Augmented Reality and Virtual Reality Market Size & Share Report 2028

Augmented Reality and Virtual Reality Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Technology (Augmented Reality and Virtual Reality), Component (Semiconductor Components, Sensors, and Others), and End-User Industry (Entertainment, Educational, Industrial, Medical, Real Estate & Architecture, Retail, Aerospace & Defense, and Others)

Publication Month : Mar 2022

  • Report Code : TIPTE100000114
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 171
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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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Augmented Reality and Virtual Reality Market: Strategic Insights

augmented-reality-and-virtual-reality-market
Market Size Value inUS$ 27.96 billion in 2021
Market Size Value byUS$ 252.16 billion by 2028
Growth rateCAGR of 36.9% from 2021 to 2028.
Forecast Period2021- 2028
Base Year2021
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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

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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 (%)

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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.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Technology, Component, and End-User Industry

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


What are the reasons behind augmented reality and virtual reality market growth?

Growing use of virtual reality to offer better customer experience in online retail and immersive learning experience with VR, AR, & gamification are driving the growth of the augmented reality and virtual reality market.

What are market opportunities for augmented reality and virtual reality market?

The market opportunity lies in developing countries. Developing countries have become a hub of opportunity for various markets, including augmented reality and virtual reality market. Further, the investments in AR and VR technologies are presenting significant potential for the future growth of the augmented reality and virtual reality market players.

Which technology segment is expected to dominate the market in terms of 2021 market share?

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, accounting for the largest share in the market.

Which region has dominated the augmented reality and virtual reality market?

In 2021, North America led the market with a substantial revenue share, followed by Europe and Asia Pacific (APAC). North America is a prospective market for augmented reality and virtual reality solution developers.

Which are the major five companies in the augmented reality and virtual reality market?

The major five companies in augmented reality and virtual reality includes Google LLC, EON Reality, Immersive Gaze, Blippar Group Limited (Layar B V), and Vuzix Corporation.

Which component segment is expected to dominate the market in terms of 2021 market share?

Based on component, the augmented reality and virtual reality market can be segmented into semiconductor components, sensors, and others. In 2021, the semiconductor components segment accounted for the largest market share.

 The List of Companies - Augmented Reality and Virtual Reality Market

  1. Immersive Gaze
  2. Google LLC
  3. EON Reality
  4. Vuzix Corporation
  5. Blippar Group Limited (Layar B V)
  6. Innovega Inc.
  7. imulanis Solutions Private Limited
  8. Kanda ApS
  9. YeppAR
  10. Zugara, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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