Augmented and Virtual Reality Hardware Market Research Report—Global Forecast till 2030

Augmented and Virtual Reality Hardware Market Research Report: Information By hardware type (sensors, processors, controllers, cameras, headphones, display monitors, and others), By application (head mounted display, head up display, and handheld devices), By industry vertical (aerospace & defense, gaming & entertainment, education & training, healthcare, automotive, and others) and Region (North America, Asia-Pacific, Europe, Rest of the world) - Forecast Till 2030

ID: MRFR/ICT/9481-CR | October 2022 | Region: Global | 110 Pages         

Augmented and Virtual Reality Hardware Market

Augmented and Virtual Reality Hardware Market to hit 3,89,066.4 Million by 2030, registering a 35.8% CAGR during the forecast period, 2022–2030
Market Size
CAGR
Dominating Region
Forecast Period
$3,89,066.4 Million
35.8%
North America
2022–2030
Segmentation
By hardware type
By application
By industry vertical
  • sensors
  • processors
  • controllers
  • cameras
  • headphones
  • display monitors
  • and others
  • head mounted display
  • head up display
  • and handheld devices
  • aerospace & defense
  • gaming & entertainment
  • education & training
  • healthcare
  • automotive
  • and others
Companies Profiled
Key Players
Oculus VR
Samsung Electronics Co.
Ltd
world viz
NXP Semiconductors
Bosch Group
Inertial Labs
Sony Corporation
Valve Corporation
HTC Corporation
DPVR
Vuzix
Qualcom Technologies Inc.
Seiko Epson Corporation
Penumbra
Inc
ARM Limited
LEKE VR
Google LLC
Market Driving Forces
Drivers
CONSUMER AND COMMERCIAL RISING INTEREST
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AR and VR Hardware Market Overview


The global augmented reality and virtual reality hardware market has been segmented based on hardware type, application, industry vertical, and region. By hardware type segment, the market is further bifurcated into sensors, processors, controllers, cameras, headphones, display monitors, and others. Among these segments the sensors segment garnered high market value of USD 6,180.9 million in 2021 and registered a CAGR of 28.1% during the forecast period. Based on the application, the market is further bifurcated into head mounted display, head up display, and handheld devices. Among these segments the head mounted display segment garnered high market share of 73.88% and market value of USD 16,501.5 million in 2021 and registered a CAGR of 35.8% during the forecast period of 2022-2030. Based on industry vertical, gaming & entertainment accounted for the largest market share of 34.58% with a market value of USD 7,723.8 million in 2021 and is projected to grow at the CAGR of 30.8% during the forecasted period. Based on region, the global augmented reality and virtual reality hardware market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.


Covid-19 Analysis


COVID-19 has severely impacted and disrupted supply chain hubs across the globe. China, one of the major manufacturing hubs, has registered a decline of ~14% in the production capacity and a decline of ~40% in global electronic component shipments. COVID-19 has infected the Global Value Chain hub, wherein China played an important role in providing raw materials, assembly of products, and final dispatch. The significant decline in the export includes textile raw material, garments and clothing accessories, mechanical and electrical products, automatic data processing systems, central processing units, electrical equipment, and automobiles. Moreover, in a survey by the National Association of Manufacturers to observe the economic impact of COVID-19 on manufacturers, it was observed that 78% of manufacturers anticipate a financial hit, nearly 51% of the manufacturers anticipate a change in operations, and almost 35% of manufacturers face supply chain disruptions.


Despite the growing uncertainties, semiconductor manufacturers, particularly chipmakers, are attempting to maintain operations and develop long-term strategies. Many semiconductor manufacturers collaborate with their partners and specific markets to maintain consistent business stability. For example, semiconductor manufacturers are constantly working on research, designs, and manufacturing processes while focusing on the health and safety of their employees. The semiconductor industry has felt the need to continue operations for their end users, including medical and healthcare technologies such as artificial intelligence, Industry 4.0, and 5G, which are working to combat the COVID-19 pandemic.


AR & VR Hardware Market Dynamics


Consumer and commercial rising interest in AR and VR market as well as propelling adoption rate of immersive systems is a major factor driving the growth of the market during the forecast period. In addition, on-going evolution of silicon technologies in developing advance electronics such as immersive systems are among major factors that further boost the growth of the market. However, limited processing power, storage and memory in mobile phones might hamper the growth of the market to a certain extent. Thought in the near future storage related concerns are expected to decline due to digital storage solutions. Furthermore, increasing use of smartphones and tablets for AR& VR application such as online shopping, games and others as well as rising usage of VR beyond gaming especially in healthcare are opportunistic factors of the AR and VR Hardware Market.


