AR/VR/MR Optics and Display Market Size, Share, and Trends

AR/VR/MR Optics and Display Market Size to Reach USD 22.05 Bn by 2032

The global AR/VR/MR optics and display market size was valued at USD 1.37 billion in 2022, and it is expected to hit around USD 22.05 billion by 2032, poised to grow at a CAGR of 32.1% during the forecast period 2023 to 2032.

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Key Takeaways

• North America was valued USD 531.2 million in 2022 and will grow at a CAGR of 32.4% during the forecast period.
• Asia-Pacific region is projected to grow at the fastest CAGR of 32.7% from 2023 to 2032.
• By Organization Size, the large enterprises segment was valued USD  755.7 million in 2022 and will grow at a CAGR of 32.3% from 2023 to 2032.
• By Display Type, the liquid crystal displays segment held the largest market share in 2022.
• By Display Type, the organic light emitting diode segment is predicted to expand at a notable CAGR of 32.4% during the projected period.

U.S. AR/VR/MR Optics and Display Market in the U.S. 2023-2032

The U.S. AR/VR/MR optics and display market size accounted for USD 384 million in 2022 and is estimated to reach around USD 6489.7 million by 2032, growing at a CAGR of 32.7% from 2023 to 2032.

The North American region leads the market and it will maintain its market position continuously throughout the forecast period. The factors that are proving to be helpful for the growth of this market are the presence of major market players in the North American region. Google Microsoft and Facebook are the major market players in the augmented reality and virtual reality market that are helping in the growth of the North American region. The growing industrial sector is also driving the market growth in the North American region. Due to the increasing demand for connected devices and advancements in technologies of the augmented reality the market is expected to grow.

Europe is the second significant market for this technology. Due to the increasing adoption of augmented reality and virtual reality technologies in the media and entertainment industry, education, healthcare industry and the increasing use of mobile phones and play stations will help in the growth of the market. There is an increasing demand from the healthcare industry and the manufacturing industries for the use of augmented reality and virtual reality. In the European region the countries that contribute to the growth of this market are Germany, Italy, Spain, France etc.

In the Asia Pacific region the augmented reality and virtual reality market is expected to grow due to its use in various industry verticals. The adoption of augmented reality and virtual reality market solutions for 3D animation, 3D modeling and virtualization applications is driving the growth of this market. There's a continuous rise in the demand for this technology and the government in the Asia Pacific region is making significant investments to offer innovative solutions. The major market players are also investing a significant amount to offer new solutions in the healthcare segment retail segment and the ecommerce segment. In the Asia Pacific region China is the largest augmented reality on virtual reality market. China has an increased demand for augmented reality and virtual reality technologies in the industrial sectors and the infrastructural sectors. It is expected that in China there shall be a rise of 65% CAGR during the forecast period.

AR/VR/MR Optics and Display Market Overview

Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) have emerged as game-changing advancements in the constantly evolving world of technology. Due to their ability to provide new levels of engagement and experience, these immersive technologies have become extremely popular. Optics and display technologies, which enable the seamless merging of virtual and real worlds, are essential to the development of virtual reality. The quality of AR, VR, and MR experiences has improved due to rapid improvements in display and optical technologies. Consumer interest in and desire for immersive experiences is growing. Immersive experiences and VR games continue to enchant viewers. Entertainment enthusiasts are the largest consumer sector in the AR, VR industry. These people are eager to discover new ways to enjoy films, concerts, and sporting events. AR and VR technologies allow individuals to get immersed in their favorite content as if they were a part of it. Retailers are using augmented reality and virtual reality to provide customers with realistic shopping experiences. Virtual try-ons, interactive product displays, and personalized shopping assistants are just a few methods that technology is improving the retail experience.

Additionally, the industry is shifting towards more lightweight, comfy wearables. Navigation and safety are enhanced by augmented reality displays. Virtual shopping experiences and try-before-you-buy choices are available in retail. The top companies in the sector include Google, Sony, Microsoft, and Facebook (Meta Platforms, Inc.).The market for AR, VR, and MR is a dynamic and developing business, with both huge IT companies and innovative entrepreneurs contributing to its growth. Large companies have the financial resources and reach to invest extensively in R&D. The ongoing collaboration and rivalry among these different organizations is propelling the evolution of immersive technologies for a variety of applications.

The AR/VR/MR optics and display market encircles the entire sector of optics and display technologies which are utilized in spatial reality products. Within VR devices, the prime optics are Fresnel lenses.  The way the experience of a consumer is made engaging is defined by their first hand experience and after it has become an unforgettable experience, it provides a high possibility that they will stick to use the device to continue their elite experience.

Unlike the other industries the augmented reality and virtual reality market had seen a faster growth during the pandemic which proved to be a challenge for the other developing technologies. The pandemic has provided a much needed push to the adoption of this technology across the globe. The strict lockdowns across the globe made people look for new solutions in order to meet their daily needs. There was an extensive use of online platforms for purchasing of groceries and getting the food delivered at the doorstep. Online platforms were helpful in providing the medical requirements and serving the products needed for the educational purposes. Pandemic has been the major factor for the development of many new technologies. The health care sector the education sectors the tourism sector and the retail sector has used these technologies for their business. There has been a major behavioral change after the pandemic that instigated the market.

