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Introduction

Virtual Reality (VR) creates a digital environment that replaces the user’s real-world environment. VR is primarily used in gaming and entertainment applications. Augmented Reality (AR) overlays digitally-created content into a user’s real-world environment. For instance, AR can be used to project sales and inventory data onto products on store shelves.

In recent times, AR and VR market coming together to impact businesses and enterprises. Most of the businesses, nowadays, have transformed into digital Augmented Reality and Virtual reality, customers find it convenient to use digitized products. Reciprocating to this rise in digitalization and more customers getting engaged in online activities, retailers are looking for ways to leverage their digital presence.

A personalized experience allows customers to feel that they are important. Also, when customers spend more time in-store, they allow store owners to collect more data about them (customers). Store owners can, thus, provide a more personalized experience to their customers during subsequent visits to increase the loyalty of these customers. AR and VR helping owners develop marketing strategies in domains ranging from real estate and automotive to consumer goods and retail.

Implicit learning and development is one of the domains where Augmented Reality and Virtual Reality enabled products and services which are gaining traction among the user segments. Other industries that will experience traction in the AR and VR space are aerospace, oil and gas and heavy machinery, where on-the-job training is conventionally difficult or dangerous but can be transformed to an easier version through augmented reality and virtual reality solutions.

The advent of 4G and high speed data communications have become key drivers for the adoption of AR and VR. Growing demand for Augmented Reality and Virtual Reality gear among smartphone users, advent of entry-level VR headsets in the market and marketing push by smartphone manufacturers have boosted the AR and VR market across the globe.

This report on Augmented Reality and Virtual Reality Market provides in-depth analysis of the AR and VR gaming market. The Augmented Reality and Virtual Reality gaming market currently is working on offering gamers with an immersive gaming experience by embedding digital information, such as audio, video, and data, into the real-world environment in real time. The report talks about segmentation of the AR and VR based on types, devices, technology, technology adopters and regions.

With the information offered, key stakeholders will get to know about the major trends, drivers, investments, vertical players’ initiatives and companies’ interest in the Augmented Reality and Virtual Reality technology. Further, the report provides details about the major challenges impacting market growth. The report also covers the profiles of the major companies of the Augmented Reality and Virtual Reality.

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Augmented Reality and Virtual Reality Market: Forecast

The global Augmented Reality and Virtual Reality market was valued at US$ 5,176 Million in 2016 and is expected to expand at a CAGR of 42.2% during the forecast period (2017 to 2025). Demand for AR and VR solutions is expected to be driven by increasing adoption of AR and VR technology in gaming, which is an important factor driving the growth of the Augmented Reality and Virtual Reality market.

The technology has been segmented into Augmented Reality and Virtual Reality. The VR segment registered highest market share and was valued at US$ 3,498 Million in 2016 globally. Further, adoption rate of AR and VR in gaming is increasing rapidly and this increasing adoption rate is responsible for the growth of the segment in the overall market. However, the Virtual Reality segment is expected to register a stable CAGR of 40.5% during the forecast period in the AR and VR market.

The devices is segmented in the Augmented Reality and Virtual Reality: head mounted display, handheld devices, head-up display, smart-glass and others. The head mounted display segment accounted a CAGR of 44% during the forecast period. Head mounted display segment also accounted for highest market share AR and VR in 2016 and was valued at US$ 4,156 Million in 2016 in the overall devices segment of the augmented reality and virtual reality market.

Augmented Reality and Virtual Reality Market

The end-user is segmented: consumer and commercial. Commercial segment accounted a CAGR of 46% during the forecast period of the AR and VR. In 2016, the consumer segment has accounted the highest market share represents valuation of US$ 3,099 Million within the end user segment of the augmented reality and virtual reality market.

The application is segmented into gaming, media & entertainment, real estate, retail, education, engineering, healthcare and others Augmented Reality and Virtual Reality. Gaming segment accounted a CAGR of 45% during the forecast period. Gaming segment holds the largest market share in 2016 and was valued at US$ 1,997 Million in 2016 of the augmented reality and virtual reality market.

