The augmented reality & mixed reality market is valued at USD 2.06 billion in 2018, and is expected to reach USD 18.96 billion by 2024, registering a CAGR of 44.74%, over the forecast period 2019-2024. The world is fully engrossed with the two technologies, Virtual Reality (VR) and Augmented Reality (AR). An incredible merger of these two has come into existence, which adds icing to the cake, which is an extended reality, known as mixed reality. It is a seamless intersection between Augmented Reality and Virtual Reality and combines the best of both virtual worlds.
- Although the initial technology was focused on gaming and entertainment, mixed reality has found applications across a diverse range of industries, including education and training. Companies are incorporating AR and MR technologies to provide training without the need for training equipment.
- The major factors driving the growth of the market is the growing demand for high-end consumer electronics market, and the introduction of low-cost devices and the increasing purchasing power in developing countries.
- However, the high setup costs and the unavailability of batter backups might hinder market growth. The market is also poised with several challenges to the adoption of mixed reality as the next future disruption.
Scope of the Report
Augmented reality and Virtual reality are no longer buzzwords in the technology industry. However, an amalgamation of both the technologies, which is an extended reality, known as mixed reality, is set to disrupt the future of the technological industry. Mixed reality combines the best of both the technologies and is set to create an incredible face of the future of the digital world.
Key Market Trends
The Gaming Industry Expected to Hold the Majority Share
- Due to the various advancements in the gaming industry, the significant technologies which are earning a lot of market attention are Virtual Reality (VR), Augmented Reality (AR), and Extended Reality, i.e., Mixed Reality (MR). For an avid gamer, nothing could be more exciting than the prospect of being transported inside the game, battling demons, aliens, and spies, exploring amazing environments beyond imagination.
- One of the most popular application of Augmented reality was demonstrated in the game Pokemon Go in 2016, where players targeted to search for virtual creatures on their smartphones. Another one is Playstation VR, which is a console for playing Virtual Reality based games.
- The two technologies, AR and VR collectively, have already created scenarios that once seemed impossible, by years of innovations. For instance, products like the Oculus Go will allow users to download games, apps, and other experiences right from their phone and sync the games to the headset itself, eliminating the need to connect it to a VR-ready computer, which was required by Oculus Rift.
- However, with the introduction of mixed reality, the major factors driving the mixed reality in gaming market is unceasing growth of the gaming industry. Mixed reality in gaming provides an immersive virtual environment and enables gamers to experience virtual reality on their gadgets. For example, the launch of Microsoft Hololens motion controllers and developer kits is serving to aid market players to stimulate the development of mixed reality in gaming.
- Furthermore, the increasing adoption of mixed reality in gaming technology in amusement parks and military training is likely to stimulate the application of mixed reality in the gaming industry. For instance, the large theme parks in developed countries such as the U.S. are making hefty investments to integrate mixed reality in gaming technology to provide an immersive gaming experience. Brand name theme parks are also investing to design and develop mixed reality in gaming technology-based theme parks.
North America to Dominate the Market
- The North America region is expected to be the market leader in the AR & MR markets in the world, over the forecast period. Most of the companies making advancements in these technologies are based in this region.
- The North America region is also one of the largest markets for the media & entertainment industry. For instance, Microsoft HoloLens is a breakthrough in the mixed reality technology, which is based in the United States.
- The region is dominating the market also due to factors such as high technology exposure, and easy availability of devices have created a robust demand for smart devices, in this region. For instance, Microsoft Hololens was first released in the United States and Canada and has received a positive response from the consumers in the region.
The global augmented reality and mixed reality market is moderately fragmented due to the presence of many players in the market contributing significantly towards the growth of the market. The vendors are working incessantly towards strategic partnerships and innovations to gain maximum market traction and increase their market size.
- September 2018 - Microsoft announced the launch of a series of new AI and mixed reality services for workplace software Dynamics 365, that includes HoloLens-powered tools and intelligence aimed at making the sales and marketing team work better.
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