Augmented Reality and Virtual Reality Market: North America Anticipated to Remain the Dominant Regional Market Throughout the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2017 - 2025
- REP-GB-3913
- 2017-05-18
- 239 Pages
- Format:
- Category: Electronics, Semiconductors, and ICT
The global augmented reality and virtual reality market is anticipated to witness remarkable CAGR during 2017 – 2025
The global augmented reality and virtual reality (AR and VR) market was valued at more than US$ 5,000 Mn in 2016 and is expected to reach a market valuation close to US$ 120 Bn by 2025 end. In terms of value, the global AR and VR market is expected to expand at a CAGR of 42.2% over the forecast period. The global AR and VR market is expected to represent incremental dollar opportunity close to US$ 115 Bn between 2017 and 2025. Among the various device segments, revenue contribution from the head mounted display segment is anticipated to expand at the highest CAGR of 44% during the forecast period. Currently, North America accounts for a relatively high revenue share in the global AR and VR market; however, the MEA AR and VR market is anticipated to register the highest CAGR of 55.2% among all the other regions during the forecast period. In terms of revenue, the North America AR and VR market is projected to be the most attractive regional market in the global AR and VR market during the forecast period.
High investments by big technology companies and increasing demand for AR and VR technology in gaming are factors boosting the global AR and VR market
Adoption of advanced technology in the gaming sector has been rising significantly due to factors such as increasing young population, increasing spending by consumers on entertainment, high penetration of smartphones, and improving network connectivity in developing countries. Games based on augmented reality such as Pokemon Go and Ingress have been witnessing increasing popularity among consumers as these games offer a unique gaming experience, thereby leading to higher user engagement. Thus a growing demand for AR and VR technology in gaming is likely to fuel the growth of the global AR and VR market.
Some of the major technology companies such as Google Inc., Microsoft Corporation, Samsung Electronics Co. Ltd., and Apple Inc. are investing significantly in the development of new AR & VR products as a result of increasingly high demand from various industries and sectors including gaming and healthcare. Some of these companies are also funding several start-ups and providing necessary infrastructure as well to promote this technology among consumers. Therefore, with increasing investments by tech companies, the global market for augmented reality and virtual reality is expected to witness significant growth over the next five years.
Smartphones not only facilitate gaming but also create innumerable opportunities for augmented reality due to their technological features. It is difficult to create graphical overlays that could interact with the real world in a dimensionally accurate manner by using computer vision. However, smartphones overcome this technology hurdle as these are embedded with elements such as cameras and MEMS sensors, including accelerometers and GPS, which make them suitable for augmented reality platforms. This factor is also anticipated to drive revenue growth of the global AR and VR market during the projected period.
Google acquires VR gaming company Owlchemy Labs
Global technology giant Google recently acquired Austin based game studio Owlchemy Labs. According to the terms of the acquisition, Owlchemy Labs will continue to release VR games while Google will provide additional support to the company. Owlchemy Labs had already assured fans that it would keep continuing its focus on high quality user experiences and hand interaction. The company is popular for developing games that mimic the use of real hands. Meanwhile, Google recently launched a fully wireless day dreamer view headset that is compatible with Google’s recently launched Pixel and Pixel XL smartphones. According to highly placed officials at Google, with this acquisition, Google and Owlchemy Labs will be working together to create immersive games and will be developing new interaction models to continue to bring the best VR experiences to life.
According to Future Market Insights’ analysis, the North America augmented reality and virtual reality market is anticipated to witness high growth rate over the forecast period. However, the Middle East and Africa region is also likely to grow at a relatively high CAGR during the assessment period. Revenue from the augmented reality and virtual reality market in North America and Europe is collectively estimated to grab the maximum portion of the global augmented reality and virtual reality market revenue in 2017. Markets in Asia Pacific and Latin America are expected to witness high growth rates between 2017 and 2025. Contributing to this upsurge will be continued growth in demand for Augmented Reality and Virtual Reality (AR and VR) technology in gaming, media and entertainment, leading to a higher adoption of AR and VR devices and applications in the consumer and commercial sector. The analysts of Future Market Insights have observed that the global AR and VR market is projected to witness significant revenue growth during the forecast period and have presented the findings in a new report titled “Augmented Reality and Virtual Reality Market: Global Industry Analysis and Opportunity Assessment, 2017–2025.” After examining the market in detail, the analysts have observed that the gaming segment is likely to dominate the global AR and VR market with a higher share in terms of revenue by 2017 end. The overall market is segmented on the basis of technology, hardware, end user, devices, application and region.
Market Value Chain
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VR content creation tools include animation software, VR SDKs, cameras and video stitching tools used for content creation
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Content creators include game studios and animation studios such as DreamWorks Animation and Dragonfly
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VR software includes mobile applications, SDKs and VR software that are integrated with VR devices such as Google Cardboard and Oculus Rift
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VR platform includes Google Daydream, Virtuix Omni walking platform and Facebook Spaces for immersive multimedia experiences on either mobile, PC or console
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VR multimedia experience is provided by VR hardware such as Oculus VR, Playstation VR, HTC Vive and Google Cardboard
Report Structure
The report commences with an overview of the global AR and VR market in terms of value. In addition, this section includes an analysis of key trends, drivers and restraints from the supply, demand and economy side, which are influencing the global AR and VR market. Impact analysis of key growth drivers and restraints, based on the weighted average model is included in this report to facilitate clients with crystal clear decision-making insights. A detailed analysis has been provided for every segment in terms of market size analysis for AR and VR devices across various regions. The section provides a detailed analysis covering key trends, absolute dollar opportunity and BPS analysis. The report provides a market outlook for 2017–2025 and sets the forecast within the context of AR and VR devices, including latest technological developments as well as offerings in the market. This study discusses key trends within regions contributing to the development of the global augmented reality and virtual reality market.
In the final section of the report, the analysts have included a competitive landscape to provide clients with a dashboard view based on categories of providers in the value chain, presence in the global AR and VR market and key differentiators. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on an in-depth assessment of capabilities and success in the marketplace. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the global augmented reality and virtual reality market.
Market Segmentation
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By Region |
By Application |
By Hardware |
By Devices |
By End User |
By Technology |
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/ Enterprise |
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Research Methodology
The analysts have adopted a systematic research approach while examining the global augmented reality and virtual reality market. In-depth secondary research is used to determine top industry players, products, applications, overall market size, industry connotations, distributors and software developers. The analysts have conducted interviews with industry experts, key industry players, distributors, and retailers for data collection and verification. The data is validated using the triangulation method, in which secondary, primary and Future Market Insights’ analysis contributes to the final data. Macro-economic indicators such as GDP, wholesale and retail trade, merchandise trade, and prices have been considered to arrive at the indicated market numbers. Yearly change in inflation rate has not been considered while forecasting market numbers, while economic fluctuations have been considered while estimating market forecast.