DUBLIN--(BUSINESS WIRE)--The "Augmented Reality and Virtual Reality Market with COVID-19 Impact Analysis by Offering (Hardware & Software), Device Type (HMD, HUD, Gesture Tracking), Application (Enterprise, Consumer, Commercial, Healthcare), and Geography - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The virtual reality (VR) market is projected to grow from USD 6.1 billion in 2020 to USD 20.9 billion by 2025; it is expected to grow at a CAGR of 27.9% from 2020 to 2025.
The augmented reality (AR) market is projected to grow from USD 15.3 billion in 2020 to USD 77.0 billion by 2025; it is expected to grow at a CAGR of 38.1% from 2020 to 2025.
The increasing demand for AR devices and applications in healthcare, rising investments in AR market, and growing demand for AR in retail and e-commerce sectors due to COVID-19 are the key factors driving the AR market growth.
The availability of affordable VR devices, growing adoption of HMDs in different industries, the advancement of technologies and growing digitization, penetration of HMDs in gaming and entertainment sectors after COVID-19, and high investments in VR market are the key factors driving the VR market growth. Security and privacy issues associated with AR and VR, and health issues associated with excessive usage of AR and VR are some of the major restraints.
Consumer application is expected to maintain its market dominance during forecast period for augmented reality
The consumer application is expected to hold the largest share of the AR market in 2020; it is also expected to dominate the market during the forecast period. The consumer sector includes gaming and entertainment applications, in which AR is used in games for creating 3D visual objects in the real world. The high growth of the gaming and sports & entertainment sector boosts the growth of the AR market for consumer applications.
Enterprise application is expected to grow at the highest CAGR during forecast period in virtual reality
VR is used in the industrial vertical mainly for the training of personnel, providing information about the industrial facility, remodeling and redesigning, and industrial simulations. HMDs are used in industrial applications for designing, training, and simulation. Through HMDs, industrial users can be trained quickly and effectively, as they can learn real-life practices through the fully immersive and interactive virtual world. The use of HMDs is expected to grow in several areas of the industrial vertical in the coming years.
North America holds a significant share of the market in 2020
Key players in the AR & VR market, such as Google (US), PTC (US), Microsoft (US), Oculus (US), and Apple (US), are based in North America, which is the key factor contributing to the growth of the AR & VR market in the region. The growing use of smartphones, increasing adoption of smart electronic devices, and surging demand for AR & VR technology in healthcare applications are the major factors boosting the North American AR & VR market's growth.
APAC is expected to lead the AR & VR market by 2025 due to the high demand for AR & VR devices in the region and the emergence of local manufacturers in China providing these devices at a low cost. Market players based in APAC are likely to grow through the growing use of HMDs in the healthcare and enterprise sectors.
- Increasing Demand for AR Devices and Applications in Healthcare
- Growing Demand for AR in Retail and E-Commerce Sectors due to COVID-19
- Rising Investments in AR Market
- Security and Privacy Issues Associated with AR
- Health Issues Associated with Excessive Usage of AR
- Partnerships Between Telecom Players and AR Manufacturers to Reduce Latency to Imperceptible Levels
- Rise in Demand for AR in Architecture
- Opportunities in Enterprise Applications
- High Growth of Travel & Tourism Industry
- Display Latency and Limited Field of View
- Overcoming Social Challenges to Increase Adoption Rate
- Reconfiguration of Applications for Different Platforms
- Penetration of HMDs in Gaming and Entertainment Sectors After COVID-19
- High Investments in VR Market
- Advancement of Technologies and Growing Digitization
- Availability of Affordable VR Devices
- Growing Adoption of HMDs in Different Industries
- Display Latency and Energy Consumption Affect Overall Performance of VR Devices
- Health Concerns Relating to Low Resolution and Lack of Movement
- Trade Restrictions Between Us and China
- Penetration of HMDs in Healthcare and Architectural Applications
- Use of VR in Aerospace & Defense for Training and Simulation
- Increasing Demand for VR HMDs in Healthcare due to COVID-19
- Developing User-Friendly VR Systems
- Adverse Impact of Lockdowns due to COVID-19 on Commercial Trade
- Google, Inc.
- Oculus VR (Facebook)
- Samsung Electronics
- Ptc Inc.
- Seiko Epson
- Wikitude GmbH
- Eon Reality
- Magic Leap, Inc.
- Atheer Inc.
- Cyberglove Systems
- Leap Motion (Ultraleap)
- Sixense Enterprises
- Marxent Labs, LLC
- Inglobe Technologies
- Meta Company
- Firsthand Technology
- Intel Corporation
- Merge Labs
- Virtually Live
- Xiaomi Corporation
- Panasonic Corporation
- Dynabook Americas, Inc.
- Scope Ar
- Visteon Corporation
- Appentus Technologies
- Bidon Games Studio
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