The AI in Virtual Reality and Augmented Reality Market Size is valued at USD 33.5 billion in 2023 and is predicted to reach USD 351.0 billion by the year 2031 at a 34.6% CAGR during the forecast period for 2024-2031.
AI improves the authenticity, interactivity, and personalization of virtual reality (VR) and augmented reality (AR). AI in VR is responsible for the generation of dynamic environments, the powering of intelligent NPCs, and the facilitation of natural user interfaces such as voice and gesture recognition. AI facilitates object recognition in AR, allowing virtual objects to connect with the real world in a seamless manner. AI also optimizes content, personalizes experiences, and analyzes user behaviour to gain insights. Games, education, healthcare, and virtual meetings are among the applications that render VR and AR more immersive and user-centric. Gesture recognition is one such application.
A simulated experience known as virtual reality might resemble the real world or be entirely unrelated to it. VR generally entails the use of headgear that produces an entirely immersive experience, frequently including sound and vision, to immerse people in an alternate reality. Additionally, by superimposing digital content on the actual world, augmented reality improves how users perceive their surroundings. Virtual items are placed in the real environment with AR, which is mostly encountered through devices like smartphones, tablets, or AR glasses. More natural & intuitive interactions in VR and AR settings are made possible by AI's ability to recognize hand gestures, facial expressions, and body motions. AI systems also examine user behaviour and preferences to customize AR and VR experiences.
The market growth is propeled by various factors including technological advancements, increasing demand for immersive experiences, growth in e-commerce and retail, expansion in education and training, advancement in mobile technology and many others. However, high development costs and privacy and security concerns are expected to slowdown market growth during the forecast period.
The AI in the virtual reality and augmented reality market is segmented based on type, application, technology, and platform. Based on type, the market is segmented as AI-powered Virtual Reality (VR) and AI-enhanced Augmented Reality (AR). By application, the market is segmented into gaming and entertainment, education and training, healthcare and medical, retail and e-commerce, real estate and architecture, automotive and transportation, tourism and travel, social media and communication, industrial and manufacturing and military and defence. Based on technology, the industry is bifurcated into natural language processing (NLP), computer vision, machine learning, deep learning, gesture recognition, speech recognition and simulated environments. Based on the platform, the global AI in virtual reality and augmented reality market is divided into mobile devices, head-mounted displays, projectors and smart glasses, wearable and body tracking devices and desktop computers and consoles.
The AI-powered Virtual Reality (VR) category is expected to hold a major share of the global AI in the virtual reality and augmented reality market. VR systems are becoming more and more capable due to ongoing advancements in AI algorithms, machine learning, and deep learning techniques. Natural language processing, gesture recognition, and more lifelike graphics are made possible by AI and are essential for producing engaging virtual reality experiences. Furthermore, one of the main drivers of the VR business is the gaming industry. More players are drawn to VR games with AI capabilities because they provide more participatory and interesting experiences. VR is also being used by the entertainment industry to create immersive experiences for virtual events, concerts, and movies.
Projectors and smart glasses are projected to grow rapidly in the global AI in virtual reality and augmented reality market. The VR and AR markets are experiencing notable breakthroughs and revenue growth due to the integration of AI with projectors and smart glasses. Even if there are issues with pricing, privacy, and technical constraints, it is anticipated that ongoing innovation and the expansion of applications across numerous industries will maintain the growth momentum. With AI enhancing its powers, projectors and smart glasses will become indispensable in the future of immersive and interactive experiences.
The North American AI in Virtual Reality and Augmented Reality market is expected to report the largest market revenue share in the near future. North America is seeing a quick development in AI, VR, and AR due to the presence of several IT giants and creative entrepreneurs. The potential of VR and AR applications is increased by the ongoing development of AI algorithms, hardware, and software. Tech-savvy local businesses and customers are also major factors in the high rates of adoption of new technology in the area. They want to use AI-powered VR and AR for a range of applications, including gaming and commercial solutions. The development of AI in VR and AR is also being fueled by significant investments from venture capitalists, private equity firms, and government efforts. This investment helps both new and established businesses create cutting-edge technologies. In addition, Asia Pacific is estimated to grow rapidly in the global AI in Virtual Reality and Augmented Reality market due to rapid digital transformation.
