The global extended reality (XR) market was valued at 25.7 billion U.S. dollars in 2024, an industry that includes augmented reality (AR) and virtual reality (VR). Forecasts suggest that by 2028, the XR market could be worth 41.8 billion U.S. dollars. Augmented reality (AR) AR technology integrates digital information with the physical environment, live and in real-time. Through the addition of graphics, sounds, haptic feedback, or even smell to the natural world as it exists, AR can combine real life with a super-imposed image or animation using the camera on a mobile device or AR headset. As part of the wider XR industry, the global AR market is expected to grow considerably in the coming years. Metaverse Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together. As an evolution of social technologies, the metaverse allows digital representations of people, avatars, to interact with each other in various settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using VR headsets, AR glasses, smartphone apps, or other devices.

The size and share of the market is categorized based on Virtual Reality (VR) Headsets, Augmented Reality (AR) Glasses, VR/AR Content Creation Tools, VR/AR Content Management Platforms, VR/AR Applications (Gaming & Entertainment, Healthcare & Medical, Education & Training, Retail & E-Commerce, Real Estate & Construction, ) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The AI In Virtual Reality And Augmented Reality Market is projected to grow at 46.4% CAGR, reaching $387.34 Billion by 2029. Where is the industry heading next? Get the sample report now!

[197+ Pages Report] Global augmented and virtual reality market is estimated to grow at a CAGR rate of 35.8% to an overall value of USD 76.7 Billion by 2026.

The worldwide market size for augmented reality is forecast to increase drastically in the next few years. Over the period from 2017 to 2025, the augmented reality market size is estimated to increase by over 195 billion U.S. dollars, increasing from roughly 3.5 billion in 2017 to over 198 billion U.S. dollars in 2025.

Augmented reality vs virtual reality

Augmented reality (AR) is a technology that blends digital components with the physical environment in such a way that they enhance each other but are easily told apart. AR makes use of sensory devices to modify a user’s environment to make it more meaningful through the ability to interact with it. One example of AR technology is the popular mobile game Pokémon Go. Virtual reality (VR) technology, on the other hand, creates a computer-generated simulation or recreation of a physical environment. VR immerses the user by making them feel like they are experiencing the simulation firsthand through the stimulation of their vision and/or hearing. Examples of VR technology include Facebook’s Oculus Rift and Sony’s PlayStation Virtual Reality.

AR use becoming more popular?

Consumer downloads of mobile augmented reality applications have been increasing worldwide since 2016. Total consumer downloads of augmented reality applications worldwide in 2022 are predicted at over 5.5 billion, a drastic increase from the 2016 downloads which were slightly over a billion.

The growth rate or CAGR of the GCC Augmented and Virtual Reality Market during 2023-28 would be around 39%, says MarkNtel Advisors.

The global Satellite Data Market Size is expected to be valued at around USD 116.6 billion by 2035 while growing at a CAGR of 15.7% during the forecast period. Several drivers including increasing need for personalized learning, emergence of AI based education tools, and government initiatives to expand digital education in various background across the world is pushing the eLearning market to grow globally.

Metric	Value
Market Size in 2025	USD 27.1 Billion
Projected Market Size in 2035	USD 116.6 Billion
CAGR (2025 to 2035)	15.7%

Region-wise Outlook - Augmented and Virtual Reality in Education Market

Region	CAGR (2025 to 2035)
United States	15.9%

Region	CAGR (2025 to 2035)
United Kingdom	15.5%

Region	CAGR (2025 to 2035)
European Union	15.6%

Region	CAGR (2025 to 2035)
South Korea	15.8%

Competitive Outlook: Augmented and Virtual Reality in Education Market

Company/Organization Name	Estimated Market Share (%)
Google LLC	20-25%
Microsoft Corporation	15-20%
Meta (formerly Facebook)	12-16%
Lenovo	8-12%
HTC Corporation	5-9%
Other Technology Providers	30-40%

Virtual Reality (VR) Technology, A Computer-Simulated Reality Creating An Artificial Environment, is Increasingly Used in Sectors Like Education, Gaming, and AI Applications. This Immersive Multimedia Offers A 3D Virtual World, Enhancing Learning Experiences and Gaming Environments. AI Integration Further Enriches the Virtual Environment. The Development of the Metaverse, A Collective Shared Space Combining VR, Augmented Reality, Mixed Reality, and Brain-Computer Interface, Promises An Interactive Virtual Reality Experience. The VR Market, Segmented by Hardware, End-User, and Geography, is Dominated by the Gaming Sector, With North America Leading Due To Numerous Startups Focusing On Computer-Generated Reality Technologies.

