February 6, 2025 /PRNewswire/ NEWYork, Report with the influence of artificial intelligence on market developments Technavio projects USD 442.99 billion in worldwide augmented reality and virtual reality market size from 2024–2028. Over the projected period, the market is expected to expand at a CAGR of 50.22%. Growing demand for AR and VR technologies is fuelling market expansion; startup AR and VR companies are attracting more capital from investors. High development expenses connected with ar and vr apps provide a difficulty, nonetheless. Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., CyberGloves Systems Inc., Aeon Reality Inc., HP Inc., HTC Corp., Innovega Inc., Lenovo Group Ltd., Magic Leap Inc., Maxst Co. Ltd., Microsoft Corp., PTC Inc., Samsung Electronics Co. Lt., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc.
Technavio has published its most recent industry research study, Global augmented reality and virtual reality market 2024-2028
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Market Scope for Virtual Reality and Augmented Reality: Details Base Year 2023
Historic span 2018–2022
Forecast range: 2024–2028
momentum of growth and CAGR
Quickly accelerate at 50.22% CAGR.
Market increase 2024–2028 USD 442999.9 million
Market organisation
36.1% fragmented YoY growth 2022-2023 (%)
Regional analysis
North America; APAC; Europe; Middle East and Africa; South America
APAC performing market contribution at 42%
influential nations
United States, China, Germany, Britain, and Japan
Notable businesses highlighted
Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar LTD., CyberGlove Systems Inc., Aeon Reality Inc., HP Inc., HTC Corp., Innovega Inc., Lenovo Group Lt., Magic Leap Inc., Maxst Co. Ltd., Microsoft Corp., PTC Inc., Samsung Electronics Co. Lt., Seiko Epson Corp., Toshiba Corp., Vuzix Corp., Wikitude GmbH, and Zugara Inc.
Market Leader
Integration of 3D models in 3D surroundings is driving notable expansion in markets for augmented reality (AR) and virtual reality (VR). The speed and responsiveness of AR and VR technologies will rise when 5G networks are rolled out, therefore helping businesses including manufacturing, architecture, and aerospace and defence as well as In fields including e-commerce, entertainment, and gaming, AR apps leveraging cameras and gesture-tracking devices are transforming customer involvement. Heads-up displays and HMDs—head-mounted displays—are revolutionising sectors including transportation, industrial automation, and healthcare. Innovative ideas from AR and VR technologies are also finding application in IT and telecommunication, media and entertainment, and travel companies. Driven by the integration of artificial intelligence, semiconductor components, and SoC (System on Chip) technology, the investment activity in AR and VR is on increase. From mental disease therapies to simulations and self-monitoring devices, AR and VR have limitless potential ahead.
Growing cooperation and vendor alliances among manufacturers are driving notable expansion in the worldwide Augmented Reality (AR) and Virtual Reality (VR) markets. These strategic agreements help businesses to improve their product offers and investigate new use cases for AR and VR software systems. For example, HP Reverb G2, a next-generation SteamVR helmet, was announced by Valve, Microsoft Corp., and HP Inc. in March 2020 under a joint venture. Such cooperative efforts are projected to drive the expansion of the AR and VR market over the forecast period. Using these alliances, vendors are reaching more people, raising the quality of their products, and meeting changing needs of end customers.
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Problems in the Market • Demand from commercial sectors is driving notable expansion in markets for augmented reality (AR) and virtual reality (VR). By overlaying digital 3D models onto real-world surroundings, AR technology increases customer involvement in industries including retail, architecture, and manufacturing. Creating technical skills for hardware like HMDs (Head-mounted displays) and gesture-tracking devices, integrating AR technologies with 5G networks, and building 3D environments for AR applications present challenges. Immersion in totally digital 3D settings via VR technology transforms sectors including aerospace and defence, healthcare, and entertainment. Creating VR content for gaming and simulations, investing in network infrastructure for cloud-based VR apps, and guaranteeing security compliance present challenges. Mass acceptance of AR and VR is resulting from consumer gadgets including smart glasses and cellphones. AR applications for customer interaction and product visualisation are being investigation by sectors like e-commerce, real-estate, and tourism. AR and VR are revolutionising industrial automation, IT and telecommunication, and the entertainment sector, hence raising efficiency and output. Developing AR and VR hardware depends on semiconductor components and so-called integration. Realising realistic simulations and improving user experience depend on artificial intelligence and position trackers. While VR technology is transforming industrial tools and training, VR exposure therapy is a hopeful treatment for mental diseases. With problems that need for hardware, software, and technical knowledge, the AR and VR sector ultimately offers many chances for innovation and expansion. From consumer electronics to aerospace and defence, companies in all kinds are using these technologies to raise user experience, increase efficiency, and boost output. • Within the markets of Augmented Reality (AR) and Virtual Reality (VR), developing interesting products calls for several complex elements. Cost factors are quite important and include hardware and software as well as charges for the production and distribution of VR materials. For example, panoramic content is created at a rather cheaper cost than computer-generated images using 360-degree cameras. Still, VR games’ dynamic content adds much more value than their appearance. 360-degree cameras, computer graphics, and high-end photorealistic cameras taken together will produce lifelike VR entertainment. Development of just the VR content for an app would likely cost between USD50,000 and USD100,000.
