AR/VR Market Expected to Grow by $125.19 Billion from 2020-2024 due to M&A and Increased Adoption -- Technavia
The global augmented reality (AR) and virtual reality (VR) market is expected to grow by $125.19 billion during 2020-2024 as the advances increase AR/VR’s applicability to new areas, and major players in AR/VR merge and acquire other firms, according to a study by Technavio.
A Senior Researcher at Technavio stated, “Factors such as the new product launches, rising adoption of technologically advanced applications among consumers, and strong research activities to increase the application of AR/VR technologies will have a significant impact on the growth of the AR/VR market value during the forecast period.”
Customers are increasingly adopting VR/AR technology, either for professional or private use. This adoption rate has increased significantly over the last decade. Technological innovations will further drive the demand for AR/VR applications during the forecast period as these applications will enable users to use the technology in a more user-friendly manner. Wearable technology platforms are likely to further enhance the utility of AR in everyday life. In addition, the development of AR android applications is enabling users in the retail segment to provide customers new experiences. Virtual fitting rooms help buyers choose the right size and lower purchase returns. A similar benefit is associated while choosing the color for a new car or furniture. Thus, the growing application area of AR /VR technology in different fields, such as education, medical, retail, and training, will boost the growth of the global AR/VR market.
The global outbreak of COVID-19 is expected to have a positive impact on the AR/VR market globally during the forecast period. The growth of the market can be attributed to the rising preference for work from home and online shopping. With the increase in the number of online corporate meetings and events through web conferencing tools, market players are introducing applications that further enhance the experience.
As per Technavio, the increasing number of Mergers and Acquisitions (M&A) activities will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other significant trends and market drivers that will influence market growth over 2020-2024.
Augmented Reality (AR) and Virtual Reality (VR) Market: Increasing Number of M&A Activities
Key vendors in the market are acquiring companies that operate in the AR/VR market. Such acquisitions strengthen their R&D capabilities and market position. The adoption of such strategies also expands vendors’ business and enables technological advances in the field. In March 2020 NexTech AR Solutions acquired Jolokia, a remote video training, live streaming software company, whose customers include Merck, Toyota, CBS, and Polycom. Through this acquisition, the company aims to enhance its product portfolio and accelerate its growth in the global AR/VR market. Such acquisitions will have a positive impact on the growth of the market during the forecast period.