The Global AR VR Software Market size is expected to reach $97.3 billion by 2030, rising at a market growth of 18.1% CAGR during the forecast period.
AR and VR modeling and visualization software enable users to visualize 3D models and designs in a more immersive and interactive manner. This allows for a deeper understanding of complex concepts, such as architectural plans, product designs, or scientific data. Consequently, Modeling & Visualization Software segment procured $3,888.5 million revenue in the market in 2022. Designers, architects, and engineers can make real-time changes and adjustments to their models within the virtual environment. This iterative process can lead to more efficient and optimized designs. Users can simulate and test scenarios within the virtual environment. This is beneficial for understanding how designs or structures will perform under different conditions, potentially reducing costly real-world testing.
The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August, 2023, Magic Leap, Inc. joined hands with Microsoft Corporation and Qualcomm Technologies, Inc. Under this collaboration, the Mixed Reality Toolkit (MRTK) was introduced. The MRTK is a platform for AR/VR development framework and assists the developers in app creation. Moreover, In October, 2019, NVIDIA Corporation expanded their partnership with Red Hat, Inc for providing access to the Red Hat OpenShift and the NVIDIA EGX platform to customers. Additionally, the individuals incorporated NVIDIA GPUs to enhance data science, AI and machine learning.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Microsoft Corporation, Google LLC, Magic Leap, Inc., Adobe, Inc., Autodesk, Inc., NVIDIA Corporation, Advanced Micro Devices, Inc., Qualcomm, Inc., Zoho Corporation Pvt. Ltd., and Hexagon AB.
AR and VR modeling and visualization software enable users to visualize 3D models and designs in a more immersive and interactive manner. This allows for a deeper understanding of complex concepts, such as architectural plans, product designs, or scientific data. Consequently, Modeling & Visualization Software segment procured $3,888.5 million revenue in the market in 2022. Designers, architects, and engineers can make real-time changes and adjustments to their models within the virtual environment. This iterative process can lead to more efficient and optimized designs. Users can simulate and test scenarios within the virtual environment. This is beneficial for understanding how designs or structures will perform under different conditions, potentially reducing costly real-world testing.
The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August, 2023, Magic Leap, Inc. joined hands with Microsoft Corporation and Qualcomm Technologies, Inc. Under this collaboration, the Mixed Reality Toolkit (MRTK) was introduced. The MRTK is a platform for AR/VR development framework and assists the developers in app creation. Moreover, In October, 2019, NVIDIA Corporation expanded their partnership with Red Hat, Inc for providing access to the Red Hat OpenShift and the NVIDIA EGX platform to customers. Additionally, the individuals incorporated NVIDIA GPUs to enhance data science, AI and machine learning.
Cardinal Matrix
Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Google LLC and Microsoft Corporation are the forerunner in the Market. In January, 2022, Microsoft Corporation partnered with Qualcomm Technologies, Inc., an American multinational corporation. Through this partnership, the companies broadened the use of augmented reality (AR) in the consumer as well as the enterprise sector. Companies such as Adobe, Inc., Qualcomm, Inc., NVIDIA Corporation are some of the key innovators in the Market.Market Growth Factors
Growing popularity of gaming
The surge in gaming's popularity has led to increased demand for AR and VR software applications in the industry. As gamers seek more immersive and interactive experiences, AR and VR technologies have proven to be a natural fit, offering an unprecedented level of immersion and engagement. This alignment has stimulated the creation of a wide array of gaming content that leverages AR and VR software, expanding the market's portfolio of offerings. Consequently, the growing popularity of gaming is not only expanding the market within the gaming industry but also contributing to its broader acceptance and utilization across diverse domains, ultimately driving market growth and technological advancement.Enhancement of remote work and collaboration through AR/VR software
A significant consequence of this shift is the increased demand for AR and VR software that supports remote work and collaboration. As organizations recognize the potential of these technologies to bridge geographical gaps and facilitate seamless communication, the market has responded with a surge in applications tailored for remote work scenarios. The steady integration of these technologies in the remote work landscape not only bolsters their market presence but also promotes innovation in AR and VR software, as developers continue to refine and expand their applications to meet the evolving needs of remote work and collaboration. In conclusion, the positive impact of enhancing remote work and collaboration through AR and VR software is a catalyst for the continuous growth and diversification of the market, propelling it to new heights.Market Restraining Factors
Limited amount of content available for AR/VR
The immediate repercussions of the limitation of AR and VR content is the restraint it places on market expansion. With a restricted catalog of content, potential users and businesses may perceive AR and VR technologies as lacking the necessary depth and breadth to justify investment. Furthermore, the scarcity of content acts as a deterrent to sustained user engagement. Without a steady stream of diverse and high-quality content, users may not find compelling reasons to continue using AR and VR technologies. This can lead to a decline in user interest, reducing the market's user base and subsequently limiting its impact on various industries. Therefore, the negative impact of a limited amount of content in the market is severe, affecting its growth, adoption, and innovation potential.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Partnerships, Collaborations & Agreements.
