Growth of the Augmented Reality vs virtual reality in 2021

By 2021 the augmented reality and virtual reality market will reach $215.39 billion worldwide.

Growth of AR and VR among consumers, as well as the key trends in smart devices of different types used for AR/VR content creation – from low-cost smartphone holders to costly headsets.

Following Companies as the Key Players Operating in the Virtual Reality Market: Facebook Inc., Google Inc., Microsoft Corporation, Sony Corporation, Samsung Electronics Co. Ltd, Intel Corporation, Qualcomm Incorporated, Vuzix Corporation, and EON Reality Inc.

Various segments of Augmented Reality (AR) and Virtual Reality (VR) Market 2021-2025:

By Region: AR and VR market diversified with the presence of key regional players in all major regions – North America, Europe, APAC, and ROW. These regions are further segmented into countries like the U.S., Germany, U.K., Japan, and China (among others). The geographical footprint is extremely important as industry players interact at a local level to build products suited for specific applications; enabling the technologies required; and creating separate marketing strategies. This will allow enhanced product differentiation/positioning which can result in a demand-supply gap for short-term and long-term opportunities for the manufacturers across the value chain.

By scope: This report identifies opportunities in various industry verticals and horizontals across the consumer, commercial, and enterprise sectors – healthcare; defense; entertainment; engineering design & education (among others). Across such diversified markets, there will be a few sub-segments that will lead the growth of the AR/VR market like entertainment (gaming and movies) and product design.

By Offering: This section covers devices like HMDs (smart glasses) and VR Glasses (for example Google Cardboard); integration services like software development; consulting & support services; hardware design services; installation, commissioning, and training.  Hardware is desired with various use cases of AR/VR technologies on smartphones, tablets, gaming consoles, etc.; whereas software is getting popular with rapidly increasing penetration of mobile devices (tablets & smartphones), adoption in home entertainment systems (gaming consoles), and presence of several operating systems (iOS, Android).

By Device Type: Here, we segment the AR/VR market into various headsets; goggles; gloves; bodysuits; suits; peripherals like 3D mice and gamepad controllers. These wearable technologies are further sub-categorized by whether they support augmented reality or virtual reality applications. HMDs now offer new ways to access information with the help of gesture controls, voice inputs, and eye-tracking capabilities which will not only result in huge growth for this technology but has become an important area of focus among major players across the value chain.  Gloves are expected to witness robust growth on account of their affordability, ease to wear, and compatibility with VR devices – especially if it engages the consumer’s body.

My Experience: When it comes to consumers, the value proposition of AR/VR is driven by experience (immersion, interactivity, and social presence); rather than content. For example, gaming applications are highly immersive; but lack real physical interaction with the environment which will give birth to new use cases like product design implementation; interactive education; social networking; healthcare; etc. This section covers various experiences including movies/gaming/apps across various platforms – mobile devices, PCs & consoles.  As the consumer continues to be a major driver for this market, we have covered most categories under Entertainment – Gaming and Movies & Video which includes PC & Console games separately. Similarly, Mobile Apps have been further segmented into Education, Lifestyle, and Utility apart from Casual and Gamification applications.

By Platform: VR platforms can be PC-based (for example Oculus Rift, HTC Vive) or console-based (PlayStation VR), whereas AR can be deployed on mobile devices including smartphones and tablets. This section covers the market by platform(s) for immersive technologies with a separate category dedicated to smartphones & tablets which will have a huge impact due to affordable hardware price points and increasing penetration of these devices among consumers across all geographies especially the Asia Pacific. In addition, AR/VR headsets are expected to increase their footprint on account of increasing demand from various industry verticals including healthcare, education, transportation & logistics, etc.; which in turn will drive the need for content development across different categories [entertainment – gaming, movies & video, etc.; education; healthcare].

By Component: In recent years, the components required to support AR/VR device hardware have been witnessing a rapid development from displays to other technologies like eye tracking, gesture control, and wireless connectivity. These components are expected to become more common in the future leading to the growth of this market. For instance, display technologies will further contribute towards the growth of VR devices on account of the increasing penetration of smartphones and the availability of HMDs at affordable prices.   Visionaries believe that these components will bring revolutionary changes shortly across different industry verticals while limiting the dependency on consoles/computers for powering immersive experiences.

Augmented Reality: The market for AR has been segmented into various use cases such as a smart home; manufacturing & engineering; retail & e-commerce; medical & healthcare; advertising & marketing; automotive industry, transportation & logistics sector among others. These AR devices are available in various forms and can be customized based on consumer’s requirements and budgets. Some of the major players include DAQRI, Inc.; Kopin Corporation; Microsoft Corp.; Osterhout Design Group (ODG); Recon Instruments, Inc.; Vuzix Corp. among others.    

By Virtual Reality: VR market has been segmented into gaming & other entertainment; education & training; healthcare; design & manufacturing industries among others which also includes – movies/video games/entertainment apps across different platforms such as PC & console games, mobile apps including casual and gamification apps. These VR devices are expected to witness robust growth due to the increasing penetration of smartphones and the availability of affordable HMDs for engaging consumers. Major players in the VR market include Facebook, Inc.; Samsung Electronics Co., Ltd.; Sony Corporation among others.

It’s exciting times for the global augmented reality and virtual reality market given the pace at which consumer awareness and demand for immersive technologies are increasing. We at Stacx believe that the future holds greater opportunities for web &app developers to not only create content but also deploy it across different platforms and devices especially on account of advancements in wireless technology and the availability of affordable hardware. This has opened doors to newer possibilities including AR head-mounted displays (HMD), which are expected to witness robust growth on account of their affordability, ease to wear, and compatibility with VR devices – especially if it engages the consumer’s body.