Get a SampleOctober 2023
The global AR VR software market size was USD 32.55 billion in 2023, calculated at USD 38.74 billion in 2024 and is expected to be worth around USD 220.99 billion by 2034. The market is slated to expand at 19.02% CAGR from 2024 to 2034.
The global AR VR software market size is projected to be worth around USD 220.99 billion by 2034 from USD 38.74 billion in 2024, at a CAGR of 19.02% from 2024 to 2034. The rising demand for content management systems across the world is driving the growth of the AR VR software market.
The AR VR software market is a prominent industry in the ICT sector. This industry deals in the development and distribution of various AR and VR software for different industries across the world. This industry comprises two types of technology, which mainly include AR software and VR software. The AR VR software industry consists of various software such as software development kits, game engines, modeling & visualization software, content management software, training simulation software, and other software. These software are used in several industrial verticals, including retail & e-commerce, media & entertainment, real estate, manufacturing, automotive, aerospace and defense, healthcare, and others. This industry is likely to grow significantly with the growth in the IT industry.
What is the role of the AR VR Software Industry?
The advancements in AI technology play an important role in the growth of the IT industry. Nowadays, AR and VR software developers have started integrating AI into their apps to enhance personalization.AR and VR software combines AI for performing several functions in several sectors such as manufacturing, retail, military & emergency services, entertainment & gaming, and some others for enhancing the capabilities of AR and VR devices. Thus, the integration of AI in the AR and VR industry is expected to shape industrial growth in a positive way.
Top 10 AR Platforms
| Report Coverage | Details |
| Market Size by 2034 | USD 220.99 Billion |
| Market Size in 2023 | USD 32.55 Billion |
| Market Size in 2024 | USD 38.74 Billion |
| Market Growth Rate from 2024 to 2034 | CAGR of 19.02% |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | Technology Type, Software Type, Vertical, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Rising demand for AR and VR software in the automotive industry
The use of advanced AR and VR software is increasing rapidly in several industries across the world. The application of AR and VR software in the automotive sector has increased for virtually designing cars before the start of the manufacturing process. Also, the use of AR and VR software helps automobile engineers identify problems earlier and helps in the cost-cutting of automotive companies. Moreover, the adoption of AR and VR solutions in vehicles, along with the increasing demand for different cars among people, has increased the application of AR and VR tools in the automotive sector. Thus, the rising usage of AR and VR software in the automotive industry is likely to drive the growth of the AR VR software market during the forecast period.
Storage issues along with health concerns
The AR VR software industry has gained traction due to the growing usage of AR and VR tools around the world. Although there are numerous applications of AR and VR solutions, there are several problems in this industry. Firstly, the size of VR software is comparatively larger than that of other software, which causes storage-related issues among users. Secondly, the excessive use of AR and VR-supported devices can cause several health problems. Thus, storage concerns, along with health issues, are expected to restrain the growth of the AR VR software market during the forecast period.
Growing use of metaverse to change the outlook
Various developments are taking place in the technological sectors associated with the AR and VR industry. Nowadays, the trend of the metaverse is gaining prominent attraction among users, increasing the application of AR and VR software. The rising use of metaverse is mainly due to several factors such as immersion in digital communication, business development, learning and education, enhancing social media channels, virtual economy, and others. Thus, the increasing trend of the metaverse is expected to create ample growth opportunities for the market players in the years to come.
The AR software segment dominated the market in 2023. The rising demand for AR software from the IT industry to provide real-time remote assistance has driven market growth. Also, the growing application of AR software in the education sector to generate immersive learning by providing visuals to describe real facts among students is likely to propel market growth. Moreover, the increasing use of AR software in the healthcare sector to enhance surgical procedures, along with providing improved health training to medical staff, is expected to boost the growth of the AR VR software market during the forecast period.
The VR software segment is estimated to exhibit the fastest growth rate during the forecast period. The rising demand for VR software that allows risk-free practice to avoid hazardous situations has driven the market growth. Also, the increasing usage of VR software in enhancing communication and collaboration among students and teachers, along with providing safe learning environments, is likely to boost market growth to some extent. Moreover, the growing application of VR software to enable hands-on learning among working professionals in various industries is expected to propel the growth of the AR VR software market during the forecast period.
Software Type Insights
The game engine segment held a dominant share of the market in 2023. The growing trend of MMORPG games among people has increased the demand for game engine software to enhance the gaming experience, driving market growth. Also, the rising use of game engines by game developers to save time and costs associated with game development is likely to accelerate market growth to some extent. Moreover, the increasing demand for game engine software capable of producing HTML5/WebGL content for developing advanced games has boosted the market growth. Furthermore, the use of AR and VR-based game engines to provide high-quality graphics, multiplayer framework, blueprint visual scripting, full source code access, and some others is expected to propel the growth of the AR VR software market during the forecast period.
The media & entertainment segment dominated the market in 2023. The demand for AR and VR software in the media & entertainment sector has increased for allowing 360-degree experience to spectators of any sports has driven the market growth. Also, the rising application of AR and VR apps in the filmmaking industry to overlay additional information and visual effects into the real-world environment for enhancing the viewing experience is likely to boost the market growth to some extent.
Moreover, companies' increasing use of AR and VR software to develop superior advertising strategies to attract numerous consumers propels market growth. Moreover, the growing trend of AR and VR headsets for enhancing the cinematic experience, along with their advantage in providing superior sports viewing angles and immersive music capabilities, has increased the demand for AR and VR software, thereby driving the growth of the AR VR software market during the forecast period.
Asia Pacific dominated the AR VR software market in 2023. The rising investment in the gaming industry by private and public entities, along with the growing investment by the governments of several countries such as India, China, Japan, South Korea, Singapore, and some others for developing the retail and e-commerce industry, is expected to drive the market growth to some extent. Moreover, the increasing development in the healthcare and education sector has increased the demand for advanced AR and VR software, thereby driving market growth. Additionally, the rising development of the automotive sector in countries such as China, Japan, India, South Korea, Singapore, and some others is likely to boost the market growth to some extent.
Furthermore, the presence of various local companies of AR VR software such as Intelivita Private Limited, Vostok VR, Monkhub Innovations, DeepAR, Psychic VR Lab, and some others are developing advanced AR and VR solutions across the Asia Pacific region, in turn, is expected to drive the growth of the AR VR software market.
North America is estimated to grow with the fastest CAGR during the forecast period. The growth of the market in this region is mainly driven by the rising advancements in the AI sector along with increasing investment by the government in countries such as the U.S. and Canada for developing the IT industry. The growing developments in the aerospace and defense sector, with the presence of several market players such as Boeing, L3 Harris, Lockheed Martin, Collins Aerospace, and some others, along with the rise in the number of real estate companies, have driven the market growth. Also, the rising development in the manufacturing sector in the U.S. and Canada has increased the demand for AR and VR software, thereby driving market growth to some extent.
Moreover, the presence of several local market players of AR VR software, such as Microsoft, Apple, Google, and some others, are constantly engaged in the development of high-quality AR and VR tools and adopting several strategies such as partnerships, acquisitions, collaborations, launches, and business expansions, which in turn drives the growth of the AR VR software market in this region.
Segments Covered in the Report
By Technology Type
By Software Type
By Vertical
By Geography
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