GMI Research speculates that AR and VR devices are gaining popularity in various sectors. AR and VR market was limited to gamification but now rapidly adopted by a medical professional in healthcare, aerospace & defense for training purposes, and retail sectors for online shopping.
Introduction of the AR and VR Market
AR and VR are technologies that visualize virtual surroundings with the help of a device or over a surface/platform. Augmented Reality (AR) implementing digital information in the consumer’s environment in real-time. It is an advanced version of the real world using visual elements, sound, or sensory stimuli. Virtual Reality (VR) is a software-designed artificial environment presented so that the consumer accepts it as a real environment. It is a computer-generated 3D environment, which thoroughly engages consumers in an artificial world without seeing the real world. Virtual reality is experienced through two sights and sounds. 3D movies using 3D glasses are the simplest example of VR.
AR and VR Market Dynamics
The technological advancements of the gaming industry and the rising penetration of connected devices and smartphones in various applications are boosting the augmented and virtual reality market growth globally. Moreover, the increasing demand for AR and VR in the e-commerce and retail industry is propelling the market growth. Augmented reality devices are gaining popularity in healthcare for patient care management and medical training & education, and retail/e-commerce as the prime platform for online shopping is fueling the growth of the global AR and VR market. Increasing digitization, and availability of affordable virtual reality devices, and increasing penetration for head-mount displays in the gaming and entertainment sector are pushing the virtual reality market growth.
As per the AR and VR market analysis, increasing funding and investment in virtual and augmented reality by tech giants developing virtual reality and augmented reality solutions is further driving the global market growth. Growing demand for augmented reality in architecture, rising trends of manufacturing, increasing penetration of head mount in gaming, healthcare, and architecture application followed by the surge in adoption of virtual reality (AR) in aerospace & defense for simulation and training purpose and integration of Machine Learning and Artificial Intelligence are expected to boost the growth during the forecast period. On the other hand, several factors restraining the AR and VR market size are less storage of augmented reality devices, processing power, limited user interface, and health concern due to low resolution and security concerns.
AR and VR Market Segmentation
Offering Market Drivers
Based on the offering, the hardware segment is expected to hold a significant market share in the global VR and AR market in 2019 due to the rising adoption of VR and AR devices for training and development in education, gaming & entertainment, and aerospace & defense.
Device Type Market Drivers
Based on device type, the head-up display foresees the fastest growth during the forecast period due to the extensive application of HMDs in the automotive and aerospace & defense sectors for training purposes. Head-up displays are transparent and show details close to the driver’s outer world view. It facilitates the integrated tasks of driving safely, monitoring the vehicle speed and performance & navigating to the destination. The intuitive display improves features and provides dynamic real-time data to the driver are a few factors steering the market in the coming years.
Application Market Drivers
Based on the application, consumer application is expected to witness a substantial market share in the global VR and AR market during the forecast period. The proliferation adoption of VR and AR devices in gaming, entertainment, and sports due to this technology is widely accepted to improve customer experience and satisfaction. Virtual reality and augmented reality are gaining popularity for entertainment in theatre, amusement parks, museums, and music concerts.
AR gaming apps are being adopted swiftly by consumers, propelling the market growth. Virtual reality and augmented reality provide realistic environments in video games through 360-degree views, driving the market growth. For example, Pokémon Go is one of the popular AR games which provides a rich augmented reality gaming experience.
Based on the region, Asia-pacific is expected to account for a substantial market share in the AR and VR market during the forecast period. Due to an emerging economy, this region is witnessing tremendous changes in accepting new technologies and advancements. In addition, the proliferation of smartphones and increasing application among consumers are driving the market growth in the region.
Augmented Reality and Virtual Reality Market Segmentation
Market Segmentation by Offering
4. Proximity Sensor
1. Controller and Processor
2. Integrated Circuits
1. AR Remote Collaboration
2. Workflow Optimization
5. 3D Modeling
Market Segmentation by Device Type
a. Augmented Reality Devices
1. AR Smart Glasses
2. Smart Helmets
b. Virtual Reality Devices
1. Data Gloves
Market Segmentation by Application
a. Augmented Reality Applications
2. Sports & Entertainment
3. Entertainment Applications
4. Museums (Archaeology)
5. Theme Parks
6. Art Gallery & Exhibitions
1. Tourism & Sightseeing
3. Retail & E-Commerce
5. Beauty & Cosmetics
6. Apparel Fitting
7. Furniture & Lighting Design
8. Grocery Shopping
b. Virtual Reality Applications
2. Education and Training
3. Travel and Tourism
2. Patient Care Management
3. Fitness Management
4. Pharmacy Management
5. Medical Training and Education
2. Real Estate
3. Geospatial Mining
Market Segmentation by Region
Introduction of GMI Research
GMI Research is a market research and consulting firm that provides market insights and intelligence across 12 major sectors, helping our clients make effective investment and business decisions.