Augmented Reality and Virtual Reality (ARVR) Market Research Report - Global Forecast till 2027

Global Augmented Reality and Virtual Reality Market: By Technology (Augmented Reality (Marker-Based Augmented Reality and Marker-less Augmented Reality) and Virtual Reality (Non-Immersive Systems, Semi-Immersive Projection System and Fully-Immersive Systems)), By Component (Hardware (Sensors, Processors, Controllers, Cameras and Others) and Software (Software Development Kits and Platforms)), By Device Type (Augmented Reality Devices (Head-Mounted Display, Head-up Display and Handheld Devices) and Virtual Reality Devices (Head-mounted Display, Gesture Tracking Devices, Display Wall and Projectors),  By Vertical (Consumer Electronics, Media & Entertainment, Healthcare, Retail, Aerospace & Defense, Automotive, BFSI, IT & Telecommunication, Manufacturing, Education, Travel & Tourism and Real Estate) - Forecast till 2027

ID: MRFR/ICT/5419-CR | July 2019 | Region: Global | 94 pages

Please note that the assessment period of report has been updated from 2019-2025 to 2020-2027. Cordially fill the sample form for updated data.

Market Overview

Global Augmented Reality and Virtual Reality Market is expected to reach USD 766 Billion by 2027, registering a 73.7% CAGR during the review period (2019–2025). 

Over recent years, the AR & VR solutions have garnered extensive popularity and market prominence, bridging the digital and physical worlds. These technologies allow taking information and content visually just the way as in the world. 

Augmented reality dramatically expands the ways connected devices can help with everyday activities like searching for information, shopping, and others, while virtual reality allows users to experience various outer world places sitting at the comfort of home. VR gaming creates a 3D environment for its users, allowing users to feel the physical presence in a game.

Augmented reality and virtual reality uses, which were once limited to simple gamification, are now adopted by medical professionals worldwide for therapeutic interventions. Today, VR/AR is being used to treat various conditions, such as anxiety & stress, Parkinson's, rehabilitation, and MS. Besides, advancements in augmented and virtual reality technologies have been playing a causal role in maintaining industrial operations competitive and efficient.

COVID-19 Analysis

The COVID 19 has hastened digitization and given a much-needed push to technology adoption around the world. The coronavirus-driven lockdowns made people look for new solutions for everyday needs, from food deliveries to medical requirements and education. Crises can sometimes be the key to the development of new technologies, and the current coronavirus outbreak has proven to be a springboard for the popularization of augmented and virtual reality (AR/VR). 

These technologies come in handy in multiple sectors, such as healthcare, education, tourism, retail, and others. Post the lockdown restrictions getting relaxed, the behavioral change that the pandemic has instigated would last for a considerably longer period, if not forever. People would remain socially distant, using AR/VR technologies and extended reality to be virtually close. AR/VR platforms would allow businesses to run and grow irrespective of the challenges posed by social distancing.  

Additionally, more and more people would work from remote locations and smartphones with better internet connectivity, making it possible for the masses to work online. Innovative industry players have actively started looking for increasing application areas of virtual and augmented reality. This, as a result, is expected to provide a huge impetus to the augmented reality and virtual reality industry, allowing it to garner significant traction and investments.

Market Dynamics 


Wide Adoption of AR & VR Drives the Market Growth

Key factors positively impacting the AR/VR market growth include the growing demand for head-mounted displays (HMDs) in gaming & entertainment, adoption of augmented and virtual reality for marketing strategies, and increasing demand for AR/VR in the retail and e-commerce industry. Furthermore, the rising demand for augmented and virtual reality devices in the manufacturing and healthcare sectors, alongside the growing investments and funding by key market players to develop AR/VR solutions, drive the market growth. 


Industry 4.0/ 5.0 to Offer Significant Prospects

Industrial automation (industry 4.0/ 5.0) is expected to foster AR/VR uses to improve communication between self-monitoring devices, production machines, integration of machine-to-machine communication (M2M), and the internet of things (IoT). It is expected that the significant demand for AR/VR from manufacturing industries would offer a host of opportunities to the market players in the future. 

Besides, strong demand from several industries like healthcare and automotive due to automation is expected to propel the market growth. Additionally, the need to create common spaces during the COVID 19-led self-isolation and social distancing measures would make AR/VR tools necessary in collaborating for work or play. 

Over recent years, augmented reality and virtual reality have excitedly ascended in prominence. Increasing utilization of these capabilities in corporate communications and historic accomplishment of games would foster the AR/VR market. 

