Augmented and Virtual Reality Market in United States Insights - 2030
The U.S. augmented and virtual reality market size was valued at $4.39 billion in 2020, and is projected to reach $134.76 billion by 2030, registering a CAGR of 41.6% from 2021 to 2030. Virtual reality is an extensive term for a multi-sensory computer-generated experience that enables users to experience and interact with a simulated environment. Whereas, augmented reality enhances the real world using digitally produced perceptual overlays. Furthermore, virtual reality is the use of computer technology to create a simulated environment, which can be explored in 360 degrees. In addition, games, surgery, and flight simulators are the most well-known uses of virtual reality. In addition, it allows students to explore, experience, and immerse in virtual environments.
Rise in investment in the AR market and surge in penetration of smartphones & mobile gaming boost the growth of the U.S. augmented and virtual reality market. In addition, increase in adoption of augmented & virtual reality solutions in education positively impacts the growth of the U.S. AR & VR market. However, factors such lack of effective user experience design and security and privacy issues associated with AR is expected to hamper the U.S. AR and VR market growth. On the contrary, increase in usage of VR headsets in amusement and theme parks, commercial applications, and other places is expected to offer remunerative opportunities for the expansion of the U.S. augmented and virtual reality market during the forecast period.
By application, the consumer segment garnered the largest augmented and virtual reality share and is expected to maintain its dominance in the upcoming years as consumers are increasingly using augmented and virtual reality due to advancements in VR devices and growth in usage of AR devices for software development and the creation of standardized platforms which is providing lucrative opportunity for the U.S. augmented and virtual reality market growth. However, the enterprise segment is expected to witness highest growth, owing to development of new businesses and IT applications among companies across numerous industrial sectors. In addition, AR and VR technologies are disrupting the market with several real-world applications, which are emerging continuously in enterprise segments. AR and VR provide new opportunities to transform the enterprise, mainly in the areas of collaboration & communication, training & simulation, and field & customer service as well as for customer experiences. This is expected to drive the growth of the U.S. AR & VR market during the forecast period.
By industry vertical, the gaming segment garnered the largest augmented and virtual reality share and is expected to maintain its dominance in the upcoming years owing to rise in number of gaming industries and increase in cartoon production houses. Furthermore, many large companies are developing and launching games in the midst of the COVID-19 pandemic, which is expected to boost the growth of the market.
For instance, Niantic Labs, the maker of Pokémon Go, is teaming with Nintendo for a new augmented reality video game based on the spritelike Pikmin which is possible due to Niantic’s AR technology to make gamers experience the world as if Pikmin are secretly living all around us. Thus, number of such developments across the U.S. drives the growth of the market. However, the healthcare segment is expected to witness highest growth, owing to massive utilization of virtual reality for research process and pre-surgical analysis of internal organs by researchers and surgeons.
The report focuses on growth prospects, restraints, and trends of the U.S. augmented and virtual reality market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the U.S. augmented and virtual reality market share.
The U.S. augmented and virtual reality market is segmented on the basis of component, application, enterprise size, industry vertical, and region. By component, it is divided into solution, service, and connectivity type. By application, it is bifurcated into consumer and enterprise. By enterprise size, it is categorized into large enterprise and SMEs. By industry vertical, it is classified into gaming, entertainment & media, aerospace & defense, healthcare, manufacturing, retail, education, and others.
The key players profiled in the U.S. augmented and virtual reality market analysis are Apple Inc., Cyberglove Systems, Inc., Facebook Technologies, LLC (Oculus), Google, Inc. Intel Corporation, Magic Leap, Inc., Microsoft Corporation, Niantic, Inc., PTC and Sixense Enterprises, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the U.S. augmented and virtual reality industry.
Impact of COVID-19 on U.S. Augmented and Virtual Reality Market-
The augmented and virtual reality market in U.S. is projected to prosper in the COVID-19 situation owing to various government, public, and other organization adopting work from home culture for their employees. In addition, healthcare is one of the main industries where the use of augmented and virtual reality has increased significantly for reducing the contact with the COVID-19 patient and increasing the safety of the doctors and other employees of the hospital. Furthermore, COVID-19 has heavily restricted supply chains across every industry, as demand curves changed overnight, and organizations needed to automate operations each and every process of supply chain industry the demand for AR & VR has increased drastically, which propels the growth of the market.
Solution segment is projected as one of the most lucrative segments.
Moreover, banks are rapidly adopting AR & VR solutions to process and analyze key data such as their customer acquisition cost, customer lifetime value as well as the trends of products that are growing in popularity. In addition, the gained insights will allow banks to correctly promote the right services to the right customer demographic utilizing an optimized budget to capture more market share. However, the massive demand for VR devices was restrained by the disruption of supply chain during the pandemic due to various lockdowns.
Top impacting factors
Rise in investment in AR market
Surge in investment in AR by various industries such as military and defense, media & entertainment, retail, and others for providing customers with enhanced experience is driving the growth of the market. In addition, companies such as IKEA, Target, and Amazon have started including AR in their apps so shoppers can see what an object will look like in their home before buying it which propels the growth of the market. Furthermore, companies like Apple Inc. and others are investing heavily in AR technology for providing common people with AR systems which is propelling the growth of the market. In addition, various companies are heavily investing in AR technology for improving their customer base and to upsurge their revenue opportunity which is driving the growth of the market. Furthermore, various healthcare organizations are investing heavily in AR technology for improving the quality of treatment a patient receives and helping medical professionals to enhance their performance by breaking down complex medical concepts into interactive 3D forms. These are the major factors that drive the growth of the market.
