Augmented Reality and Virtual Reality Market Size to Grow by USD 162.71 billion | Increasing demand for VR and AR technology to boost the growth | Technavio
NEW YORK, June 28, 2022 /PRNewswire/ -- The Augmented Reality (AR) and Virtual Reality (VR) Market size is expected to increase by USD 162.71 billion. Moreover, the growth momentum of the market will accelerate at a CAGR of 46% during the forecast period. The report extensively covers augmented reality (AR) and virtual reality (VR) market segmentation by technology (AR and VR) and geography (North America, APAC, Europe, MEA, and South America).
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Key Augmented Reality and Virtual Reality Market Report Highlights:
- YoY growth (%): 25.13%
- Performing market contribution: APAC at 34%
- Key consumer countries: US, China, and Japan
Regional Market Analysis
APAC will account for 34% of market growth. The main markets for virtual reality and augmented reality in APAC are China and Japan. This region's market will expand more quickly than those in other areas.
Over the course of the forecast period, factors including the presence of key vendors, the expansion of the gaming industry in Asia, particularly in Japan, China, and India, and rising investments in AR and VR technologies to broaden their applications in various industries will support the growth of the augmented reality (AR) and virtual reality (VR) markets in APAC.
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Key Vendors and their Offerings
Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp., among others., are some of the key vendors in the augmented reality and virtual reality market. The offerings of a few of these vendors are listed below:
- Alphabet Inc. - The company offers AR and VR under the brand name Google AR & VR.
- Facebook Inc. - The company offers AR and VR under the brand name Oculus virtual reality products.
- HP Inc. - The company offers AR and VR under the brand names Workstation Class VR: HP Z840 Workstation, Production Class VR: HP Elite 800 VR Ready PCs, Mainstream VR: HP Z440 Workstation, HTC Vive Head-Mounted Displays and HP Sprout PRO.
- HTC Corp. - The company offers AR and VR under the brand name VIVE Enterprise Solutions.
- Magic Leap Inc. - The company offers AR and VR for applications including Health, Defense and Public Sector, Manufacturing, Oil and Gas, Automotive, Transport and Architecture, Engineering and Construction.
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Key Market Driver
- Increasing demand for VR and AR technology:
- A rising number of customers are actively looking for information related to VR. AR and VR applications enable users to use the technology in a more user-friendly manner. Wearable technology platforms will likely enhance the utility of AR. The growing application area of AR and VR technology in different fields, such as education, medical, retail, and training, will further boost the growth of the global AR and VR market.
Key Market Trend
- Adoption of various business strategies by vendors:
- The increasing number of partnerships and collaborations among vendors will drive the growth of the global AR and VR market during the forecast period. Vendors are opting for diverse business strategies, such as partnerships and collaborations, with end-users and other vendors. This will help them improve and upgrade their product portfolios and explore new application areas for their AR and VR software platforms. Such strategies are expected to drive the growth of the global AR and VR market during the forecast period.
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Augmented Reality (AR) and Virtual Reality (VR) Market Scope | |
Report Coverage | Details |
Page number | 120 |
Base year | 2020 |
Forecast period | 2021-2025 |
Growth momentum & CAGR | Accelerate at a CAGR of 46% |
Market growth 2021-2025 | $ 162.71 billion |
Market structure | Fragmented |
YoY growth (%) | 25.13 |
Regional analysis | North America, APAC, Europe, MEA, and South America |
Performing market contribution | APAC at 34% |
Key consumer countries | US, China, Japan, Germany, and UK |
Competitive landscape | Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled | Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp. |
Market dynamics | Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview | If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of Contents
1. Executive Summary
2. Market Landscape
2.1 Market ecosystem
Exhibit 01: Parent market
2.2 Market Characteristics
Exhibit 02: Market Characteristics
2.3 Value chain analysis
Exhibit 10: Value chain analysis: Application software
2.3.1 Inputs
2.3.2 Software development process
2.3.3 Marketing and distribution
2.3.4 Post-selling services
2.3.5 Innovation
3.1 Market definition
Exhibit 11: Offerings of vendors included in the market definition
3.2 Market segment analysis
Exhibit 12: Market segments
3.3 Market size 2020
3.4 Market outlook: Forecast for 2020 - 2025
Exhibit 13: Global - Market size and forecast 2020 - 2025 ($ billion)
Exhibit 14: Global market: Year-over-year growth 2020 - 2025 (%)
4.1 Five Forces Summary
Exhibit 15: Five forces analysis 2020 & 2025
4.2 Bargaining power of buyers
4.3 Bargaining power of suppliers
4.4 Threat of new entrants
4.5 Threat of substitutes
4.6 Threat of rivalry
4.7 Market condition
Market condition - Five forces 2020
The segments covered in this chapter are:
- AR
- VR
The two segments have been ranked based on their market size in 2020. The AR segment constituted the largest segment in 2020, while the smallest segment was VR.