The report, Augmented Reality and Virtual Reality covers trends driving each segment and offers analysis and insights regarding the potential of Augmented Reality and Virtual Reality market in regions including North America, Latin America, Europe, Asia Pacific, and Middle East and Africa. Among these regions, North America accounted for the largest market share in 2016 owing to the increasing adoption of AR and VR in gaming in countries such as the United States and Canada.

The countries such as Gulf Cooperation Council Countries, China and Japan in Asia Pacific region are having a greater potential to drive the Augmented Reality and Virtual Reality market growth in the forecast period. Middle East & Africa and Asia pacific region is expected to register a healthy CAGR during the forecast period of the augmented reality and virtual reality market.

The report, AR and VR covers trends driving each segment and offers analysis and insights registered the potential of largest market share in regions including North America, Latin America, Europe, Asia Pacific, and Middle East and Africa. Among these regions, North America accounted for the largest share in the market in 2016 owing to increasing adoption of AR and VR market in gaming in countries, such as the United States and Canada.

Countries, such as Gulf Cooperation Council Countries, China and Japan, in Asia Pacific region AR and VR showing great potential and will drive the market growth during the forecast period. Middle East & Africa and Asia pacific region is expected to register healthy CAGR during the forecast period in the AR and VR market.

Among the regions, North America was the largest market for augmented reality and virtual reality market accounted for over 26.1% of the market share in 2016. Also, demand for augmented reality and virtual reality solutions is increasing in the markets in Gulf Cooperation Council Countries, China and Japan, for consumer application such as gaming.

Augmented Reality and Virtual Reality Market: Competition Analysis

Some of the top companies identified across the augmented reality and virtual reality value chain are: Vuzix Corporation, Samsung Electronics Co. Ltd, Microsoft Corporation, Google Inc., EON. Reality Inc., Oculus VR, LLC, Magic Leap, Inc., DAQRI LLC, Blippar.Com Limited and Osterhout Design Group, Inc. (ODG) in the Augmented Reality and Virtual Reality market.

These companies are continually evolving their portfolios with newer technological developments and upgrades. For instance, Intel Corporation recently entered into a partnership with Sony Pictures in order create to create fully immersive experiences of Virtual Reality game Spider-Man: Homecoming in the Augmented Reality and Virtual Reality.

In December 2017, SEGA Entertainment, which is one of the leading interactive company and StarVR, a Augmented Reality and Virtual Reality solutions provider entered into a collaboration to bring StarVR arcade experiences to existing SEGA Game Center locations throughout Japan.

Companies in the immersive Augmented Reality and Virtual Reality technology market are diverse ranging from technology players such as Nokia and Sony to start-ups such as Immersive AR and VR One. Manufacturers are constantly innovating and enhancing the technology and focus on integrating it with consumer devices such as smartphones and tablets and other devices in the Augmented Reality and Virtual Reality.

In September 2016, Sony Pictures entered into partnership with Reality One, which is an immersive media content studio in order to produce and finance a slate of AR and VR content.

In October 2017, WITHIN, which is AR and VR entertainment and technology Company entered into collaboration with Universal Music Group, which is a music-based entertainment announced with an objective to create multiple immersive experiences that will be distributed on WITHIN’s app of the Augmented Reality and Virtual reality.

Sudip Saha
Sudip Saha

Principal Consultant

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Key Segments Covered in the AR and VR Market are :

By Technology Type:

  • Augmented Reality (AR)
  • Virtual Reality (VR)

By End-user Type:

  • Commercial
  • Consumer

By application:

  • Gaming
  • Media & Entertainment
  • Real Estate
  • Education
  • Retail
  • Healthcare
  • Engineering
  • Others

By Device:

  • Head Mounted Display
  • Handheld Devices
  • Head-up display
  • Smartglasses
  • Others

By Component:

  • Hardware
    • Display
    • Processor
    • Sensors
    • User interface ICs
    • Power Management ICs
    • Others
  • Software
  • Services

Key Regions covered:

  • North America AR and VR Market
    • United States
    • Canada
  • Latin America AR and VR Market
    • Mexico
    • Brazil
    • Rest of Latin America
  • Asia Pacific AR and VR Market
    • China
    • India
    • ASEAN
    • Australia & New Zealand
    • Rest of Asia Pacific
  • Europe AR and VR Market
    • Germany
    • France
    • United Kingdom
    • Spain
    • Italy
    • Nordic
    • Benelux
    • Russia
    • Poland
    • Rest of Europe
  • Middle East & Africa AR and VR Market
    • North Africa
    • South Africa
    • Gulf Cooperation Council Countries
    • Rest of Africa

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Frequently Asked Questions

What is the Growth Outlook for the Augmented Reality and Virtual Reality Market?

