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Augmented & Virtual Reality Software & Service Market - Forecast (2022 - 2027)

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    Report

  • 107 Pages
  • April 2022
  • Region: Global
  • IndustryARC
  • ID: 5616297
The Augmented & Virtual Reality Software and Services Market is forecast to reach $855.9 million by 2027, growing at a CAGR of 16.5% from 2022 to 2027. Software is a collection of data/computer instructions that help the computer/ media device to function. In the case of Augmented Reality, it first burst into the market via the use of mobile applications such as Ingress, Holo and Pokémon Go. This software is considered freemium software, where a user can access the basic features and has to pay to access additional features through in-game currency. The in-game currency can be accumulated through watching ads, downloading other applications or payment through a card. Augmented Reality is an enhanced version of reality that has been created using technology to add images, information, or both. Virtual Reality is a form of computer engineered simulation environment. Although conceptually similar, Augmented Reality has been in use for some time, particularly in the sports industry. Augmented & Virtual Reality Applications are used in many different applications. If we look at mobile apps alone, the majority would be for gaming, navigation, learning and information about nearby locations.

Augmented and Virtual Reality Software and Services Market Report Coverage


The report: “Augmented & Virtual Reality Software and Services Market - Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Augmented & Virtual Reality Software and Services Market.
  • By Component: Software, Service
  • By Type: AR and VR
  • By Payment - Freemium, One Time Payment, Subscription, Freeware, Others
  • By Application: Aerospace and Defense, Gaming, Medicine, Education, Enterprise, E-commerce, Others (Art & Entertainment, Visual Art etc)
  • By Geography: North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (the Middle East and Africa)

Key Takeaways


Apple and Pixar collaborate to create a specialized file format for augmented reality


In order to standardize the file format for applications that use Augmented Reality and Virtual Reality technology, the companies will be launching USDZ for catering to the files requirement.

Augmented Reality incorporated by Facebook in its application:


Users of social media networks such as Facebook and Instagram will be able to connect with popular brands such as Sephora, Michael Kors etc. and experience their products virtually to speed up their purchase decision process.

Augmented Reality game developer Niantic has acquired a computer vision software company:


Niantic, known for works such as Pokemon Go and Ingress, has purchased Matrix Mill, a startup that develops neural networks for inferring 3D information about the surrounding world. We can expect only improvements in the existing and future offerings.

Zappar, a startup, aims to ease AR experience creation for people without coding experience:


Augmented and Virtual Reality Software and Services Market Segment Analysis - By Component


During the forecast period software segment is expected to grow at a CAGR of 18.2% through 2026. The demand for software is set to grow because of the high adoption boost provided by apps and platforms in the AR space. One of the major factors driving this demand is the increasing interest of big tech firms in augmented reality technology. Smartphones have been known as the market's most exciting product in the future. Currently, with the increasing use of smartphones and AR browsers, consumers have begun to accept this interaction between human and computer (HCI) and increased reality has gained more research interest and attention recently. The main factors that are expected to drive the market are the penetration of HMDs in the gaming and entertainment sector, huge investment in the market for virtual reality, technology advancement and increasing digitization as well as the availability of affordable VR devices.

Augmented and Virtual Reality Software and Services Market Segment Analysis - By Application


Engineers can use AR headsets for on job improvisation centered on the fact that the human mind processes technical information more efficiently presented in a 3D format faster than having to translate it from a 2D perspective. VR is becoming an integral backbone of numerous drill programs for future accident and emergency doctors, aiding in better preparation of practitioners for surgery using VR systems, before having to commence actual patients. A classic business application example of AR headsets can be derived from the manufacturing process of Boeing, 78-7 Freighter. Google Glass is being employed by aircraft engineers during the wire assembly process to visualize the information right before their eyes, with video and voice instructions, for efficient and faster operations. Amazon, uses AR technology to allow customers to project versions of furniture and electronics into their households to help analyze physicality. Aerospace and military training is well optimized with the application of augmented and virtual reality devices to create real-life situations for trainees and also to keep a detailed tracked of their performance. AR and VR device’s convergence with IoT can transform the situations to be more genuine and apt for effective learning.