Forecasts suggest that by the year 2020 the largest segment within the virtual and augmented reality industry will be video games. Video game segment revenues are expected to reach nearly seven billion U.S. dollars by 2020 and continue growing to around 11.5 billion by 2025. The healthcare and engineering segments are also expected to experience high levels of growth in the coming years, further exhibiting the wide range of possible uses for the technology.

Augmented reality

While augmented and virtual reality are often grouped together due to their obvious similarities, augmented reality tends to place more emphasis on enhancing existing environments rather than immersing the user in entirely new ones. Forecasts expect the AR market to skyrocket in the coming years, with projected revenues increasing from around six billion U.S. dollars in 2018 to nearly 200 billion dollars by 2025.

Virtual reality

Virtual reality technology lends itself particularly well to uses within video games and simulation. Major tech industry firms such as Sony, Facebook, and Microsoft have seen the potential of VR technology and quickly developed products of their own to compete in the budding market. Mostly through the success of its PlayStation VR product, Sony has established itself as the clear leader in the VR headset market.

Augmented Reality And Virtual Reality In Aerospace Market size was valued at USD 740.22 Million in 2023 and is projected to reach USD 33918.44 Million by 2031, growing at a CAGR of 61.30% during the forecast period 2024-2031.

Global Augmented Reality And Virtual Reality In Aerospace Market Drivers

The market drivers for the Augmented Reality And Virtual Reality In Aerospace Market can be influenced by various factors. These may include:

Improved Training and Simulation Capabilities: Pilots, maintenance technicians, and ground crew can all benefit from immersive training and simulation experiences provided by AR and VR technology. Enhancing training efficacy and safety, virtual training environments enable students to practice intricate processes, run flight operations simulations, and troubleshoot equipment in a safe and realistic way.

Efficiency in Aircraft Design and Production: AR and VR technologies help the aerospace industry’s collaborative design reviews, prototyping, and production processes. By visualizing aircraft designs, evaluating ergonomics, and streamlining assembly procedures using virtual reality settings, engineers and designers may increase productivity, cut costs, and shorten the time it takes to launch new aircraft models and components.

MRO (maintenance, repair, and overhaul) operations: are aided by AR and VR systems, which give technicians instant access to digital data, schematics, and maintenance instructions superimposed on actual aircraft parts. Heads-up displays (HUDs) and smart glasses with augmented reality (AR) capabilities enable technicians to carry out inspections, identify issues, and carry out repairs more quickly, decreasing downtime and increasing aircraft availability.

Aerospace workers operating in dispersed or remote places: can now receive remote assistance and support thanks to augmented reality technologies. In order to improve troubleshooting productivity and lessen the need for onsite support personnel, maintenance technicians can employ AR-equipped devices to receive live video feeds, overlay annotations, and receive step-by-step help from specialists stationed elsewhere.

Improved Passenger Experience: Virtual reality (VR) technology is being employed in the aerospace sector to provide immersive in-flight entertainment, virtual cabin tours, and interactive experiences for passengers. In order to increase passenger pleasure and loyalty, airlines are investigating VR applications to provide tailored entertainment options, virtual reality in-flight experiences, and virtual tours of destinations.

Safety and Situational Awareness: By superimposing vital flight data, navigational data, terrain maps, and obstacle alerts onto pilots’ and aircrew members’ fields of vision in the cockpit, augmented reality (AR) technology improves situational awareness and safety for participants. Head-up displays (HUDs) with augmented reality (AR) capabilities give pilots access to real-time information without forcing them to take their eyes off the road, enhancing both operational effectiveness and safety.

Government Initiatives and Investments: To improve military training, mission planning, and situational awareness, government agencies and defense organizations throughout the world are investing in AR and VR technologies for aerospace applications. Government contracts and financing are being used by aerospace and defense vendors and contractors to create cutting-edge AR and VR solutions for these industries.

The virtual reality market size is estimated to rise from $33.72 billion in 2024 to $488.49 billion by 2035, growing at a CAGR of 27.511% from 2024 to 2035.

Global Augmented and Virtual Reality in Healthcare market size at $ 3.5 Bn in 2021 and $ 11.2 Bn by 2030 at CAGR 28.12% from 2022 to 2030.

Stay Updated on Augmented Reality and Virtual Reality Market in Healthcare trends, industry outlook and top suppliers with this comprehensive report from BIS Research

Get detailed insights into the current valuation of Augmented Reality and Virtual Reality market size, including growth analysis, current market status and future market projections.

Global Augmented and Virtual Reality AR VR market size 2025 was XX Million. Augmented and Virtual Reality AR VR Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Virtual and Augmented Reality Market Analysis

The Virtual and Augmented Reality Market is experiencing significan...

