The unexpected need for virtual meetings and remote collaboration for efficient workflows during the COVID-19 pandemic has become critically important for companies. The enterprise AR and VR market witnessed a spike in its revenue in 2020-2021, due to rapid growth in demand for virtual training and a key focus of companies on improved customer experience.  The global enterprise augmented reality and virtual reality market is expected to grow to US$ 364.9 Billion by 2030, with an estimated compound annual growth rate of 39.2%. The market for enterprise AR-VR was valued at US$ 18.9 Billion in 2021. 

Integration of AR/VR technologies helps in improving the decision-making across enterprises as it enhances both the virtual and real world. Augmented reality uses a real-world setting, allowing any person to get access through a smartphone or tablet. It projects virtual pictures and characters and enhances the user's real-life experience. Virtual reality is completely virtual, wherein users are controlled by the system, and it uses special equipment such as computers, headsets, and gloves. Moreover, immersive technologies are slowly but steadily being used by businesses in order to improve their business outcomes, thereby creating a lucrative growth opportunity for the market growth. 

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 MARKET DYNAMICS

Prominent factors influencing the market growth during the forecast period include:

Drivers

Growing Need to Enhance Decision Making Among Enterprises 

The power of augmented reality stems from the way humans interpret information at its foundation. Augmented reality generates hyper-visualizations by gathering large amounts of data and superimposing clear and understandable 3D modules in the real world. In commercial decision-making, the value of visualizing large amounts of complex data cannot be overstated. Integration of AR/VR technologies helps enterprises in making decisions that can lead to increased productivity, enhanced time, and resource management, thereby driving market growth. For example, in the fields of design and architecture, augmented reality is being utilized to provide architectural visualization, design evaluations, and approval before the actual building begins. This, in turn, helps enterprises in improving their decision-making. Moreover, AR simplifies and improves the effectiveness of in-depth training and guidance for heavy equipment industry employees.

Increasing Use of AR-VR in Instruction and Guidance

Augmented reality is already redefining the fundamental functions of instruction, training, and coaching as they are critical to increasing labor productivity. In-person training is costly and necessitates the gathering of trainees and specialists in one location. Moreover, remote training is limited, and traditional instructional videos aren't interactive or adaptable to different learning styles. Therefore, augmented reality overcomes these challenges by offering on-the-spot, real-time visual coaching on jobs and complex processes. AR-based training provides employees with a more engaging and thorough learning experience. For example, with the help of AR and VR, businesses can create staff avatars and place them in a virtual world where they can practice learning in real-time on a 3D production line. Furthermore, using AR/VR technology in employee training allows employees to effectively practice their abilities. However, these technologies can be used for malicious purposes thus, restricting the market growth.

Restraints 

Issues of Privacy and Security Related to AR and High Cost of Implementation 

Security issues have arisen as a result of inefficiencies in AR programming as only a few of them can efficiently protect the user's identity and privacy. This means that AR technology can be used for malicious purposes, resulting in the exploitation of personal information by users. Virtual reality is a technology-driven market, and therefore the efficiency of this product depends on the sector's technological advancement. Thus, the changing technologies and the high cost of these setups is a significant and potential threat that can hinder the progression of the global enterprise augmented reality and virtual reality market during the forecast period.

Market Segmentation

Component Analysis

In terms of components, the hardware segment captures 55% of the market share in 2021 and is also expected to grow at the highest CAGR of 39.50% over the forecast period. Any technology's foundation begins with its hardware. AR can be viewed via a smartphone or a pair of standalone smart glasses. Sensors such as the accelerometer, gyroscope, magnetometer, camera, light detection, and others are crucial in AR. Moreover, the services segment is also gaining traction, especially in the training and education sectors. Virtual and augmented reality are the two types of technology based on the device type.

Type Analysis

In terms of type segment, the market value of the virtual reality segment is the highest reaching a value of US$ 256.16 Bn by 2030. Virtual Reality (VR) is a technology that creates a virtual environment with objects and scenes that appear real, making the consumer feel they are engrossed in their surroundings. Non-immersive technology only allows users to process the contents based on how the device is in use, the participants can only observe externally. Moreover, virtual, and augmented reality are transforming every industry irrespective of their enterprise size.