Software Type Outlook
On the basis of software type, the market is divided into software development kit, game engine, modeling & visualization software, content management system, training simulation software, and others. The software development kit segment acquired the largest revenue share in the market in 2022. AR and VR SDKs provide pre-built frameworks, libraries, and tools that streamline the development process. Developers can save time and effort by using these pre-existing components, allowing them to create applications more quickly. SDKs ensure consistency in AR and VR application development. They provide standardized APIs and best practices, reducing the likelihood of errors and inconsistencies in the codebase. AR and VR SDKs typically offer access to hardware-specific features and sensors, such as cameras, accelerometers, and gyroscopes, allowing developers to create more advanced and immersive experiences.
Technology Type Outlook
Based on technology type, the market is bifurcated into AR software and VR software. The VR software segment garnered a considerable growth rate in the market in 2022. VR software provides users with immersive and realistic experiences. Whether it's gaming, training, or virtual tours, users can feel like they are physically present in a different environment, enhancing engagement and enjoyment. In sectors like aviation and industrial manufacturing, VR training reduces the risk of accidents and equipment damage. It also minimizes the costs associated with physical training equipment and real-world simulations. VR is used in healthcare for pain management, exposure therapy, and physical rehabilitation. It can distract patients from pain, treat phobias, and aid in the recovery of motor skills.Vertical Outlook
Based on vertical, the market is categorized into media & entertainment, retail & e-commerce, training & education, travel & hospitality, aerospace & defense, real estate, manufacturing, healthcare, automotive, and others. The retail & e-commerce segment procured a remarkable growth rate in the market in 2022. Shoppers can use AR to virtually try on clothing, accessories, or cosmetics, improving the online shopping experience and reducing the rate of returns. AR apps can provide in-store navigation and location-based offers to enhance the shopping experience in physical stores. AR and VR enable customers to visualize how furniture or home decor items will look in their homes, making purchasing decisions easier. AR can provide additional information about products when scanning barcodes or using image recognition, helping customers make informed choices.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region garnered the largest revenue share in the market in 2022. Asia Pacific has seen a significant growth in its technology ecosystem, with thriving tech hubs in countries like China, Japan, South Korea, and India. This has led to increased investment and innovation in AR and VR technologies. The region has a rapidly expanding base of smartphone users, providing a substantial user base for AR and VR applications, especially in mobile gaming and entertainment.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Microsoft Corporation, Google LLC, Magic Leap, Inc., Adobe, Inc., Autodesk, Inc., NVIDIA Corporation, Advanced Micro Devices, Inc., Qualcomm, Inc., Zoho Corporation Pvt. Ltd., and Hexagon AB.
Strategies deployed in the Market
Partnerships, Collaborations, and Agreements:
- Aug-2023: Magic Leap, Inc. joined hands with Microsoft Corporation, a leading developer of personal-computer software systems, and Qualcomm Technologies, Inc., an American multinational corporation. Under this collaboration, the Mixed Reality Toolkit (MRTK) was introduced. The MRTK is a platform for AR/VR development framework and assists the developers in app creation.
- Jun-2023: Hexagon AB teamed up with NVIDIA Corporation, an American multinational technology company. Under this collaboration, the technologies of Hexagon were integrated with NVIDIA to offer smooth multi-user workflows for process quality optimization, factory planning and operations.
- Mar-2023: NVIDIA Corporation joined hands with Amazon Web Services, Inc. (AWS), a subsidiary of Amazon.com, Inc. company. Under this collaboration, the Amazon Elastic Compute Cloud (Amazon EC2) P5 was released. The new product offers 20 exaFLOPS of compute performance that aids training and building deep learning models.
- Jul-2022: Hexagon AB came into a partnership with Cantier Systems Pte. Ltd, a company providing cost-effective manufacturing solutions. Under this partnership, the Cantier MES 4.0 was provided to the Hexagon customers. The new product assisted Hexagon to take authority over the plant floor for connectivity, visibility and realising the expectations of Industry 4.0.
