In 2024, the Augmented and Virtual Reality Market was valued at $22.12 billion. However, it is expected to grow at a CAGR of 34.2% and reach $96.32 billion by 2029, according to the new report by MarketsandMarkets.
Adoption of augmented and virtual reality in the gaming and entertainment industry is a major factor in driving this growth. Moreover, the use of AR is retail and e-commerce sectors boosts its demand further. Similarly, virtual reality helps in remote working and virtual classes.
Among all the AR and VR devices, head-mounted displays (HMDs) are expected to have the largest market size. The key factor driving this growth is the growing need of overlay computer-generated graphics, data, or 3D objects onto the field of view — that is highly preferable in healthcare, automotive, and defense sector.
Major companies like Sony, Oculus, HTC, Samsung, Google, TLC Alcatel, and Osterhout Design Group have gained significant acclaim in the VR HMD market.
Consumer and commercial uses are expected to have the highest CAGR in the augmented and virtual reality market, respectively.
AR is expected to fulfill the high demand for an enhanced gaming experience. Using additional features, gamers can create virtual objects and characters, and link them to specific locations in the real world. Therefore, it increases the possibility of AR having the highest CAGR in the consumer sector.
On the other hand, virtual reality in the commercial market is expected to witness the highest CAGR with all the VR HMDs. The technology has a high demand in advertisements, marketing and retain, and fashion.
Meanwhile, Asia Pacific is expected to have the largest market size in the augmented and virtual reality market between 2024-29.
Asia Pacific region is anticipated to have the largest market size in the AR and VR industry. Some of the key factors driving this growth include rising adoption of the technology in consumer electronics, retail, BSFI, healthcare, transportation, and entertainment.
These industries can gain many benefits with the rapid integration of new technologies, particularly in countries like China, India, and South Korea.