The type segment of the AR and VR market is bifurcated into AR and VR. Of these, the AR category is expected to demonstrate faster growth throughout the forecast period, due to the endless benefits and possibilities provided by AR technology. This technology offers connected experience to customers when combined with consistently evolving wireless technology, which enables the incorporation of AR into connected devices and home appliances.

Additionally, the ability of AR technology to combine digital information with the physical environment in real time will also facilitate the growth of the market in this category. Globally, the North American AR and VR market generated the highest revenue in 2019. This is ascribed to the widening application base of AR and VR technologies in the e-commerce and healthcare industries, in the region.

In North America, the U.S. accounts for a larger share, due to the presence of leading market players in the country. For instance, AccuVein Inc., a U.S.-based medical imaging solution provider, provides AR solutions to assist medical professionals in locating veins in patients. Whereas, the Asia-Pacific (APAC) AR and VR market is expected to register the fastest growth in the forecast years.

This can be majorly credited to the rapid technological evolution in the region. Moreover, the increasing availability of the latest AR and VR devices, owing to the surging population of tech-savvy youth and escalating popularity of AR- and VR-based gaming consoles, will also support the regional market growth. For example, eyecandylab Corporation and LG Uplus Corporation launched U+AR Shopping, an AR service for online shopping portals in October 2019.

Therefore, the surging adoption of AR and VR technologies in end-use industries and the plunging costs of these technologies and AR- and VR-enabled devices will augment the market growth.