By Technology Type
Virtual Reality is projected as one of the most lucrative segments.
Increase in usage of VR headsets in amusement and theme parks, commercial applications, and other places
Amusement and theme parks, commercial applications, and other places are adopting to provide shows with low costs compared to high costs of VR headsets with the increasing popularity of VR headsets. For instance, New York show Sleep No More which is an immersive theater performance where the audience is involved in the action. In addition, according to recent surveys, over 66% of people are interested in visiting such a concert which is expected to provide lucrative opportunity for the market.
Furthermore, major theme park is investing in VR and AR to recover from the COVID-19 pandemic and help visitors feel like they are riding inside a real-life kart race. For instance, Universal Studios announced the construction of Super Nintendo World land at Universal Studios Hollywood which is a video game-themed lands that will anchor Mario Kart: Koopa’s Challenge!, a dark ride that will use augmented reality technology to help visitors feel like they are riding inside a real-life Mario Kart race. This increase in adoption of AR is not only driving the augmented and virtual reality market but is also lifting business that has lost its audience due to COVID-19 lockdown. These are the major factors providing lucrative opportunity for the market growth.
Consumer is projected as one of the most lucrative segments.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the U.S. augmented and virtual reality market forecast along with the current trends and future estimations to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on the market is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the U.S. augmented and virtual reality market trends from 2021 to 2030 is provided to determine the market potential.
Key Market Segments
- Augmented Reality
- Virtual Reality
- Device Type
- System Integration and Deployment
- Support and Maintenance
- Connectivity Type
- Cellular Technology
- 2G & 3G
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By Industry Vertical
- Entertainment & Media
- Aerospace & Defense
Key Market Players
- Apple Inc.
- Cyberglove Systems, Inc.
- Facebook Technologies, LLC (Oculus)
- Google, Inc.
- Intel Corporation
- Magic Leap, Inc.
- Microsoft Corporation
- Niantic, Inc.
- Sixense Enterprises, Inc.
U.S. Augmented and Virtual Reality Market Report Highlights
By ENTERPRISE SIZE
By INDUSTRY VERTICAL
Key Market Players
PTC, CYBERGLOVE SYSTEMS INC., .Facebook Technologies, LLC (Oculus), APPLE INC., MICROSOFT CORPORATION, MAGIC LEAP, INC., SIXENSE ENTERPRISES INC., INTEL CORPORATION, NIANTIC, INC., Alphabet (Google Inc.)
Adoption of U.S. augmented and virtual reality has increased over the years as augmented reality technology is enhancing the real physical world through the use of digital visual elements, sound, or other sensory stimuli delivered via technology. In addition, retailers and other companies are using augmented reality to promote products and services, launch novel marketing campaigns, and collect unique user data which is assisting the growth of the market.
Moreover, the U.S. augmented and virtual reality market is projected to witness prominent growth, in various parts of the U.S. This growth is attributed to the increased adoption of smartphone devices; growth in number of gamers; and rise in awareness among the end-user industries regarding the benefits of augmented and virtual reality technology-based solutions. Prominent players operating in the augmented and virtual reality industry are inclined toward developing augmented and virtual content that can support various platforms such as mobile devices, gaming console, tablets, and personal computers.
Key providers of the U.S. augmented and virtual reality market such as Microsoft Corporation, and Alphabet for a significant share in the market. Moreover, many startup companies are innovating new solutions for corporate investors so that they can leverage VR technology. For instance, in March 2021, Microsoft launched Mesh, a cloud service that will enable developers to build applications in which people can share holograms, speak with one another, make doodles and appear as virtual avatars. The goal is to enable people to join Mesh-enabled meetings on any device, such as a PC, a tablet or a smartphone. This ensures that people who do not have AR systems can participate in virtual gatherings with those who do.
Furthermore, companies are partnering and collaborating with each other to provide new VR training platform for enterprise and to upsurge their market share which is driving the growth of the market. For instance, in August 2021, Wrap Technologies, Inc. a global leader in innovative public safety technologies and services, announced a collaboration with Amazon Web Services (AWS) to support Wrap Reality through AWS GovCloud (US).
This collaboration is projected to deliver virtual reality training platform to law enforcement, built on AWS GovCloud (US). With this, the U.S. law enforcers will adapt and innovate fast to unforeseen challenges as well as the importance of trust and transparency. Moreover, many companies are focusing on the growing number of AR users in the U.S. and are releasing VR mobile apps to attract more audience. For instance, Samsung developed a new AR-centered app called AR Canvas which is available for download from the Galaxy Store, and it integrates some of the AR features that were available in Bixby Vision.
In addition, it allows users to create 3D augmented reality objects in their surroundings using the camera viewfinder and a set of AR tools. According to the industry experts, the U.S. augmented and virtual reality market is expected to witness increased adoption in the coming years, owing to rise in need for improved VR training and headsets to train employees from various industries from aviation to healthcare and retail to banking are projected to offer significant growth opportunities.