Gesture Recognition Market Expected to Reach $88.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Gesture Recognition Market," The gesture recognition market was valued at $13.9 billion in 2021, and is estimated to reach $88.2 billion by 2031, growing at a CAGR of 20.6% from 2022 to 2031.

Gesture recognition technology can be used in a variety of applications, such as human-computer interaction, virtual reality, robotics, and gaming. It has the potential to enhance user experience and make interactions more natural and intuitive, as it allows users to communicate with technology in a way that mimics real-world human interactions.

Moreover, gesture recognition technology is still a rapidly evolving field, with ongoing R&D focused on improving its accuracy, speed, and versatility. As technology becomes more advanced and accessible, it has the potential to revolutionize the way firms are interacting with computers, devices, and each other.

Furthermore, increasing demand for contactless interfaces and the rising popularity of gaming applications are driving the growth of the market. In addition, the increasing usage of smart devices in various industries is fueling the growth of the gesture recognition market. However, high development and implementation costs and high battery power consumption by gesture recognition components limit the growth of the market. Conversely, the growing demand for augmented and virtual reality applications is anticipated to provide numerous opportunities for the expansion of the market during the forecast period.

On the basis of industry vertical, consumer electronics segment dominated the market in 2021 and is expected to continue its dominance during the forecast period, owing to the growing proliferation of smart home automation, and surge in demand for gaming and virtual & augmented reality solutions. However, the aerospace and defense segment is expected to witness the highest growth in the upcoming years, owing to the adoption of gesture recognition technology can enhance training by improving learning outcomes and reducing training costs. This factor is expected to drive segment growth globally.

Region-wise, the gesture recognition market was dominated by North America in 2021 and is expected to maintain its position during the forecast period. Improvements in digital innovation and strengthened user experience are also acting as key forces for driving the growth of the North America gesture recognition market. However, Asia-Pacific is expected to witness significant growth during the forecast period. The rise in a number of digital transformation initiatives, along with the growing adoption of advanced technology, such as machine learning, data analytics, augmented reality, and virtual reality is expected to drive the gesture recognition market growth.

The COVID-19 pandemic has had a mixed impact on the gesture recognition market size. During the Covid, the demand for touchless gesture recognition systems has increased significantly due to the rise in need for contactless interactions to prevent the spread of the virus. Hence, healthcare, retail, and hospitality, are some of the key sectors that encouraging the adoption for gesture recognition solutions. On the other hand, the pandemic has also resulted in a slowdown of the global economy, which has had an adverse effect on the overall demand for innovative technologies, including gesture recognition. The pandemic has also disrupted global supply chains, leading to delays in the production and delivery of gesture recognition systems. Further, it is expected that the demand for touchless gesture recognition systems in various industries will continue to drive the growth of the market despite the impact of the pandemic. However, the growth rate may be slightly lower than initially anticipated due to the economic slowdown caused by the pandemic.

Furthermore, the healthcare industry is yet another example of AR/VR gesture recognition applications. AR/VR applications are increasingly being adopted in surgical training, in order to practice surgical operations in a virtual environment where users can handle virtual objects using hand gestures. Hence, several companies and government authorities are investing in AR and VR technologies intending to improve user experience and efficient monitoring. For instance, in January 2023, Magic Leap’s gained $450 million from the Saudi Arabian Public Investment Fund (PIF). Through this investment, the company owns almost half of Magic Leap business. Moreover, companies in the healthcare, manufacturing, and entertainment industries are also collaborating to improve industrial processes with significant technology integration, eventually creating numerous opportunities for the market growth across the world.

KEY FINDINGS OF THE STUDY

• By industry vertical, the consumer electronics segment accounted for the largest gesture recognition market share in 2021.
• Region-wise, North America generated the highest revenue in 2021.
• On the basis of technology, the touch-based system segment generated the highest revenue in 2021.

The global gesture recognition market is dominated by key players such as Amazon Web Services, Inc., Apple Inc., Google LLC, Hitachi Ltd., IBM Corporation, Microsoft Corporation, Qualcomm Technologies, Inc., Orbbec, Intel Corporation, GestureTek Technologies, LTU Technologies, Cipia (Eyesight Technologies Ltd.), Infineon Technologies AG, Microchip Technology Incorporated. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.