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AR & VR Chips Market Outlook

The AR (Augmented Reality) and VR (Virtual Reality) chips market was valued as US$ 2.5 Bn in 2020, owing to the increasing demand for AR and VR chips in gaming vertical. The adoption of AR and VR chips is growing due to an increase in the usage of mobile-based headsets, which are feasible and can be used without any cables attached to the PC.

Due to feasibility and mobility features, there is increase in demand of mobile based augmented reality and virtual reality applications and solutions than that of tethered devices which are connected to laptops or other electronic devices. Thus the increasing penetration of smartphones and other devices compatible with smartphones is increasing rapidly, which is further contributing positively towards the growth of market. Owing to such features the market is anticipated to grow at a CAGR 15% during the forecast period 2021-2031.

What is Driving Demand for AR & VR Chips?

With the increasing use of AR & VR in the healthcare industry, market players are increasingly launching innovative products with novel features, thereby improving the performance of existing products. Improved performance increases the utility of the product, as well as captivates newer customers towards it. Thus increasing usage of AR and VR technology in healthcare sector, is fueling the demand of AR/VR chips globally.

For instance, in 2019, UAE’s MoHAP (Ministry of Health and Prevention), announced plans to introduce VR rehabilitation in physiotherapy for patients suffering from balance disorder, stroke patients, and children with cerebral palsy, developmental disorders, and Parkinson's syndrome.

Gaming Vertical is expected to Drive the AR and VR Chips Sales

An increase in the awareness levels of AR VR technology among people, especially the young age group, due to the recent adoption of VR technology in several sectors such as media & entertainment for gaming platforms, live streaming and virtual tourism, and in educational institutes for better learning, is a factor resulting in the significant demand for AR and VR devices for enhanced customer experience. With the continuous ongoing advancements in the AR & VR industry, various new AR/VR gaming devices have been developed, which has drastically changed the scenario. Thus the gaming vertical is anticipated to contribute the largest share and remain dominant during the forecast period.

U.S. AR and VR Chips Market Outlook

Rapid advancements in the ICT industry create a strong growth potential for the healthcare industry. As technologies continue to advance, the integration of ICT technology in healthcare will lead to the development of more efficient and productive augmented technology equipment. As a result, the integration of advanced technologies such as connected devices, cloud and integrated machine learning in VR headset, VR platforms, AR helmets, smart glasses, and other AR & VR devices creates strong growth opportunities for the AR and VR chips sales.

Increasing AR/VR Chips Sales in South Asia & Pacific

Consumer electronics products such as laptops, smartphones and other smart devices are continuously being upgraded and thus increase in penetration of AR/VR chips in consumer electronic products is fueled by a highly competitive consumer electronics market, in the South Asia & Pacific region. Major players such as Apple, Samsung, Sony, Google and others are following trend of integrating advanced augmented technologies in their products. Thus upgradations in gaming consoles and smart devices in countries such as Australia, India and New Zealand is anticipated to drive demand of AR/VR chips in South Asia and Pacific countries.

Who are Key AR and VR Chips Manufacturers?

Some of the leading manufacturers of AR & VR chips include Mediatek Inc., NVIDIA Corporation, Qualcomm Technologies Inc., Advanced Microdevices Inc, Imagination Technologies Limited, Intel Corporation, Huawei Technologies Co. Ltd., Spectra 7, IBM Corporation, Samsung Electronics Co. Ltd, among others.

In April 2021, Qualcomm Technologies Inc., collaborated with VictoryXR, a world leader in VR and AR educational product development. Qualcomm provided 60 Oculus Quest 2 headsets powered by the Snapdragon XR2 platform to VictoryXR, to develop the educational platform with features such as seven concurrent cameras, 8k 360-degree video, voice UI, and context awareness.

Key Segments

By Chip Type

  • Processor ICs
  • User Interface ICs
  • Power Management ICs

By Device Type

  • Head Mounted Display
  • Gesture Tracking Device
  • Projector & Display Wall
  • Head Up Display
  • Handheld Device
  • Others

By Vertical

  • Gaming
  • Entertainment & Media
  • Aerospace & Defense
  • Healthcare & Medical
  • Others

By Region

  • North America
    • US
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Europe
    • UK
    • France
    • Germany
    • Italy
    • Spain
    • BENELUX
    • Russia
    • Rest of Europe
  • East Asia
    • China
    • Japan
    • South Korea
  • South Asia & Pacific
    • India
    • Thailand
    • Indonesia
    • Malaysia
    • Australia & New Zealand
    • Rest of South Asia & Pacific
  • Middle East & Africa
    • GCC Countries
    • Turkey
    • South Africa
    • Rest of Middle East and Africa

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

AR & VR Chips Market Report Highlights:

  • Detailed overview of parent market
  • Changing market dynamics in the industry
  • In-depth market segmentation
  • Historical, current and projected market size in terms of value
  • Recent industry trends and developments
  • Competitive landscape
  • Strategies of key players and products offered
  • Potential and niche segments, geographical regions exhibiting promising growth
  • A neutral perspective on market performance
  • Must-have information for market players to sustain and enhance their market footprint

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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