PUBLISHER: QYResearch | PRODUCT CODE: 1871973
PUBLISHER: QYResearch | PRODUCT CODE: 1871973
The global market for Augmented and Virtual Reality (AR VR) was estimated to be worth US$ 3821 million in 2024 and is forecast to a readjusted size of US$ 7356 million by 2031 with a CAGR of 9.8% during the forecast period 2025-2031.
This report provides a comprehensive assessment of recent tariff adjustments and international strategic countermeasures on Augmented and Virtual Reality (AR VR) cross-border industrial footprints, capital allocation patterns, regional economic interdependencies, and supply chain reconfigurations.
Augmented reality (AR) is a technology that enhances the real world by overlaying digital information (such as images, videos, sounds, or other data) onto real-world environments in real time. While VR immerses users in a completely virtual environment, AR integrates digital elements into the user's existing surroundings, creating an enhanced experience that allows users to interact with both the real and virtual worlds simultaneously.
This report focuses primarily on augmented reality (AR) and virtual reality (VR) hardware.
VR places users in a virtual or replicated world (such as a game, movie, or flight simulator) or simulates the real world (such as watching a live sporting event).
The biggest Augmented and Virtual Reality players in global Market is Sony, holds a share about 25%, followed by Oculus (Meta). North America and Asia-Pacific are the top 2 the largest markets, occupied for around 70 percent in total, followed by Europe, which holds around 20% market share. In terms of type, VR device segment holds share over 90 percent. In terms of application, game segment holds the largest share over 30 percent in AR device applications while VR device for game holds about 40% market share.
The main drivers of the augmented reality (AR) and virtual reality (VR) markets include:
1. Technological Breakthroughs and Product Innovation
MicroLED and Micro-OLED: AR/VR devices use high-resolution MicroLED and Micro-OLED displays to improve brightness and color performance (for example, the Apple Vision Pro's Micro-OLED screen boasts a brightness of 2000 nits).
Expanded Field of View (FOV): Using reflective waveguide technology, AR glasses achieve a FOV exceeding 50°, approaching the natural field of view of the human eye.
Eye Tracking and Gesture Recognition: Devices such as the Meta Quest Pro integrate eye tracking for more natural interaction; Ray-Ban Meta smart glasses support gesture control.
AI Integration: Apple Vision Pro's "Persona" feature uses AI to scan facial expressions and restore details in FaceTime calls; Google Translate leverages AI to overlay real-time text translations. 1.3 Lightweight and Wireless Hardware
Lightweight Design: AR glasses are being reduced to less than 80 grams (e.g., Ray-Ban Meta), providing a wearing experience similar to that of regular glasses.
Wireless Power and 5G-A Networks: Support for wireless power and 5G-A low-latency transmission enables wireless, intelligent, and scenario-based devices.
2. Evolving Consumer Demands
Games and Entertainment: VR platforms offer a rich gaming ecosystem. Games like "Fortnite" and "Roblox" demonstrate the potential of virtual worlds; the AR game "Pokemon GO" validates market demand.
Social Media and Avatars: Platforms like Meta Horizon Worlds allow users to create avatars and engage in social interaction.
First-Person Photography and AI Interaction: Ray-Ban Meta smart glasses support first-person photography and AI translation, with an average daily usage of over two hours.
Health Monitoring and Management: AR glasses integrate heart rate and motion data monitoring, and are collaborating with medical institutions to develop diagnostic tools (e.g., VR neurosurgery training systems). 2.3 Cost-Effectiveness and Fashionability
Price Drops: Consumer AR glasses are now priced between $300 and $500 (e.g., Xreal Air), driving their widespread adoption.
Appearance Design: Cosmetic AR contact lenses (e.g., Mojo Lens) meet aesthetic needs and support customizable colors and housings.
3. Expanding Industry Applications
Remote Collaboration and Training: Microsoft HoloLens 2 has reduced aircraft assembly errors by 40% at companies like Boeing and Lockheed Martin; Baotong Technology's digital twin smart mining system has reduced equipment failure rates by 25%.
Digital Twins and Prototyping: Huawei and Lenovo New Vision have collaborated to launch a VR prototyping tool, shortening R&D cycles by 40%.
Surgical Simulation and Rehabilitation Training: The Keck School of Medicine of the University of Southern California's VR neurosurgery training system has increased surgical success rates by 18%; VR psychotherapy in Germany has achieved an efficacy rate of 70%.
Telemedicine and Diagnosis: AR glasses support remote surgical navigation and real-time patient monitoring (e.g., 5G telerobotic surgery at Johns Hopkins Hospital). 3.3 Education and Training
Immersive Learning: Tencent and Stanford University collaborated to launch a VR anatomy course, increasing knowledge retention by 75%; Google Glass for Education allows real-time access to class notes.
