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Augmented Virtual Reality Hardware Market Trends

ID: MRFR//9481-CR | 110 Pages | Author: Aarti Dhapte| April 2023

Global AR/VR Hardware Market Overview

AR/VR Hardware Market Size was valued at USD 29,984.6 million in 2022. The AR/VR Hardware market is projected to grow from USD 41,832.3 million in 2023 to USD 389,066.4 million by 2030, exhibiting a compound annual growth rate (CAGR) of 37.5% during the forecast period (2023 - 2030). High demand for AR and VR hardware in industries such as gaming, entertainment & media, aerospace & military, retail, and manufacturing and demand for AR/VR Hardwares from critical industries are some of the factors driving the growth of the AR/VR Hardware market.



Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

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.

Covid-19 pandemic, climate variations, civil unrest, and depletion of natural resources impact the cost and supply of raw materials. Today, electronic component has become an important part of consumer electronics. Though electronic parts still have a major share in AR and VR hardware, there has been a rising use of other electrical components and semiconductors in head mounted display. Critical components required for manufacturing AR and VR devices, such as sensors and resistors, were in shortage due to manufacturing hubs' closure and production delays. In addition, the trade restriction across the globe has created fluctuation in raw material prices, and manufacturing companies were concerned about rising raw material prices which further declined the production of components. Global component manufacturing operations came to a halt, and companies were struck by slowing down expenditure and declining industrial production. All these created an imbalance of demand and supply for components in the market.

AR/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 Segment Insights

AR/VR Hardware Type Insights

Based on Hardware Type, the AR/VR Hardware Market is segmented into Sensors, Processors, Controllers, Cameras, Headphones, Display Monitors, and Others. The sensor segment captured the biggest market share by solution in 2022 and is likely to maintain its dominance in the future years. Sensors are extensively used in the augmented reality and virtual reality hardware market, the sensors support the AR/VR system and are majorly focused on audio and video interface, motion tracking, and voice recognition. Modern-day AR/VR headsets rely on one or more types of sensors utilizing vertical-cavity surface structured-light sensors and a Lidar detection system for depth sensing. Processors provide AR/VR devices with the instruction and processing power they need to perform the task. For instance, processing the video into AR/VR format while utilizing a combination of GPU processors, display processors, and machine learning.

October 2021 Bosch Sesortec GmbH launched new sensors that have reduced time lag which is very essential during head movements, time lag can be a factor in motion sickness while using AR/VR devices. The company states its new sensors have high stability and low latency enabling the sensors to be used in a wide range of applications including VR gaming.

March 2018 Bosch Sensortec GmbH launched BM1085 motion sensor chips for AR/VR application, navigation, body motion, tracking, and gaming. The sensor is filled with features, combining a low-drift gyroscope with a low-noise accelerometer to significantly reduce the unpleasant motion sickness effect.

AR/VR HARDWARE MARKET SIZE (USD MILLION) by hardware type (2018-2030)AR VR HARDWARE MARKET SIZE (USD MILLION) by hardware type (2018-2030)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

AR/VR Hardware Enterprise Size Insights

Based on Application, the AR/VR Hardware Market is segmented into Head Mounted Display, Head Up Display, and Handheld Devices. The Head Mounted Display segment captured the biggest market share by solution in 2021 and is likely to maintain its dominance in the future years.

Head-mounted displays are display headsets that are worn on the head, head-mounted displays are equipped with display optics that are placed exactly in front of each eye, these head-mounted displays are combined with inertial measurement units, enabling users to see projected scenes. Head-mounted displays are used in a wide range of applications including aviation, engineering, medicine, and gaming.

AR/VR Hardware Industry Vertical Insights

Based on Industry Vertical, the AR/VR Hardware Market is segmented into Aerospace & Defense, Gaming & Entertainment, Education & Training, Healthcare, Automotive, and Others. The Gaming & Entertainment segment captured the biggest market share by solution in 2021 and is likely to maintain its dominance in the future years.

There is a rapid rise in the adoption of augmented and virtual reality in the gaming and entertainment industry, augmented and virtual reality allows the users to experience digital games and movies in a real-world environment. With the rapid advancement in AR/VR technology, the demand is increasing in this vertical.

Virtual reality gaming combines augmented reality gaming and virtual reality gaming. Augmented reality gaming is a combination of audio and visual content in real-time. Virtual reality gaming is a 3D application for creating virtual artificial environment in computer games. AR games are mostly played on smartphones, tablets, and portable gaming systems. Augmented reality gaming uses the existing environment and generates a gaming field within itself. VR gaming control may involve keyboard and mouse, game controllers or motion capture methods. Mixed reality games are mostly played on head-mounted displays. Acer’s mixed reality headset, Microsoft HoloLens, Samsung Odyssey, Lenovo Explorer, and Dell Visor are some examples of devices on which users can play reality video games.

