Augmented and Virtual Reality Market Expected to Reach $856.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Augmented and Virtual Reality Market," The augmented and virtual reality market size was valued at $27.6 billion in 2021, and is estimated to reach $856.2 billion by 2031, growing at a CAGR of 41.1% from 2022 to 2031.

The unprecedented demand for better hardware and software technologies is a crucial factor for development of the market. The use of AR and VR technology is not restricted to a particular age group, and the heterogeneity of demand has given an impetus to market growth. A large number of people are inclined toward buying latest electronic gadgets. Further, increased affordability of the masses has created a farrago of opportunities within the augmented and virtual reality market, which is expected to be beneficial for the market growth in the upcoming year.

By organization size, the large enterprises segment exhibited the highest growth in the AR and VR market in 2021, and is expected to maintain its dominance in the upcoming years. This is due to rising applications of augmented and virtual reality in automotive, manufacturing, construction, extractive industry, aircraft, healthcare, education, law enforcement, and real estate industries. However, the SMEs segment is expected to witness the highest growth, due to AR and VR Technologybenefits such as reduced field staff training costs, faster repairs, and greater customer satisfaction.

Depending on industry vertical, the gaming sector dominated the Augmented and Virtual Reality Market Share in 2021 and is expected to continue this trend during the forecast period. This is attributed to continuous advancements in technology; increased penetration of mobile devices & gaming consoles; and significant expansion in the gamer community is projected to drive the market growth during the forecast period. However, retail sector is expected to witness the highest growth in the upcoming year. Growth in customer demand for personalization and convenience has been constantly motivating the retailers to implement AR and VR in-store, through its apps and within their products. The adoption of augmented reality (AR) technology, allows users to view the actual environment superimposed with digital data that has potential to transform the retail industry. Such benefits provide lucrative growth opportunities for the market in the upcoming year.

The pandemic has caused recessionary economy that has forced various enterprises across the globe to dramatically and rapidly shift their operations. The industries around the globe are being severely affected by the COVID-19 induced recession; however, impact on the technology sector during the crisis was comparatively lesser than the rest of the economy.

During the pandemic, most of the organizations has reduced their spending on IT. Hence, the large enterprises market has observed slowdown, with numerous planned projects and investments being delayed or postponed. However, despite the financial impacts of the pandemic around the global economy, still various organizations are adopting augmented and virtual reality during COVID-19 to enhance its operations.

On the contrary, during COVID-19 outbreak it potentially increased market demand from healthcare and law enforcement for operate work smoothly and efficiently. Technology plays a key role in helping address the near term challenges the virus has created. Further, the AR modelled 3D visualization helps medical teaching staff to provide an immersive learning experience to the students/budding surgeons. Augmented reality facilitates surgeons to visualize joints, muscles, and internal organs without making incisions into the patient’s body and make further decision about incisions post diagnosing the body through augmented reality technologies. This leads to increase in the accuracy of diagnosis as well as surgeries.

Key Findings of the Study

• By organization size, the large enterprises dominated the augmented and virtual reality market analysis in 2021. However, the SMEs is expected to exhibit significant growth during the forecast period.
• On the basis of application, the consumer segment dominated the Augmented and virtual reality market forecast in 2021; However, the enterprise segment is expected to witness the highest growth rate during the forecast period.
• Depending on industry vertical, the gaming industry generated the highest revenue in 2021. However, the retail industry is expected to witness the highest growth rate in the near future.
• Region-wise, the AR and VR market was dominated by North America in 2021. However, Asia-Pacific is expected to witness significant growth in the coming years.

This report gives an in-depth profile of some key market players in the augmented and virtual reality industry, include Alphabet Inc. (Google Inc.), DAQRI, Facebook, HTC Corporation, Magic Leap, Microsoft Corporation, Osterhout Design Group, Samsung Electronics, Sony Corporation and Wikitude GmbH. This study includes augmented and virtual reality industry trends, market analysis, and future estimations to determine the imminent investment pockets.