Global AR and VR Display Market Report and Forecast 2025-2034

Global AR and VR Display Market Size

The global AR and VR display market attained a value of nearly USD 1,851.38 million in 2023. The market is further expected to grow in the forecast period of 2024-2032 at a CAGR of 36% to reach a value of USD 29,487.2 million by 2032.

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AR and VR Display Market Growth

Extensive Use of AR and VR in the Healthcare Sector Boosting the Growth of the AR and VR Display Industry

Augmented reality and virtual reality have been extensively used in the healthcare industry for pain management and medical training. The coronavirus pandemic has significantly accelerated the use of AR and VR displays to foster a connection between healthcare professionals and patients while providing them a personalised treatment. They are increasingly used in operating rooms and classrooms to prepare medical professionals for efficient surgery and deliver complex care. Hence, the extensive use of AR and VR display is impacting the growth of the AR and VR display market positively. Moreover, the rising prevalence of virtual training in many industries is also fuelling the growth of the AR and VR display industry.

The surging popularity of online gaming and e-sports, which require live immersive experience, is also increasing owing to the high-bandwidth and low-latency network capabilities of 5G. Hence, the growing deployment of the 5G network is providing further impetus to the market growth.

AR and VR Display Market Trends

Rising Use of Augmented and Virtual Reality in the Automotive and Education Sector to Bolster the Market Growth

The use of augmented reality display, especially head-up display (HUD), in the automotive industry to make the drivers aware of potential hazards and redirect the driver’s focus on the road is expected to boost the AR and VR display demand. Moreover, mixed reality displays are used to present virtual objects to drivers while preparing them for potential hazards. Also, they can be used for marketing to enable consumers to experience their automobile in virtual reality. These are anticipated to propel the market growth for AR and VR displays in the forecast period.

The rising use of AR and VR technology in the education sector is further strengthening the market growth. It is widely used to provide personalised education, enhance the learning experience, and increase interaction via immersive technology, which is consequently invigorating the AR and VR display market opportunities. Moreover, research and development by the leading companies to develop advanced displays and turn smartphones into AR and VR displays is accelerating the growth of the AR and VR display industry. In addition, the increasing adoption of AR technology in the gaming industry to provide an interactive experience to the viewers is also catalysing the market growth.

Recent Developments

As per the AR and VR display market dynamics and trends, Rain Technology, a provider of advanced display technologies, announced in May 2024, that it aims to provide new upgrades for Anamorphic-XR,  an optical engine which is implemented in the AR and VR headset technologies.

Industry Outlook

The Advancement in 5G Connectivity Supports the Growth of the AR and VR Display Market.

In 2023, the 5G Connectivity Index displayed a diverse landscape of 5G adoption and infrastructure across different regions. As per the AR and VR display industry analysis, Kuwait leads the ranking with a score of 68, showcasing its significant investment and early adoption of 5G technology. This is followed by the UAE at 59, highlighting the Middle Eastern region's strong emphasis on digital transformation and connectivity improvements. Northern European countries like Norway and Finland, both scoring 58 and 57 respectively, also demonstrate robust 5G networks. Additionally, Qatar, Denmark, and Hong Kong SAR, China, each with scores of 57, reflect a balanced mix of high-income economies and strategic investment in 5G infrastructure.

Several Asian markets, including South Korea (56), Mainland China (55), and Singapore (52), are prominent in the mid to upper range of the index which contributes to the growth of the AR and VR display industry. The United States, with a score of 54, underscores its extensive but varied 5G rollout, influenced by its large geographic area and diverse market conditions. Similarly, other markets such as Saudi Arabia (52), Switzerland (51), and Australia (50) showcase a blend of advanced and developing 5G infrastructure, driven by both public and private sector initiatives.

Germany, Japan, and Canada, scoring 48, 48, and 47 respectively, indicate significant progress in 5G deployment but also highlight challenges such as regulatory hurdles and infrastructure costs. The Netherlands (47), Austria (46), and Sweden (44) reflect Western Europe's ongoing efforts to enhance connectivity, which can also contribute to the AR and VR display industry revenue.

The 5G Connectivity Index of France accounted for 44, followed by the UK at 42. Spain's score of 40 reflects its continued efforts to expand and improve its 5G network. New Zealand, Thailand, and Greece, each with scores of 39, exhibit substantial advancements in their 5G capabilities.

5G connectivity offers ultra-low latency, which is crucial for AR and VR applications. This minimizes lag and ensures real-time responsiveness, enhancing the user experience. The high bandwidth of 5G networks supports the transmission of large amounts of data required for high-resolution AR and VR content, leading to better visual quality and smoother performance.

Technological Advancements and Rising Applications of AR and VR Displays, Aid the Market Growth.

• AR and VR displays provide highly immersive and interactive experiences that enhance user engagement in gaming, training, and entertainment and aid AR and VR display demand growth.