AR/VR HARDWARE MARKET SIZE (USD MILLION) by industry vertical (2018-2030)AR VR HARDWARE MARKET SIZE (USD MILLION) by industry vertical (2018-2030)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

AR/VR Hardware Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia Pacific dominated the AR/VR Hardware Market with a share of 40.9% of the total market in 2022. Growing spending on augmented reality and virtual reality (AR/VR) technologies coupled with rise in penetration of the wireless-first strategy amongst enterprises, industries, and public sector organizations drives the AR/VR market in the Asia-Pacific region. Vendors will advance VR headsets, AR for smart glasses and phones, and disrupt augmented audio technologies, providing the consumer market with excellent growth prospects. The demand from businesses for a new immersive experience in how they conduct business and connect with customers and workers is what's fueling the phenomenal market growth for AR/VR technologies. Vendors must, however, respond to consumer AR/VR applications as well if they want to take advantage of opportunities with rapid growth over the coming few years. The highest expenditure sectors over the projection period will be professional services, discrete manufacturing, healthcare, education, and healthcare.

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. Growing adoption of immersive technologies in this region owing to its benefits is a major factor expected to drive the growth of the market. Moreover, on-going demand of immersive technologies especially integrate hardware devices in healthcare industry is further expected to garner significant revenue in the coming 10 years. For instance, May 25, 2022, LONDON At a special event for the XR community, ARuVR, the virtual and augmented reality learning company, will announce a partnership with a prominent XR and EdTech supporter to revolutionize medical education. Professor Manish Chand, of the UCL Hospital NHS Foundation Trust, will test out ARuVR's technology to instruct medical students as part of the agreement. The invitation-only event will be held at the grade II-listed BT Tower, which is home to BT, which joins Coca-Cola, Rio Tinto, PwC, and NEOM on the long list of international clients for ARuVR.

Further, the countries considered in the scope of the AR/VR Hardware market are the US, Canada, Mexico, UK, Germany, France, Italy, Spain, Switzerland, Austria, Belgium, Denmark, Finland, Greece, Hungary, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Sweden, Romania, Ireland, China, Japan, Singapore, Malaysia, Indonesia, Philippines, South Korea, Hong Kong, Macau, Singapore, Brunei, India, Australia & New Zealand, South Africa, Egypt, Nigeria, Saudi Arabia, Qatar, United Arab Emirates, Bahrain, Kuwait, and Oman, Brazil, Argentina, Chile, and others.

AR/VR HARDWARE MARKET SIZE (USD MILLION) by region (2018-2030)AR VR HARDWARE MARKET SIZE (USD MILLION) BY REGION (2018-2030)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

AR/VR Hardware Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the AR/VR Hardware market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the AR/VR Hardware industry must offer cost-effective services and solutions to expand and survive in an increasingly competitive and rising market environment.

Various AR/VR Hardwares market leaders are introducing new technologies for various industries in order to improve security and eliminate communication gaps between employees and businesses. Oculus VR launched Rift S headset with additional features such as hand gesture controls, the company launched the new VR headset for a price of USD 399, the new VR headset is primarily designed for gaming. NXP Semiconductors is developing accessories and hardware for the gaming markets including AR/VR headsets and wireless gamepads to keep up with the rising market demand and market innovation.

Key Companies in the AR/VR Hardware market include

  • Oculus VR (Meta)

  • Google LLC

  • HTC Corporation

  • Samsung Electronics

  • Sony Corporation

  • Worldviz

  • NXP Semiconductor N.V

  • Bosch Sensortec GMBH (Bosch Group)

  • Inertial Labs

  • Valve Corporation

  • TCL Technologyc

  • DPVR

  • Vuzix

  • Qualcomm Technologies Inc.

  • Sieko Epson Corporation

  • Penumbra, Inc.

  • Arm Limited

  • Leke VR, among others

AR/VR Hardware Industry 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.

Intended Audience

  • Sensor Industry

  • Semiconductor Industry

  • Factories And Manufacturing Facilities

  • Technology Investors

  • Regulatory Industries

  • Government Bodies

  • Augmented and Virtual Reality Industries

AR/VR Hardware Market Segmentation

AR/VR Hardware Type Outlook

  • Sensors

  • Processors

  • Controllers

  • Cameras

  • Headphones

  • Display Monitors

  • Others

AR/VR Hardware Application Outlook

  • Head Mounted Display

  • Head Up Display

  • Handheld Devices

AR/VR Hardware Industry Vertical Outlook

  • Aerospace & Defense

  • Gaming & Entertainment

  • Education & Training

  • Healthcare

  • Automotive

  • Others

AR/VR Hardware Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • UK

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Rest of Asia-Pacific

  • Middle East & Africa

  • South America

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