Restraints & Challenges

High Cost & Security Challenges

The high investment required for development and SoC integration of AR/VR is a major factor restraining the augmented and virtual reality market growth. Also, issues related to security compliances and growing cyber-attacks due to lack of security standards are major factors challenging market dynamics. Additionally, the lack of technical expertise resulting in data manipulation, spoofing, sniffing, cyber-attacks, and man-in-middle attacks are key factors projected to pose challenges to market growth up to some extent.

Segment Overview 

The AR/VR market is segmented into technology, component, device type, vertical, and region. The technology segment is further bifurcated into augmented reality and virtual reality. The augmented reality segment is sub-segmented into marker-based augmented reality, and marker-less augmented reality.

The virtual reality segment is sub-segmented into non-immersive systems, semi-immersive projection systems, and fully-immersive systems. The component segment is segregated into hardware, software, and solutions. The hardware segment is bifurcated into sensors, processors, controllers, cameras, and others. The software segment is categorized as software development kits and platforms.

The device type segment is bifurcated into augmented reality devices and virtual reality devices. Further, the augmented reality devices segment is classified as handheld devices, head-mounted displays, and head-up displays. The virtual reality devices segment is further sub-segmented into gesture tracking devices, head-mounted displays, and displays wall & projectors.

The vertical segment is sub-segmented into consumer electronics, healthcare, retail, media & entertainment, aerospace & defense, IT & telecommunication, travel & tourism, automotive, BFSI, manufacturing, education, and real estate.

Regional Analysis

North America to Maintain its Leading Position

North America leads the global augmented reality and virtual reality market and would continue to maintain its market position throughout the assessment period. Factors such as the presence of a number of key players, including Google, Microsoft, and Facebook Inc., and the growing industrial sector drive the AR/VR market growth.

Furthermore, advancements in technology and the proliferation of connected devices expand the augmented reality market size 2025. The US is the largest VR and AR market in the region, projected to reach a valuation of USD 307.91 BN by 2025 with a 78.3% CAGR during the forecast period.

Europe Holds Second Highest Market Share 

Europe accounts for the second-significant share in the global virtual and augmented reality market. The market valuation is predicted to reach USD 168.58 billion by 2025 from USD 170.04 billion in 2018. Factors pushing the market growth are the increasing adoption of AR/VR technology in the media & entertainment, education, and healthcare industry and increasing play-station and mobile games applications.

Besides, the rising demand from the manufacturing and healthcare industry and considerable healthcare spending boost the market growth. The UK, Austria, Germany, Spain, Italy, the Netherlands, Sweden, Norway, and France are key growth contributors to the market in the region. 

APAC Derives a Considerable Share in the Global Market 

The APAC augmented reality and virtual reality market is propelled by the adoption of AR/VR solutions in various industry verticals for 3D modeling, 3D animation, and virtualization applications. Additionally, increasing demand for AR/VR technology and significant investments made by the key players to offer innovative solutions to SMEs in the healthcare, retail, and e-commerce sectors push the market growth.

China is the largest AR & VR market in the region, witnessing wide adoptions in infrastructural and industrial sectors. The Chinese AR/VR market is estimated to rise with a 65% CAGR during the forecast period.

Competitive Landscape

Players Focus on Technology Development & Expansion

The augmented reality and virtual reality market appear extremely competitive, considering the strong presence of established industry players. Eminent players seek opportunities to integrate across the extended value chain while focusing on expansion, R&D investments, and M&A activities to gain impetus. 

Key Companies 

Blippar, Google LLC, EON Reality Inc., Hewlett-Packard Company, Augmented Pixels Inc., DAQRI LLC, Terminal Eleven (SkyView), Wikitude GmbH, Sony Corporation, Pty Ltd (, Zapper Limited, Virtalis Limited, Samsung Group, Facebook Inc., Microsoft Corporation, Magic Leap Inc., HTC Corporation, PTC Inc., and Visteon Corporation are some of the affluent contenders holding sizeable augmented reality and virtual reality market share. 

NeXR Technologies SE (Germany) is a leading provider of augmented reality (AR) and virtual experience technologies (VTX) and services. It is listed in the General Standard of the Frankfurt Stock Exchange. NeXR is active in the development of next-generation technologies and apps that bring Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) together to create the next Extended Reality (XR). 

NeXR is the first mover of a VR with unique hardware and software expertise. The company's business units, including Motion Capture & Animation, 3D Scanner Systems, and VR-Experiences, deal with future-oriented services and products connected within a unique value chain.

Recent Developments

January 22, 2021 – Marxent, a leading global player in 3D Commerce for the home vertical, announced that it has succeeded in securing Series C funding. The cash infusion would be used to drive strategic value creation opportunities such as international expansion and new product development.

