR and VR advancement programs with the aim to emphasize innovative outcomes. Thus, such initiatives will benefit the overall augmented reality and virtual reality market during the study period.
Increased adoption of smartphones will also fuel the growth of the augmented reality and virtual reality market. Furthermore, the global augmented reality and virtual reality market is forecast to witness significant growth due to the growing number of innovative strategies by industry players. For instance, Toshiba inked a partnership agreement with Atheer in 2018 to provide an AR-based software platform for Toshiba's dynaEdge Smartglasses.
Regional Analysis
North America is forecast to hold the highest market share in the global augmented and virtual reality market owing to the rising gaming and healthcare sector. In addition, the growing demand for digitalized technology in aerospace & defense, retail, healthcare, manufacturing, etc., will drive the augmented reality and virtual reality market forward. In addition, the region is home to some of the prominent augmented reality and virtual reality service providers, such as Google, DAQRI, Facebook, etc. As a result, it will benefit the augmented reality and virtual reality market.
The Asia-Pacific augmented reality and virtual reality market is forecast to grow at a significant growth rate due to the rising penetration of smartphones and increasing healthcare expenditure.
Competitors in the Market
Market Segmentation
The global augmented reality and virtual reality market segmentation focus on Application, Organization, Industry Vertical, and Region.
By Application
By Organization Size
By Industry Vertical
By Regional Outlook
