The augmented reality market was valued at USD 11.14 Billion in 2018 and is expected to reach USD 60.55 Billion by 2023, growing at a CAGR of 40.29% during the forecast period.
The rising investment in the AR market and increasing demand from retail and healthcare sectors are the major drivers for the augmented reality market.
The virtual reality market was valued at USD 7.90 Billion in 2018 and is expected to reach USD 34.08 Billion by 2023, growing at a CAGR of 33.95% during the forecast period.
The easy availability of affordable VR devices, increased use of HMDs in gaming and entertainment, advancements in technology and digitization, and high investments in VR technology are the major drivers of the VR market.
This report covers the augmented reality and virtual reality market on the basis of offering, technology, application, device type, and geography. The consumer application will lead the AR & VR market during the forecast period. The use of augmented reality and virtual reality in gaming and sports & entertainment will drive the AR and VR market for the consumer application.
The augmented reality software market would lead the overall AR market by 2023. This is owing to the increased use of smartphones, tablets, and other devices for AR gaming. The virtual reality software market is expected to witness a high growth owing to need of the content creation in the VR space in the next 5 years.
The head-mounted displays will hold a major share of the AR and VR market. Head-mounted displays are the most promising devices to boost the growth of the AR and VR market. Augmented reality smart glasses are leading the augmented reality market for head-mounted displays with their high demand for commercial, automotive, industrial, and healthcare applications. The use of the augmented reality smart glasses is expected mainly in enterprise and industrial applications, wherein smart glasses are likely to be used to increase the efficiency of workers and also ensure more safety and satisfaction.
Virtual reality HMDs find major applications in gaming and entertainment, healthcare, retail, and e-commerce sectors. There are many tier 1 players involved in the virtual reality market. Oculus Rift, HTC Vive, Sony PlayStation VR, Samsung Gear VR, Google's Daydream and Cardboard, Merge VR, and Carl Zeiss VR One, among others, are the major VR devices in the virtual reality market.
The AR HUDs are likely to be used mainly for navigation in airplanes and automotive. The information such as the roadmap and the speed along with the other necessary details in the line of sight would be displayed on the windscreens and would help the driver to drive safely. The use of head-up displays for applications such as automotive, and aerospace & defense would help the market to grow at a higher rate. The use of VR gesture tracking in games and entertainment is expected to be the major driver for the growth of the virtual reality gesture-tracking devices market in the near future. The use of gesture-tracking devices in patient care management paves the path for the high growth of these devices in the healthcare application.
APAC is expected to lead the AR and VR market in terms of market size and is likely to witness the highest growth rate in the market by 2023. The increase in R&D in APAC and the growing acceptance of newer technologies in the region are the drivers for the AR and VR market.
Increasing Demand for AR Devices in Patient Care Management, and Medical Training and Education
Trend of Online Shopping has Increased the Demand for AR in Retail and E-Commerce
Increased Interest of Tech Giants in the AR Market has Resulted in an Upsurge of Investment
Limited User Interface (UI) Affecting Navigation Performance of AR Applications
Limited Processing Power, Less Storage, and Restricted Size of Memory Card in Mobile Phones
Varied Infrastructure Quality of Digital Network Will Restrain the Growth of AR
Increasing Demand to Portray Digital Information Using AR in Architecture
Opportunity in the Enterprise Industry With Increased Trend of Smart Manufacturing
High Growth of the Travel and Tourism Industry Will Boost the Growth of the AR Market
Overcoming Social Challenges to Increase the Adoption Rate
Reconfiguration of Applications for Different Platforms
Penetration of Hmds in the Gaming and Entertainment Sector
Huge Investments in the VR Market
Advancement of Technology and Growing Digitization
Availability of Affordable VR Devices
Display Latency and Energy Consumption Affect the Overall Performance of VR Devices
Health Concerns Relating to Low Resolution and Lack of Movement
Penetration of Hmds in Healthcare and Architectural Applications
Use of VR in Aerospace & Defense for Training and Simulation