Vocational Skills Training: VR is used for simulation training in high-risk industries such as firefighting and aviation, reducing training costs and risks.
Virtual Fitting and Test Drives: AR virtual fitting rooms are becoming increasingly popular in retail and e-commerce; auto brands are offering virtual test drive experiences through VR.
AR Navigation and Marketing: Hangzhou's West Lake AR navigation and Amazon AR shopping enhance user experience and conversion rates.
4. Policy Support and Investment Growth
China's 14th Five-Year Plan lists VR/AR as a key digital economy priority. The Ministry of Industry and Information Technology and five other ministries jointly issued the "Action Plan for the Integrated Development of Virtual Reality and Industry Applications," aiming for an industry scale exceeding 350 billion yuan by 2026.
Local Subsidies and Special Programs: Many provinces and cities have included AR/VR in digital product consumer subsidies, supporting the research and development of core technologies such as optical waveguides and Micro-LEDs. 4.2 Venture Capital and Giant Investment
Startup Financing: Mojo Vision secured over $100 million in funding, focusing on AR contact lenses; companies like Squint and Excurio attracted investment through technological innovation.
Technology Giant Investment: Meta's Oculus products dominate the consumer VR market; Apple's Vision Pro integrates multiple advanced technologies; Google develops multiple AR/VR products and strengthens its position through technical collaborations.
Technical Standard Harmonization: Industry alliances promote the unification of AR/VR technical standards, reducing development costs and compatibility issues.
Ecosystem Alliances and Collaboration: ByteDance collaborates with Tencent and Huawei to jointly establish industry standards; development engines such as Unity and Unreal Engine dominate the market, supporting cross-platform AR content development.
5. Social Trends and Digitalization
Demand for Immersive Interaction: AR/VR, as more personalized devices, aligns with future trends in digital living and is driving the implementation of the metaverse concept. Remote Collaboration and Virtual Meetings: VR platforms support virtual meetings and remote guidance, improving work efficiency (e.g., Microsoft HoloLens 2 achieves a 30% increase in assembly efficiency in the automotive manufacturing sector).
Health Management Demand: AR glasses with integrated health monitoring features attract users with health management needs; they also provide support for the visually impaired and elderly, improving quality of life.
High-Speed Transmission and Low Latency: 5G-Advanced networks support real-time data exchange and cloud computing, driving the adoption of AR/VR applications.
IoT Convergence: Integration with smart homes and wearable devices creates a full-scenario ecosystem (e.g., Apple's "hardware + software + services" closed-loop ecosystem).
6. Competition and Ecosystem Development
Giant Strategies: Apple, Meta, and Microsoft dominate the market (with a combined market share exceeding 60%) by collaboratively building ecosystems across hardware, software, and content.
Differentiated Innovation: SMEs focus on niche scenarios (e.g., healthcare and industry), creating differentiated competition (e.g., Varjo focuses on high-end VR/AR headsets, and Manheng Digital develops an industrial metaverse platform). 6.2 Ecosystem Development
Hardware-Software-Content Synergy: Hardware manufacturers are accelerating the growth of the content ecosystem by subsidizing content developers and establishing revenue-sharing mechanisms (e.g., Meta's 70% profit-sharing plan).
Cross-Platform Ecosystem Integration: VR hardware is interconnected with PCs, mobile phones, smart home devices, and other devices, forming a cross-scenario ecosystem (e.g., Huawei's Hetu platform empowers city-level AR navigation).
The rapid development of the augmented reality (AR) and virtual reality (VR) markets is driven by six core factors: technological breakthroughs, evolving consumer demand, expanding industry applications, policy support, social trends, and ecosystem competition. In the future, with the maturity of technologies like MicroLED and eye tracking, and their deep penetration into healthcare and education scenarios, the AR/VR market is poised for explosive growth, becoming a core direction for the next generation of smart devices.
This report aims to provide a comprehensive presentation of the global market for Augmented and Virtual Reality (AR VR), focusing on the total sales volume, sales revenue, price, key companies market share and ranking, together with an analysis of Augmented and Virtual Reality (AR VR) by region & country, by Type, and by Application.
The Augmented and Virtual Reality (AR VR) market size, estimations, and forecasts are provided in terms of sales volume (K Units) and sales revenue ($ millions), considering 2024 as the base year, with history and forecast data for the period from 2020 to 2031. With both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Augmented and Virtual Reality (AR VR).
Market Segmentation
By Company
Segment by Type
Segment by Application
By Region
Chapter Outline
Chapter 1: Introduces the report scope of the report, global total market size (value, volume and price). This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 2: Detailed analysis of Augmented and Virtual Reality (AR VR) manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 3: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 5: Sales, revenue of Augmented and Virtual Reality (AR VR) in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 6: Sales, revenue of Augmented and Virtual Reality (AR VR) in country level. It provides sigmate data by Type, and by Application for each country/region.
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.