- May-2022: Advanced Micro Devices, Inc. teamed up with Qualcomm Technologies, Inc., an American multinational corporation. Under this collaboration, the Qualcomm FastConnect connectivity system was strengthened for the Qualcomm FastConnect 6900 system and the AMD Ryzen processor-based computing platforms.
- Jan-2022: Microsoft Corporation partnered with Qualcomm Technologies, Inc., an American multinational corporation. Through this partnership, the companies broadened the use of augmented reality (AR) in the consumer as well as the enterprise sector.
- Jun-2021: Advanced Micro Devices, Inc. formed a partnership with Magic Leap, Inc., an American technology company. Under this partnership, an augmented reality (AR) technology solution was developed. Additionally, this product helped the enterprise users to transform information and virtual content and combine them with real-world environments.
- Oct-2019: NVIDIA Corporation expanded their partnership with Red Hat, Inc., an American software company. Under this partnership, the customers were provided access to the Red Hat OpenShift and the NVIDIA EGX platform. Additionally, the individuals incorporated NVIDIA GPUs to enhance data science, AI and machine learning.
Product Launches and Product Expansions:
- Sep-2023: Qualcomm Technologies, Inc. unveiled the Snapdragon XR2 Gen 2 and Snapdragon AR1 Gen 1, two spatial computing platforms. The Snapdragon XR2 Gen 2 incorporates VR and MR technology into a single chip architecture to provide better experiences through thinner and more comfortable headsets. The Snapdragon AR1 Gen 1 offers lightweight smart glasses for immersive experiences.
- Oct-2022: Adobe, Inc. added new products to enhance its Substance 3D tools portfolio, assisting developers with end-to-end solutions to create metaverse-ready immersive experiences and 3D content. The Substance 3D portfolio offers both the 2D and the 3D creators opportunities to better their work.
Acquisition and Mergers:
- May-2022: Google LLC completed the acquisition of Raxium, a company developing tiny light-emitting diodes for AR hardware. Through this acquisition, Google enhanced its investment in the hardware products.
- Jan-2022: Microsoft Corporation took over Activision Blizzard, Inc., an American video game holding company. Through this acquisition, Microsoft transformed the metaverse into an interconnected virtual world. Additionally, this acquisition gave an opportunity to the individuals to interact using immersive technology and three-dimensional avatars in a way similar to augmented reality (AR) and virtual reality (VR).
- Jun-2020: Google LLC took over North, an Amazon-backed company that makes smart glasses. Through this acquisition, Google achieved its "ambient computing" technology, in which various connected devices function together simultaneously.
- Jan-2019: Adobe, Inc. acquired Allegorithmic, a software developer based in Clermont-Ferrand. Through this acquisition, the Substance 3D design tools of Allegorithmic were incorporated into Adobe's Creative Cloud. Additionally, Adobe helped VFX artists working in film and television, marketers and designers to offer immersive experiences.
Geographical Expansions:
- Feb-2022: Qualcomm Technologies, Inc. expanded its geographical footprints by opening Extended Reality (XR) Labs in Europe. The XR Labs focuses on advanced hand tracking and gesture control, image recognition and 3D Mapping and SLAM/Localization services.
Scope of the Study
Market Segments Covered in the Report:
By Vertical- Media & Entertainment
- Training & Education
- Travel & Hospitality
- Manufacturing
- Healthcare
- Aerospace & Defense
- Real Estate
- Automotive
- Retail & E-commerce
- Others
- AR Software
- VR Software
- Software Development Kit
- Game Engine
- Modeling & Visualization Software
- Content Management System
- Training & Simulation Software
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Microsoft Corporation
- Google LLC
- Magic Leap, Inc.
- Adobe, Inc.
- Autodesk, Inc.
- NVIDIA Corporation
- Advanced Micro Devices, Inc.
- Qualcomm, Inc.
- Zoho Corporation Pvt. Ltd.
- Hexagon AB
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global AR VR Software Market by Vertical
Chapter 6. Global AR VR Software Market by Technology Type
Chapter 7. Global AR VR Software Market by Software Type
Chapter 8. Global AR VR Software Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- Microsoft Corporation
- Google LLC
- Magic Leap, Inc.
- Adobe, Inc.
- Autodesk, Inc.
- NVIDIA Corporation
- Advanced Micro Devices, Inc.
- Qualcomm, Inc.
- Zoho Corporation Pvt. Ltd.
- Hexagon AB
Methodology
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