Over the next few years, the global virtual reality and augmented reality market is anticipated to grow significantly. In this report, we will provide an overview of the market, including its size, share, trends, and industry analysis.
Note: This report is based on both primary and secondary sources.
AR & VR Market Overview
The Augmented Reality Market Size is expected to touch the $71.2 billion mark by 2028. It was $25.1 billion in 2023, and is expected to grow at a CAGR of 23.2% during 2023-28.
Meanwhile, the Virtual Reality Market Size is expected to grow at a CAGR of 18.0% and reach $29.6 billion. In 2023, the VR market size was $12.9 billion.
The market of both technologies are affected by factors such as proliferation of smartphones, the increasing popularity of gaming, and other benefits of AR and VR-based solutions. It is also driven by the surge in adoption of AR and VR technologies by enterprises.
Here’s a list of some of the major Augmented and Virtual Reality companies:
- Google (US)
- Microsoft (US)
- Sony Group Corporation (Japan)
- META (US)
- SAMSUNG (South Korea)
- HTC Corporation (Taiwan)
- Apple Inc. (US)
- PTC Inc. (US)
- Seiko Epson Corporation (Japan)
- Lenovo (China)
The market is mainly dominated by the enterprise segment, which is expected to stay at the top in the future. Additionally, the consumer sector may witness significant growth due to users adopting VR and AR devices more.
AR and VR Market Trends in North America
The North American AR and VR market is distributed into three distinct countries: the United States, Canada, and Mexico. As North America is well-known for its technological advancements, it stands as the forefront for high-quality VR devices.
In 2022, North America became the leading AR market by securing significant market share. The quick acceptance of AR devices across North America to enhance productivity and accuracy in enterprises fueled this growth further.
Within the same year, North America also became the global leader in VR applications in terms of the size and revenue generated. Therefore, the VR industry is expected to witness significant growth in the region.
Major sectors like aerospace & defense, healthcare, consumer goods, and commercial industries are adopting VR technologies for advancements in processes. Virtual reality is also being widely used in consumer electronics.
It’s also interesting to note that North America leads in private equity investments, particularly over 95% being in the AR & VR market. Magic Leap (US) is attracting substantial investments from tech giants like Google (US).
AR and VR Market Trends in APAC Region
China is the leading country in the world’s growing economies, with APAC being concentrated in the consumer electronics industry. Numerous new startups in China have helped position the country as a major player in the AR & VR industry.
Landmark Entertainment Group’s (US) VR and AR theme park in China offers many attractions for visitors, such as a digital art gallery, interactive museum, virtual zoo and aquarium, an immersive movie theater, and themed experiences.
The vast use of mobile-based AR and VR devices in China with its high population density is also a growth factor. Additionally, video and gaming companies are also expected to significantly affect China’s growth in the VR and AR market.
In November 2023, China released its first national-level policy document for the development of advanced technologies like metaverse, virtual reality, and augmented reality.