According to a market report named “Augmented Reality (AR) and Virtual Reality (VR) to 2025 – Global Analysis and Forecast by Technology, Components, and End-user Industry” by The Insight Partners, the VR and AR market is estimated to reach 130.01 billion dollars by 2025, while this number in 2015 is just 4.25 billion dollars. Then according to this report, this tech market can grow over 30 times for just 10 years since they expected that the global AR and VR market will grow at a CAGR of 41.2%.
AR/VR technologies were incepted in early 90’s, but the technologies are getting into mainstream in recent years, especially after Facebook announced to invest into Oculus for VR projects. In the past decade the applications of AR and VR were limited to gaming and entertainment, however there has been a paradigm shift towards more specific applications such as education, automotive, retail, healthcare, real estate, tourism.
As the market is in emerging stage the number of players are limited and growing year on year, limited entry barrier at present is encouraging new ventures in AR and VR market, while many big players such as Google, Inc., Microsoft, Facebook, and many others have been focusing to capitalize the market through their products and services. Though there are many other enterprises which have been working on these technologies are yet to spread their footprints across the globe.
In recent year’s technology giants have been introducing applications which combines both AR and VR resulting into a mixed reality (MR). Mixed reality is referred as a hybrid reality which combines both virtual and real world objects enhancing the user experience in various application mentioned above. Continued developments of MR will boost the usage of AR and VR technology resulting in high adoption rate.
The VR segment leads the global AR and VR market currently and is expected to lose its market share to the AR segment.
The market share of VR accounted for 82.1% of the total market revenue share in 2015. However VR is expected to lose its market share to AR through the forecast period due to high cost of hardware involved with VR technology.
The global AR and VR market has been segmented on the basis of components into semiconductor sensors and semiconductor components. The market is further segmented on the basis of technology by AR and VR.
Geographically, the global AR and VR market is segmented into North America, Europe, Asia Pacific, Middle East & Africa and South America.
Due to the presence of technology giants in U.S. such as Google, Inc., Microsoft, Facebook,. and sophisticated internet infrastructure, North America is observed to hold the major share of AR and VR market in 2015 followed by Europe. APAC is estimated to grow at a higher rate of 47.7% during the forecasted period to lead the market by 2025.
In 2015, Europe region market was led by U.K. led the AR and VR market and is estimated to lose its share to Germany during the forecast period from 2016 to 2025.
Increasing application of AR and VR in automotive and manufacturing sectors will boost the growth in Germany. The report profiles key players such as Oculus VR LLC, Microsoft Corporation, Vuzix Corporation, Marxent Labs LLC, DAQRI LLC, EON Reality, Inc., Innovega, Inc., Blippar, Total Immersion Augmented Pixels Inc., and Catchoom among others.