The Global Augmented Reality and Virtual Reality Market Size accounted for USD 22.6 Billion in 2021 and is estimated to achieve a market size of USD 451.5 Billion by 2030 growing at a CAGR of 38.5% from 2022 to 2030. The augmented reality and virtual reality market's primary drivers are the expanding penetration of the internet and the expanding video gaming sector. The growing use of augmented reality and virtual reality in industries including healthcare, entertainment, media, retail, manufacturing, aerospace, as well as defense will propel the AR & VR market growth during the forecast period.

Augmented Reality and Virtual Reality Market Report Key Highlights

• Global augmented reality and virtual reality market revenue intended to gain USD 451.5 billion by 2030 with a CAGR of 38.5% from 2022 to 2030
• Asia-Pacific region led with more than 35% augmented reality and virtual reality market share in 2021
• According to 2021 report, there are 57.4 million VR consumers & 90.9 million AR consumers in the United States
• According to one study, 75% of industrial units that used massive AR and VR technologies reported a 10% improvement in operations.
• By device sale, approximately 6.1 million VR headsets were sold in 2021
• Rising application in the military and defense sectors, drives the augmented reality and virtual reality market share

A synthetic environment created with the aid of artificial intelligence is called virtual reality. It is an imitation or replica of an event or setting from real life that is produced by a computer. Because of its ability to communicate with users, it enhances the current reality and gives it greater meaning. The addition of virtual elements like graphics and digital photographs through augmented reality, however, enhances the experiences. The market for ARVR is also anticipated to expand in the years to come due to the rising demand for goods based on augmented reality and virtual reality (ARVR) technology in numerous industries.

Global Augmented Reality and Virtual Reality Market Trends

Market Drivers

• Growing demand for augmented reality (AR) applications and devices in healthcare
• Rising interest in AR in the retail and e-commerce industries
• Increasing penetration of the internet over the globe
• Growing application of AR and VR in the military and defense sectors

Market Restraints

• Concerns with the system's privacy and security
• Health risks associated with excessive use of AR and VR

Market Opportunities

• Increasing digitization and the advancement of technology
• Increasing demand in the architectural and construction sectors

Augmented Reality and Virtual Reality Market Report Coverage

The AR and VR market growth is primarily driven by rising demand for mobile and handheld devices as well as the widespread use of head-mounted displays (HMD). Additionally, rising R&D expenditures are propelling the AR and VR market value. Lack of understanding, together with software privacy concerns and expensive ARVR technology, could limit the market's expansion for augmented and virtual reality. An ongoing trend in the industry is the application of ARVR technology in live presentations and seminars, surgeries, video games, battlefields, and 3D modeling. Additionally, the growing adoption of ARVR technology across a number of sectors, including healthcare, education, aerospace, military & security, digital manufacturing, and entertainment, is anticipated to propel this market's expansion over the coming years.

The wildly successful augmented reality game Pokémon Go was the first evidence of consumer augmented reality technology use. Before that, no one had considered AR apps or experiences for smartphones. This unanticipated application of smartphone augmented reality successfully verified the general consumer adoption of the technology.

New smartphone applications have been unveiled after Pokémon Go's first release in 2016. Retailers have created AR apps to help users make online purchases, while firms like Snapchat and Facebook have developed interesting methods to deliver AR experiences on social media platforms. By putting up their smartphone in front of a room or space, users of the Ikea app, for instance, may see furnishings in their own homes. This lessens some of the anxiety that customers have when purchasing large products like furniture online. It offers additional convenience.

Since a few years ago, smartphones and headsets have been the most popular method of delivering a VR experience. The easiest way for consumers to start using VR has been through this. Compared to the market for augmented reality today, virtual reality is far more developed. To create an immersive VR experience, the necessary hardware platforms and software tools are now available. Virtual reality experiences are rapidly expanding their applications in our lives thanks to the availability of increasingly sophisticated systems like the Oculus Rift and 360-degree cameras.

From real estate to tourism, virtual reality is demonstrating some useful business use cases. On a recent trip to Israel, I saw how the Jerusalem Visitor's Bureau immersed travelers in the city's 5,000-year-old appearance utilizing virtual reality. These cutting-edge VR experiences are emerging in a variety of global sectors.

Due to its limits, lack of standards, and higher prices, augmented reality technology is still in its infancy compared to virtual reality, but it is already being used in sectors including manufacturing, healthcare, and logistics. Experiences with augmented reality are often provided through headsets like Meta, ODG, Vuzix, and HoloLens, and early indications indicate that the technology is about to revolutionize business and industrial markets. Before these technologies are widely used, however, there is more work to be done.

