Want to learn more about virtual reality? Join our session and VR networking event August 27. RSVP here.
The global Augmented Reality and Virtual Reality market is expected to reach a staggering $766 billion by 2025, a growth rate of 73.7%, according to a new report from India-based Market Research Future.
The report takes in the totality of use cases and covers technology, components and device type as well as bundling AR and VR together but nonetheless the leap is astronomic over comparable surveys.
READ MORE: AR and VR Market to Hit USD 766 Billion by 2025 Registering a 73.7% CAGR (Market Research Future)
For instance, Grand View Research pinned the global virtual reality market size at $15.81 billion in 2020 and expected it to grow at a rate of 18.0% from 2021 to 2028. Fortune Business Insights reckoned the market was only worth $3.10 billion in 2019 with projections to reach $57.55 billion by 2027, while Mordor Intelligence valued it at $17.25 billion in 2020 to reach $184.66 billion by 2026, at a CAGR of 48.7%.
The difference appears to be the impact of Covid-19, according to Grand View Research.
“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 AR/VR.”
Other key factors identified by the research group as positively impacting growth include the growing demand for head-mounted displays (HMDs) in gaming and 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 VR devices in the manufacturing and healthcare sectors, alongside growing investments and funding by key market players to develop AR/VR solutions, are driving the market growth.
In its analysis, North America is the market leader driven by factors such as the presence of a number of key players, including Google, Microsoft, and Facebook, and demand from the industrial sector. The US is projected to reach a valuation of $307.91 billion by 2025 with a 78.3% CAGR during the forecast period.
Europe accounts for the second most significant share in the global AR/VR market, set to reach $168.58 billion by 2025 up from $170 billion in 2018. Media & entertainment is a driving factor as are , increasing PlayStation and mobile games applications plus demand from education and healthcare.
READ MORE: Virtual Reality (VR) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026) (Mordor Intelligence)
China dominates APAC region usage with wide adoptions in infrastructural and industrial sectors, per the report. The Chinese AR/VR market is estimated to rise with a 65% CAGR during the forecast period.
Personally, I would take this report with a big dose of salt. The press release is badly worded and doesn’t give one grounds for confidence in the veracity of its research. An example: “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.”
The report’s prediction is an outlier although it can’t be denied that demand for AR/VR is rising across the board.