# Increasing Adoption of AR and VR in Gaming Expected to Drive Growth of the Global AR And VR Market through 2025
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-12
Category: Research Reports
Category URL: https://financedigest.com/category/research-reports
Meta Title: Global AR and VR Market Outlook: Forecast, Trends, and Growth Potential
Meta Description: The global augmented reality and virtual reality market is set to expand at a CAGR of 42.2% till 2025, with high investments and increasing demand in gaming
URL: https://financedigest.com/increasing-adoption-of-ar-and-vr-in-gaming-expected-to-drive-growth-of-the-global-ar-and-vr-market-through-2025html

![FMI](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/future-market-insights-1-1736837636428-compressed.png)

The global [**augmented reality and virtual reality (AR and VR) market**](http://www.futuremarketinsights.com/reports/augmented-reality-and-virtual-reality-market) was valued at more than US$ 5,000 Mn in 2016 and is expected to reach a market valuation close to US$ 120 Bn by 2025 end. In terms of value, the global AR and VR market is expected to expand at a CAGR of 42.2% over the forecast period. The global AR and VR market is expected to represent incremental dollar opportunity close to US$ 115 Bn between 2017 and 2025. Among the various device segments, revenue contribution from the head mounted display segment is anticipated to expand at the highest CAGR of 44% during the forecast period. Currently, North America [accounts for a relatively high revenue share in the global](https://www.financedigest.com/new-global-relationship-between-reckon-software-and-myfirmsapp-delivers-closer-interaction-between-accountants-and-their-clients.html "NEW GLOBAL RELATIONSHIP BETWEEN RECKON SOFTWARE AND MYFIRMSAPP DELIVERS CLOSER INTERACTION BETWEEN ACCOUNTANTS AND THEIR CLIENTS") AR and VR market; however, the MEA AR and VR market is anticipated to register the highest CAGR of 55.2% among all the other regions during the forecast period. In terms of revenue, the North America AR and VR [market](https://www.financedigest.com/global-dealmaking-plunges-as-financing-market-hits-rock-bottom.html "Global dealmaking plunges as financing market hits rock bottom") is projected to be the most attractive regional market in the global AR and VR market during the forecast period.

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High [investments by big technology companies and increasing demand](https://www.financedigest.com/investments-in-the-caribbean-increasing-due-to-cbi-demand.html "Investments in the Caribbean Increasing Due To CBI Demand") for AR and VR technology in gaming are factors boosting the global AR and VR market

[Adoption of advanced technology in the gaming sector has been rising](https://www.financedigest.com/guess-what-public-sector-adoption-of-e-invoicing-on-the-rise.html "GUESS WHAT? PUBLIC SECTOR ADOPTION OF E-INVOICING ON THE RISE!") significantly due to factors such as increasing young population, increasing spending by consumers on entertainment, high penetration of smartphones, and improving network connectivity in developing countries. Games based on augmented reality such as Pokemon Go and Ingress have been witnessing increasing popularity among consumers as these games offer a unique gaming experience, thereby [leading to higher](https://www.financedigest.com/ftse-100-opens-higher-informa-leads-gains.html "FTSE 100 opens higher, Informa leads gains") user engagement. Thus a growing demand for AR and VR [technology in gaming is likely to fuel the growth](https://www.financedigest.com/venom-foundation-and-hub71-partner-to-accelerate-growth-and-adoption-of-blockchain-technologies-from-abu-dhabi.html "Venom Foundation and Hub71 Partner to Accelerate Growth and Adoption of Blockchain Technologies from Abu Dhabi") of the global AR and VR market.

[![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/augmented-reality-and-virtual-reality-market-1736837635381-compressed.jpg)](https://www.futuremarketinsights.com/reports/augmented-reality-and-virtual-reality-market)

Some of the major technology companies such as Google Inc., Microsoft Corporation, Samsung Electronics Co. Ltd., and Apple Inc. are investing significantly in the development of new AR & VR products as a result of increasingly high [demand from various industries and sectors](https://www.financedigest.com/growth-in-the-power-generation-and-transmission-sector-is-likely-to-fuel-the-demand-for-special-tool-wire-cutters-2021-2031.html "Growth In The Power Generation And Transmission Sector Is Likely To Fuel The Demand For Special Tool Wire Cutters 2021-2031") including gaming and healthcare. Some of these companies are also [funding several start-ups](https://www.financedigest.com/setsquaredskills-up-start-ups-to-pitch-for-global-funding.html "SETsquaredskills up start-ups to pitch for global funding") and providing necessary infrastructure as well to promote this technology among consumers. Therefore, with increasing investments by tech companies, the global [market for augmented reality and virtual reality is expected to witness significant growth](https://www.financedigest.com/microplate-washers-market-is-expected-to-witness-significant-growth-between-2020-2030.html " Microplate Washers Market is Expected to Witness Significant Growth between 2020–2030") over the next five years.

