Top Growth Trends in the AI In Virtual Reality And Augmented Reality Market: Insights into Market Size and Opportunities for 2025-2034
2025 Market Reports Update: Market Size Forecasts to 2034, Key Trends, Leading Players, and Top Regions – Get Ahead of the Competition Today!
What Are the Primary Drivers Supporting the Market Growth of theAI In Virtual Reality And Augmented Reality Market?
The growth of AI in the virtual reality and augmented reality market is predicted to be fueled by the rising number of IoT (Internet of Things) devices. These devices are physical apparatus installed with sensors, software, and connectivity functionalities, which allow them to gather and share data with other devices or systems over the Internet. This forms an ecosystem known as the Internet of Things (IoT). Interconnected networks power these IoT devices, facilitating seamless data exchange and communication between devices and systems. The integration of AI with virtual and augmented reality can amplify the proficiency of IoT devices by providing a more immersive and user-friendly experience, enhancing data analysis, implying predictive maintenance, supporting context-aware interactions, allowing remote monitoring and control, and strengthening training and simulation capabilities. For example, the GSM Association, a non-profit organization based in the UK, reported in March 2023 that the number of IoT connections is predicted to more than double between 2021 and 2030, reaching 37.4 billion in total. Consequently, the growing number of IoT devices is promoting the expansion of AI in the virtual and augmented reality market.
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#What is the Projected CAGR for the AI In Virtual Reality And Augmented Reality Market Size from 2025 to 2034?
The market size for AI in virtual reality and augmented reality has seen amplified growth in the past few years. It is anticipated to surge from $57.37 billion in 2024 to $84.23 billion in 2025, featuring a compound annual growth rate (CAGR) of 46.8%. The remarkable growth during the historical period is due to the progress in computer vision, enhancements in machine learning algorithms, developments in natural language processing (NLP), the expansion of cloud computing, and the emergence of edge computing.
Expectations are high for the AI in virtual reality and augmented reality market to expand significantly in the coming years. By 2029, it’s projected to reach $387.34 billion, exhibiting a compound annual growth rate (CAGR) of 46.4%. This predictable growth during the forecast period can be linked to the use of AI to power social interactions, tailor content recommendations, improve gesture and voice recognition, generate realistic environments, and applications in healthcare and therapy. Key trend forecasts encompass AI-oriented virtual assistants in VR or AR, AI-augmented virtual fitting experiences, AI-boosted object recognition and interaction, integration of AI with AR smart glasses, and AI-driven immersive storytelling.
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What Are the Latest Innovations Influencing theAI In Virtual Reality And Augmented Reality Market?
Leading organizations in the AI in virtual and augmented reality space are venturing into the creation of advanced assisted reality glasses to augment their product suite for clients. Such glasses, also known as smart glasses, are wearable gadgets that superimpose digital details, visuals, or graphics onto the user’s vision, thereby enriching their understanding of the tangible environment. For instance, Oppo, a Chinese consumer electronics firm, launched OPPO Air Glass 3 in February 2024. These glasses are engineered to offer real-time data via a full-color display embedded within the lens. The ground-breaking product constitutes a set of assisted reality glasses that feature a voice assistant powered by Oppo’s expansive language model (LLM), known as AndesGPT. These glasses are designed for everyday use and facilitate viewing of digital information overlaying the tangible environment, such as messages or navigation maps. To function, the Air Glass 3 must be connected to an Oppo smartphone and can be manipulated using touch sensors on the side of the frame.
Who Are the Major Industry Players Accelerating Growth in theAI 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
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Which Primary Segments of the AI In Virtual Reality And Augmented Reality Market Are Driving Growth and Industry Transformations?
The AI in virtual reality and augmented reality market 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 Regions Are Key Players in the Growth of the #What Are the Primary Drivers Supporting the Market Growth of theAI In Virtual Reality And Augmented Reality Market?# Market?
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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