The augmented reality and virtual reality market is likely to secure a CAGR of 40% through 2032.

By 2032, how much can the Augmented Reality and Virtual Reality Market Grow?

The augmented reality and virtual reality market size is estimated to cross US$ 601.07 Bn by 2032.

What is the Current Valuation of the Augmented Reality and Virtual Reality Market?

The augmented reality and virtual reality market is likely to record a value of US$ 20.78 Bn in 2022.

Which Region is likely to Lead the Augmented Reality and Virtual Reality Market?

Asia Pacific is likely to lead the augmented reality and virtual reality market.

Table of Content

1. Global Market - Executive Summary

2. Research Methodology

3. Assumptions and Acronyms Used

4. Global Market Overview

    4.1. Introduction

        4.1.1. Market Definition

        4.1.2. Market Taxonomy

    4.2. Market Dynamics

        4.2.1. Drivers

        4.2.2. Restraints

        4.2.3. Opportunities

    4.3. Value Chain Analysis

    4.4. Global Market Forecast, 2017-2025

        4.4.1. Market Size (Value) Forecast

            4.4.1.1. Y-o-Y Growth

            4.4.1.2. Absolute $ Opportunity

        4.4.2. Global Snapshot (2017)

            4.4.2.1. Market Overview by Technology

            4.4.2.2. Market Overview by Component

            4.4.2.3. Market Overview by End-user

            4.4.2.4. Market Overview by Device

            4.4.2.5. Market Overview by Application

            4.4.2.6. Market Overview by Region

5. Global Market Analysis, By Technology

    5.1. Introduction

        5.1.1. Y-o-Y Growth Comparison, By Technology

        5.1.2. Basis Point Share (BPS) Analysis, By Technology

    5.2. Market Size and Forecast By Technology

        5.2.1. Augmented Reality

            5.2.1.1. Absolute $ Opportunity

            5.2.1.2. Market Value Forecast, By Technology 

        5.2.2. Virtual Reality

            5.2.2.1. Absolute $ Opportunity

            5.2.2.2. Market Value Forecast, By Technology

        5.2.3. Market Attractiveness Analysis, By Technology

6. Global Market Analysis, By Component 

    6.1. Introduction

        6.1.1. Y-o-Y Growth Comparison, By Component 

        6.1.2. Basis Point Share (BPS) Analysis, By Component 

    6.2. Market Size and Forecast By Component

        6.2.1. Hardware

            6.2.1.1. Absolute $ Opportunity

            6.2.1.2. Market Value Forecast, By Component 

        6.2.2. Software

            6.2.2.1. Absolute $ Opportunity

            6.2.2.2. Market Value Forecast, By Component

        6.2.3. Services

            6.2.3.1. Absolute $ Opportunity

            6.2.3.2. Market Value Forecast, By Component

        6.2.4. Market Attractiveness Analysis, By Component 

7. Global Market Analysis, By End-user 

    7.1. Introduction

        7.1.1. Y-o-Y Growth Comparison, By End-user 

        7.1.2. Basis Point Share (BPS) Analysis, By End-user 

    7.2. Market Size and Forecast By End-user

        7.2.1. Consumer

            7.2.1.1. Absolute $ Opportunity

            7.2.1.2. Market Value Forecast, By End-user 

        7.2.2. Commercial/Enterprise

            7.2.2.1. Absolute $ Opportunity

            7.2.2.2. Market Value Forecast, By End-user

        7.2.3. Market Attractiveness Analysis, By Device

8. Global Market Analysis, By Device 

    8.1. Introduction

        8.1.1. Y-o-Y Growth Comparison, By Device

        8.1.2. Basis Point Share (BPS) Analysis, By Device 

    8.2. Market Size and Forecast By Device

        8.2.1. Head Mounted Display

            8.2.1.1. Absolute $ Opportunity

            8.2.1.2. Market Value Forecast, By Device 

        8.2.2. Handheld Device

            8.2.2.1. Absolute $ Opportunity

            8.2.2.2. Market Value Forecast, By Device

