According to a recent report published by Allied Market Research, titled, AR/VR Smart Glasses Market by Type and End Use: Global Opportunity Analysis and Industry Forecast, 2020–2027,” the global AR/VR smart glasses market size was valued at $8.31 billion in 2019, and is projected to reach $33.16 billion by 2027, registering a CAGR of 16.6% from 2020 to 2027. The AR/VR smart glasses market holds a substantial scope for growth in the global market. Currently, it is in its growing stage. However, its contribution to the global market is expected to witness significant growth within the next few years. High maintenance cost associated with AR/VR smart glasses is a major limitation for the market growth.
However, recent innovations, which implant high efficiency and innovative features in smart glasses, have enabled the technology to reach a wider audience base. Numerous players are entering the AR/VR smart glasses market with innovative products. Emerging development in IoT and growth of autonomous products are expected to drive the AR/VR smart glasses market growth in the future.
The AR/VR smart glasses market forecast holds high potential in the gaming industry. The current business scenario is experiencing rapid development in smart technology, leading to the readiness to adopt this technology, particularly in the developed and developing regions such as North America, Asia-Pacific, and Europe. Companies in this industry adopt various innovative techniques to provide customers with advanced and innovative features.
Augmented and virtual reality solutions find high usage in various industries such as civil aviation, defense & security, healthcare, digital manufacturing, education, and entertainment. However, prominent players operating in the augmented and virtual reality market are projected to concentrate on the introduction of industry-specific solutions to expand their presence across various industries such as mining, oil & gas, and transportation.
Region wise, the AR/VR smart glasses market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific and North America are expected to offer lucrative market growth opportunities during the forecast period. North America and Asia-Pacific are anticipated to grow at a rapid pace at a CAGR of 14.6% and 17.9%, respectively.
COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners across the globe.
Demand from the wireless communication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies, such as 5G, IoT, AI, and intelligent edge computing, for future optimization.
Some of the AR/VR device manufacturers especially from China, Taiwan, and South Korea have witnessed temporary delays in AR/VR device production, increased costs, and revenue losses due to the pandemic. For instance, MAD Gaze, a Hong Kong-based consumer AR smart glasses provider, announced delay in shipments and change in its display panel supplier from a Chinese factory to Korean and Japanese factories due to production delays in Chinese factories.
The manufacturing sector witnessed severe loss, and thus no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumer electronics markets are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the AR/VR smart glasses market is facing major obstacles from the emergence of COVID-19 pandemic.
The overall impact of the pandemic is impacting the production process of several industries, including semiconductor and electronics. Trade barriers are further constraining the demand and supply outlook. As governments of different countries have already announced total lockdown and temporary shutdown of industries, the overall production process is adversely affected.
Key Findings Of The Study
- The gaming segment is projected to be the major end user during the forecast period.
- Asia-Pacific and North America collectively accounted for more than 70.0% of the AR/VR smart glasses market share in 2019.
- Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
- U.S. was the major shareholder in the North America AR/VR smart glasses market, accounting for approximately 69.0% share in 2019.
The key players profiled in this report include Avegant, Epson, Everysight Ltd, Kopin Corporation, Lumus Ltd, Optinvent, RealWear, Ricoh Company Ltd., Royale Corporation, and Vuzix. These key players have adopted several strategies, such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the AR/VR smart glasses industry during the forecast period.