What Has Been The Evolution of the AI In Virtual Reality And Augmented Reality Market in Recent Years?
The ai in virtual reality and augmented reality market has seen considerable growth due to a variety of factors.
• The market size for AI in virtual reality and augmented reality has experienced significant expansion in the past few years. There will be an escalation from $57.37 billion in 2024 to a staggering $84.23 billion in 2025, with a compound annual growth rate (CAGR) of 46.8%.
The historical growth can be linked to the advancements made in computer vision, machine learning algorithms progress, enhancements in natural language processing (NLP), the spread of cloud computing and, the emergence of edge computing.
What Is the Forecasted Market Size and Growth Rate for The AI In Virtual Reality And Augmented Reality Market?
The ai in virtual reality and augmented reality market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for AI in virtual reality and augmented reality is projected to witness remarkable expansion in the upcoming years, growing to $387.34 billion in 2029 with a compound annual growth rate (CAGR) of 46.4%.
Factors contributing to this growth during the forecast period include the proliferation of AI-driven social dynamics, tailor-made content suggestions, improved gesture and speech recognition, AI-generated lifelike scenarios, and applications in healthcare and therapy. Key trends for the projected period encompass AI-operated virtual aides in VR or AR, virtual fitting experiences augmented by AI, AI-facilitated object identification and interaction, the incorporation of AI with AR smart glasses, and AI-enabled immersive storytelling.
What Are The Essential Drivers Behind The Growth Of The AI In Virtual Reality And Augmented Reality Market?
The surge in IoT (Internet of Things) devices is projected to boost the expansion of AI in the virtual reality and augmented reality market. IoT devices are physical entities equipped with sensors, software, and connectivity elements that facilitate the accumulation and transmission of data with other devices or systems over the internet, thereby forming the IoT ecosystem. The operation of these devices is reliant on interconnected networks, which facilitate fluid communication and data transfer between various devices and systems. The role of AI in virtual reality and augmented reality is to amplify the potentials of IoT devices via improved data analytics, predictive maintenance, context-aware interactions, remote monitoring and control, enhanced training and simulation capabilities, and a more fully-featured and intuitive user interface. For instance, The GSM Association, a non-profit organization based in the UK, projected in March 2023 that the quantity of IoT connections will more than double between 2021 and 2030, totaling 37.4 billion. As such, the escalating quantity of IoT devices is prompting the ascension of AI in the virtual and augmented reality market.
What Are The Main Segments Of The Global AI In Virtual Reality And Augmented Reality Market?
The AI in virtual reality and augmented reality market covered in this report is segmented –
1) By Type: Artificial Intelligence-Powered Virtual Reality (VR), Artificial Intelligence-Enhanced Augmented Reality (AR)
2) By Technology: Natural Language Processing (NLP), Computer Vision, Machine Learning, Deep Learning, Gesture Recognition, Speech Recognition, Simulated Environments
3) By Platform: Mobile Devices, Head-Mounted Displays (HMDs), Projectors And Smart Glasses, Wearables And Body Tracking Devices, Desktop Computers And Consoles
4) By Application: Gaming And Entertainment, Education And Training, Healthcare And Medical, Retail And E-commerce, Real Estate And Architecture, Automotive And Transportation, Tourism And Travel, Social Media And Communication, Industrial And Manufacturing, Military And Defense
Subsegments:
1) By Artificial Intelligence-Powered Virtual Reality (VR): AI-Driven VR Content Creation, Personalized VR Experiences, AI In VR Training And Simulation, Real-Time AI Interaction In VR
2) By Artificial Intelligence-Enhanced Augmented Reality (AR): AI-Powered Object Recognition, AI-Driven AR Navigation And Mapping, Real-Time AI Data Overlay, AI In AR Retail And Shopping Experiences
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What Emerging Trends Are Influencing The Growth Of The AI In Virtual Reality And Augmented Reality Market?
Prominent businesses in the AI in virtual and augmented reality industries are creating cutting-edge assisted reality eyewear to elevate their customer offerings. Assisted reality or smart glasses are wearable tech items that superimpose digital data, graphics, or visuals over the field of view of the wearer, amplifying their insight into the physical world. For instance, Oppo, a company that creates consumer electronics based in China, launched the OPPO Air Glass 3 in February 2024. This ground-breaking product is a set of assisted reality glasses equipped with a voice assistant driven by Oppo's extensive language model (LLM) called AndesGPT. These glasses are meant to be worn every day, enabling users to see digital content like messages or navigational maps superimposed onto the real world. The Air Glass 3 needs to be linked to an Oppo smartphone to function and can be managed by touching sensors on the side of the frame.
Who Are the Key Players In The AI In Virtual Reality And Augmented Reality Market?
Major companies operating in the AI in virtual reality and augmented reality market report are:
• Apple Inc.
• Alphabet Inc.
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Meta Platforms Inc.
• Sony Corporation
• Lenovo Group Limited
• Intel Corporation
• Qualcomm Incorporated
• NVIDIA Corporation
• Dassault Systemes SE
• PTC Inc.
• Sixense Enterprises Inc.
• Magic Leap Inc.
• HTC Corporation
• EON Reality Inc.
• Daqri LLC
• Zappar Ltd.
• Scope AR
• Vuzix Corporation
• Upskill
• Avegant Corporation
• Atheer Inc.
• Cognixion
• Marxent Labs LLC
What Is The Most Dominant Region In The AI In Virtual Reality And Augmented Reality Market?
North America was the largest region in the AI in virtual reality and augmented reality market in 2024. The regions covered in the AI in virtual reality and augmented reality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
