According to the new research report published by The Insight Partners, titled “Augmented Reality and Virtual Reality Market - Global Analysis and Forecast to 2025”, the global augmented reality and virtual reality market is expected to reach US$ 130.01 billion in 2025, registering a CAGR of 41.2% during the forecast period 2016 to 2025.
In 2015, North America accounted for the second largest revenue share of little more than one-third of the total market share, followed by Europe.
The global AR and VR market is classified based on geography into North America, Europe, the APAC, MEA, and SAM. North America will lead the market with many early adopters of AR and VR technology followed by Europe in 2015. APAC will account for fastest growing regions which is evident through continuous engagement of collaboration and merger activities between service providers, software developers and device manufacturers. MEA and SAM will experience a nominal growth during the forecast period.
AR and VR are transforming the way manufacturing, industries, factories and others operate, the digital images and data have made the processes much easier. AR adds the digital data on to the real environment allowing the user to explore more details of the real environment. This application of AR is a step ahead of VR application which allows user to view the reality by simulation. AR applications are more feasible as they can be deployed on smartphones and tablets, these applications in industrial scenario help employees to understand the tools, machineries, and other applications include training, diagnosis of the machinery and repair. For instance, Ford Motors use AR and VR technology in designing the car models before prototyping the models. The industrial market for augmented reality and virtual reality is expected to witness a lucrative CAGR growth of 42.7% in the forecast period.
Growing adoption of computer technology and improving connectivity across APAC region will drive the growth of AR and VR market. These technologies have widespread application across different domain such as healthcare, entertainment, marketing, sports, automotive, and industrial. Currently the adoption rate of these technologies in APAC is limited and observed to have more potential going ahead. The growth of smartphones and tablets will drive the market as most of the applications of AR and VR are consumer focused. Rising demand for smartphones and tablets with advanced user experience significantly for games and entertainment applications are also expected to upsurge the AR and VR market. Asia Pacific AR and VR market is expected to grow at a CAGR of 47.7% during the forecast period 2016 – 2025.
Key findings of the study:
AR and VR technology used in various application, they are majorly used in sci-fi films, gaming and other entertainment applications since their inception. In recent times, they are trending into many other applications to offer vivid experience to the consumers. Companies are using these technologies to attract customers and provide them with more features in buying or decision making experience. For instance, Jaguar Land Rover’s Virtual Experience enable customers to involve and allow them to interact with all the features of Jaguar and Land Rover vehicle. Potential customers are given an opportunity to experience the entire car virtually, a complete view of exteriors and interiors of the car .
Augmented and Virtual reality products vary with different specifications as these are used in various end user applications and the products are customized for optimum usage. The required raw materials such as sensors, displays, processing unit, and other components vary with respect to specifications of the system or devices. For instance, a simple Google Cardboard requires minimum amount of raw materials compared to Oculus Rift head mount device. Hence raw material suppliers market is diversified to meet the demands of system integrators or manufacturers. Also manufacturers have wide range of suppliers of these raw materials to choose from which gives them more bargaining power to save overall cost.
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