End of year summary of Augmented Reality and Virtual Reality market size predictions
After finding myself scouring the internet for augmented reality and virtual reality (AR/VR) market size projections, I found that these predictions varied considerably, and it was difficult to get a grasp of the overarching trend. This article provides a concise summary of nineteen different predictions for the size of the augmented reality and virtual reality industries.
***Links to the sources of all data are also provided. If you find any errors in this article, please feel free to comment below. All dollars are in USD unless stated otherwise.***
Before we jump in and look at these big numbers, we must have a comparison value. Smartphones are well integrated into our everyday lives now and the global market size is approximately $431 billion as of 2016. According to Persistence Market Research, the smartphone industry is expected to grow at a compound annual growth rate (CAGR) of 7.9% until 2024. This is considered a healthy growth rate for a relatively mature industry. The global PC market is currently valued at around $80 billion.
But wait til you see the growth rates of the AR/VR industry. They’re huge.
The augmented reality and virtual reality industry was valued at $14.1 billion in 2017 according to Statista.
The Compound Annual Growth Rate of the AR/VR industry is expected to be in the range of 40%-80%. Another general trend is that AR is going to be way bigger than VR, with most predictions using an approximate ratio of 4:1 (AR:VR). Predictions have a huge range from $34 billion all the way up to $547 billion.
BusinessWire reports that AR is expected to be worth $60 billion by 2023, growing at a CAGR of 40.29%. They also report that VR is expected to be worth 34 billion by 2023 growing at a CAGR of 33.95%. They base this on strong consumer growth in the gaming, sports and entertainment
2) Grand View Research
Grand View Research predicts that the augmented reality market is expected to be worth $100 billion by 2024.
Research and Markets predict that the AR/VR market will generate revenues of $55 billion by 2021. They see advancements in 5G, artificial intelligence and robotics as being critical to the success of AR/VR. This is on the lower end of the predictions.
Statista.com predicts that the AR/VR industry will be valued at $209 billion by 2022.
Consultancy.uk predicts that the combined AR/VR market size will be $178 billion by 2022. The vast majority of this will be in AR as you can see in the graph below. They see the keys to growth are in the health, manufacturing and retail sectors.
6) Markets and Markets
7) Markets and Markets
Markets and Markets have released another prediction of augmented reality being worth $79 billion by 2023 as well.
8) Transparency Market Research
Transparency Market Research predicts the AR/VR market will be worth $547 billion by 2024 based on strong growth in healthcare. This is the largest prediction in this article.
9) Mordor Intelligence
Mordor Intelligence predicts the augmented reality market will be worth $70 billion in 2023, growing at a CAGR of 51.24%.
10) Goldman Sachs Research
Goldman Sachs Research predicts that the AR/VR industry will be worth $80 billion by 2025.
11) PR Newswire
PR Newswire predicts that the AR/VR market will be worth $94 billion by 2023, based on strong demand in retail and e-commerce.
Market Watch predicts the AR market alone will be worth around $117 billion by 2022.
13) Zion Market Research
Zion Market Research predicts AR alone to reach $133 billion by 2021.
14) Orbis Research
Orbis Research predicts augmented reality to grow at a CAGR of 77.7% until 2022, to be valued at $165 billion.
IDC predicts that AR/VR will achieve a CAGR of 71.6% in the period to 2022.
16) Tech Crunch
Tech Crunch predicts that the AR/VR market could be worth $108 billion by 2021 with 77% of that number attributed to AR.
17) Digi Capital
Digi Capital predicts that augmented reality could be worth $90 billion by 2023, and VR could be worth $15 billion.
18) BIS Research
BIS Research predicts that augmented reality will be worth $198 billion by 2025.
Brian Wallace of Hackernoon has looked at the revenue for AR/VR by 2025 per industry, as follows:
- Video games — $11.6 billion
- Healthcare — $5.1 billion
- Engineering — $4.7 billion
- Live events — $4.1 billion
- Entertainment — $3.2 billion
- Real estate — $2.6 billion
- Retail — $1.6 billion
- Military — $1.4 billion
This totals to a market size of $34.3 billion. This is the lowest prediction of the data covered in this article.
Congratulations if you made it this far. It’s pretty obvious that there is a huge range of predictions for the AR/VR market size. This is understandable as its growth is dependant on the growth of complementary technologies such as 5G, not to mention the breakthroughs in hardware required to make AR glasses (as a daily driver) a reality.
Which do you think is the most accurate prediction?
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