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Augmented Reality and Virtual Reality Market by Technology and Geography - Forecast and Analysis 2021-2025

  • Published: Jun 2021
  • Pages: 120
  • SKU: IRTNTR43509
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The augmented reality (AR) and virtual reality (VR) market share is expected to increase by USD 162.71 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 46%.

This augmented reality (AR) and virtual reality (VR) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers augmented reality (AR) and virtual reality (VR) market segmentation by technology (AR and VR) and geography (North America, APAC, Europe, MEA, and South America). The augmented reality (AR) and virtual reality (VR) market report also offers information on several market vendors, including Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp. among others.

What will the Augmented Reality (AR) and Virtual Reality (VR) Market Size be During the Forecast Period?

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Augmented Reality (AR) and Virtual Reality (VR) Market: Key Drivers, Trends, and Challenges

The increasing demand for ar and vr technology is notably driving the augmented reality (AR) and virtual reality (VR) market growth, although factors such as high development costs associated with AR and VR apps may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the augmented reality (AR) and virtual reality (VR) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Augmented Reality (AR) and Virtual Reality (VR) Market Driver

The increasing demand for VR and AR technology will boost the growth of the AR and VR market during the forecast period. An increasing number of customers are actively requesting VR solutions, whereas others are curious about VR and are seeking information about it. Technological innovations will drive the demand for AR and VR applications during the forecast period as these applications will enable users to use the technology in a more user-friendly manner. Wearable technology platforms will likely enhance the utility of AR in everyday life. The growing application area of AR and VR technology in different fields, such as education, medical, retail, and training, will further boost the growth of the global AR and VR market. 

Key Augmented Reality (AR) and Virtual Reality (VR) Market Trend

The adoption of various business strategies by vendors is another major factor supporting the augmented reality (AR) and virtual reality (VR) market share growth. The increasing number of partnerships and collaborations among vendors is likely to drive the growth of the global AR and VR market during the forecast period. Vendors are opting for diverse business strategies, such as partnerships and collaborations, with end-users and other vendors to improve and upgrade their product portfolios and explore new application areas for their AR and VR software platforms. Such strategies are expected to drive the growth of the global AR and VR market during the forecast period

This augmented reality (AR) and virtual reality (VR) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global AR and VR market as a part of the global application software market within the global IT software market. The parent global IT software market covers companies that are engaged in developing and producing application and system software. It also includes companies offering database management software. The global application software market covers companies that are engaged in developing and producing software designed for specialized applications for the business or consumer market. It includes enterprise and technical software, as well as cloud-based software. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the augmented reality (AR) and virtual reality (VR) market during the forecast period.

Who are the Major Augmented Reality (AR) and Virtual Reality (VR) Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • Alphabet Inc.
  • Facebook Inc.
  • HP Inc.
  • HTC Corp.
  • Magic Leap Inc.
  • Microsoft Corp.
  • Samsung Electronics Co. Ltd.
  • Snap Inc.
  • Sony Corp.
  • Toshiba Corp.

 

This statistical study of the augmented reality (AR) and virtual reality (VR) market encompasses successful business strategies deployed by the key vendors. The augmented reality (AR) and virtual reality (VR) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

  • Alphabet Inc.-The company offers AR and VR under the brand name Google AR & VR.
  • Facebook Inc-The company offers AR and VR under the brand name Oculus virtual reality products.
  • HP Inc-The company offers AR and VR under the brand names Workstation Class VR: HP Z840 Workstation, Production Class VR: HP
  • Elite 800 VR Ready PCs, Mainstream VR: HP Z440 Workstation,
  • Microsoft Corp-The company offers AR and VR under the brand names HoloLens 2 devices, HP Reverb G2 VR Headset, and Ultimate VR immersion.
  • Samsung Electronics Co. Ltd-The company offers AR and VR under the brand name Gear VR.
  • Snap Inc-The company offers AR and VR under the brand name Snap Augmented Reality.
  • Sony Corp-The company offers AR and VR under the brand name Smart AR and PlayStation VR.
  • Toshiba Corp-The company offers AR and VR under the brand name dynaEdge AR Smart Glasse

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The augmented reality (AR) and virtual reality (VR) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Augmented Reality (AR) and Virtual Reality (VR) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the augmented reality (AR) and virtual reality (VR) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the augmented reality (AR) and virtual reality (VR) market includes the following core components:

  • Inputs
  • Software development process
  • Marketing and distribution
  • Post-selling services
  • Innovation

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Augmented Reality (AR) and Virtual Reality (VR) Market?