Augmented and Virtual Reality Software and Services Market Segment Analysis - By Geography


North America is expected to dominate the global Augmented & Virtual Reality Software and Services Market with a share of more than 35.8% in 2020. Due to technological advancements and increasing customer lifestyle, the North America region is a rapidly growing region. Head-mounted displays (HMD), in North America, are experiencing a high growth. In the defense sector, the increasing demand for this technology encourages manufacturers in the region to provide HMDs which will serve the purpose of simulation-based training. Moreover, Technology applications in the healthcare field include innovative methods for assessing and monitoring a patient's disease. Several major players in the North America are offering technologies, which will support the healthcare applications and it is expected to boost the market growth of the Augmented & Virtual Reality Software and Services Market.

Augmented and Virtual Reality Software and Services Market Drivers


Increasing demand for AR devices in patient-care management, and medical training and education


AR can be used to help doctors interpret the body parts of the patient's simulated state, which is likely to help surgeons perform minimally invasive surgery. The use of AR modeling and 3D visualization in the healthcare field will be of great benefit. Using AR to improve fitness, teach complex subjects to students in healthcare, train doctors, manage pharmacy is driving the growth of the Augmented & Virtual Reality Software and Services Market.

Penetration of HMDs in the gaming sector


In the gaming and entertainment field the use of HMDs has been strong. Since the advent of VR and 3D technologies, the gaming market has undergone a technological evolution. Having HMDs has helped users achieve a completely immersive experience and has taken the gaming experience to the next level. The smooth transformation achieved with the use of VR HMDs has helped to offer the users a special and enhanced experience. In the video game market HMDs have a high rate of penetration. Consumers of video games choose HMDs to enrich the skills and entertainment. HMDs project digital images, allowing for a 3D view that enhances the user experience. The rising gaming industry will also drive market growth for HMDs and, in effect, the augmented & virtual reality software and services market will grow.

Augmented and Virtual Reality Software and Services Market Challenges


Overcoming social constraints to increase the adoption rate


AR is a technology in the making as some AR apps have features through which a user can see any person's details on social media. Users do not accept AR devices as being uncomfortable and futuristic in design and as the end of privacy. Smart glasses or HMDs work extremely close to the user's eye as computer screens which can adversely affect the retina or cause eye strain and headache. Because of its health effect, users are reluctant to easily embrace this product. This is anticipated to hamper the market growth of augmented & virtual reality software and services.

Augmented and Virtual Reality Software and Services Market Landscape


Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Augmented & Virtual Reality Software and Services Market. The Augmented & Virtual Reality Software and Services Market is expected to be dominated by major companies such as Alphabet, Samsung, Microsoft, Apple, BMW, Worldviz LLC, Qualcomm, Atheer, Daqri, Echopixel.

Acquisitions/Technology Launches


In July 2019, Google Launched AR measuring app. The measure uses ARCore’s spatial features to measure real-world objects. By simply pointing the phone’s camera at the given item, it can get a reading of the distance from one corner to the other.

In May 2019, Sotheby’s Launches First Real Estate AR App. Sotheby’s International Realty Affiliates LLC has announced the launch of Curate by Sotheby’s International Realty, the first real estate-branded augmented reality (AR) app