        8.2.3. Head-up Display

            8.2.3.1. Absolute $ Opportunity

            8.2.3.2. Market Value Forecast, By Device 

        8.2.4. Smart Glasses

            8.2.4.1. Absolute $ Opportunity

            8.2.4.2. Market Value Forecast, By Device

        8.2.5. Others

            8.2.5.1. Absolute $ Opportunity

            8.2.5.2. Market Value Forecast, By Device

        8.2.6. Market Attractiveness Analysis, By Device

9. Global Market Analysis, By Application 

    9.1. Introduction

        9.1.1. Y-o-Y Growth Comparison, By Application

        9.1.2. Basis Point Share (BPS) Analysis, By Application 

    9.2. Market Size and Forecast By Application

        9.2.1. Gaming

            9.2.1.1. Absolute $ Opportunity

            9.2.1.2. Market Value Forecast, By Application 

        9.2.2. Media and Entertainment

            9.2.2.1. Absolute $ Opportunity

            9.2.2.2. Market Value Forecast, By Application

        9.2.3. Real Estate

            9.2.3.1. Absolute $ Opportunity

            9.2.3.2. Market Value Forecast, By Application 

        9.2.4. Retail

            9.2.4.1. Absolute $ Opportunity

            9.2.4.2. Market Value Forecast, By Application

        9.2.5. Education

            9.2.5.1. Absolute $ Opportunity

            9.2.5.2. Market Value Forecast, By Application

        9.2.6. Healthcare

            9.2.6.1. Absolute $ Opportunity

            9.2.6.2. Market Value Forecast, By Application 

        9.2.7. Engineering

            9.2.7.1. Absolute $ Opportunity

            9.2.7.2. Market Value Forecast, By Application

        9.2.8. Others

            9.2.8.1. Absolute $ Opportunity

            9.2.8.2. Market Value Forecast, By Application

        9.2.9. Market Attractiveness Analysis, By Application

10. Global Market Analysis and Forecast, By Region 

    10.1. Introduction

        10.1.1. Basis Point Share (BPS) Analysis By Region

        10.1.2. Y-o-Y Growth Projections By Region

    10.2. Market Size and Forecast By Region

        10.2.1. North America 

        10.2.2. Europe 

        10.2.3. APAC

        10.2.4. Latin America 

        10.2.5. Middle East & Africa 

    10.3. Market Attractiveness Analysis By Region 

11. North America Market Analysis and Forecast

    11.1. Introduction

        11.1.1. Basis Point Share (BPS) Analysis By Country

        11.1.2. Y-o-Y Growth Projections By Country

    11.2. Market Size and Forecast By Country

        11.2.1. S. Absolute $ Opportunity

        11.2.2. Canada Absolute $ Opportunity

    11.3. Market Size and Forecast By Technology

        11.3.1. Augmented Reality

        11.3.2. Virtual Reality 

    11.4. Market Size and Forecast By Component

        11.4.1. Hardware

            11.4.1.1. Display

            11.4.1.2. Processor

            11.4.1.3. Sensor

            11.4.1.4. User Interface ICs

            11.4.1.5. Power Management ICs

            11.4.1.6. Others

        11.4.2. Software 

        11.4.3. Services 

    11.5. Market Size and Forecast By End-user

        11.5.1. Consumer

        11.5.2. Commercial/Enterprise 

    11.6. Market Size and Forecast By Device

        11.6.1. Head Mounted Display

        11.6.2. Handheld Device

        11.6.3. Head-up Display

        11.6.4. Smart Glasses

        11.6.5. Others 

    11.7. Market Size and Forecast By Application

        11.7.1. Gaming

        11.7.2. Media and Entertainment

        11.7.3. Real Estate

        11.7.4. Retail

        11.7.5. Education

        11.7.6. Healthcare

        11.7.7. Engineering

        11.7.8. Others 

    11.8. Market Attractiveness Analysis

        11.8.1. By Country

        11.8.2. By Technology

        11.8.3. By Component

        11.8.4. By End-user