January 21, 2021 – NeXR Technologies SE announced its partnership with H&Mbeyond to develop innovation for stationary retail, such as virtual fitting solutions, digital fitting rooms, that enables customers to try on individually exact fit looks digitally, quickly, and easily. H&Mbeyond is always searching for innovative solutions and technologies that make the shopping experience in stationary retail more attractive and exciting.

January 15, 2021 – NexTech AR Solutions Corp. (Canada), a leading provider of augmented reality (AR) and virtual experience technologies (VTX) and services for 3D ads, eCommerce, education, conferences, and events, announced signing a renewal agreement with Poly for a six-month term and the potential for additional revenue after the six months.

January 05, 2021 – NexTech launched its groundbreaking human hologram AR marketing platform - Genie in a Bottle, and new eCommerce stores for its TruLyfe brand of human supplements. The company also announced its service segment expansion into the Asia Pacific market after establishing a presence in Singapore.

Report Overview 

The report features unique factors expected to significantly impact the augmented and virtual reality market during the forecast period. The detailed AR VR market forecast would help industry players to better understand the market better. The report further elaborates on the historical and current trends boosting the AR VR market growth. Besides, the analysis of COVID-19 impact on the augmented reality and virtual reality industry is also included in the report. 

This report examines the pricing structure, profit margins, and demand-supply scenario analysis influencing the AR/VR market growth. Regional assessment explained in this report unlocks a plethora of untapped opportunities in regional and domestic market spaces. Detailed company profiling enables users to evaluate company shares analysis, the scope of the existing & emerging product lines in new markets, pricing strategies, innovation possibilities, and much more.

Segmentation Table


  • Augmented Reality

    • Marker-Based Augmented Reality

    • Marker-less Augmented Reality

    • Others

  • Virtual Reality

    • Non-Immersive Systems

    • Semi-Immersive Projection System

    • Fully-Immersive Systems

    • Others


  • Hardware

    • Sensors

    • Processors

    • Controllers

    • Cameras

    • Others

  • Software

    • Software Development Kits

    • Platforms

    • Others

Device Type

  • Augmented Reality Devices

    • Head-Mounted Display

    • Head-Up Display

    • Handheld Devices

    • Others

  • Virtual Reality Devices

    • Head-Mounted Display

    • Gesture Tracking Devices

    • Display Wall

    • Projectors

    • Others


  • Consumer Electronics

  • Media & Entertainment

  • Healthcare

  • Retail

  • Aerospace & Defense

  • Automotive

  • BFSI

  • IT & Telecommunication

  • Manufacturing

  • Education

  • Travel & Tourism

  • Real Estate

  • Others 


  • North America

  • Europe

  • Asia Pacific

  • Rest of the World (RoW)

Frequently Asked Questions (FAQ) :

Augmented Reality & Virtual Reality Market - Summary

Individual experience has become the core of the consumer-driven world. Better the experience, more the chances of prosperity for companies. By making that their core agenda, companies are now gearing up for the integration of technologies that would alter the course of conventional take on sectors such as healthcare & life sciences, education, and gaming. Augmented reality and virtual reality are branches of such advancing techniques which by fusing the real and the virtual are taking the experiential temper of the user a notch higher. Virtual reality gets its trigger from the slightest of the behavioral changes and mimics the surrounding to produce an alternate space on a 3D scale. Augmented reality makes the virtual and the real-world parley in sync with the user. It dishes out the best of both worlds to enhance the experience. In doing so, it incorporates simple gadgets such as smartphones and tablets to blend them with software or software-defined kit platforms. The global augmented reality and virtual reality market is finding it in a perfect position to soar higher with blistering CAGR of 73.3% during the forecast period (2018-2025) and mount a one-of-a-kind valuation of USD 767.67 billion by 2023. Report of Market Research Future (MRFR) has its focus mainly set on segmental analysis and detailed discussion of the drivers for a better understanding of the augmented reality and virtual reality market.

The augmented reality and virtual reality market is heavily relying on the burgeoning gaming industry. Head-mounted displays are in trend and generating substantial traction due to its percolation in the gaming industry that spans across from arcades to smartphones. Various market behemoths have included the technology in their marketing strategy to lure in more customers. E-commerce and retail sections are also profiting much from the platform which spells prospects for the market in the coming days. In addition, 5G technology is on the verge of being integrated into the regular system which is bound to drive the augmented reality and virtual reality market ahead. At the same time, 360° VR video is stirring up the market by impacting sectors such as pilot & driver training, space study, underwater exploration, and surgery. A holistic purview of the factors corroborates the predicted market valuation.