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Table of Contents

1. Augmented & Virtual Reality Software & Service Market - Overview
1.1. Definitions and Scope
2. Augmented & Virtual Reality Software & Service Market - Executive summary
2.1. Market Revenue, Market Size and Key Trends by Company
2.2. Key Trends by type of Application
2.3. Key Trends segmented by Geography
3. Augmented & Virtual Reality Software & Service Market
3.1. Comparative analysis
3.1.1. Product Benchmarking - Top 10 companies
3.1.2. Top 5 Financials Analysis
3.1.3. Market Value split by Top 10 companies
3.1.4. Patent Analysis - Top 10 companies
3.1.5. Pricing Analysis
4. Augmented & Virtual Reality Software & Service Market Forces
4.1. Drivers
4.2. Constraints
4.3. Challenges
4.4. Porters five force model
4.4.1. Bargaining power of suppliers
4.4.2. Bargaining powers of customers
4.4.3. Threat of new entrants
4.4.4. Rivalry among existing players
4.4.5. Threat of substitutes
5. Augmented & Virtual Reality Software & Service Market -Strategic analysis
5.1. Value chain analysis
5.2. Opportunities analysis
5.3. Product life cycle
5.4. Suppliers and distributors Market Share
6. Augmented & Virtual Reality Software & Service Market - By Type (Market Size -$Million / $Billion)
6.1. Market Size and Market Share Analysis
6.2. Application Revenue and Trend Research
6.3. Product Segment Analysis
6.3.1. Introduction
6.3.2. Augmented Reality Software
6.3.2.1. Open Source
6.3.2.2. Proprietary
6.3.3. Virtual Reality Software
6.3.3.1. Open Source
6.3.3.2. Proprietary
6.3.4. Augmented Reality Services
6.3.4.1. Open Source
6.3.4.2. Proprietary
6.3.5. Virtual Reality Services
7. Augmented & Virtual Reality Software & Service Market - By Payment (Market Size -$Million / $Billion)
7.1. Freeware
7.2. Freemium
7.3. One-time
7.4. Subscription
7.5. Others
8. Augmented & Virtual Reality Software & Service Market - By Application (Market Size -$Million / $Billion)
8.1. Introduction
8.2. Education
8.3. Sport
8.4. Military
8.5. Medical
8.6. Hospitality
8.7. Fashion
8.8. Gaming
8.8.1. Hybrid
8.8.2. Fully Interactive
8.9. Business
8.10. Others
9. Augmented & Virtual Reality Software & Service - By Geography (Market Size -$Million / $Billion)
9.1. Augmented & Virtual Reality Software & Service Market - North America Segment Research
9.2. North America Market Research (Million / $Billion)
9.2.1. Segment type Size and Market Size Analysis
9.2.2. Revenue and Trends
9.2.3. Application Revenue and Trends by type of Application
9.2.4. Company Revenue and Product Analysis
9.2.5. North America Product type and Application Market Size
9.2.5.1. U.S.
9.2.5.2. Canada
9.2.5.3. Mexico
9.2.5.4. Rest of North America
9.3. Augmented & Virtual Reality Software & Service - South America Segment Research
9.4. South America Market Research (Market Size -$Million / $Billion)
9.4.1. Segment type Size and Market Size Analysis
9.4.2. Revenue and Trends
9.4.3. Application Revenue and Trends by type of Application
9.4.4. Company Revenue and Product Analysis
9.4.5. South America Product type and Application Market Size
9.4.5.1. Brazil
9.4.5.2. Venezuela
9.4.5.3. Argentina
9.4.5.4. Ecuador
9.4.5.5. Peru
9.4.5.6. Colombia
9.4.5.7. Costa Rica
9.4.5.8. Rest of South America
9.5. Augmented & Virtual Reality Software & Service - Europe Segment Research
9.6. Europe Market Research (Market Size -$Million / $Billion)
9.6.1. Segment type Size and Market Size Analysis
9.6.2. Revenue and Trends
9.6.3. Application Revenue and Trends by type of Application
9.6.4. Company Revenue and Product Analysis
9.6.5. Europe Segment Product type and Application Market Size
9.6.5.1. U.K
9.6.5.2. Germany
9.6.5.3. Italy
9.6.5.4. France
9.6.5.5. The Netherlands
9.6.5.6. Belgium
9.6.5.7. Spain
9.6.5.8. Denmark
9.6.5.9. Rest of Europe
9.7. Augmented & Virtual Reality Software & Service - APAC Segment Research
9.8. APAC Market Research (Market Size -$Million / $Billion)
9.8.1. Segment type Size and Market Size Analysis
9.8.2. Revenue and Trends
9.8.3. Application Revenue and Trends by type of Application
9.8.4. Company Revenue and Product Analysis
9.8.5. APAC Segment - Product type and Application Market Size
9.8.5.1. China
9.8.5.2. Australia
9.8.5.3. Japan
9.8.5.4. South Korea
9.8.5.5. India
9.8.5.6. Taiwan
9.8.5.7. Malaysia
10. Augmented & Virtual Reality Software & Service Market - Entropy
10.1. New product launches
10.2. M&A's, collaborations, JVs and partnerships
11. Augmented & Virtual Reality Software & Service Market Company Analysis
11.1. Market Share, Company Revenue, Products, M&A, Developments
11.2. Mozilla
11.3. Google
11.4. Apple
11.5. Pixar
11.6. Facebook
11.7. Amazon
11.8. IKEA
11.9. BMW
11.10. Zappar
11.11. Company 10

Methodology

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