        11.8.5. By Device 

        11.8.6. By Application 

    11.9. Prominent Trends

12. Latin America Market Analysis and Forecast

    12.1. Introduction

        12.1.1. Basis Point Share (BPS) Analysis By Country

        12.1.2. Y-o-Y Growth Projections By Country

    12.2. Market Size and Forecast By Country

        12.2.1. Brazil

        12.2.2. Mexico

        12.2.3. Rest of Latin America

    12.3. Market Size and Forecast By Technology

        12.3.1. Augmented Reality

        12.3.2. Virtual Reality 

    12.4. Market Size and Forecast By Component

        12.4.1. Hardware

            12.4.1.1. Display

            12.4.1.2. Processor

            12.4.1.3. Sensor

            12.4.1.4. User Interface ICs

            12.4.1.5. Power Management ICs

            12.4.1.6. Others

        12.4.2. Software 

        12.4.3. Services 

    12.5. Market Size and Forecast By End-user

        12.5.1. Consumer

        12.5.2. Commercial/Enterprise 

    12.6. Market Size and Forecast By Device

        12.6.1. Head Mounted Display

        12.6.2. Handheld Device

        12.6.3. Head-up Display

        12.6.4. Smart Glasses

        12.6.5. Others 

    12.7. Market Size and Forecast By Application

        12.7.1. Gaming

        12.7.2. Media and Entertainment

        12.7.3. Real Estate

        12.7.4. Retail

        12.7.5. Education

        12.7.6. Healthcare

        12.7.7. Engineering

        12.7.8. Others 

    12.8. Market Attractiveness Analysis

        12.8.1. By Country

        12.8.2. By Technology

        12.8.3. By Component

        12.8.4. By End-user

        12.8.5. By Device 

        12.8.6. By Application 

    12.9. Prominent Trends

13. Europe Market Analysis and Forecast

    13.1. Introduction

        13.1.1. Basis Point Share (BPS) Analysis By Country

        13.1.2. Y-o-Y Growth Projections By Country

    13.2. Market Size and Forecast By Country

        13.2.1. Germany

        13.2.2. France

        13.2.3. Italy

        13.2.4. Spain

        13.2.5. K.

        13.2.6. Nordic 

        13.2.7. Russia 

        13.2.8. Poland

        13.2.9. BENELUX

        13.2.10. Rest of Europe

    13.3. Market Size and Forecast By Technology

        13.3.1. Augmented Reality

        13.3.2. Virtual Reality 

    13.4. Market Size and Forecast By Component

        13.4.1. Hardware

            13.4.1.1. Display

            13.4.1.2. Processor

            13.4.1.3. Sensor

            13.4.1.4. User Interface ICs

            13.4.1.5. Power Management ICs

            13.4.1.6. Others

        13.4.2. Software 

        13.4.3. Services 

    13.5. Market Size and Forecast By End-user

        13.5.1. Consumer

        13.5.2. Commercial/Enterprise 

    13.6. Market Size and Forecast By Device

        13.6.1. Head Mounted Display

        13.6.2. Handheld Device

        13.6.3. Head-up Display

        13.6.4. Smart Glasses

        13.6.5. Others 

    13.7. Market Size and Forecast By Application

        13.7.1. Gaming

        13.7.2. Media and Entertainment

        13.7.3. Real Estate

        13.7.4. Retail

        13.7.5. Education

        13.7.6. Healthcare

        13.7.7. Engineering

        13.7.8. Others 

    13.8. Market Attractiveness Analysis

        13.8.1. By Country

        13.8.2. By Technology

        13.8.3. By Component

        13.8.4. By End-user

        13.8.5. By Device 

        13.8.6. By Application 

    13.9. Prominent Trends

14. APAC Market Analysis and Forecast

    14.1. Introduction

        14.1.1. Basis Point Share (BPS) Analysis By Country

        14.1.2. Y-o-Y Growth Projections By Country

    14.2. Market Size and Forecast By Country

        14.2.1. China

        14.2.2. India

        14.2.3. Japan 

