The augmented reality (AR) and virtual reality (VR) devices are moving towards a paradigm shift with the development of aesthetically pleasing forms which incorporates itself in the daily lives of the consumers. The latest VR devices are compatible with smart glasses, head-up displays, head mounted displays and handheld devices, and VR devices control the processing power of smart phones and computers to display VR contents. Due to this, the development of compact devices which are powered to display VR contents without being tethered to any computer are being developed and hence, the global augmented reality and virtual reality market is witnessing a huge growth.
The growth of the global AR and VR market can be attributed to the high presence of smart phones and tablets in the market, high versatility and mobility, which is attracting large tech corporations, and technological development in this field. The AR market is estimated to reach $161.1 billion by 2022 at a CAGR of 85.4% through 2016 to 2022. The VR market is estimated to reach $17.8 billion by 2022 at a CAGR of 44.5% through 2016 to 2022. Despite the exponential growth rate, the market may be affected by the global economic slowdown, along with health and privacy issues related with AR and VR.
Before Facebook’s acquisition of Oculus VR, the companies in the AR and VR market were not able to make a mark in the industry on a global level. This acquisition attracted the attention of the companies towards establishing different strategies to expand their businesses and market share. Some of the key players of this market are Samsung Electronics Co, Ltd., Microsoft Corporation, Google Inc., Seiko Epson Corporation, HTC Corporation, Intel Corporation, Qualcomm Inc., Himax Technologies, Vuzix Corporation, Oculus VR, LLC, Osterhout Design Group (ODG), Wikitude GMBH, and EON Reality. These players are adopting different market strategies such as extensive product launches, mergers and acquisitions to expand their operations, which will further restrict the entry of new competition in the market.
AR and VR have different hardware platforms, which are compatible with devices such as smart glasses, head-up displays, head mounted displays and hand held devices among others. Among the device type of AR, head mounted display (HMD) held the largest market share in 2016. Also, among the device type of VR, head mounted display (HMD) held the largest market share in 2016. HMD in AR and VR are different, as in VR these devices completely block the interaction with the real world as opposed to AR.
Geographically, the market is dominated by North America, whereas Asia Pacific region is expected to show highest growth in the coming years. Most of the prominent companies of the hardware segment are based out of the U.S., as it has always been at the forefront of technological advancement. Thus, the growth of hardware segment in the whole of North America is expected to be significant.
BIS Research has compiled an extensive market research report on ‘Global Augmented Reality and Virtual Reality Market – Analysis & Forecast, 2016-2022’. The market analysis report provides an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry.
For further queries, please write to us at [email protected] or call us at: +1 650 228 0182.