Augmented Reality and Virtual Reality Market Outlook and Strategic Insights by 2028

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 COVID-19 pandemic drastically affected the travel sector in the world in 2020 and early 2021. This sector is increasingly implementing AR and VR technologies to offer people a traveling experience by staying in their own homes. People could explore the world by sitting comfortably on their couches. Thus, companies are working hard to transform travel experiences with the help of self-guided tours technology. AR technology alters travelers' perceptions of their physical surroundings and provides supplemental tourism experiences and opportunities for interaction. According to an article published by Forbes in April 2021, City Guide Tour and similar AR mobile apps use object recognition to offer on-screen information about destinations of interest, including museums, landmarks, galleries, and parks, as tourists stroll through a town or city. The Street Life mobile app offers a library of crowd-sourced guided tours; viewers can watch this from home or navigate through in-person travel adventures while uploading their images. AR-powered glasses provide a more immersive experience, adding an element of fun and eliminating the need for a tour guide.

First Airlines offers immersive virtual reality travel trips to Rome, Hawaii, and Paris. Its VR experiences include first-class airline tickets with four-course meals, followed by VR tours of the main sights of destinations. Viewers can also explore virtual travel experiences through Google Earth VR, Oculus, and Immerse from The Hydrous. After the mitigation of the COVID-19 pandemic, these transformations in the travel sector will continue to enhance the augmented reality and virtual reality market growth as it is impossible for everyone to travel anywhere at any time. Trips with immersive experiences are affordable and bring endless joy to the viewer.

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

As augmented reality (AR) and virtual reality (VR) technologies are used in head-mounted displays (HMDs), they are expected to be majorly adopted by medical professionals as protective gear in the coming years. Despite the negative impact of the COVID-19 pandemic-associated lockdowns and low cross-border trade, the augmented reality and virtual reality market has continued to grow with the increasing shift toward adopting AR and VR technologies, and businesses switching to remote working or hybrid working. According to an article published by the INEWS, in 2020, the China Spring Cloud Auto Show was organized by combining AR technology, big data, Web 3D, panoramic content, and other technologies to present cutting-edge technologies and products from multiple perspectives. Therefore, the overall impact of the COVID-19 pandemic on the global augmented reality and virtual reality market in 2020 was positive. In 2021, HTC Corporation conducted an online conference for developers using VR technology. Also, the digital transformation of several businesses in sectors such as retail (e-commerce), education (e-learning), and healthcare (advanced equipment) would support the growth of the augmented reality and virtual reality market in the coming years.

Lucrative Regions for Augmented Reality and Virtual Reality Market

 

Augmented Reality and Virtual Reality Market Insights

Immersive Learning Experience with VR, AR, and Gamification Boosts Augmented Reality and Virtual Reality Market Growth

In the last few decades, the learning analytics landscape has dramatically expanded, especially for higher education. Students learn faster when they engage in the gamified version of lessons. Gaming features help create a fun and productive learning experience for learners. Gamification is common in e-learning platforms meant for K-12 level students. According to an article published by EducationWorld in December 2019, STEPapp launched India's first-of-its-kind gamified learning edtech app to revolutionize K-12 education in the country.

Further, since the introduction of virtual reality and augmented reality into education, the sector has experienced tremendous transformation in learning. VR provides a built reality, and AR provides an image with an improved view. Thus, a surge in the integration of virtual reality, augmented reality, and gamification technologies into educational techniques would offer better academic results and create demand for AR and VR solutions in augmented reality and virtual reality market growth.

Technology-Based Market Insights

Based on technology, the augmented reality and virtual reality market is segmented into augmented reality and virtual reality. In 2021, the augmented reality segment led the augmented reality and virtual reality market with a larger share.

Augmented Reality and Virtual Reality Market, by Technology, 2020 and 2028 (%)

Component - Based Market Insights

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.

End-User Industry-Based Market Insights

Based on 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.
The players operating in the augmented reality and virtual reality market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the augmented reality and virtual reality market. A few developments by key players are listed below:

• In February 2022, EON Reality and LA City College offered extended reality (xr) solutions for new programs and colleges.
• In February 2022, EON Reality and Nanyang Polytechnic renewed their partnership to create a new knowledge metaverse hub and expand it in Singapore. NYP will join EON Reality's global and ever-growing knowledge metaverse to take another step into the future of interactive teaching.

Company Profiles

• Immersive Gaze
• Google LLC
• EON Reality
• Vuzix Corporation
• Blippar Group Limited (Layar B V)
• Innovega Inc.
• Simulanis Solutions Private Limited
• Kanda ApS
• YeppAR
• Zugara, Inc.

Published Report - Augmented Reality and Virtual Reality Market Report Scope

Published Report - Augmented Reality and Virtual Reality Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Augmented Reality and Virtual Reality Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.