5.1 Market segments
Exhibit 22: Technology - Market share 2020-2025 (%)
5.2 Comparison by Product
Exhibit 23: Comparison by Technology
5.3 AR - Market size and forecast 2020-2025
Exhibit 24: AR - Market size and forecast 2020-2025 ($ billion)
Exhibit 25: AR - Year-over-year growth 2020-2025 (%)
5.4 VR - Market size and forecast 2020-2025
Exhibit 26: VR - Market size and forecast 2020-2025 ($ billion)
Exhibit 27: VR - Year-over-year growth 2020-2025 (%)
5.5 Market opportunity by Technology
Exhibit 28: Market opportunity by Technology
Technavio's customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria
Exhibit 29: Customer landscape
The regions covered in the report are:
- North America
- APAC
- Europe
- MEA
- South America
North America was the largest region of the market in 2020 and would improve its relative position in the overall market to become the second largest segment of the market in 2025. It would grow at a compounded annual growth rate of 42.99% between 2020 and 2025, which is slower than the overall market. North America would be the third-fastest growing region within the overall market and would grow from $10.32 billion in 2020 to $61.69 billion in 2025. North America would contribute 31.57% of the incremental growth in the overall market between 2020 and 2025.
7.1 Geographic segmentation
Exhibit 30: Market share by geography 2020-2025 (%)
7.2 Geographic comparison
Exhibit 31: Geographic comparison
7.3 North America - Market size and forecast 2020-2025
Exhibit 32: North America - Market size and forecast 2020-2025 ($ billion)
Exhibit 33: North America - Year-over-year growth 2020-2025 (%)
7.4 APAC - Market size and forecast 2020-2025
Exhibit 34: APAC - Market size and forecast 2020-2025 ($ billion)
Exhibit 35: APAC - Year-over-year growth 2020-2025 (%)
7.5 Europe - Market size and forecast 2020-2025
Exhibit 36: Europe - Market size and forecast 2020-2025 ($ billion)
Exhibit 37: Europe - Year-over-year growth 2020-2025 (%)
7.6 MEA - Market size and forecast 2020-2025
Exhibit 38: MEA - Market size and forecast 2020-2025 ($ billion
Exhibit 39: MEA - Year-over-year growth 2020-2025 (%)
7.7 South America - Market size and forecast 2020-2025
Exhibit 40: South America - Market size and forecast 2020-2025 ($ billion)
Exhibit 41: South America - Year-over-year growth 2020-2025 (%)
7.8 Key leading countries
Exhibit 42: Key leading countries
7.9 Market opportunity by geography
Exhibit 43: Market opportunity by geography ($ billion)
8.1 Market drivers
8.1.1 Increasing demand for AR and VR technology
8.1.2 Product launches
8.1.3 Increasing number of M&A activities
8.2 Market challenges
8.2.1 High development costs associated with AR and VR apps
8.2.2 Risks associated with AR and VR applications
8.2.3 Limitations of AR and VR technology
Exhibit 46: Impact of drivers and challenges
8.3 Market trends
8.3.1 Increasing popularity of coffee among millennials
8.3.2 Growing demand for premium and specialty coffee
8.3.3 Promotion strategies by vendors to increase coffee consumption
9.2 Vendor landscape
Exhibit 48: Vendor landscape
9.3 Landscape disruption
The potential for the disruption of the market landscape was moderate in 2020, and its threat is expected to remain unchanged by 2025.