Smartphones not only facilitate gaming but also create innumerable [opportunities for augmented reality due to their technological](https://www.financedigest.com/mono-carton-market-drivers-growth-opportunities-and-advanced-technologies-in-rising-business-by-2029.html "Mono Carton Market Drivers, Growth Opportunities And Advanced Technologies In Rising Business By 2029") features. It is difficult to create graphical overlays that could interact with the real world in a dimensionally accurate manner by using computer vision. However, smartphones [overcome this technology hurdle](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)") as these are embedded with elements such as cameras and MEMS sensors, including accelerometers and GPS, which make them suitable for augmented reality platforms. This factor is also anticipated to [drive revenue growth](https://www.financedigest.com/open-architecture-innovation-will-drive-new-growth-for-insurers-according-to-aon-gimo-report.html "‘Open architecture innovation’ will drive new growth for insurers, according to Aon GIMO report") of the global AR and VR market during the projected period.

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**Google acquires VR gaming company Owlchemy Labs**

[Global technology giant Google recently acquired](https://www.financedigest.com/sp-global-acquires-firm-to-bolster-capability-to-track-commodity-shipments.html "S&P Global acquires firm to bolster capability to track commodity shipments") Austin based game studio Owlchemy Labs. According to the terms of the acquisition, Owlchemy Labs will continue to release VR games while Google will provide additional support to the company. Owlchemy Labs had already assured fans that it would keep continuing its focus on high quality [user experiences](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention") and hand interaction. The company is popular for [developing games](https://www.financedigest.com/mobile-games-developer-huuuge-says-has-24-2-million-at-svb.html "Mobile games developer Huuuge says has .2 million at SVB") that mimic the use of real hands. Meanwhile, Google recently launched a fully wireless day dreamer view headset that is compatible with Google’s recently launched Pixel and Pixel XL smartphones. According to highly placed officials at Google, with this acquisition, Google and Owlchemy Labs will be working together to create immersive games and will be developing new interaction models to continue to [bring the best VR experiences to life](https://www.financedigest.com/trump-charges-bring-new-york-zombie-case-back-to-life.html "Trump charges bring New York ‘zombie case’ back to life").

**[Future Market Insights’](https://www.financedigest.com/wood-coatings-market-is-expected-to-increase-at-a-cagr-of-5-9-from-2022-to-2032-attributing-to-the-increasing-housing-demand-on-a-large-scale-globally-future-market-insights-inc.html "Wood Coatings Market is expected to increase at a CAGR of 5.9% from 2022 to 2032 Attributing to the Increasing Housing Demand on a Large Scale Globally | Future Market Insights, Inc.") latest report identified following factors that are driving the adoption of augmented reality and virtual reality worldwide.**

- Gaming continues to be an attractive segment for AR & VR technology. In recent years, several games have been launched based on augmented reality. ‘Pokemon Go’ is one of the biggest examples of AR-based games, which received massive popularity across the globe after its launch.

- The young population is lured toward products that come with AR and VR features. Over the years, the average [spending on electronic goods for entertainment has increased](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") significantly. Moreover, robust penetration of smartphones and improving network connectivity is encouraging tech companies to add AR & VR [features in their digital](https://www.financedigest.com/youtube-expands-shopping-features-to-combat-digital-ad-slowdown.html "YouTube expands shopping features to combat digital ad slowdown") products.

- Evolution of cell phones from a normal calling device to a smart gadget is facilitating innumerable opportunities for technologies such augmented reality and virtual reality.

- Technology [companies making heavier investments to further simplify](https://www.financedigest.com/company-registration-in-china-simplified.html "Company Registration in China Simplified") AR and VR technology and also add more feature to them. This, in turn, is prompting the [adoption of such technologies in various industrial](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry") verticals as well.

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**Key Segments Covered in the [Augmented Reality and Virtual Reality Market](https://www.financedigest.com/augmented-reality-and-virtual-reality-market-to-register-a-cagr-of-42-2.html "Augmented Reality and Virtual Reality Market to register a CAGR of 42.2% ") are :**

**By Technology Type**

- Augmented Reality
- Virtual Reality

**By End-user Type**

- Commercial
- Consumer

**By application**

- Gaming
- Media & Entertainment
- [Real Estate](https://www.financedigest.com/from-static-office-to-dynamic-brand-hq-five-steps-to-reviewing-your-real-estate.html "From static office to dynamic brand HQ: Five steps to reviewing your real estate")
- Education
- Retail
- Healthcare
- Engineering
- Others

**By Device**

- Head Mounted Display
- Handheld Devices
- Head-up display
- Smartglasses
- Others

**By Component**

- Hardware
  - Display
  - Processor
  - Sensors
  - User interface ICs
  - Power Management ICs
  - Others
- Software
- Services

The post [Increasing Adoption of AR and VR in Gaming Expected to Drive Growth of the Global AR And VR Market through 2025](https://industrynewsanalysis.com/increasing-adoption-of-ar-and-vr-in-gaming-expected-to-drive-growth-of-the-global-ar-and-vr-market-through-2025/) appeared first on [Industry News Analsis](https://industrynewsanalysis.com).


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