• Continuous advancements in display technologies, such as higher resolution, better field of view, and improved motion tracking, enhance the overall user experience.

• Integration of AR capabilities into smartphones and wearables makes AR more accessible and drives demand for AR displays.

High Cost, Technical Challenges, Dependency on Complementary Technologies, and Privacy and Security Concerns Can Restrict Market Growth.

• The high cost of advanced AR and VR devices remains a barrier to widespread adoption of the technology, particularly in price-sensitive markets which can hinder AR and VR display demand forecast.

• The lack of compelling and diverse content for AR and VR platforms limits the consumer adoption rate and user engagement.

• Issues like motion sickness, latency, and limited field of view in current AR and VR displays affect user comfort and experience.

• The performance of AR and VR displays heavily depends on other technologies such as high-speed internet, which may not be uniformly available globally.

The Rising Adoption of 5G Technology and the Use of AR and VR Technology in Enterprises and the Healthcare Sector Provide Opportunities for Market Growth.

• Growing adoption of AR and VR in enterprise applications for training, simulation, design, and remote assistance presents significant opportunities for the demand of AR and VR display market.

• Increasing use of AR and VR for medical training, surgery simulation, and therapy offers vast potential for market expansion.

• The rollout of 5G networks can enhance AR and VR experiences by providing low-latency, high-speed data transfer, fostering wider adoption.

Competitive Factors in the Global AR and VR Display Market

• Companies must continuously innovate to offer cutting-edge display technologies, such as OLED and MicroLED, to maintain a competitive edge and increase AR and VR display market value.

• Unique features like wide field of view, lightweight design, and ergonomic comfort can differentiate products. 

• Competitive pricing, including affordable entry-level products and premium high-end devices, is essential to appeal to a broad range of consumers. 

• Providing excellent customer support, including warranties, after-sales service, and user-friendly technical assistance, can enhance customer satisfaction and loyalty.

• Minimizing production costs and managing component shortages are critical for maintaining competitiveness.

• Adhering to international and local regulations, including safety standards and data privacy laws, is essential to avoid legal issues and gain market approval.

Key Demand Indicators of the Global AR and VR Display Market Share

• A diverse and growing AR and VR content library attracts more users, driving up demand for compatible displays.

• Innovations in AR and VR display technology such as higher resolution, improved refresh rates, and more immersive experiences can increase AR and VR display market revenue.

• The availability and adoption of high-speed internet and 5G networks, which enhance the performance and usability of AR and VR applications, aids the market. 

• Trends such as virtual socialising, remote work, and online education can spur interest in AR and VR displays.

• Government initiatives and funding for AR and VR research and development, as well as institutional adoption in public services like education and healthcare, can aid market growth.

Key Price Indicators of the Global AR and VR Display Market

• Fluctuations in the cost of essential components like OLED, and MicroLED components directly impact the overall pricing of AR and VR displays and can hinder AR and VR display market expansion.

• Innovations that improve manufacturing efficiency or reduce material costs can lower the price of AR and VR displays. 

• Disruptions or shortages of raw materials can lead to increased production costs and higher prices for end consumers.

• High competition often leads to price wars and discounts, while limited competition can result in higher prices of AR and VR displays.

• Higher production volumes typically reduce per-unit costs, allowing for more competitive pricing.

• Compliance with safety, environmental, and data privacy regulations can add to the production costs and affect pricing.

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AR and VR Display Industry Segmentations

AR display, variously known as augmented reality display, is a display that presents an enhanced version of the physical world achieved through digital visual elements, any sensory stimuli, or sound by the use of technology. VR display or virtual reality display presents a computer-generated environment with the use of stimulation that enables users to interact with the 3D virtual world.

The major types of AR and VR display are:

• HMD

• HUD

• Projector

Based on the technology, the AR and VR display market is divided into:

• Augmented Reality (AR)

• Virtual Reality (VR)

The market can be broadly categorised on the basis of its applications into:

• Commercial

• Automotive

• Healthcare

• Aerospace and Defence 

• Others

The EMR report looks into the regional markets of AR and VR display like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global AR and VR display market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Samsung Electronics Co. Ltd.

• Oculus VR (Facebook Technologies, LLC)

• Sony Corporation

• LG Electronics Inc.

• HTC Corporation

• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

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AR and VR Display Market Regional Analysis

North America accounts for a significant AR and VR display market share. Technological advancements, including edge-computing and artificial intelligence (AI), are expected to provide personalised, accessible, and well-designed experiences, which are anticipated to further augment the market growth. Additionally, the advent of the 5G network is increasing the use of AR and VR displays in various applications, including entertainment, gaming, and training.

Key Highlights of the Report

AR and VR Display Market Report Snapshots

AR and VR Display Market Size

AR and VR Display Market Growth

AR and VR Display Market Trends

AR and VR Display Companies

AR and VR Display Market Regional Analysis