        14.2.4. ASEAN

        14.2.5. Australia and New Zealand

        14.2.6. Rest of APAC 

    14.3. Market Size and Forecast By Technology

        14.3.1. Augmented Reality

        14.3.2. Virtual Reality 

    14.4. Market Size and Forecast By Component

        14.4.1. Hardware

            14.4.1.1. Display

            14.4.1.2. Processor

            14.4.1.3. Sensor

            14.4.1.4. User Interface ICs

            14.4.1.5. Power Management ICs

            14.4.1.6. Others

        14.4.2. Software 

        14.4.3. Services 

    14.5. Market Size and Forecast By End-user

        14.5.1. Consumer

        14.5.2. Commercial/Enterprise 

    14.6. Market Size and Forecast By Device

        14.6.1. Head Mounted Display

        14.6.2. Handheld Device

        14.6.3. Head-up Display

        14.6.4. Smart Glasses

        14.6.5. Others 

    14.7. Market Size and Forecast By Application

        14.7.1. Gaming

        14.7.2. Media and Entertainment

        14.7.3. Real Estate

        14.7.4. Retail

        14.7.5. Education

        14.7.6. Healthcare

        14.7.7. Engineering

        14.7.8. Others 

    14.8. Market Attractiveness Analysis

        14.8.1. By Country

        14.8.2. By Technology

        14.8.3. By Component

        14.8.4. By End-user

        14.8.5. By Device 

        14.8.6. By Application 

    14.9. Prominent Trends

15. Middle East & Africa Market Analysis and Forecast

    15.1. Introduction

        15.1.1. Basis Point Share (BPS) Analysis By Country

        15.1.2. Y-o-Y Growth Projections By Country

    15.2. Market Size and Forecast By Country

        15.2.1. GCC

        15.2.2. North Africa

        15.2.3. South Africa 

        15.2.4. Rest of MEA

    15.3. Market Size and Forecast By Technology

        15.3.1. Augmented Reality

        15.3.2. Virtual Reality 

    15.4. Market Size and Forecast By Component

        15.4.1. Hardware

            15.4.1.1. Display

            15.4.1.2. Processor

            15.4.1.3. Sensor

            15.4.1.4. User Interface ICs

            15.4.1.5. Power Management ICs

            15.4.1.6. Others

        15.4.2. Software 

        15.4.3. Services 

    15.5. Market Size and Forecast By End-user

        15.5.1. Consumer

        15.5.2. Commercial/Enterprise 

    15.6. Market Size and Forecast By Device

        15.6.1. Head Mounted Display

        15.6.2. Handheld Device

        15.6.3. Head-up Display

        15.6.4. Smart Glasses

        15.6.5. Others 

    15.7. Market Size and Forecast By Application

        15.7.1. Gaming

        15.7.2. Media and Entertainment

        15.7.3. Real Estate

        15.7.4. Retail

        15.7.5. Education

        15.7.6. Healthcare

        15.7.7. Engineering

        15.7.8. Others 

    15.8. Market Attractiveness Analysis

        15.8.1. By Country

        15.8.2. By Technology

        15.8.3. By Component

        15.8.4. By End-user

        15.8.5. By Device 

        15.8.6. By Application 

    15.9. Prominent Trends

16. Competition Landscape

    16.1. Competition Dashboard

    16.2. Competition Trend

    16.3. Latest Acquisitions in AR & VR Market

    16.4. Emerging Companies in AR & VR Market

    16.5. Market Structure 

    16.6. Company Profiles (Details-Overview, Financials, Products, Strategy, Recent Developments)

        16.6.1. Google Inc.

        16.6.2. Samsung Electronics Co. Ltd

        16.6.3. Microsoft Corporation

        16.6.4. Oculus VR, LLC

        16.6.5. Osterhout Design Group, Inc.

        16.6.6. Magic Leap, Inc.

        16.6.7. Com Limited

        16.6.8. DAQRI LLC

        16.6.9. EON Reality Inc.

        16.6.10. Vuzix Corporation

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