augmented reality and virtual reality Market

The augmented reality and virtual reality market is expected to grow from US$ 27.96 billion in 2021 to US$ 252.16 billion by 2028; it is estimated to grow at a CAGR of 36.9% during 2021-2028.

The incorporation of AI-powered chatbots and virtual assistants has significantly improved customer support departments in various enterprises. However, remote troubleshooting remains a challenge for chatbots. To address this issue, businesses are turning to virtual reality technology to enhance customer engagements and satisfaction, as well as to resolve fundamental and challenging issues in less time. Implementing excellent customer service initiatives is a great way for businesses to demonstrate their respect for their customers, and virtual reality is one of the most advanced technologies that can assist the retail sector in achieving this. By creating an immersive experience with a powerful sensory effect and a solid emotional connection, virtual reality allows businesses to engage with customers in new and relevant ways, which can lead to repeat purchases and brand loyalty. Additionally, virtual reality provides marketers with an opportunity to create exciting and emotional VR ads that can display products in new ways. For example, The North Face used virtual reality to create an immersive experience that allowed customers to connect with the brand's identity using the landscape of Nepal. As a result, the use of virtual reality solutions across retail stores is fueling the growth of the augmented reality and virtual reality market.

The use of augmented reality (AR) is on the rise globally, driven by increased investments in the AR industry, a growing demand for AR devices and solutions in the healthcare sector, and a surge in demand for AR in the e-commerce and retail industries. In healthcare, AR technology can provide surgeons with a virtual view of a patient's body, enabling them to make accurate assessments and perform invasive procedures with greater precision. AR is also being used in medical education, physical fitness, pharmacy management, and patient care. The VR market is also expanding due to the availability of affordable VR devices, increased adoption of head-mounted displays (HMDs) in various industries, technological advancements, and growing digitization. The COVID-19 pandemic has further boosted the use of HMDs in gaming and entertainment. However, the lack of user-friendly interfaces, processing power, and storage for AR devices are factors hindering the growth of the AR and VR market.

Impact of COVID-19 Pandemic on Augmented Reality and Virtual Reality Market

In the coming years, medical professionals are expected to adopt AR and VR technologies in head-mounted displays (HMDs) as protective gear. Despite the negative effects of COVID-19 lockdowns and low cross-border trade, the AR and VR market has continued to grow due to increased adoption of these technologies in remote and hybrid working environments. An INEWS article highlights the use of AR technology, big data, and Web 3D in the China Spring Cloud Auto Show to showcase advanced technologies and products from multiple perspectives. This led to a positive impact on the global AR and VR market in 2020. HTC Corporation organized an online conference for developers using VR technology in 2021, and digital transformation in industries such as retail (e-commerce), education (e-learning), and healthcare (advanced equipment) will further support the growth of the AR and VR market in the future.

Based on technology, the augmented reality and virtual reality market is bifurcated into augmented reality and virtual reality. In 2021, the augmented reality segment led the augmented reality and virtual reality market. Based on component, the augmented reality and virtual reality market is segmented into semiconductor components, sensors, and others. In 2021, the semiconductor components segment accounted for the largest market share. Based on the end-user industry, the augmented reality and virtual reality market is segmented into entertainment, educational, industrial, medical, real estate & architecture, retail, aerospace & defense, and others. In 2021, the entertainment segment accounted for the largest market share. By geography, the augmented reality and virtual reality market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share in the augmented reality and virtual reality market.

The augmented reality and virtual reality market size has been determined through a combination of primary and secondary research. The research process began with extensive secondary research, using both internal and external sources to collect qualitative and quantitative data related to the market. This process provided an overview and forecast for the AR and VR market across all segments, including the five major regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America. To validate data and gain further analytical insights, primary interviews were conducted with industry participants, such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the AR and VR market.

The key companies operating in the augmented reality and virtual reality market include Immersive Gaze; Google LLC; EON Reality; Vuzix Corporation; Blippar Group Limited (Layar B V); Innovega Inc.; Simulanis Solutions Private Limited; Kanda ApS; YeppAR; and Zugara, Inc.