Growth Factors

VR has showcased a significant impact in the form of a training facility, it proves to be an enhancer of telepresence and provides a method for design or visualization and is not considered to be described as the future of gaming. The pandemic has shifted the main focus on this socially interactive hands-free technological system. It is foreseen that this focus will remain fixed for a significant period of time. There will be a requirement for this advanced technology in numerous new events, which before this did not need hands-free, or remote functioning. The utilization of this advanced technology permits other clinicians to locate themselves in a separate room, and while using Microsoft Teams, they can observe a live video streaming of the physician who is tackling with the COVID-19 patients. This is done by using the remote assistance features which have been previously used by Hololens users for producing, maintenance, and other similar purposes. By utilizing this technology, the staff has cut down the duration of time they were required to spend by being physically present in a high-risk area by around 83%.

Moreover, they are making less use of PPE, pertaining to the fact that only a few physicians are present in the high risk zone during patient care. The utilization of AR/MR systems for directing skilled individuals, maintaining operating layouts in front of surgeons and substituting the smart devices for data consumption is considerably growing. In the moments to come, these advanced technologies are predicted to revolutionize the techniques with which we function and communicate with each other.

Within the VR headsets, advanced, unconventional lens options are used so that there is increasing usage to solve the shortcomings of the Fresnel lens-based architectures that have been serving us until now. For AR/MR, an entire department of specialized, usually fabless, optics firms has sprung up, which provides a huge range of advanced technologies to headset producers that are as per the demands in these present market situations. There is a strong demand from many industries like the automotive industry and the health care industry as it provides automation virtual propel the market growth. Many new opportunities will be provided to the major market players due to the significant demand for augmented reality and virtual reality in the manufacturing industries across the globe. Augmented reality and virtual reality market has seen dominant growth in the recent years. Increasing utilization of these capabilities for the corporate communications and the accomplishment of the gains will lead to the growth of the market in the forecast period.

Report Scope of the AR/VR/MR Optics and Display Market

Organization Size Insights

Depending upon the organization size, the large enterprises segment is expected to have the highest revenue share in 2022. This segment is expected to maintain its dominance in the coming years due to an increase in the application of augmented and virtual reality in different industries. There is an increased use of augmented and virtual reality in the manufacturing industry, automotive industry, extract the windows tree aircraft industry, construction industry, education industry, law enforcement industry and the real estate industry.

The small and medium sized enterprises segment will also witness a good growth during the forecast. The small and medium enterprises segment have benefited in the recent years due to the augmented reality and virtual reality technology. The use of augmented reality and virtual reality in the small and medium enterprises provides benefits like reduction in the costs acquired for the training of the Staffs, less time required for repairs, and increased customer satisfaction due to the use of these technologies.

Global AR/VR/MR Optics and Display Market, By Organization Size,  2022-2032 (USD Million)

Application Insights

On the basis of application, the consumer segment had the largest market share in the augmented reality and virtual reality market during the forecast period. The consumer segment is expected to maintain its dominance. Due to an increase in the number of enterprises the enterprise segment will also have a good amount of growth. The gaming and other consumer entertainment sub sectors are also expected to see a substantial growth during the forecast period. Many industries are adopting and testing the augmented reality and virtual reality technologies for many work related applications. Gaming and entertainment form a major part of the total revenue produced by this market. The need for high resolution displays that are essential to have a top notch experience while gaming have been fulfilled by this latest technology.

The entertainment sector has also provided a great opportunity pertaining to the increasing number of shows displayed on the screens. The healthcare sector has also provided a boost to the market pertaining to get requirement of high resolution displays while performing orthopedic surgeries, neurological procedures and cardiac surgeries. The accuracy of the displays helps to have a maximum success rate. The education sector provides a great scope to the market owing to he increasing shift of the system to smart devices and techniques which are adopted by the institutions. Military and defense service a make use of these technologies and obtain accurate coordinates and pictures through the satellites, thus proving to be an inevitable equipment in the defense system.

Automotive and manufacturing sector have also contributed to the market growth due to the heavy use of digital products in the recent vehicles. Retail industry is another potential sector for the growth of this market during the forecast period. Other applications include the increasing use of smart devices and technology in the households and commercial spaces that may propel the market growth in the near future.

Display Type Insights

On the basis of display type, the Liquid Crystal Displays (LCD) segment has garnered largest market share in 2022. Liquid Crystal Displays (LCD) screens have been using this advanced technology for the production of precise visual displays for a seamless experience to the consumers.

Organic Light-Emitting Diode (OLED) are used for manufacturing display screens which guarantees low energy consumption while providing top notch experience to the consumers. Other display types which are manufactured also use this latest technology to produce reasonable outputs with high resolution while consumption of less energy is taken into consideration.

Global AR/VR/MR Optics and Display Market, By Display Type, 2022-2032 (USD Million)

Key market players

• Blippar
• Google LLC
• EON Reality Inc.
• Hewlett-Packard Company
• awe.org Pty Ltd (buildar.com)
• Zapper Limited
• Virtalis Limited
• Samsung Group
• Facebook Inc.
• Terminal Eleven (SkyView)
• Wikitude GmbH
• Sony Corporation
• Microsoft Corporation
• Magic Leap Inc
• HTC Corporation
• Augmented Pixels Inc.
• DAQRI LLC
• PTC Inc.
• Visteon Corporation

Recent Developments

• Plessey and WaveOptics, collaborated in February 2020, with a view to manufacture advanced smart glasses for which they are making a new module.
• UK-based Micro LED display developer Plessey Company plc is focusing on AR/MR display application and it announced that it is collaborating with FB in the month of March 2020. It is ready to assist in forming a prototype for future use in reality space.

Segments covered in the report

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By Organization Size

• Large Enterprises
• Small and Medium Sized Enterprises

By Application

• Consumer
• Enterprise

By Display Type

• Liquid Crystal Displays
• Organic Light Emitting Diode

By Technology

• AR/MR Optics
• VR Optics
• AR/MR micro-displays
• VR micro-displays

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa