The global AR/VR chip market was valued at $1.38 billion in 2018, and is projected to reach $7.76 billion by 2026, registering a CAGR of 23.3% from 2019 to 2026. The AR/VR chip market is projected to witness healthy growth, especially in the Asia-Pacific and European region. This growth is attributed to high adoption of mobile devices; growth in number of gamers in the region; and an increased awareness among the end-user industries regarding the benefits of augmented and virtual reality technology-based solutions.
A handheld is any portable device that can be carried and held in one's palm. A handheld can be any computing or electronic device that is compact and portable enough to be held and used in one or both hands. It may contain cellular communication, but this category can also include other computing devices. Growing popularity and a rise in numbers of the technology user base are expected to drive the demand for the AR & VR handheld device market during the period.
Growth of the AR/VR chip market is driven by rise in demand for AR/VR chip in gaming vertical, cost-efficient benefits of augmented and virtual reality based solutions, and surge in need for the adoption of AR/VR in various applications. However, resistance to adopt the augmented and virtual reality technology and lack of investments in R&D restrain the growth of the market. Furthermore, technological advancements and introduction of industry-specific solution offer lucrative opportunities for the market growth.
The AR/VR chip market is segmented on the basis of chip type, device type, end user, and application. On the basis of chip type, the market is divided into processor ICs, user interface ICs, and power management ICs. Device types covered in the study include head mounted display, head up display, handheld device, gesture tracking device, and projector & display wall. End user includes gaming, entertainment & media, aerospace & defense, healthcare, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the report include Qualcomm Technologies Inc., NVIDIA Corporation, Imagination Technologies Limited, MEDIATEK Inc., Intel Corporation, Spectra 7, Advanced Microdevices Inc, International Business Machine Corporation, Samsung Electronics Co. Ltd, and Huawei Technologies Co. Ltd. These key players have adopted strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.
GLOBAL AR/VR CHIP MARKET SEGMENTATION
By Chip Type
By Device Type
By End user
By Region
KEY MARKET PLAYERS
A handheld is any portable device that can be carried and held in one's palm. A handheld can be any computing or electronic device that is compact and portable enough to be held and used in one or both hands. It may contain cellular communication, but this category can also include other computing devices. Growing popularity and a rise in numbers of the technology user base are expected to drive the demand for the AR & VR handheld device market during the period.
Growth of the AR/VR chip market is driven by rise in demand for AR/VR chip in gaming vertical, cost-efficient benefits of augmented and virtual reality based solutions, and surge in need for the adoption of AR/VR in various applications. However, resistance to adopt the augmented and virtual reality technology and lack of investments in R&D restrain the growth of the market. Furthermore, technological advancements and introduction of industry-specific solution offer lucrative opportunities for the market growth.
The AR/VR chip market is segmented on the basis of chip type, device type, end user, and application. On the basis of chip type, the market is divided into processor ICs, user interface ICs, and power management ICs. Device types covered in the study include head mounted display, head up display, handheld device, gesture tracking device, and projector & display wall. End user includes gaming, entertainment & media, aerospace & defense, healthcare, and others. Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the report include Qualcomm Technologies Inc., NVIDIA Corporation, Imagination Technologies Limited, MEDIATEK Inc., Intel Corporation, Spectra 7, Advanced Microdevices Inc, International Business Machine Corporation, Samsung Electronics Co. Ltd, and Huawei Technologies Co. Ltd. These key players have adopted strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their market penetration.
GLOBAL AR/VR CHIP MARKET SEGMENTATION
By Chip Type
- Processor ICs
- User Interface ICs
- Power Management ICs
By Device Type
- Head Mounted Display
- Head up Display
- Handheld Device
- Gesture Tracking Device
- Projector & Display Wall
By End user
- Gaming
- Entertainment & Media
- Aerospace & Defense
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
KEY MARKET PLAYERS
- Qualcomm Technologies Inc.
- NVIDIA Corporation
- Imagination Technologies Limited
- MEDIATEK Inc.
- Intel Corporation
- Spectra 7
- Advanced Microdevices Inc
- International Business Machine Corporation
- Samsung Electronics Co. Ltd
- Huawei Technologies Co. ltd.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: AR/VR CHIP MARKET, BY CHIP TYPE
CHAPTER 5: AR/VR CHIP MARKET, BY DEVICE TYPE
CHAPTER 6: AR/VR CHIP MARKET, BY END USER
CHAPTER 7: AR/VR CHIP MARKET, BY REGION
CHAPTER 8: COMPANY PROFILES
Executive Summary
According to the report titled, 'AR/VR chip Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2018-2026,' the global AR/VR chip market size was $1.38 billion in 2018, and is projected to reach $7.76billion by 2026, registering a CAGR of 23.3% from 2019 to 2026.Augmented reality is a technology that uses the existing user’s environment and overlays the digital or virtual content or information over it. Augmented reality applications are developed on special 3D programs that enable developers to integrate contextual or digital content with the real world. While virtual reality is a computer-generated 3D environment—which completely immerses end users in an artificial world without seeing the real world.
The AR/VR chip market growth is driven by rise in demand for AR/VR chip in gaming vertical, cost-efficient benefits of augmented and virtual reality based solutions, and surge in need for the adoption of AR/VR in various applications. However, resistance to adopt the augmented and virtual reality technology and lack of investments in R&D restrain the growth of the market. Furthermore, technological advancements and introduction of industry-specific solution offer lucrative opportunities for the market growth. The market for AR/VR chip in commercial sector is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities.
Augmented and virtual reality technologies can be used for collaborative seminars, meetings, public lectures, flight training, military training, training for nurses and medical professionals, and self-learning process. Further, to introduce enhanced products or solutions key players are anticipated to emphasize on product innovation through continuous investment in product development.
Increase in penetration of AR/VR chip in consumer electronic products is fueled by a highly competitive consumer electronics market, where players focus on upgrading their products such as smartphones, laptops, and digital recorders, among others. The major companies such as Sony, Apple, Samsung, Panasonic, and Google among others, follow this trend by incorporating advanced augmented technologies. Continuous advancement in technology; increased penetration of mobile devices & gaming consoles; and significant expansion in gamer’s community are projected to drive the segment growth during the forecast period. As per AMR analysis, by 2026, the video game industry is projected to witness around 90% increase in the number of users, as compared to that in 2019. This, in turn, is anticipated to create new growth opportunities for prominent players in the market. Further, rise in trend of watching live content in augmented and virtual reality, owing to enhanced user experience and availability of affordable mobile internet plans worldwide drives the segment growth. Moreover, this trend is anticipated to continue throughout the forecast period, which is projected to create lucrative opportunities for the prominent players in the AR/VR chip market.
According to Ankit Prajapati, Lead Analyst, Semiconductors & Electronics, “The global AR/VR chip market forecast is expected to witness considerable growth due to its emerging trends of faster and efficient connectivity solutions in gaming and entertainment & media segments. Furthermore, technological advancements and introduction of industry-specific solution offer lucrative opportunities for the AR/VR chip market growth.”
KEY FINDINGS OF THE STUDY
- By chip type, the processor ICs segment generated the highest revenue in the AR/VR chip market in 2018.
- By device type, the head mounted display segment generated the highest revenue in the market in 2018.
- By end user, the gaming segment generated the highest revenue in the AR/VR chip industry during 2018.
- By region, Asia-Pacific generated the highest revenue in the AR/VR chip market in 2018.
The key AR/VR chip market leaders profiled in the report include Qualcomm Technologies Inc., NVIDIA Corporation, Imagination Technologies Limited, MEDIATEK Inc., Intel Corporation, Spectra 7, Advanced Microdevices Inc, International Business Machine Corporation, Samsung Electronics Co. Ltd, and Huawei Technologies Co. Ltd. These key players adopted several strategies such as new product launch and development, acquisition, partnership &collaboration, and business expansion to increase their AR/VR chip market share.
Companies Mentioned
- Qualcomm Technologies Inc.
- NVIDIA Corporation
- Imagination Technologies Limited
- MEDIATEK Inc.
- Intel Corporation
- Spectra 7
- Advanced Microdevices Inc
- International Business Machine Corporation
- Samsung Electronics Co. Ltd
- Huawei Technologies Co. Ltd
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 270 |
| Published | March 2020 |
| Forecast Period | 2018 - 2026 |
| Estimated Market Value ( USD | $ 1.38 billion |
| Forecasted Market Value ( USD | $ 7.76 billion |
| Compound Annual Growth Rate | 24.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