AR & VR Hardware Market Drivers



  • Consumer and Commercial Rising Interest


Head mounted displays (HMD) is a sort of computer display which is worn on the head as a mountable or wearable device. In significant cases, HMD’s are used in entertainment and gaming sector which provides total immersive experience for the user. Gaming sector has undergone lots of changes with the developments in technology. From arcade games to computer and mobile games the technology has spurred the area and resulted in various components. In recent years, virtual Reality has gained its roots in the gaming sector and led to the development of head-mounted displays. Oculus VR which is owned by Facebook, Inc. released first HMD Oculus Rift which is being widely used in the gaming industry. Gaming with HMDs allow the users to experience virtual surrounding and different motions to play the game. The ability to track motion and orientation of the user’s head is a distinctive feature of HMD which is its major advantage detrimental to its adoption. Many game developers are sticking only to HMD technology since it does not require any other additional hardware for controlling it. Moreover, the compact size and light weight of HMD, promote its adoption for gaming and entertainment applications across the globe


The gaming industry has undergone various changes with developments in control and display technologies. From arcade games to computer and mobile games, the technology has spurred the area and resulted in the development of immersive display technologies including AR, VR, and mixed reality. In recent years, virtual reality and augmented reality have penetrated in the gaming industry resulting in various advances in head-mounted display technology. Additionally, technology upgrades in the immersive technology-based head mounted displays is expected to drive the global market during the forecast period.


RESTRAINTS



  • Limited Processing Power, Storage and Memory in Mobile Phones


The components that support successful implementation of immersive display technology are still under development. The two major factors that restrain the market development are limited battery life and image latency issues. The existing AR VR-based displays face a major challenge due to image latency issues such as smaller interpupillary distance (IPD) to avoid generating blurry images. Similarly, the display devices commercially available so far have a limited battery life. For instance, Microsoft HoloLens, that has a power backup of 5.5 hours at entertainment mode and Magicleap mixed reality headset that provides a backup of three hours when used continuously.


Furthermore, most of the headset or other sensing devices which are being used in virtual reality are made compact and are prepared to mobility that is easily transferable from one place to another. The design challenges to make the headset compact is by SoC (System on Chip) technology which is referred as integrating all electronic circuits and sensors on a single integrated circuit to create the system compact. SoC is made with intricate designs embedded with multiple processors and application-oriented components. However, the assembling of motion and proximity sensors and integration of joysticks or other additive device sensors makes the system expensive. Manufacturers are working to cut down the costs by innovating new design patterns and new technologies for VR equipment.


AR and VR Hardware Market Opportunity



  • Growing Use of Smartphones and Tablets for AR& VR


Users are still downloading VR and AR content for their smartphones from Google Play, Oculus, and other stores, especially for mobile devices with AR capabilities. Both AR and VR, especially AR, will be significantly impacted by 5G, as well as mobile apps. Virtual picture creation, processing, and high data transport requirements are inherent to AR and VR, particularly VR. With the launch of 5G compatibility on more mobile and Internet devices, this will get better. In addition to 5G, WebVR is already boosting virtual reality adoption. One benefit of WebVR is that it eliminates the need for users to download native apps to their computers or mobile devices to consume VR and AR content. This is since it enables users of Google Chrome, Mozilla Firefox, and other web browsers to experience VR and AR.


Using augmented reality mobile apps, customers may simulate actual-sized products in virtual trial rooms, giving them a virtual in-store experience. In a location-based AR app, information about a particular location is delivered using the geolocation data in mobile phones. A user can physically interact with the world when using an augmented overlay. Tutors can employ virtual images or animations while interacting with their pupils in real-time. This educational innovation has the power to dramatically alter the way people learn. For instance, two well-liked AR applications are ZooBurst and Chromville Science.


AR & VR Hardware Market Segmentation


The global augmented and virtual reality hardware market has been segmented based on hardware type, application, industry vertical, and region


By hardware type, the global augmented reality and virtual reality hardware market has been segmented into sensors, processors, controllers, cameras, headphones, display monitors, and others.


By application, the augmented and virtual reality hardware market has been divided head mounted display, head up display, and handheld devices


By industry vertical, the augmented reality and virtual reality hardware market has been divided into aerospace & defense, gaming & entertainment, education & training, healthcare, automotive, and others.


Augmented and Virtual Reality Hardware Market Regional Analysis


Geographically, the global Augmented and Virtual Reality Hardware Market has been segmented into North America, Europe, the Middle East & Africa, and South America.