Augmented Reality and Virtual Reality Market Segmentation   

The worldwide augmented reality and virtual reality market segmentation is based on the device type, component, technology, platform, device application, and geography.

Augmented Reality and Virtual Reality Market By Device Type

• Augmented Reality Devices
  • Head-Mounted Displays (HMD)
  • Head-Up Displays (HUD)
  • Handheld Devices
• Virtual Reality Devices
  • Head-Mounted Displays (HMD)
  • Gesture Control Devices (GCD)
    • Data Gloves
    • Others
  • Projects & Displays Wall

According to the augmented reality and virtual reality industry analysis, the Head-up displays (HUDs) device segment dominating the market in 2021. HUDs are largely used for image augmentation and are currently used in the aerospace and defense sector as well as the automotive industry for training purposes. The market for HUDs that support augmented reality is still in its infancy but is anticipated to become commercially viable soon. The primary purpose of the augmented reality head-up displays in cars and airplanes intended to be navigation. The display of information on the windscreens, such as a route and speed, as well as any additional vital details in the driver's line of sight, would help drivers drive safely. The market would grow more quickly if head-up displays were used in industries like aerospace and defense and automobiles.

Augmented Reality and Virtual Reality Market By Component

• Hardware
  • 3D Camera
  • Semiconductor Components
    • Integrated Circuits (IC)
    • Controller/ Processor
    • Others
  • Displays
  • Sensors
    • Accelerometer
    • Gyroscope
    • Magnetometer
    • Proximity Sensors
    • Global Positioning Systems
• Software
  • Cloud-Based Services
  • Software Development Kits (SDK)

In terms of components, the hardware segment occupied the dominant market share in the market in 2021. The hardware segment is dominating the market as the use of AR devices expands across many industries and commercial verticals such as educational, medical, engineering, and retail. AccuVein Incorporated, for example, is using AR-based technologies to assist medical personnel in locating a participant's vein so that they can administer intravenous medications or draw blood for diagnostics, along with other things.

Augmented Reality and Virtual Reality Market By Technology

• Marker-Based Augmented Reality
  • Active Marker
  • Passive Marker
• Marker-less Augmented Reality
  • Model-Based Tracking
  • Image Processing-Based
• Virtual Reality Technology
  • Non-Immersive Technology
  • Semi-Immersive & Fully-Immersive Technologies

According to the augmented reality and virtual reality market forecast, the virtual reality technology segment is predicted to grow significantly in the market during the predicted years. Virtual reality (VR) is a replicated environment that uses position monitoring and 3D relatively close screens to immerse the viewer in a virtual environment.

Augmented Reality and Virtual Reality Market By Platform

• Mobile
• Console
• PC
• Others

According to the platform, the console segment in the AR & VR market is expected to rise rapidly in the coming years. One of the primary reasons driving product demand is the rapid acceptance of multi-functional video game consoles. Furthermore, there is a significant development in the use of the internet of things (IoT) in the gaming sector, which enables real-life engagement with the videogame industry via different gadgets.

Augmented Reality and Virtual Reality Market By Device Application

• Augmented Reality Application
  • Commercial
  • E-learning
  • Tourism
  • E-Commerce & Marketing Applications
    • Real Estate
    • Footwear
    • Beauty (Cosmetics)
    • Jewel Toning
    • Apparel Fitting
    • Furniture and Lighting Design
    • Grocery Shopping
    • Commercial Vertical Overall Review
  • Consumer
    • Gaming
    • Sports and Entertainment
    • Entertainment Application
      • Theme Parks
      • Art Gallery and Exhibitions
      • Museums (Archeology)
    • Consumer Vertical Overall Review
  • Aerospace & Defense
  • Medical
    • Surgery
    • Pharmacy Management
    • Medical Training
    • Fitness Management
    • Medical Segment Overall Review
  • Other 
    • Automotive
    • Geospatial Mining
    • Enterprise Solutions
    • Architecture and Building Design
• Virtual Reality Application
  • Commercial
    • Fashion
    • Advertisement
  • Consumer
    • Gaming
  • Aerospace and Defense
  • Medical
  • Industrial
  • Others

In terms of device application, the gaming and entertainment segment received significant market attention in 2021. The gaming and entertainment sectors were the first industries to benefit from and completely preserve the integrity of the digital marketplace, expanding into an engaging and participatory form of entertainment, thanks to breakthroughs in technologies such as AR and VR. VR and augmented reality have completely transformed everything from enhanced gaming scenarios to new tv and smartphone applications. Virtual reality is a critical element of the video-based integrated media business, which focuses on enhancing and developing films, tv programs, and other sorts of information.

Augmented Reality and Virtual Reality Market Regional Outlook