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Outlook of Segments
This market analysis on augmented reality and virtual reality covers market segmentation by technology somewhat comprehensively.
AR VR Utilisation Consumer Business Enterprise
Geographic Situation
America North-East
APAC: Europe
Africa and Middle East
Americas South
1.1 AR-based on Rising investments in augmented reality (AR) technology, growing application areas, and more new product introductions are driving notable increase in the market. AR is a novel technology providing improved user experience by overlaying digital data onto the actual world. Apps or web sites allow one to access this technology. Demand for AR is resulting from its adaptability in many sectors, including business, retail, healthcare, media and entertainment, and education. Important players like Alphabet and Microsoft are funding AR software development kits to produce AR platforms. For example, Microsoft’s Mesh tool lets individuals work in AR surroundings. AR is becoming more accessible and user-friendly as AR gear and software—including cellphones and AR development platforms—have advanced technologically. Particularly in front of the COVID-19 epidemic, the increased demand for remote collaboration and training solutions is also driving AR adoption faster. For business uses including remote help, training, and product visualisation, major suppliers including Microsoft, Google, and Apple are offering AR technologies. The AR segment in the Augmented Reality and Virtual Reality market will expand under the increasing acceptance of AR across industries for remote collaboration, training, and customer interaction, technological innovations, and continuous development in AR applications.
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Research Review
Revolutionary technologies gaining great popularity in several sectors include augmented reality (AR) and virtual reality (VR). In fields including gaming, simulations, and infotainment, AR overlays digital 3D representations onto the actual environment to improve user experiences. Popular gadgets for AR are smartphones and smart glasses; automobiles employ heads-up displays. Conversely, VR envelops consumers in a totally simulated 3D world. Among other uses, VR technology finds place in simulations, gaming, and exposure therapy. Driven by the promise of these technologies in areas including manufacturing industries, industrial automation, and self-monitoring devices, investment activity in AR and VR is increasing. While the entertainment business uses AR and VR to provide experiences, engineers and designers employ these technologies to create and test intricate designs. VR technology is also revolutionising retail by letting consumers visually check houses or try on clothes before making a purchase. Thus, SoC integration is enabling widespread access to VR and AR by making them more reasonably priced. Market Research Overview
Transformational technologies like augmented reality (AR) and virtual reality (VR) change our interaction with our environment and digital content. Using cameras and AR technology, AR overlays 3D models and information onto actual surroundings in real-time. VR transports consumers to other realms and generates 3D settings. For design and simulation, both technologies—which find application in aerospace and defence, architecture, engineering, and industrial sectors—are becoming more and more popular. 5G networks let for flawless VR and AR experiences. Commercial sectors, consumer electronics, e-commerce, and travel companies for customer involvement, product visualisation, and information search are using AR applications. In gaming, entertainment, healthcare, and education for training, therapy, and experiences VR is rather common. Essential hardware pieces are HMDs (head-mounted displays), gesture-tracking devices, and location trackers. With semiconductor components so important, the IT and telecoms sectors are significantly investing in AR and VR technologies. Software development and connection with SoCs (Systems on Chips) call for technical knowledge. Industrial automation, security compliance, and mental illness therapy all benefit from AR and VR as well. With countless applications in entertainment, education, and daily living, AR and VR have bright futures.
Table of References:
1 Executive Summary; 2 Market Environment
3 Market Scaling
4 Historic Market Share
5 Five Forces Interpretive Study
6 Division of Markets
Technologies
AR VR Utilisation Consumer Business Enterprise
Geographic Situation
American North America
A PAC
Europe:
Middle Eastern Africa
South Americas
7 Client Environment
8 Topography Geographically
Nine Drivers, Challenges, and Patterns
Ten Corporate Environment
11 Business Research
Appendix, 12
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