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Surging Number Of IoT Devices Fuels Growth In The AI In Virtual Reality And Augmented Reality Market: Powering Innovation and Expansion in the Global AI In Virtual Reality And Augmented Reality Market by 2025
AI In Virtual Reality And Augmented Reality
What Is the Expected CAGR for the AI In Virtual Reality And Augmented Reality Market Through 2025?
In recent times, the market size for artificial intelligence in virtual reality and augmented reality has experienced significant growth. It is predicted to increase from $57.37 billion in 2024 to $83.72 billion in 2025, showcasing a compound annual growth rate (CAGR) of 45.9%. The progression seen in the historical duration has been driven by advancements in computer vision, improved machine learning algorithms, enhancements in natural language processing (NLP), the evolution of cloud computing, and the emergence of edge computing.
What's the Projected Size of the Global AI In Virtual Reality And Augmented Reality Market by 2029?
Expectations are high for the augmented and virtual reality market powered by AI, with projections of significant growth in the coming years. By 2029, this market is predicted to reach a value of $343.67 billion, experiencing a compound annual growth rate (CAGR) of 42.3%. The surge in growth during this forecasted period can be traced back to features such as AI-fueled social interactions, customized content suggestions, improved voice and gesture identification, and AI-created realistic environments, as well as healthcare and therapy applications. Key trends anticipated in this period encompass the utilization of AI-powered virtual assistants in VR or AR, AI-enabled virtual trial experiences, advanced object recognition and engagement powered by AI, fusion of AI with AR smart glasses, and immersive storytelling driven by AI.
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Top Growth Drivers in the AI In Virtual Reality And Augmented Reality Industry: What's Accelerating the Market?
The growth of AI in the realm of virtual reality and augmented reality is predicted to get a boost from the expanding number of IoT (Internet of Things) devices. IoT devices are physical gadgets with sensors, software, and connectivity features built-in that allows them to gather and share data with other systems or devices over the internet, creating the foundation of the Internet of Things ecosystem. These devices function through interconnected networks that enhance communication and data transfer between various systems and devices. The integration of AI in VR and AR can magnify the functions of IoT devices by providing a more immersive and intuitive user experience, refining data analysis, allowing predictive maintenance, making context-aware interactions possible, enhancing remote monitoring and control, and improving training and simulation capacities. For example, the GSM Association, a non-profit organization based in the UK, reported in March 2023 that the number of IoT connections is likely to more than double from 2021 to 2030, escalating to a total of 37.4 billion. As such, the rising number of IoT devices is directly influencing the growth of AI in the virtual and augmented reality market.
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What Trends Will Shape the AI In Virtual Reality And Augmented Reality Market Through 2029 and Beyond?
Leading firms in the AI in virtual and augmented reality market are crafting revolutionary assisted reality glasses to enhance their product range for consumers. Assisted reality glasses or smart glasses are wearable tech that project digital data, visuals, and graphics onto the wearer's visual field, amplifying their understanding of the physical world. For example, in February 2024, Oppo, a consumer electronics firm based in China, launched the OPPO Air Glass 3. These glasses are engineered to give real-time data through a complete colour display embedded within the glass lenses. This state-of-the-art product is an assisted reality pair of glasses featuring a voice assistant driven by Oppo's comprehensive language model (LLM) named AndesGPT. These glasses are meant for daily wear, allowing consumers to see digital material layered over the actual world, like messages or navigation maps. To function, the Air Glass 3 needs to connect to an Oppo smartphone and can be operated using touch sensors on the frame's side.
What Are the Main Segments in the AI In Virtual Reality And Augmented Reality Market?
The ai in virtual reality and augmented realitymarket covered in this report is segmented -
1) By Type: Artificial Intelligence-Powered Virtual Reality (VR), Artificial Intelligence-Enhanced Augmented Reality (AR)
2) By Technology: Natural Language Processing (NLP), Computer Vision, Machine Learning, Deep Learning, Gesture Recognition, Speech Recognition, Simulated Environments
3) By Platform: Mobile Devices, Head-Mounted Displays (HMDs), Projectors And Smart Glasses, Wearables And Body Tracking Devices, Desktop Computers And Consoles
4) By Application: Gaming And Entertainment, Education And Training, Healthcare And Medical, Retail And E-commerce, Real Estate And Architecture, Automotive And Transportation, Tourism And Travel, Social Media And Communication, Industrial And Manufacturing, Military And Defense
Subsegments:
1) By Artificial Intelligence-Powered Virtual Reality (VR): AI-Driven VR Content Creation, Personalized VR Experiences, AI In VR Training And Simulation, Real-Time AI Interaction In VR
2) By Artificial Intelligence-Enhanced Augmented Reality (AR): AI-Powered Object Recognition, AI-Driven AR Navigation And Mapping, Real-Time AI Data Overlay, AI In AR Retail And Shopping Experiences
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Which Top Companies are Driving Growth in the AI In Virtual Reality And Augmented Reality Market?
Major companies operating in the AI in virtual reality and augmented reality market report are Apple Inc.; Alphabet Inc.; Samsung Electronics Co. Ltd.; Microsoft Corporation; Meta Platforms Inc.; Sony Corporation; Lenovo Group Limited; Intel Corporation; Qualcomm Incorporated; NVIDIA Corporation; Dassault Systemes SE; PTC Inc.; Sixense Enterprises Inc.; Magic Leap Inc.; HTC Corporation; EON Reality Inc.; Daqri LLC; Zappar Ltd.; Scope AR; Vuzix Corporation; Upskill; Avegant Corporation; Atheer Inc.; Cognixion; Marxent Labs LLC
Which Regions Will Dominate the AI In Virtual Reality And Augmented Reality Market Through 2029?
North America was the largest region in the AI in virtual reality and augmented reality market in 2024. The regions covered in the AI in virtual reality and augmented reality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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