The augmented and virtual reality market is projected to grow from $1.8 billion in 2023 to $8.2 billion by 2028.
Virtual and augmented reality is becoming more popular with each year as hardware gets better and companies explore new possibilities. The market is expected to grow at a CAGR of 35.6% from 2023 to 2028, according to a report by MarketsandMarkets.
The key contributing factors to this market growth include the growing adoption of AR and VR across various industries, increasing demand for OLED displays in AR and VR devices, and the growing popularity of the metaverse.
VR in games
Virtual reality is particularly popular in the world of video games, studios are utilising its immersive nature to create new and unique games for players where they can directly interact with the game world. Video games are constantly evolving with players wanting new and exciting experiences, something that VR has the potential to offer.
One issue that faces gamers however is the price tag attached to VR hardware. Recently, rumours circled that PlayStation would be shipping less of its PSVR 2 headset due to low pre-order numbers. PlayStation then denied these claims, however, many gamers have expressed that the headset is far too expensive. The PSVR 2 costs £530 — more than an actual PS5 console — and given the economic state of the world right now, that’s too high a price for many.
Despite this, the market overall is still seeing an increased amount of interest and if companies could ship more affordable headsets then adoption would surely skyrocket. The VR gaming market is expected to see increased growth over the coming years and as more games are developed more users will look toward this immersive nature of gaming.
AR and VR markets
The capabilities of AR and VR are being used far beyond games, AR is currently being used in a variety of fields. The indoor navigation industry is projecting significant growth over the coming years, this market uses AR to help people navigate large spaces with simple directions and even offers digital ways to interact and learn along the way.
We are also seeing both VR and AR being used across various workplaces, this technology can be used in the workplace to help train staff members or in education to provide students with a more immersive learning experience. The AR/VR healthcare industry is expected to reach $18.5 billion by 2032, this tech can be used to simulate surgeries and train medical professionals.
Both technologies can adapt to numerous markets and with such a broad consumer base and ever-evolving technology we can expect to see AR and VR markets continue to grow in the future.