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Augmented Reality (AR) and Virtual Reality (VR) Market Growth Momentum to Accelerate

Strategic Insights

— 2 min read

The global augmented reality (AR) and virtual reality (VR) market is expected to grow by USD 162.71 billion from 2020 to 2025 at a compound annual growth rate (CAGR) of 46%. The market's growth will be driven by the increasing demand for AR and VR technology, product launches, and the growing gaming industry in Asia, particularly in Japan, China, and India. China and Japan are key markets for AR and VR in APAC, and the market growth in this region will be faster than in other regions.

Key Takeaways:

  • The global AR and VR market will grow at a CAGR of 46% from 2020 to 2025.
  • The market will be driven by the increasing demand for AR and VR technology, product launches, and the growing gaming industry in Asia.
  • China and Japan are key markets for AR and VR in APAC, and the market growth in this region will be faster than in other regions.
  • The AR segment will constitute the largest market share in 2020, while the VR segment will grow faster in terms of CAGR.
  • The market will be driven by the decreasing prices of VR headsets and the increasing adoption of AR technology in various industries.
  • The growth momentum of the market will be accelerated by the presence of key vendors, such as Alphabet Inc., Facebook Inc., and Microsoft Corp.
  • The market will face challenges, such as high development costs associated with AR and VR apps, and risks associated with AR and VR applications.
  • The market will experience a moderate level of landscape disruption, and the threat of disruption will remain unchanged by 2025.

Statistics:

  • The global AR and VR market size will grow from $16.37 billion in 2020 to $179.08 billion in 2025.
  • The market will grow at a CAGR of 46% from 2020 to 2025.
  • The AR segment will grow at a CAGR of 48.25% from 2020 to 2025.
  • The VR segment will grow at a CAGR of 44.15% from 2020 to 2025.
  • The APAC region will contribute 34% to the market's growth during the forecast period.
  • The market will experience a moderate level of disruption threat by 2025.

Sources:

  • Technavio, "Global Augmented Reality (AR) and Virtual Reality (VR) Market 2021-2025"
  • Exhibit 11: Vendors included in the market definition
  • Exhibit 30: Market share by geography 2020-2025 (%)
  • Exhibit 46: Impact of drivers and challenges
  • Exhibit 48: Vendor landscape
  • Exhibit 97: Currency conversion rates for US$
  • Exhibit 98: Research Methodology
  • Exhibit 99: Validation techniques employed for market sizing
  • Exhibit 100: Information sources

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