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Augmented Reality and Virtual Reality Market Share to Witness Accelerated Growth of 46% by 2025

Strategic Insights

— 2 min read

The augmented reality (AR) and virtual reality (VR) market is expected to experience a significant surge in growth, driven by increasing demand for VR and AR technology, technological innovations, and the adoption of various business strategies by vendors. According to a recent market study by Technavio, the market share in the information technology industry is expected to increase by USD 162.71 billion from 2020 to 2025, at an accelerated CAGR of 46%. The report provides a detailed analysis of drivers and opportunities, top winning strategies, competitive scenario, future market trends, market size and estimations, and major investment pockets.

Key Takeaways:

  • The global AR and VR market is expected to grow at an accelerated CAGR of 46% from 2020 to 2025, with an increase in market share of USD 162.71 billion.
  • APAC will register the highest growth rate of 34% among the other regions, with China and Japan being key markets for the augmented reality (AR) and virtual reality (VR) market.
  • Vendors are adopting organic and inorganic growth strategies to gain a competitive edge in the market.
  • Technological innovations, such as wearable technology platforms, will enhance the utility of AR in everyday life and drive the growth of the global AR and VR market.
  • The adoption of various business strategies by vendors, such as partnerships and collaborations, will further drive the growth of the global AR and VR market during the forecast period.
  • The global AR and VR market is expected to witness a significant increase in demand for VR solutions, with a growing application area in different fields, such as education, medical, retail, and training.
  • The report provides a detailed analysis of the market dynamics, including parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis, and future consumer dynamics.

Statistics:

  • Market growth: USD 162.71 billion
  • CAGR: 46%
  • Forecast period: 2021-2025
  • Region with the highest growth rate: APAC (34%)
  • Key markets: China and Japan
  • Number of companies profiled: 10 (Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp.)

Sources:

  • Technavio - "Augmented Reality (AR) and Virtual Reality (VR) Market Share in Information Technology Industry is Expected to Increase by USD 162.71 billion from 2020 to 2025, at an Accelerated CAGR of 46%"
  • Technavio - "Augmented Reality (AR) and Virtual Reality (VR) Market Report Coverage Details Page number 120 Base year 2020 Forecast period 2021-2025 Growth momentum & CAGR Accelerate at a CAGR of 46% Market growth 2021-2025 USD 162.71 billion Market structure Fragmented YoY growth (%) 25.13 Regional analysis North America, APAC, Europe, MEA, and South America Performing market contribution APAC at 34% Key consumer countries US, China, Japan, Germany, and UK Competitive landscape Leading companies, Competitive strategies, Consumer engagement scope Key companies profiled Alphabet Inc., Facebook Inc., HP Inc., HTC Corp., Magic Leap Inc., Microsoft Corp., Samsung Electronics Co. Ltd., Snap Inc., Sony Corp., and Toshiba Corp. Market dynamics Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period"

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