The North American market for augmented reality and virtual reality hardware is divided into countries namely US and Canada. Growing development in AR and VR technologies coupled with large number of AR and VR technologies players in North America is expected o garner high CAGR during the forecast period. For instance, In order to give students access to learning options in the metaverse, several educational institutions plan to launch digital twin campuses, according to VictoryXR, a provider of augmented and virtual reality (AR/VR) content for schools and educational institutions, which has announced the launch of ten "Metaversities" in the US this fall.


Additional, rise in demand for consumer-electronics based VR applications and high awareness for immersive reality systems among end-users has resulted the companies operating in the region to constantly reinvent and rebrand the existing products to increase the level of quality and innovative design. For instance, by 2024, Meta (previously Facebook) plans to release four new virtual reality (VR) and mixed reality (MR) devices. Later this year, the company plans to release a web version of Horizon, making it simple for people to access metaverse experiences from a lot more devices, even without requiring a headset.


GLOBAL: AUGMENTED AND VIRTUAL REALITY HARDWARE MARKET, BY REGION, 2021 (% SHARE)AUGMENTED AND VIRTUAL REALITY HARDWARE MARKET, BY REGION, 2021 (% SHARE)Source: Industry Expert, Secondary Research, and MRFR Analysis


Augmented & Virtual Reality Market Competitive Landscape


The global augmented and virtual reality market has witnessed significant growth over the forecast period due to growing demand for HMD in gaming and entertainment, implementation of VR as part of marketing strategy, and growing demand for AR/VR in retail and e-commerce. There are several domestic, regional, and global players operating in the augmented and virtual reality market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global augmented and virtual reality market who have contributed to the market growth.


These include Oculus VR, Samsung Electronics Co., Ltd, world viz, NXP Semiconductors, Bosch Group, Inertial Labs, Sony Corporation, Valve Corporation, HTC Corporation, DPVR, Vuzix, Qualcom Technologies Inc., Seiko Epson Corporation, Penumbra, Inc, ARM Limited, LEKE VR, Google LLC.


Recent Developments



  • October 2020, Samsung partnered with Stanford University for the development of an AR/VR display that is capable of packing more than 10,000 pixels per inch for use in VR/AR headsets and future contact lenses. The major aim of this partnership is to reduce the perception of the dreaded “screen door effect” in VR displays

  • May 2021, HTC Corporation partnered with Agora a VR company, the partnership aims to develop future VR technologies and experiences, and the partnership will bring HTCs hardware expertise and Agora software expertise for future development in VR technologies.

  • April 2022, Vuzix signed and reseller agreement with VR Expert a Netherland-based computer hardware manufacturer. The agreement will help Vuzix to expand its brand presence in Netherlands, Belgium, France, and Germany.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2030. For this analysis, MRFR segmented the global Augmented and Virtual Reality Hardware Market has been segmented based on hardware type, application, and industry vertical.


By Hardware Type



  • Sensors

  • Processors

  • Controllers

  • Cameras

  • Headphones

  • Display Monitors

  • Others


By Application



  • Head Mounted Display

  • Head Up Display

  • Handheld Devices


By Industry Vertical



  • Aerospace & Defense

  • Gaming & Entertainment

  • Education & Training

  • Healthcare

  • Automotive

  • Others



Report Scope:

Report Attribute/Metric Details
  Market Size   2021: USD 22,336.8 Million 2030: USD 3,89,066.4 Million
  CAGR   35.8%
  Base Year   2021
  Forecast Period   2022–2030
  Historical Data   2018-2020
  Forecast Units   Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Hardware Type, Application, Industry Vertical
  Geographies Covered   North America, Europe, Asia-Pacific
  Key Vendors   Oculus VR, Samsung Electronics Co., Ltd, world viz, NXP Semiconductors, Bosch Group, Inertial Labs, Sony Corporation, Valve Corporation, HTC Corporation, DPVR, Vuzix, Qualcom Technologies Inc., Seiko Epson Corporation, Penumbra, Inc, ARM Limited, LEKE VR, Google LLC.
  Key Market Opportunities   GROWING USE OF SMARTPHONES AND TABLETS FOR AR& VR
  Key Market Drivers   CONSUMER AND COMMERCIAL RISING INTEREST


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Frequently Asked Questions (FAQ) :

North America regional market is projected to be the major driver of the market.

The segments in the market are hardware type, application and industry vertical.

The major contenders in the global market are are Oculus VR (Meta), Google LLC, HTC Corporation, Samsung Electronics and Sony Corporation