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 33.5 Bn |
|
Revenue Forecast In 2031 |
USD 351.0 Bn |
|
Growth Rate CAGR |
CAGR of 34.6% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Type, Technology, Platform and Application |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
Qualcomm Incorporated, Sony Corporation, Intel Corporation, Lenovo Group Limited, NVIDIA Corporation, PTC Inc., Dassault Systemes SE, Sixense Enterprises Inc., Magic Leap Inc., Vuzix Corporation, HTC Corporation, EON Reality Inc., Daqri LLC, Scope AR, Zappar Ltd. And Other Market Players |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global AI in Virtual Reality and Augmented Reality Market Snapshot
Chapter 4. Global AI in Virtual Reality and Augmented Reality Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis
Chapter 5. Market Segmentation 1: by Technology Estimates & Trend Analysis
5.1. by Technology & Market Share, 2019 & 2031
5.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Technology:
5.2.1. Natural Language Processing (NLP)
5.2.2. Computer Vision
5.2.3. Machine Learning
5.2.4. Deep Learning
5.2.5. Gesture Recognition
5.2.6. Speech Recognition
5.2.7. Simulated Environments
Chapter 6. Market Segmentation 2: by Application Estimates & Trend Analysis
6.1. by Application & Market Share, 2019 & 2031
6.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Application:
6.2.1. Gaming and Entertainment
6.2.2. Education and Training
6.2.3. Healthcare and Medical
6.2.4. Retail and E-commerce
6.2.5. Real Estate and Architecture
6.2.6. Automotive and Transportation
6.2.7. Tourism and Travel
6.2.8. Social Media and Communication
6.2.9. Industrial and Manufacturing
6.2.10. Military and Defense
Chapter 7. Market Segmentation 3: by Type Estimates & Trend Analysis
7.1. by Type & Market Share, 2019 & 2031
7.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Type:
7.2.1. AI-powered Virtual Reality (VR)
7.2.2. AI-enhanced Augmented Reality (AR)
Chapter 8. Market Segmentation 4: by Platform Size Estimates & Trend Analysis
8.1. By Platform Size & Market Share, 2019 & 2031
8.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following By Platform:
8.2.1. Mobile Devices
8.2.2. Head-Mounted Displays (HMDs)
8.2.3. Projectors and Smart Glasses
8.2.4. Wearables and Body Tracking Devices
8.2.5. Desktop Computers and Consoles
Chapter 9. AI in Virtual Reality and Augmented Reality Market Segmentation 5: Regional Estimates & Trend Analysis
9.1. North America
9.1.1. North America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
9.1.2. North America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.1.3. North America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Type, 2024-2031
9.1.4. North America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Platform Size, 2024-2031
9.1.5. North America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.2. Europe
9.2.1. Europe AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
9.2.2. Europe AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.2.3. Europe AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Type, 2024-2031
9.2.4. Europe AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Platform Size, 2024-2031
9.2.5. Europe AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.3. Asia Pacific
9.3.1. Asia Pacific AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
9.3.2. Asia Pacific AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.3.3. Asia-Pacific Thermal Cyclers Asia-Pacific AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Type, 2024-2031
9.3.4. Asia-Pacific AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Platform Size, 2024-2031
9.3.5. Asia Pacific AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.4. Latin America
9.4.1. Latin America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
9.4.2. Latin America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.4.3. Latin America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Type, 2024-2031
9.4.4. Latin America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Platform Size, 2024-2031
9.4.5. Latin America AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.5. Middle East & Africa
9.5.1. Middle East & Africa AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Technology, 2024-2031
9.5.2. Middle East & Africa AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.5.3. Middle East & Africa AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Type, 2024-2031
9.5.4. Middle East & Africa AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by Platform Size, 2024-2031
9.5.5. Middle East & Africa AI in Virtual Reality and Augmented Reality Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
Chapter 10. Competitive Landscape
10.1. Major Mergers and Acquisitions/Strategic Alliances
10.2. Company Profiles
10.2.1. Microsoft Corporation
10.2.2. Google LLC
10.2.3. Sony Corporation
10.2.4. HTC Corporation
10.2.5. Magic Leap Inc.
10.2.6. NVIDIA Corporation
10.2.7. Apple Inc.
10.2.8. Samsung Electronics Co., Ltd.
10.2.9. Intel Corporation
10.2.10. Vuzix Corporation
10.2.11. Qualcomm Incorporated
10.2.12. Meta Company
10.2.13. PTC Inc.
10.2.14. Lenovo Group Limited
10.2.15. Marxent Labs LLC
10.2.16. Atheer Inc.
10.2.17. EON Reality Inc.
10.2.18. Upskill (formerly APX Labs)
10.2.19. Scope AR
10.2.20. Daqri LLC
10.2.21. Sixense Enterprises Inc.
10.2.22. Avegant Corporation
10.2.23. Dassault Systèmes SE
10.2.24. Zappar Ltd.
10.2.25. Other Market Players
AI in Virtual Reality and Augmented Reality Market By Type-
AI in Virtual Reality and Augmented Reality Market By Application-
AI in Virtual Reality and Augmented Reality Market By Technology-
AI in Virtual Reality and Augmented Reality Market By Platform-
AI in Virtual Reality and Augmented Reality Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
