The research study involved 4 major activities in estimating the size of the augmented and virtual reality market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the supply chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information required for this study. The secondary sources include annual reports, press releases, and investor presentations of companies, white papers, and articles from recognized authors. Secondary research has been mainly done to obtain key information about the market’s value chain, the pool of key market players, market segmentation according to industry trends, regional outlook and developments from both market and technology perspectives.
Primary Research
In primary research, various primary sources from both supply and demand sides have been interviewed to obtain qualitative and quantitative insights required for this report. Primary sources from supply side include experts such as CEOs, vice presidents, marketing directors, manufacturers, technology and innovation directors, end users and related executives from multiple key companies and organizations operating in the augmented and virtual reality market ecosystem.

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Market Size Estimation
Top-down and bottom-up approaches have been used to estimate and validate the size of the augmented and virtual reality market. The key players in the market have been identified through secondary research, and their market shares in respective regions have been determined through primary and secondary research. This entire research methodology includes the study of key insights by top players, as well as interviews with experts (such as CXOs, vice presidents, directors, and marketing executives) for quantitative and qualitative key insights. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that affect markets covered in this research study were accounted for, viewed in detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been competitive and supplemented with detailed inputs and analysis from the MarketsandMarkets data repository and presented in this report.
In the market engineering process, both top-down and bottom-up approaches have been used along with data triangulation methods to estimate and validate the size of the augmented and virtual reality market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
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Analyzing the size of the global augmented and virtual reality market by identifying segment and subsegment revenue related to the market
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Identifying the total number of augmented and virtual reality HMDs shipped globally
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Estimating the ASP of augmented and virtual reality HMDs
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Estimating the size of the augmented and virtual reality HMDs market (augmented and virtual reality HMDs shipment * ASP of augmented and virtual reality HMDs)
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Estimating the market size of other augmented and virtual reality display types
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Estimating the market size of augmented and virtual reality hardware market size (summation of augmented and virtual reality HMDs market and market of other augmented and virtual reality display types)
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Estimating the market size of augmented and virtual reality’s new software by determining its percentage increase with respect to augmented and virtual reality hardware market size
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Estimating the market size of augmented and virtual reality’s retrofitted software by determining its percentage increase with respect to augmented and virtual reality new software market size
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Estimating the augmented and virtual reality software market size (summation of augmented and virtual reality’s new software market and market of augmented and virtual reality’s retrofitted software)
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Estimating the global augmented and virtual reality market size (summation of augmented and virtual reality software market size and augmented and virtual reality hardware market size)
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Identifying the upcoming projects related to augmented and virtual reality by various companies in different regions and forecasting the market size based on these developments and other important parameters.
Market Size Estimation Methodology-Bottom-up Approach

Market Size Estimation Methodology-Top-Down Approach

Data Triangulation
After arriving at the overall market size by the market size estimation process explained in the earlier section, the overall augmented and virtual reality market has been divided into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply side perspectives. Along with data triangulation and market breakdown, the market has been validated by top-down and bottom-up approaches.
Market Definition
AR improves the natural environment by overlaying potential digital information which includes images, text, or 3D objects. This augmentation can be actualized in many devices such as AR head-mounted displays (HMDs), smartphones, tablets, AR smart glasses, and heads-up displays (HUDs). On top of a user's view of the actual world, the technology lays computer-generated elements—thus making it interactive and enriched. One of the common examples of AR is the Pokémon GO game, whereby digital creatures seem to exist within an actual world when viewed through the camera of a smartphone.
On the other hand, VR blacks out users into a completely computer-created environment and replace the real world with a simulated one physically. Users usually put on and wear VR head-mounted displays, which, covering the field of vision, often incorporate motion tracking sensors. This sort of head mounted displays, that give users a feeling of existing in a virtual world, is called a feeling of presence in frontier interact in and navigate this digital space as if it were real. Common uses of VR include gaming, training simulations, virtual tours, and immersive storytelling experiences.
Stakeholders
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Raw material and manufacturing equipment suppliers
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Semiconductor foundries
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Original Equipment Manufacturers (OEMs)
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Augmented and virtual reality device manufacturers
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Original design manufacturers (ODMs) and OEM technology solution providers
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Software, and Technology Providers
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Standardization and Testing Firms
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Government Bodies such as Regulatory Authorities and Policymakers
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Research Institutes and Organizations
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Market Research and Consulting Firms
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Technology investors
The main objectives of this study are as follows:
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To define, analyze and forecast the augmented and virtual reality market size, by virtual reality technology, offering, device type, and application in terms of value
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To define, analyze and forecast the augmented reality market size, by device type, in terms of volume.
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To forecast the market size for various segments with respect to four main regions, namely, North America, Europe, Asia Pacific and Rest of the World (RoW)
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To provide detailed information regarding the major drivers, restraints, opportunities, and challenges influencing the growth of the augmented and virtual reality market
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To study the complete supply chain and related industry segments for the ar and vr market
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To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
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To analyze the supply chain, market ecosystem; trends/disruptions impacting customer’s business; technology analysis; pricing analysis; Porter’s five forces model; key stakeholders & buying criteria; case study analysis; trade analysis; patent analysis; key conferences & events, 2024–2025; regulations related to the augmented and virtual reality market; and investment and funding scenario.
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To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market.
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To strategically profile the key players and comprehensively analyze their market position in terms of ranking, core competencies2, company valuation and financial metrics and product/brand comparison; along with detailing the competitive landscape for the market leaders.
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To analyze competitive developments such as product launches, product developments, partnerships, collaborations, acquisitions, joint investments, strategic supplier relations, contracts, acquisitions, expansions and research and development (R&D) activities carried out by players in the augmented and virtual reality market.
Customizations Options:
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Company Information
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Detailed analysis and profiling of additional market players (up to 5)
Geographic Information
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Detailed analysis of additional countries (up to 5)
User
Sep, 2019
We have developed a system to aid doctors with the patients analysis prior to surgery with the Oculus Rift VR-Device and now want to explore the potentials of the VR software for studying. To continue our research in the area of our interest, your report would be of great interest for us in order to gain more financing. I would therefore like to know if the report covers comprehensively the aspect of VR software and its use-cases mapped against the applications. .
User
Sep, 2019
I am interested in your market forecast for Augmented/Virtual Reality. However, being an IT services company (particularly a system integration), I am more interested in finding out the market forecast for IT Services related to Augmented/Virtual Reality. Do you have this information in your report? Also, i would like to know if the report covers AR usage on mobile - market size, market potential/growth both in terms of current apps and consumer usage..
User
Sep, 2019
I am interested to understand the global trends and projects in the AR/VR market over the next 5-10 years and the major players in this space. I would also like to know the product offerings of the major industry players, their growth areas in all industries, their expertise of the technology, and reception from consumers. Does your report cover the aspect of competitive landscape in detail?.
User
Jun, 2021
Hello, I would like to cite this report, but I cannot find the names of the authors. Who are they ?.