The market was at just $760M in 2015; barring exorbitant device prices, the augmented and VR industry is all set to boom
According to research by Allied Market Research, the global augmented and virtual reality (VR) market was valued at 760 million dollars in 2015 and is projected to reach 59,511 million dollars(approx. 59 billion dollars) by 2022, growing at a CAGR of 65.7 percent from 2016 to 2022.
Augmented reality is a technology that uses the existing user’s environment and overlays the digital or virtual content or information over it. Augmented reality applications are developed on special 3D programs that enable developers to integrate contextual or digital content with the real world. While virtual reality is a computer-generated 3D environment which completely immerses end users in an artificial world without seeing the real world.
Key findings of the study
– By platform, the mobile segment dominated the augmented and virtual reality market in 2015, and is expected to grow at the highest CAGR
– Among applications, the healthcare segment is projected to create significant growth opportunities for prominent players operating in the global market
– Asia-Pacific was the highest contributor in the overall augmented and virtual reality market size in 2015. Further, in terms of growth, the market in Asia-Pacific region is projected to expand at the highest CAGR
– The U.S. was leading in terms of expenditure on augmented and virtual reality solutions in 2015, followed by China
Some of the key players operating in the augmented and virtual reality industry include Google Inc., Intel Corporation, Magic Leap, Marxent Labs LLC, Microsoft Corporation, NVIDIA Corporation, Oculus VR, Qualcomm Inc., Samsung Electronics, and Vuzix Corporation.
Expansion in the gamer community; rise in popularity of augmented and virtual reality solutions and services; increased awareness among end users about benefits of augmented and virtual reality solutions are projected to drive the augmented and virtual reality market growth during the forecast period. However, lack of infrastructural development and high prices are projected to limit the market growth to some extent during the forecast period.
By platform, the console segment dominated the market in 2015 with around 41 percent market revenue share and is projected to expand at the highest CAGR of around 69 percent during the forecast period. This is primarily attributed to the availability of advanced gaming consoles at an affordable price and rise in demand for enhanced customer experience.
By application, the videogames segment dominated the market with around 46 percent market share, followed by live events and video entertainment segment, in 2015. Further, the healthcare segment is projected to expand at the highest CAGR of around 73 percent due to increase in adoption of augmented and virtual reality technology-based solutions and services for training and simulation activities.
Based on the geography, the augmented and virtual reality market is studied across four major regions, namely North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor in 2015, accounting for around 40 percent share of the overall augmented and virtual reality market. Further, the Asia-Pacific augmented and virtual reality market is projected to grow at the highest CAGR of around 68 percent during the forecast period owing to increased penetration of augmented and virtual technology-enabled mobile devices, growth in demand for live content, and increase in online certification programs in the region.
According to Sumeet Pal, a research analyst of ICT at Allied Market Research, “Augmented and virtual reality offers a cost-effective and efficient solution in training and skill development as it replicates the real scenarios by using augmented and virtual reality enabled solutions. For instance, in civil aviation or military application, it is costlier to utilize an actual aircraft to train a pilot. Further, it could harm the humans as well.
Whereas, augmented and virtual reality solutions create a virtual environment similar to the real world, where a trainee can understand and tackle challenges with strategic mapping. Moreover, in healthcare, training students or nurses or other medical professionals on live humans is unethical and could be harmful; thus, augmented and virtual reality-based solutions provide valid tools to train medical professionals without compromising and harming one’s life.”
The report features a competitive scenario of the augmented and virtual reality industry and provides the comprehensive analysis of key growth strategies adopted by major players.