Augmented reality (AR) and virtual reality (VR) have seen tremendous growth in recent years and are poised to transform industries from gaming to healthcare. Once considered niche technologies, immersive computing is rapidly entering the mainstream as innovative applications capture widespread attention.
It is anticipated that the revenue generated by the AR & VR industry would reach $31.12 billion in 2023. It is anticipated that revenues will have an annual growth rate (CAGR 2023-2027) of 13.72 percent, which will result in a projected market volume of US$52.05 billion by the year 2027. Driven by advancing hardware, decreasing costs, and compelling new software, immersive technologies are experiencing a period of unprecedented expansion.
Major tech companies have invested heavily in next-generation AR and VR headsets, while independent developers unleash a flood of engaging new content. At Alcoret Inc., we aim to capitalize on these elements and provide the consumers with a captivating and immersive experience via our space exploratory game.
Augmented reality (AR) and virtual reality (VR) have seen tremendous growth in recent years and are poised to transform industries from gaming to healthcare. Once considered niche technologies, immersive computing is rapidly entering the mainstream as innovative applications capture widespread attention.
It is anticipated that the revenue generated by the AR & VR industry would reach $31.12 billion in 2023. It is anticipated that revenues will have an annual growth rate (CAGR 2023-2027) of 13.72 percent, which will result in a projected market volume of US$52.05 billion by the year 2027. Driven by advancing hardware, decreasing costs, and compelling new software, immersive technologies are experiencing a period of unprecedented expansion.
Major tech companies have invested heavily in next-generation AR and VR headsets, while independent developers unleash a flood of engaging new content. At Alcoret Inc., we aim to capitalize on these elements and provide the consumers with a captivating and immersive experience via our space exploratory game.
Global AR/VR Revenue.
Source – RFC
Gaming has been a primary driver of AR and VR adoption, accounting for over 50% of current revenues. Titles like Pokémon Go brought AR gaming to billions of new users, while VR games like Beat Saber, Superhot VR, and Half-Life: Alyx have captivated audiences with their innovative, immersive experiences. Esports and live events are also experimenting with AR and VR to enhance viewer engagement. Forward-thinking publishers are exploring how these technologies can elevate every aspect of the gaming experience.
Gaming will remain the largest AR/VR driver in the near term. New AAA VR titles like Bonelab and Among Us VR are expanding the audience beyond early adopters. Meanwhile, AR gaming on mobile has seen success with games like Pokémon Go, Pikmin Bloom, and Jurassic World Alive engaging hundreds of millions of users.
As the technology matures and prices fall further, AR and VR will continue penetrating new industries and use cases that previously seemed unattainable. The potential for immersive computing to transform how we work, learn, and interact is only beginning to be realized.
Alcoret Inc. is well-positioned to engage early adopters of immersive technologies. As a space exploration game featuring an expansive virtual universe, Alcoret is naturally suited for AR/VR integration. Alcoret aims at using this technology to provide real-world digitization where in players could spectate various arenas, collect rewards, etc., allowing exploration in real-time of the digital cosmos. This will give early fans an enticing glimpse into virtual worlds while driving interest in Alcoret’s future VR offerings.
Other notable point is that over 90% of Gen Zs are interested in AR shopping experiences. Across the board, members of Gen Z are showing a strong interest in AR-based shopping, which is nearing 91.75%.
It’s not shocking that the interest in shopping for augmented reality products is highest among the younger generations, such as Gen Alpha.
Source – Dynata
Beyond gaming, industries as varied as film, healthcare, engineering, and more are actively exploring immersive applications. AR is being used for remote assistance, medical training, and more intuitive design workflows. VR is helping treat conditions from PTSD to phobias by exposing patients to controlled virtual environments. The pandemic has accelerated interest in remote collaboration using AR and VR as well.
During the period of forecast, growing investments in AR and VR technologies are expected to provide lucrative opportunities for the growth of the augmented reality and virtual reality markets. Augmented reality (AR) and virtual reality (VR) are the two most significant and rapidly developing fields of technology in a wide variety of businesses in the present day.
As costs continue to fall and experiences grow more polished, AR and VR will reach mass market critical mass within the next five years according to our analysts’ projections. The most innovative early adopters who understand these technologies’ transformative potential and cultivate compelling use cases will be well positioned for the coming wave of growth and opportunity. With a projected market volume of US$8,568.0m in 2023, most revenue is generated in the United States.
The Mobile AR market revenue is expected to top $21 billion in 2023. As of 2023, the mobile AR market revenue is predicted to reach $21.03 billion, up from $12.45 billion in 2021.
It is projected that by 2026, mobile AR revenue is expected to rise by more than $15 billion to $36.26 billion.
Source – ARtillery Intelligence
In the AR & VR market, the number of users is expected to amount to 2,593.0m users by 2027. User penetration will be 28.8% in 2023 and is expected to hit 32.6% by 2027. The average revenue per user (ARPU) is expected to amount to US$14.08. Immersive computing is redefining what it means to interact with technology and with each other.
Hardware leaders are investing heavily to drive this growth. Meta (formerly Facebook) plans to spend $10 billion on its metaverse ambitions in 2022 alone. Meanwhile, Apple is rumored to be preparing its first AR/VR headset for release next year with a focus on media consumption and communication applications.
In order to drive their development over the next several years, global powerhouses like as Meta, Microsoft, Nvidia, and Sony are making significant investments in augmented reality and virtual reality technology. For example– Meta, which was originally known as Facebook, is producing the extremely popular Quest 2 headgear and investing billions of dollars in the development of the Metaverse.
The expansion of the augmented reality and virtual reality markets is being fueled by rapid technological advancements, an increase in the number of people using these technologies, and a shift in the way consumers use these technologies. According to recent market analysis, the average AR/VR headset price fell from $949 in 2016 to just $399 in 2021.
As prices continue declining and experiences improve, mainstream adoption is set to surge. A recent IDC study forecasts over 200 million AR/VR headset shipments per year by 2026.
It is well known that gaming presents the most lucrative and popular use-case of AR, according to Vorhaus Advisors. One-third, approximately 32%, of U.S. adults are curious about augmented reality video games.
Source – Vorhaus Advisors