On the basis of product type, the augmented reality and virtual reality market can be segmented into non-immersive systems, semi-immersive projection system, and fully-immersive head mounted systems. Non-immersive systems is leading the market with considerable margin and is touted to be the fastest as well in the coming years.

On the basis of application, the augmented reality and virtual reality market can be segmented into education & training, video games, media, tourism, and social media. Video games is presently heading the market with education & training sector projecting a potential to score the highest CAGR during the forecast period.

Regional Analysis:
Approaching the augmented reality and virtual reality market from a region-based perspective reveals a detailed description of the U.S., Europe, China, Japan, South East Asia, and Central & South America markets. The U.S. is leading the market with a valuation of USD 5.37 billion as of 2018 due to intensive infrastructure and extensive research & development facilities. China’s market is the second largest and is going to gain good momentum during the forecast period. Europe’s market is touted to beat China’s market by 2025 with a better hike in CAGR during the review period.

Key Competitors:
Significant players to impact the augmented reality and virtual reality market are Google LLC,, EON Reality Inc., Augmented Pixels Inc., HP Inc., DAQRI LLC, Wikitude GmbH, Terminal Eleven (SkyView), Zapper Limited, Pty Ltd., Virtalis Limited, Facebook Inc., Samsung Group, Microsoft Corporation, and Sony Corporation.

1.1 Competitive Landscape
The global augmented reality and virtual reality (ARVR) market consists of various global, regional, and local manufacturers that are continuously evolving to enhance their market position. Intense competition and rapid advances in augmented reality and virtual reality technology to develop the level of gaming is the key factor that aid the market growth. Growing demand of HMD in gaming and entertainment is another factor for the market growth. With advancement in ARVR technology there has been increase in the marketing of the products, as ARVR is increasing the reach among the consumers by providing virtual and augmented environment. The companies compete based on cost, efficiency, of the ARVR systems and platform to sustain in the market. It becomes important for the companies to provide a cost-efficient and advanced ARVR systems, headset, platform and other accessories maintain their market position and gain a competitive advantage.

Vendors in the augmented reality and virtual reality (ARVR) market are focusing towards improving their services and expanding geographically. Sony Corporation, Microsoft Corporation, Facebook Inc., Google LLC.,, EON Reality Inc, Augmented Pixels Inc, HP Inc, DAQRI LLC, Wikitude GmbH, Terminal Eleven (SkyView), Zapper Limited, Pty Ltd(, Virtalis Limited, and HTC Corporationk are the major companies in the market competing in terms of providing solutions and advanced technology the primary focus of the companies is to provide marketing strategy to organizations, enterprises, industries, government and public for business, entertainment, education & training and other. Although global players are dominating the market, some other small regional and local players with small market shares also have a prominent presence in this market. The major players may strengthen their presence worldwide through the mergers and acquisition of local and regional players for expanding their solutions in those regions during the forecast period. The improvement of the global economic scenario combined with technological advancement in the emerging economies like India, South Africa, China, Brazil, Argentina, and other under-developed countries, is likely to fuel the market growth thereby, making it an ideal time to expand augmented reality and virtual reality (ARVR) market geographically and increase the global market share.

Microsoft Corporation is one of the leading players in the augmented reality and virtual reality (ARVR) market. The company has been operating since 1975 with a strong industrial expertise. Microsoft Corporation provides HoloLens. Also, the company, is indulging in providing platforms for various gaming application with VR.

Facebook Inc., with its subsidiary Oculus is providing VR headsets and tool kits globally. The company has been in the market since 2004 and holds a major share in the market due to its social media platform named as The company’s VR works on Samsung platform named as Gear VR.

HTC Corporation is a Taiwan based company that majorly works in mobile and accessories. The company also works in virtual reality market. The company provides, Vive Pro HDM, Vive Pro HDM Starter Kit, Vive VR system as its product. The company has been in the strategic partnership with McLaren, to produce VR products and VR/AR content to increase the global reach and production.
Samsung Group is a key player in ARVR market as the company provides VR headset SM-R323NBKAINU, SM-R322NZWAINU and platform Gear VR, the company operates in IT & mobile communications, consumer electronics and device solutions. The company is also focusing in strategic partnership with the competitors for increasing the market share in ARVR market. Recently, the company had a partnership with Microsoft Corporation to compete with Apple Inc. in VR/AR market.

Intended Audience:

  • Technology Investors

  • Research/Consultancy firms

  • Technology Solution Providers

  • Government Bodies

  • Hospitality Sector

  • Raw Material and Manufacturing Equipment Suppliers

  • Semiconductor Foundries

  • Original Equipment Manufacturers (OEMs)

  • Research Organizations

  • Analysts and Strategic Business Planners