Enterprise Size Analysis

Studying enterprise size segment shows that the large enterprise segment holds the largest market and will continue to dominate the market by 2030 with its market value reaching US$ 219.73 Bn by 2030. AR-VR is bringing a massive transformation among large enterprises changing the face of business as it is today. Moreover, small and medium-sized businesses (SMBs) benefit due to AR and VR technology as it reduces the field staff training costs, results in fast repairs, and increased customer satisfaction. Therefore, the market is anticipated to grow by more than 40% during the forecast period. Furthermore, small businesses are embracing new solutions more than ever before, including software they're unfamiliar with, in order to connect with customers in the midst of a pandemic, from real estate to retail. Moreover, the several benefits of these technologies have increased their adoption and testing in an extensive range of industries.

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Industry Analysis:

Based on industry, the implementation of AR and VR in the medical industry played a significant role in advancing healthcare. Virtual reality is an intelligent and effective diagnostic tool that aids in carrying out accurate diagnoses. Thus, the increasing advancements and rising healthcare expenditures also increase the application of these advanced devices in the healthcare industry, positively impacting the market growth. Therefore, the healthcare segment is anticipated to grow at the highest CAGR of 40.25% over the forecast period. The market is expected to rise due to an increase in the adoption of clinical trials, treatment for psychiatric problems, advances in diagnostics and surgical procedures, as well as body mapping. Moreover, the gaming segment dominated the global AR-VR market in 2021 by holding 24% of the global market share as it allows users to interact in both the real and digital world.

Regional Analysis:

North America enterprise AR-VR market holds the largest share of the global market in 2021 with a share of more than 36% in 2021. In addition, growing VR deployment in aerospace and military, as well as in the architectural and planning sectors, could be a big opportunity for the regional market to flourish. Moreover, the Asia Pacific enterprise AR-VR market is expected to project the highest CAGR of 40.24% during the forecast period as the region is significantly adopting new technologies and doing further innovations in the market. Furthermore, the increased desire for robotic procedures rather than traditional bypass surgery is one of the key drivers of augmented reality and virtual reality in the Latin American healthcare business.

Competitive Landscape

Key players in the global marketplace hold the majority of the market share which is close to 80%. The key players in the market are AWE Company, EON, Reality Inc., FXGear Inc., Google, Microsoft, Qualcomm Technologies, Cognitive3D, Samsung, Facebook Technologies LLC, Seiko Epson, LG Electronics, HP Development Company, L.P., and Huawei among others. 

A Glance at Key Competitors in Global Enterprise AR-VR Market

• Google LLC arrange the world information and make it universally accessible by focusing on artificial intelligence and cloud computing. In addition to that, the discovery and creation of digital content are easily available and understandable to every human being.  Alphabet is a parent company of Google, which allow access to information about everything and avail them of the latest technology across the globe.
• Microsoft offers products including business solution applications, server applications, operating systems, cross-device productivity applications, and others. The company offers a wide range of products and services, including cloud-based solutions, services, platforms, content, solution support and consulting services, and software to provide efficiency and control to the end-users and others.

Segmentation Overview 

Global Enterprise AR-VR market is segmented based on component, type, enterprise size, industry, and region. The global enterprise AR-VR market is sub-divided into various categories, such as- 

By Component segment 

• Hardware
  • Headsets (HMDs/HUDs/Glasses)
  • Displays
  • Kiosks
• Software
• Services

By Type segment 

• AR
  • Marker less AR
  • Location-based AR
  • Projection based AR
  • Superimposition AR
  • Outlining AR
• VR
  • Non-immersive VR
  • Fully immersive VR
  • Semi-immersive VR
  • Augmented VR
  • Collaborative VR

By Enterprise Size segment 

• Large Enterprises
• SMBs

By Industry segment

• Retail
• E-Commerce
• Automotive
• Manufacturing & Logistics
• Construction & Real Estate
• Healthcare
• Education & Training
• Gaming
• Entertainment & Media
• Aerospace
• Travel & Tourism
• Others

By Region segment 

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America