AR/VR Chip Market

AR/VR Chip Market Size:

The global AR/VR chip market size reached US$ 4.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 21.7 Billion by 2032 exhibiting a growth rate (CAGR) of 18.81% during 2024-2032. The rising product use in the gaming and entertainment industries across the globe, the rising number of gaming features in smartphones and other devices, and the growing chip demand in the education industry are some of the factors propelling the AR/VR chip market.

AR/VR Chip Market Analysis:

• Major Market Drivers: The increasing demand for amazing gaming experiences and the rising adoption of AR/VR in healthcare sector are some of the major market drivers.
• Key Market Trends: The increasing integration of AI and machine learning algorithms is one of the key market trends.
• Geographical Trends: Asia Pacific is dominating the market, driven by the expanding mobile gaming industry. The Asia-Pacific (APAC) region led the global mobile gaming market and generated 64% of total revenue in 2023.
• Competitive Landscape: Advanced Micro Devices Inc., Broadcom Inc., and Intel Corporation are some of the key market players.
• Challenges and Opportunities: High manufacturing costs are posing many challenges for the market. Rapid innovation in production processes is an opportunity for the AR/VR chip market share.
   

AR/VR Chip Market Trends:

Increasing product demand in various industries

Augmented and virtual reality solutions find high usage in various industries such as civil aviation, defense & security, healthcare, digital manufacturing, education, and entertainment. However, prominent players operating in the augmented and virtual reality market are projected to concentrate on the introduction of industry-specific solutions to expand their presence across various industries such as mining, oil & gas, and transportation. The adoption of AR/VR technology is growing in several sectors, such as industry, education, healthcare, and entertainment. With the growing application of AR and VR across multiple industries, specialized chips are expected to see a rise in demand and AR/VR chip market growth.

Rising demand for AR/VR chips in the gaming sector

Throughout the projected period, there will be a rise in demand for augmented and virtual reality-based games, which will contribute to the AR/VR chip market value. The population of gamers has grown significantly in the last several years. One of the most popular uses of augmented and virtual reality technologies is in video games. Using workable augmented and virtual reality-based solutions, smartphone manufacturing companies are also incorporating extra gaming capabilities into their handsets to improve the overall user interface experience and stay ahead of their competitors in the market. Furthermore, as augmented and virtual reality use technology-enabled platforms to imitate real-world settings, they offer a helpful, cost-effective substitute for training and skill development.

Technological Innovations in AR/VR

According to the AR/VR market report, augmented and virtual reality technology can be used for collaborative seminars, meetings, public lectures, military training, aviation training, nursing and medical professional training, and self-learning procedures. Additionally, it is seen that major companies are prioritizing product innovation by continuing to spend on product development to provide better products or services. Additionally, a wide range of industries, including digital manufacturing, healthcare, education, entertainment, military and security, and civil aviation, rely significantly on AR/VR technologies. Leading industry rivals are concentrating on launching industry-specific solutions and developing cutting-edge technologies, thus driving AR/VR chip demand.

AR/VR Chip Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on chip type, device type, and end user.

Breakup by Chip Type:

• Processor ICs
• User Interface ICs
• Power Management IC
   

Processor ICs dominate the market

The report has provided a detailed breakup and analysis of the market based on the chip type. This includes processor ICs, user interface ICs, and power management IC. According to the report, processor ICs represented the largest segment.

Processor ICs are dominating the AR/VR chip market revenue. The features offered by these chips have made them extremely efficient in comparison to other embedded systems, which has fueled the segment's expansion. Integrated circuits for power management (ICs) are found in automatic-operating goods and gadgets, including embedded systems, medical devices implanted in the body, smart appliances, remote controls, and automotive engine control systems. Smaller microcontrollers consist of the same and result in lower system costs as a single chip consists of all the vital components, including memory, a central processing unit (CPU), and input/output peripherals. This results in reduced manufacturing costs and improved efficiency which proves beneficial for the AR/VR chip market overview.

Breakup by Device Type:

• Head Mounted Display
• Gesture Tracking Device
• Projector and Display Wall
• Head Up Display
• Handheld Device
   

Head mounted display holds the largest share in the market

A detailed breakup and analysis of the market based on the device type have also been provided in the report. This includes head mounted display, gesture tracking device, projector and display wall, head up display, and handheld device. According to the report, head mounted display accounted for the largest market share.

According to AR/VR chip market research, head mounted display is dominating the market. A transparent display that shows information or data to the user without requiring them to change their normal viewing angles is called a head mounted display, or heads-up display, or HUD. The military and police use head-mounted displays extensively, which fuels the market's expansion. On the other side, throughout the course of the forecast period, the head-up display segment would see the fastest CAGR growth. This is explained by its characteristics, which let consumers view data without being interrupted.

Breakup by End User:

• Gaming
• Entertainment and Media
• Aerospace and Defense
• Healthcare
• Others
   

Gaming holds the maximum share in the market

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes gaming, entertainment and media, aerospace and defense, healthcare, and others. According to the report, gaming accounted for the largest market share.

The AR/VR chip market research report shows that the market is dominated by the gaming sector. Among millennials, electronic games that work with virtual and augmented reality technologies are popular. Through a digital platform, consumers can experience the gaming world in real life thanks to AR/VR technology. Consequently, producers have placed a high priority on the AR/VR compatibility of their goods. The gaming industry's increasing need for AR/VR chips, the affordability of augmented and virtual reality-based solutions, and the technology's quick adoption across a range of applications are driving factors in the AR/VR chip market.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest AR/VR chip market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The market is being dominated by Asia Pacific. The dominance of this region stems from its emphasis on using virtual reality technology for consumer online learning, medical care, and training. Moreover, it is significant that nations like India are about to introduce new technologies into a range of industries, suggesting that the Asia Pacific area would probably witness a quicker rate of growth in the AR/VR chip market throughout the forecast period. The region has grown as a result of modern technology being adopted by many sectors, including government, logistics, residential and commercial, and transportation. The increased adoption of fiber optic cables and digital services has expanded the AR/VR chip market outlook further.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Advanced Micro Devices Inc.
• Broadcom Inc.
• Intel Corporation
• MediaTek Inc.
• Nvidia Corporation
• Qualcomm Incorporated
• Spectra7 Microsystems
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

The reports discuss both organic and inorganic growth methods along with significant advances in the AR and VR chip market. Many businesses are concentrating on organic growth tactics including product releases, approvals, and other methods like patents and events. The market saw partnerships and collaborations as well as acquisitions as inorganic growth tactics. For instance, Infosys and NVIDIA partnered to develop generative AI solutions to increase productivity across a range of industries. As part of the partnership, 50,000 Infosys staff members will receive AI training from NVIDIA at a new facility. The market participants' consumer base and business have grown as a result of these actions. Due to the growing demand for AR and VR chips in the global industry, market participants in the AR and VR chip sectors are expected to have profitable growth prospects in the future.

AR/VR Chip Market News:

• April 16, 2024: Advanced Micro Devices Inc. expanded the commercial AI PC portfolio to deliver leadership performance across professional mobile and desktop systems.
• April 9, 2024: Broadcom and Google Cloud announced an expanded partnership to help accelerate innovation for enterprises.
• April 23, 2024: Intel announced its plans for an initial investment of more than $20 billion in the construction of two new leading-edge chip factories in Licking County, Ohio.

AR/VR Chip Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the AR/VR chip market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global AR/VR chip market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the AR/VR chip industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.