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34% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for augmented reality and virtual reality in APAC. Market growth in this region will be faster than the growth of the market in other regions.

Factors such as the presence of key vendors; the growing gaming industry in Asia, especially in Japan, China, and India; and rising investments in AR and VR technologies to expand their application in different fields will facilitate the augmented reality (AR) and virtual reality (VR) market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 caused several fatalities in the region, which led to the imposition of lockdowns in many countries. The outbreak severely affected IT companies, especially startup companies. However, IT companies witnessed a surge in the adoption of cloud services, and the demand for online platforms such as Facebook, Zoom, and Microsoft Teams increased the adoption of AR and VR solutions. This is expected to accelerate the growth of the market in APAC during the forecast period.

What are the Revenue-generating Technology Segments in the Augmented Reality (AR) and Virtual Reality (VR) Market?

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The augmented reality (AR) and virtual reality (VR) market share growth by the AR segment will be significant during the forecast period. Factors such as new product (hardware and software) launches, growing adoption of AR in different application areas, and rising funding and investments in AR technology are attributed to the high growth rate of the AR segment. The extensive application of AR in various fields increases its demand. Moreover, several vendors manufacture hardware, such as headsets, smart glasses, and lenses for AR technology. The rise in popularity of AR technology is driving its use in various sectors such as enterprise, retail, healthcare, media and entertainment, and education.

This report provides an accurate prediction of the contribution of all the segments to the growth of the augmented reality (AR) and virtual reality (VR) market size and actionable market insights on post COVID-19 impact on each segment.

 

Augmented Reality (AR) and Virtual Reality (VR) Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 46%

Market growth 2021-2025

$ 162.71 billion

Market structure

Fragmented

YoY growth (%)

25.13

Regional analysis

North America, APAC, Europe, MEA, and South America

Performing market contribution

APAC at 34%

Key consumer countries

US, China, Japan, Germany, and UK

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Augmented Reality (AR) and Virtual Reality (VR) Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive augmented reality (AR) and virtual reality (VR) market growth during the next five years
  • Precise estimation of the augmented reality (AR) and virtual reality (VR) market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the augmented reality (AR) and virtual reality (VR) industry across North America, APAC, Europe, MEA, and South America
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of augmented reality (AR) and virtual reality (VR) market vendors

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1. Executive Summary                           

2. Market Landscape                             

                2.1 Market ecosystem             

                                Exhibit 01:  Parent market

                2.2 Market Characteristics      

                                Exhibit 02:  Market Characteristics

                2.3 Value chain analysis           

                                Exhibit 10:  Value chain analysis: Application software

                                2.3.1 Inputs 

                                2.3.2    Software development process

                                2.3.3    Marketing and distribution

                                2.3.4    Post-selling services

                                2.3.5    Innovation

3. Market Sizing                       

                3.1 Market definition

                                Exhibit 11:  Offerings of vendors included in the market definition

                3.2 Market segment analysis 

                                Exhibit 12:  Market segments

                3.3 Market size 2020 

                3.4 Market outlook: Forecast for 2020 - 2025 

                                Exhibit 13:  Global - Market size and forecast 2020 - 2025 ($ billion)

                                Exhibit 14:  Global market: Year-over-year growth 2020 - 2025 (%)

4. Five Forces Analysis                          

                4.1 Five Forces Summary        

                                Exhibit 15: Five forces analysis 2020 & 2025

                4.2 Bargaining power of buyers           

                4.3 Bargaining power of suppliers       

                4.4 Threat of new entrants    

                4.5 Threat of substitutes         

                4.6 Threat of rivalry   

                4.7 Market condition

                                Market condition - Five forces 2020

5.    Market Segmentation by Technology                    

                The segments covered in this chapter are:

  • AR
  • VR

The two segments have been ranked based on their market size in 2020. The AR segment constituted the largest segment in 2020, while the smallest segment was VR.

