The augmented reality (AR) and virtual reality (VR) market is expected to witness a strong CAGR, of 42.9%, during the forecast period (2020–2030), owing to the soaring focus of vendors on price reduction, growing penetration of tablet computers and smartphones, and surging adoption of AR and VR technologies in the healthcare, gaming, tourism, education, and entertainment industries. According to P&S Intelligence, the market was valued at $37.0 billion in 2019 and it is projected to reach $1,274.4 billion by 2030.
The rising focus of vendors on price reduction is one of the key contributors to the market growth, owing to the surging technological advancements in hardware and software. Constant technological innovations in the field of optics will result in the development of flexible, compact, and cost-effective displays for smart glasses and headsets. In recent years, market players have been providing software development kits (SDKs) to application developers at reasonable costs.
Read More: AR and VR Market Analysis and Demand Forecast Report
In addition, the increasing adoption of AR and VR technologies among enterprises will also catalyze the AR and VR market growth, worldwide. Business organizations are the key targets of leading app developers, device manufacturers, and solution providers because they adopt a wide range of applications. Moreover, most of the Fortune 500 companies are now experimenting with AR and VR technologies and some of them have already started their pilot projects. For instance, The Boeing Company decreased its wiring production time by 25% and reduced the error rate by deploying smart glass displays.
The type segment of the AR and VR market is bifurcated into AR and VR. Of these, the AR category is expected to demonstrate faster growth throughout the forecast period, due to the endless benefits and possibilities provided by AR technology. This technology offers connected experience to customers when combined with consistently evolving wireless technology, which enables the incorporation of AR into connected devices and home appliances. Additionally, the ability of AR technology to combine digital information with the physical environment in real time will also facilitate the growth of the market in this category.
Globally, the North American AR and VR market generated the highest revenue in 2019. This is ascribed to the widening application base of AR and VR technologies in the e-commerce and healthcare industries, in the region. In North America, the U.S. accounts for larger share, due to the presence of leading market players in the country. For instance, AccuVein Inc., a U.S.-based medical imaging solution provider, provides AR solutions to assist medical professionals in locating veins in patients.