Exhibit 49: Landscape disruption
9.4 Industry risks
Exhibit 50: Industry risks
10.1 Vendors covered
Exhibit 51: Vendors covered
10.2 Market positioning of vendors
Exhibit 52: Market positioning of vendors
10.3 Alphabet Inc.
Exhibit 53: Alphabet Inc. - Overview
Exhibit 54: Alphabet Inc. - Business segments
Exhibit 55: Alphabet Inc. - Key offerings
Exhibit 56: Alphabet Inc. - Segment focus
10.4 Facebook Inc.
Exhibit 57: Facebook Inc. - Overview
Exhibit 58: Facebook Inc. - Business segments
Exhibit 59: Facebook Inc. - Key news
Exhibit 60: Facebook Inc. - Key offerings
10.5 HP Inc.
Exhibit 61: HP Inc. - Overview
Exhibit 62: HP Inc. - Business segments
Exhibit 63: HP Inc. - Key news
Exhibit 64: HP Inc. - Key offerings
Exhibit 65: HP Inc. - Segment focus
10.6 HTC Corp.
Exhibit 66: HTC Corp. - Overview
Exhibit 67: HTC Corp. - Business segments
Exhibit 68: HTC Corp. - Key offerings
10.7 Magic Leap Inc.
Exhibit 69: Magic Leap Inc. - Overview
Exhibit 70: Magic Leap Inc. - Product and service
Exhibit 71: Magic Leap Inc. - Key news
Exhibit 72: Magic Leap Inc. - Key offerings
10.8 Microsoft Corp.
Exhibit 73: Microsoft Corp. - Overview
Exhibit 74: Microsoft Corp. - Business segments
Exhibit 75: Microsoft Corp. - Key news
Exhibit 76: Microsoft Corp. - Key offerings
Exhibit 77: Microsoft Corp. - Segment focus
10.9 Samsung Electronics Co. Ltd.
Exhibit 78: Samsung Electronics Co. Ltd. - Overview
Exhibit 79: Samsung Electronics Co. Ltd. - Business segments
Exhibit 80: Samsung Electronics Co. Ltd. - Key news
Exhibit 81: Samsung Electronics Co. Ltd. - Key offerings
Exhibit 82: Samsung Electronics Co. Ltd. - Segment focus
10.10 Snap Inc.
Exhibit 83: Snap Inc. - Overview
Exhibit 84: Snap Inc. - Business segments
Exhibit 85: Snap Inc. - Key news
Exhibit 86: Snap Inc. - Key offerings
10.11 Sony Corp.
Exhibit 87: Sony Corp. - Overview
Exhibit 88: Sony Corp. - Business segments
Exhibit 89: Sony Corp. - Key news
Exhibit 90: Sony Corp. - Key offerings
Exhibit 91: Sony Corp. - Segment focus
10.12 Toshiba Corp.
Exhibit 92: Toshiba Corp. - Overview
Exhibit 93: Toshiba Corp. - Business segments
Exhibit 94: Toshiba Corp. - Key news
Exhibit 95: Toshiba Corp. - Key offerings
Exhibit 96: Toshiba Corp. - Segment focus
11.1 Scope of the report
11.1.1 Market definition
11.1.2 Objectives
11.1.3 Notes and caveats
11.2 Currency conversion rates for US$
Exhibit 97: Currency conversion rates for US$
11.3 Research Methodology
Exhibit 98: Research Methodology
Exhibit 99: Validation techniques employed for market sizing
Exhibit 100: Information sources
11.4 List of abbreviations
Exhibit 101: List of abbreviations
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SOURCE Technavio
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