                5.1 Market segments

                                Exhibit 22:  Technology - Market share 2020-2025 (%)

                5.2 Comparison by Product    

                                Exhibit 23:  Comparison by Technology

                5.3     AR - Market size and forecast 2020-2025               

                                Exhibit 24:  AR - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 25:  AR - Year-over-year growth 2020-2025 (%)

                5.4     VR - Market size and forecast 2020-2025               

                                Exhibit 26:  VR - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 27:  VR - Year-over-year growth 2020-2025 (%)

                5.5     Market opportunity by Technology        

                                Exhibit 28:   Market opportunity by Technology

6. Customer landscape                         

Technavio’s customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria

                                Exhibit 29:  Customer landscape

7. Geographic Landscape                     

                The regions covered in the report are:

  • North America
  • APAC
  • Europe
  • MEA
  • South America

North America was the largest region of the market in 2020 and would improve its relative position in the overall market to become the second largest segment of the market in 2025. It would grow at a compounded annual growth rate of 42.99% between 2020 and 2025, which is slower than the overall market. North America would be the third-fastest growing region within the overall market and would grow from $10.32 billion in 2020 to $61.69 billion in 2025. North America would contribute 31.57% of the incremental growth in the overall market between 2020 and 2025.

                7.1 Geographic segmentation

                                Exhibit 30:  Market share by geography 2020-2025 (%)

                7.2 Geographic comparison   

                                Exhibit 31: Geographic comparison

                7.3 North America - Market size and forecast 2020-2025​          

                                Exhibit 32:  North America - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 33: ​North America - Year-over-year growth 2020-2025 (%)

                7.4     APAC - Market size and forecast 2020-2025          

                                Exhibit 34:  APAC - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 35:  APAC - Year-over-year growth 2020-2025 (%)

                7.5     Europe - Market size and forecast 2020-2025       

                                Exhibit 36:  Europe - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 37:  Europe - Year-over-year growth 2020-2025 (%)

                7.6     MEA - Market size and forecast 2020-2025           

                                Exhibit 38:  MEA - Market size and forecast 2020-2025 ($ billion

                                Exhibit 39:  MEA - Year-over-year growth 2020-2025 (%)

                7.7     South America - Market size and forecast 2020-2025        

                                Exhibit 40:  South America - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 41:  South America - Year-over-year growth 2020-2025 (%)

                7.8 Key leading countries        

                                Exhibit 42: Key leading countries

                7.9     Market opportunity by geography           

                                Exhibit 43:  Market opportunity by geography ($ billion)

8. Drivers, Challenges, and Trends                   

                8.1 ​Market drivers     

                                8.1.1    Increasing demand for AR and VR technology

                                8.1.2    Product launches

                                8.1.3    Increasing number of M&A activities

                8.2 Market challenges              

                                8.2.1    High development costs associated with AR and VR apps

                                8.2.2    Risks associated with AR and VR applications

                                8.2.3    Limitations of AR and VR technology

                                Exhibit 46:  Impact of drivers and challenges

                8.3 Market trends      

                                8.3.1    Increasing popularity of coffee among millennials

                                8.3.2    Growing demand for premium and specialty coffee

                                8.3.3    Promotion strategies by vendors to increase coffee consumption

9. Vendor Landscape                             

                9.2 Vendor landscape               

                                Exhibit 48:  Vendor landscape

                9.3 Landscape disruption        

The potential for the disruption of the market landscape was moderate in 2020, and its threat is expected to remain unchanged by 2025. 

