Industry News
New Growth Opportunities In Virtual and Augmented Reality | What To Expect in The Future
Virtual and augmented reality is a suite of hardware, service and software components allowing end-users to visualize and experience virtual environment in real-time. Both virtual reality (VR) and augmented reality (AR) are expected to witness strong demand globally largely due to growing application in end-use sectors such as healthcare, education, gaming, media and entertainment, and others. Constant innovation in technology is expected to create demand for new VR and AR solutions in the coming years.
Furthermore, the demand for compact VR and AR hardware devices is expected to create demand for new VR and AR hardware devices. The VR and AR ecosystem players include hardware, service and software vendors. In the coming years, both software and service vendors are expected to play crucial role in expanding the adoption of VR and AR across multiple end-use applications. The revenue of the global VR and AR market stood at US$ 16,806.1 Mn in 2019; this is projected to expand at a CAGR of 86.0% during the forecast period (2019 to 2027) and reach US$ 2,408,749.7 Mn by 2027.
North America was the largest geographical market in terms of revenue in 2019. The presence of a large number of VR and AR players and high consumer demand led by high consumer disposable income is expected to support the demand for VR and AR in North America in the coming years. The U.S. is expected to be a significant contributor to the VR and AR market in North America. Europe is anticipated to contribute significant market share during the forecast period owing to demand from media and entertainment, manufacturing, and gaming sectors over the forecast period.
Due to high economic growth, Asia Pacific is expected to register significant growth for VR and AR solutions in the coming years. Countries such as China and India are expected to witness considerable adoption of VR and AR solutions. Middle East & Africa (MEA), and South American countries are expected to contribute less to the VR and AR market in the coming years as compared to other regions.
The demand for software and service by component segmentation is expected to remain significant in the North American, Asia Pacific and European regions. Media and entertainment, and gaming segments are expected to make major contributions to the growth of the VR and AR market in MEA and South America.
The hardware segment is anticipated to account for a significant market share among all other types of component segments in the VR and AR marketplace throughout the forecast period. The software and service segments under component segmentation are expected to register high CAGR growth as compared to hardware segmentation over the forecast period.
Media and entertainment, gaming, and healthcare segments are expected to contribute considerable market share under different VR and AR end-use applications over the forecast period. The automotive segment is expected to account for the highest growth rate over the forecast period until 2027 among all end-use applications.