Augmented and Virtual Reality in Manufacturing Market Expected to Reach $72.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Augmented and Virtual Reality in Manufacturing Market," The augmented and virtual reality in manufacturing market size was valued at $5.4 billion in 2021, and is estimated to reach $72.4 billion by 2031, growing at a CAGR of 29.8% from 2022 to 2031.

Virtual reality (VR) and augmented reality (AR) are the technologies that are transforming the ways in which users use screens and producing innovative and engaging interactive experiences. Additionally, with virtual reality, users can explore a world created by a computer by wearing a headset and other wearable devices. On the other hand, augmented reality is somewhat different. By using a smartphone or clear eyewear, it layers digital visuals onto the environment around people rather than taking them to a virtual world.

Furthermore, rise in investments in AR and VR in Manufacturing market and increase in government initiatives for driving the adoption are driving the growth of the market. In addition, cost-efficient benefits of augmented and virtual reality-based solutions in manufacturing is fueling the growth of the augmented and virtual reality market. However, high investment required in setting up AR and VR in manufacturing and concerns regarding security and privacy issues associated with AR limits the growth of this market. Conversely, rise in digitalization in the manufacturing industry is anticipated to provide numerous opportunities for the expansion of the market during the forecast period.

Depending on the application, the product design and development segment dominated the augmented and virtual reality in manufacturing market share in 2021 and is expected to continue this trend during the forecast period, as businesses, in particular software development companies, can conduct countless tests and create leading software products, which helps in expanding the growth outlook of the product design and development segment. However, the safety and training segment is expected to witness the highest growth in the upcoming years, owing to its advantages, as instead of viewing content on a screen, virtual reality is usually viewed through an interface, like a headset or goggles and further reduced the physical damage risk, which drives the segment growth worldwide.

Region-wise, the augmented and virtual reality in manufacturing market analysis was dominated by North America in 2021 and is expected to retain its position during the forecast period, due to growing technological advancements in field of gaming and entertainment and increasing R&D activities regarding augmented and virtual reality solutions. However, Asia-Pacific is expected to witness significant growth during the forecast period, due to the widespread adoption of AR and VR in manufacturing market architecture by mobile operators to address the capacity and coverage challenges, which is expected to fuel the market growth in this region.

The augmented and virtual reality in manufacturing industry was immensely impacted by the outbreak of COVID-19 as consumers are fast migrating to internet platforms. Due to the COVID-19 pandemic, digital connections have assumed prominence in the personal, business, and entertainment spheres. The COVID-19 measures and restrictions, such as social isolation and lockout procedures, have altered people's behavior. These unexpected changes created a significant impact on augmented and virtual reality in manufacturing market, due to the increase in virtual training, education, and shopping as well as industry training and supervision with AR and VR devices, the world's transition toward a remote work culture and be it for schools, universities, or corporations, which led to a boom in the AR and VR market, which directly influencing market growth all over the world.

KEY FINDINGS OF THE STUDY

• By organization size, the large enterprises segment accounted for the largest augmented and virtual reality in manufacturing market forecast in 2021.
• Region-wise, North America generated the highest revenue in 2021.
• On the basis of application, the product design and development segment generated the highest revenue in 2021.

The global augmented and virtual reality in manufacturing industry is dominated by key players such as EON Reality, Inc., ESI Group, Google LLC, Kaon Interactive Inc., Microsoft Corporation, NOVAC Technology Solutions, Samsung Group, SkillReal, Vuzix Corporation and Worldviz, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.