The consumer virtual reality market, divided into hardware and software segments, is forecast to reach 2.6 billion U.S. dollars in size in 2020. The market is set to grow further in the following years, rising to beyond five billion U.S. dollars by 2023.

Virtual reality

Virtual reality (VR) technology makes use of sensory devices to immerse users in a simulated environment. Specially designed headsets and glasses can be used for visual immersion, while handhelds and wearables offer tactile immersion. Optical devices such those developed by Facebook’s Oculus and Sony have shipped millions of units as consumers look to explore the possibilities offered by virtual environments. The element of complete immersion means that VR devices can be used as tools for education, tourism, entertainment, and even professional tasks such as architecture design.

Augmented reality

Augmented reality (AR) is a technology closely related to VR that uses devices to change the visual environment of users. Rather than completely immerse the user in a simulated environment like VR, AR superimposes computer generated elements on top of the user’s real-world environment, allowing for applications such as head-up displays and first-person GPS navigation. As part of the wider extended reality (XR) industry, the global AR market size is expected to grow considerably in the coming years.

The size and share of the market is categorized based on Type (AR, VR) and Application (Passenger Vehicle, Commercial Vehicle) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Snapshot img

Virtual Reality Market Size 2025-2029

The virtual reality market size is forecast to increase by USD 133.17 billion at a CAGR of 38% between 2024 and 2029.

The market is experiencing significant growth, driven by recent advancements in VR technology. One key trend is the integration of artificial intelligence (AI) and machine learning (ML) with VR technology, enabling more enriching and interactive experiences. However, the high cost of enriching VR hardware remains a challenge for widespread adoption. Other growth factors include increasing demand for VR in various industries such as gaming, healthcare, education, and training. Additionally, the rising popularity of VR in events and entertainment is expected to boost the market growth. Overall, the VR market presents numerous opportunities for innovation and growth, particularly In the areas of content creation, hardware development, and application expansion.

What will be the Size of the VR Market During the Forecast Period?

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The market is experiencing significant growth, driven by advancements in VR technology and increasing demand across various industries. The healthcare sector is leveraging VR for therapy and training, while defense personnel and technicians utilize it for simulation and instruction. In the gaming and entertainment industries, VR headsets, gloves, and bodysuits offer enriching experiences, with hardware segment revenues projected to grow.
The software segment, including virtual platforms and AI applications, is also expanding, with real-time rendering and 3D virtual worlds becoming increasingly popular. The automotive industry is adopting VR for design and marketing, while AR and VR content creation tools enable the development of virtual tours, virtual classrooms, and VR arcades. The metaverse and virtual fitness markets are also gaining traction, offering new opportunities for businesses and consumers alike.
The Virtual Reality (VR) market is experiencing rapid growth, driven by innovations in VR headsets and immersive VR gaming experiences. Virtual training solutions are revolutionizing industries, with VR in healthcare offering groundbreaking treatments and therapies. The integration of augmented reality and metaverse development is enhancing user interaction across various sectors, including VR in real estate and VR tourism experiences. Social VR platforms and VR collaboration tools are transforming communication and teamwork, while VR fitness experiences offer new ways to stay active. Cinematic VR content is gaining popularity, alongside VR for education, enterprise VR adoption, and advancements in haptic feedback technology, which enhances immersion. As VR continues to evolve, it promises to redefine the way we work, learn, and interact with the digital world.

How is this Virtual Reality Industry segmented and which is the largest segment?

The virtual reality (VR) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Enterprise
  Consumer


Component

  Hardware
  Software


Device

  Head-mounted display
  Gesture-tracking device
  Projectors & display wall


Technology

  Semi & fully enriching
  Non-enriching


Geography

  North America

    Canada
    US


  APAC

    China
    Japan
    South Korea


  Europe

    Germany
    UK
    France


  Middle East and Africa



  South America

    Brazil

By End-user Insights

The enterprise segment is estimated to witness significant growth during the forecast period.

Virtual reality (VR) refers to an artificially generated environment, experienced by users through specialized hardware, such as headsets. This technology creates enriching experiences that mimic real-life situations, popularly used in gaming, entertainment, retail, sports, travel, and healthcare industries. The increasing adoption of VR technology is driven by advancements in hardware, leading to heightened user experiences. The healthcare sector's utilization of VR is particularly noteworthy, with the potential for therapeutic applications and training simulations. The growing user base in various industries is expected to fuel the market expansion throughout the forecast period.

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The enterprise segment was valued at USD 6.37 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 33% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on t

Access the summary of the Augmented Reality and Virtual Reality in Healthcare market report, featuring key insights, executive summary, market size, CAGR, growth rate, and future outlook.