                                Exhibit 49: ​Landscape disruption​

                9.4 Industry risks        

                                Exhibit 50: Industry risks

10. Vendor Analysis               

                10.1 Vendors covered              

                                Exhibit 51: Vendors covered

                10.2 Market positioning of vendors    

                                Exhibit 52: ​Market positioning of vendors​

                10.3  Alphabet Inc.    

                                Exhibit 53:  Alphabet Inc. - Overview

                                Exhibit 54:  Alphabet Inc. - Business segments

                                Exhibit 55:  Alphabet Inc. - Key offerings

                                Exhibit 56:  Alphabet Inc. - Segment focus

                10.4  Facebook Inc.   

                                Exhibit 57:  Facebook Inc. - Overview

                                Exhibit 58:  Facebook Inc. - Business segments

                                Exhibit 59: Facebook Inc. - Key news

                                Exhibit 60:  Facebook Inc. - Key offerings

                10.5  HP Inc.

                                Exhibit 61:  HP Inc. - Overview

                                Exhibit 62:  HP Inc. - Business segments

                                Exhibit 63:  HP Inc. - Key news

                                Exhibit 64:  HP Inc. - Key offerings

                                Exhibit 65:  HP Inc. - Segment focus

                10.6 HTC Corp.

                                Exhibit 66:  HTC Corp. - Overview

                                Exhibit 67:  HTC Corp. - Business segments

                                Exhibit 68:  HTC Corp. - Key offerings

                10.7  Magic Leap Inc.

                                Exhibit 69:  Magic Leap Inc. - Overview

                                Exhibit 70:  Magic Leap Inc. - Product and service

                                Exhibit 71:  Magic Leap Inc. - Key news

                                Exhibit 72:  Magic Leap Inc. - Key offerings

                10.8  Microsoft Corp.

                                Exhibit 73:  Microsoft Corp. - Overview

                                Exhibit 74:  Microsoft Corp. - Business segments

                                Exhibit 75:  Microsoft Corp. - Key news

                                Exhibit 76:  Microsoft Corp. - Key offerings

                                Exhibit 77:  Microsoft Corp. - Segment focus

                10.9  Samsung Electronics Co. Ltd.      

                                Exhibit 78:  Samsung Electronics Co. Ltd. - Overview

                                Exhibit 79:  Samsung Electronics Co. Ltd. - Business segments

                                Exhibit 80:  Samsung Electronics Co. Ltd. - Key news

                                Exhibit 81:  Samsung Electronics Co. Ltd. - Key offerings

                                Exhibit 82:  Samsung Electronics Co. Ltd. - Segment focus

                10.10 Snap Inc.

                                Exhibit 83:  Snap Inc. - Overview

                                Exhibit 84:  Snap Inc. - Business segments

                                Exhibit 85: Snap Inc. - Key news

                                Exhibit 86:  Snap Inc. - Key offerings

                10.11 Sony Corp.        

                                Exhibit 87:  Sony Corp. - Overview

                                Exhibit 88:  Sony Corp. - Business segments

                                Exhibit 89:  Sony Corp. - Key news         

                                Exhibit 90:  Sony Corp. - Key offerings

                                Exhibit 91:  Sony Corp. - Segment focus

                10.12 Toshiba Corp.  

                                Exhibit 92:  Toshiba Corp. - Overview

                                Exhibit 93:  Toshiba Corp. - Business segments

                                Exhibit 94:  Toshiba Corp. - Key news

                                Exhibit 95:  Toshiba Corp. - Key offerings

                                Exhibit 96:  Toshiba Corp. - Segment focus

11. Appendix                            

                11.1 Scope of the report         

                                11.1.1 ​​​​Market definition

                                11.1.2 ​​​​Objectives

                                11.1.3 ​​​​Notes and caveats

                11.2 Currency conversion rates for US$            

                                Exhibit 97:  Currency conversion rates for US$

                11.3 Research Methodology 

                                Exhibit 98:  Research Methodology

                                Exhibit 99: ​​Validation techniques employed for market sizing​

                                Exhibit 100: ​​Information sources

                11.4 List of abbreviations        

                                Exhibit 101: List of abbreviations

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

TechnavioINFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases
Technavio

TechnavioDATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts
Technavio

TechnavioREPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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The augmented reality (ar) and virtual reality (vr) market market growth will increase by $$ 162.71 bn during 2022-2025.
The augmented reality (ar) and virtual reality (vr) market market is expected to grow at a CAGR of 46% during 2022-2025.
Technavio has segmented the augmented reality (ar) and virtual reality (vr) market market by technology (AR and VR) and geography (North America, APAC, Europe, MEA, and South America).
Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., Toshiba Corp. are a few of the key vendors in the augmented reality (ar) and virtual reality (vr) market market.
APAC will register the highest growth rate of 34% among the other regions. Therefore, the augmented reality (ar) and virtual reality (vr) market market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the augmented reality (ar) and virtual reality (vr) market market growth are:
  • increasing demand for AR and VR technology
  • Increasing number of M&A activities
The augmented reality (ar) and virtual reality (vr) market market vendors should focus on grabbing business opportunities from the ar segment as it accounted for the largest market share in the base year.
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