What Has Been The Evolution of the Augmented Reality AR And Virtual Reality VR Hardware Market in Recent Years?
The augmented reality ar and virtual reality vr hardware market has seen considerable growth due to a variety of factors.
• In recent times, there has been an exponential growth in the market size of augmented reality (AR) and virtual reality (VR) hardware. It's projected that the market will expand from $62.52 billion in 2024 to approximately $84.12 billion in 2025, boasting a compound annual growth rate (CAGR) of 34.5%.
The historic growth is primarily due to factors including the rising acceptance of internet of things (IOT), proliferating use of smartphones, increased focus on product visualization, a growing need for electronic devices, and the increased uptake of smart devices.
What Is the Forecasted Market Size and Growth Rate for The Augmented Reality AR And Virtual Reality VR Hardware Market in the Coming Years?
The augmented reality ar and virtual reality vr hardware market is expected to maintain its strong growth trajectory in upcoming years.
• The market for augmented reality (AR) and virtual reality (VR) hardware is predicted to experience significant expansion in the coming years, reaching a size of $272.85 billion in 2029, with a compound annual growth rate (CAGR) of 34.2%.
This anticipated surge over the forecast period is largely due to factors such as the development of immersive gaming, the emergence of 5G technology, advancements in 3D visualization, the progression of cloud computing technology, and increasing demand for data analysis. The forecast period also sees key trends such as incorporating cloud computing and artificial intelligence, integration with smart homes and Internet of Things, progress in 3D scanning technology, advancements in gaming technology, and innovation in gaming peripherals.
What Are The Primary Growth Drivers In The Augmented Reality AR And Virtual Reality VR Hardware Market?
The burgeoning trend of cloud gaming is set to significantly boost the development of the Augmented Reality (AR) and Virtual Reality (VR) hardware market. Cloud gaming pertains to video games that are streamed from distant servers, as opposed to being run locally on a user's device, thus eliminating the need for high-powered hardware. This upsurge in cloud gaming can be attributed to faster internet connectivity, lower hardware expenses, as well as the ease of instant, multi-device access via subscription services. AR and VR hardware further elevate cloud gaming by providing engrossing, interactive experiences that integrate smoothly with cloud-based platforms, delivering top-tier, real-time graphics and swift game response. For example, per a report by Uswitch Limited, a UK-based service for online and telephonic comparisons and switching, there's an estimated 6.64% growth expected in the number of online gamers in the UK, with a rise from 10.84 million in 2023 to 11.56 million by 2027. The Interactive Games and Entertainment Association, an industry association based in Australia noted in 2023 that, 67% of Australians, equating 17 million people, engaged in video games in 2021. This increased to 81% (21 million) in 2023. As such, the emergence of cloud gaming is indeed fostering the expansion of the AR and VR hardware market.
What Are The Main Segments Of The Global Augmented Reality AR And Virtual Reality VR Hardware Market?
The augmented reality (AR) and virtual reality (VR) hardware market covered in this report is segmented –
1) By Hardware Type: Cameras, Controllers, Display Monitors, Headphones, Processors, Sensors, Other Hardware Types
2) By Application: Handheld Devices, Head Mounted Display, Head Up Display
3) By Industry Vertical: Aerospace And Defense, Automotive, Education And Training, Gaming And Entertainment, Healthcare, Other Industry Verticals
Subsegments:
1) By Cameras: Depth Cameras, RGB Cameras, Stereoscopic Cameras
2) By Controllers: Motion Controllers, Handheld Controllers, Wearable Controllers
3) By Display Monitors: AR Glasses, VR Headsets, Smart Glasses, Projection Displays
4) By Headphones: Stereo Headphones, 3D Audio Headphones, Noise Cancelling Headphones
5) By Processors: Graphics Processing Units (GPUs), Central Processing Units (CPUs), Application-Specific Integrated Circuits (ASICs)
6) By Sensors: Motion Sensors, Proximity Sensors, Positional Sensors, Eye-Tracking Sensors
7) By Other Hardware Types: Haptic Devices, AR Or VR Gloves, Tracking Devices
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What Emerging Trends Are Influencing The Growth Of The Augmented Reality AR And Virtual Reality VR Hardware Market?
Major companies operating in the augmented reality (AR) and virtual reality (VR) hardware market are focusing on developing innovative solutions, such as enterprise-grade virtual reality headsets, to enhance immersive experiences across various sectors. An enterprise-grade virtual reality headset refers to one designed for professional use, offering high-resolution displays, precise tracking, and robust build quality for industries like training, design, and engineering. For instance, in September 2023, Deepoon (DPVR), a China-based technology company, launched the DPVR P2, an enterprise-grade virtual reality headset designed to enhance immersive experiences in education, business, and healthcare. This headset boasts superior visual quality with high-resolution displays and wide field-of-view optics, delivering immersive experiences crucial for training, simulations, and collaborative work environments. Its robust connectivity options, including wireless and tethered capabilities, ensure seamless integration with existing enterprise systems. Additionally, the headset supports customizable software solutions, enabling businesses to tailor the VR experience to their unique requirements.
Who Are the Key Players In The Augmented Reality AR And Virtual Reality VR Hardware Market?
Major companies operating in the augmented reality (AR) and virtual reality (VR) hardware market are:
• Apple Inc.
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Sony Interactive Entertainment LLC
• Lenovo Group Limited
• NVIDIA Corporation
• Goertek Inc.
• NXP Semiconductor N.V.
• Valve Corporation
• Acer Incorporated
• High Tech Computer Corporation
• Bose Corporation
• Robert Bosch GmbH
• Magic Leap Inc.
• TCL Technology Group Corporation
• Pimax Technology Co. Ltd.
• Varjo Technologies Oy
• Vuzix Corporation
• Deepoon VR
• AjnaLens Private Limited
What Is The Most Dominant Region In The Augmented Reality AR And Virtual Reality VR Hardware Market?
North America was the largest region in the augmented reality (AR) and virtual reality (VR) hardware market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the augmented reality (AR) and virtual reality (VR) hardware market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
