AR/VR/MR/XR Chipsets Market - Forecast(2024 - 2030)

AR/VR/MR/XR Chipsets Market Report Overview

AR/VR/MR/XR Chipsets Market size is analyzed to grow at a CAGR of 24.3% during the forecast 2022-2027 to reach $8.3 billion. The rise in demand for AR/VR/MR/XR Chipsets in the gaming vertical, the cost-effective benefits of augmented and virtual reality-based solutions, and the surge in demand for the adoption of AR/VR in various applications are driving the growth of the AR/VR/MR/XR Chipsets Market. There is also an integration of the Platform Controller Hub. The increasing demand for shorter distances between people and microprocessors and greater visual material is one of the market's primary driving forces. Because augmented and virtual reality enabled solutions to imitate real-world circumstances, they are a cost-effective and efficient alternative for training and skill development. For example, in civil aviation or military applications, it is more expensive to train a pilot on a genuine aircraft. Furthermore, it may cause injury to humans. In contrast, augmented and virtual reality solutions establish a virtual environment that is analogous to the real world in which a learner can understand and confront difficulties through strategic mapping. AR has other potential applications for drivers. It could help offer drivers a heads up display (HUD) via a headset to present them with safety information without impeding their field of vision. Furthermore, in healthcare, training students, nurses, and other medical professionals on live patients are unethical and potentially hazardous. As a result, augmented and virtual reality-based solutions provide valuable tools for training medical personnel without jeopardizing or endangering one's life. Most commercial VR games and movies only provide visual and auditory feedback, and a few of them provide simple haptic technology such as vibrations. The rise in demand for AR/VR/MR/XR Chipsets in the gaming vertical, the cost-effective benefits of augmented and virtual reality-based solutions, and the surge in requirement for the adoption of AR/VR in various applications are driving the expansion of the AR/VR chip market. In August 2021, The PlayStation VR 2 included two OLED screens that support high-dynamic-range (HDR) content, making it brighter, more colourful, and capable of deeper blacks and brighter whites. The original PSVR headset uses a standard dynamic range LCD (SDR). In addition, the PlayStation VR headset will offer a 110-degree field of view, which is 10 degrees more than the previous generation and 20 degrees more than the Oculus Quest 2.

Report Coverage

The report: “AR/VR/MR/XR Chipsets Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the AR/VR/MR/XR Chipsets industry.

By Chip Type: Processor ICs, User Interface ICs, and Power Management ICs
By Device Type: Head Mounted Display, Head-Up Display, Handheld Device, Gesture Tracking Device, and Projector & Display wall.
By End-User: Gaming, Entertainment & Media, Aerospace & Defense, Healthcare, Manufacturing, Retail, Education, Consumer, and Others
By Geography: North America, South America, Europe, APAC, and RoW

Key Takeaways

• The Handheld segment is expected to grow at the fastest CAGR of 28.4% during the forecast period. Handheld gadgets are electronic and computer devices that can be readily carried in one's palms, and there has been an increase in the use of AR/VR technologies in gaming and computing. These elements are projected to enhance market expansion.
• During the forecast period, the Military and Defense segment is expected to grow at the fastest CAGR of 26.7% in the  AR/VR/MR/XR Chipsets Market. Due to a shift in user interest in AR/VR games and an increasing number of game players, gaming will remain the largest end-use industry during the forecast period.
• North America will account for the largest market share of 37% in the AR/VR/MR/XR Chipsets Market. Greater exposure to technology and the ease of use of smart gadgets have created considerable demand in the region.
• One of the most important applications of augmented and virtual reality technologies is video games. The number of gamers worldwide has expanded rapidly in recent years. This is due to an increase in demand for augmented and virtual reality-based games, which promotes market growth.

AR/VR/MR/XR Chipsets Market Segment Analysis – By Type

By Device Type, the AR/VR/MR/XR Chipsets Market has been segmented into Head Mounted Display, Head-Up Display, Handheld Device, Gesture Tracking Device, and Projector & Display wall. The Handheld segment is expected to grow at the fastest CAGR of 28.4% during the forecast period. A handheld gadget is any portable device that can be carried in one's palm. A handheld computer or electronic device is any computing or electronic equipment that is small and portable enough to be grasped and utilized in one or both hands. It may feature cellular communication, but it may also include other computing devices. The growing popularity and number of technology users are likely to fuel demand for the AR & VR portable device market over the forecast period. Handheld gadgets are electronic and computer devices that can be readily carried in one's palms, and there has been an increase in the use of AR/VR technologies in gaming and computing. These elements are projected to enhance market expansion. In December 2021, Solotech acquired XR Studios, a full-service business specialising in augmented reality technologies for live broadcast and virtual projects. As part of the strategic plan, XR Studios will continue to operate as a separate organisation and brand, maintaining its strong market leadership position. The deal accelerates Solotech and XR Studios' goals of becoming the world's top provider of extended reality solutions.

AR/VR/MR/XR Chipsets Market Segment Analysis – By End-User

By End-User, the AR/VR/MR/XR Chipsets Market has been segmented into Gaming, Entertainment & Media, Aerospace & Defense, Healthcare, Manufacturing, Retail, Education, Consumer, and Others. During the forecast period, the Military and Defense segment is expected to grow at the fastest CAGR of 26.7% in the  AR/VR/MR/XR Chipsets Market. The rise in demand for AR/VR/MR/XR Chipsets in the gaming vertical, the cost-effective benefits of augmented and virtual reality-based solutions, and the surge in demand for the adoption of AR/VR in various applications are driving the growth of the AR/VR chip market. Furthermore, technical advances and the introduction of industry-specific solutions provide significant market growth potential. Due to a shift in user interest in AR/VR games and an increasing number of game players, gaming will remain the largest end-use industry during the forecast period. Because of the recent adoption of VR technology in several sectors such as media and entertainment for gaming platforms, live streaming, and virtual tourism, as well as educational institutes for better learning, there is an increase in the awareness levels of AR VR technology among people, particularly the young age group, which is a factor resulting in a significant demand for AR and VR devices for enhanced customer experience. Various new AR/VR gaming devices have been produced as a result of the ongoing improvements in the AR & VR industry, which has radically transformed the landscape. As a result, the gaming vertical is expected to contribute the most and maintain its dominance during the projected period. In April 2021, Qualcomm Technologies Inc. worked with VictoryXR, a global pioneer in the development of VR and AR educational products. VictoryXR received 60 Oculus Quest 2 headsets powered by the Snapdragon XR2 platform from Qualcomm in order to construct the educational platform, which includes features such as seven concurrent cameras, 8k 360-degree video, speech UI, and context awareness.

AR/VR/MR/XR Chipsets Market Share Segment Analysis - Geography

By Geography, AR/VR/MR/XR Chipsets Market has been segmented into North America, Europe, APAC, South America, and RoW. During the projected period, North America accounts largest market share of 37% in the AR/VR/MR/XR Chipsets Market primarily due to the existence of several manufacturers, like Microsoft and Qualcomm, making significant expenditures in the market developments. Countries like the United States have been at the forefront of extremely inventive Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) markets. The majority of the companies that are capitalizing on these technical advances are situated in the United States. Greater exposure to technology and the ease of use of smart gadgets have created considerable demand in the region. Microsoft's augmented reality (AR) product, Hololens, was well received by users when it was originally debuted in the United States and Canada. Furthermore, as AR technology becomes more inventive and business applications expand throughout the region, demand and investment in the regional AR market may increase further. For example, in December 2021, HTX Labs, a developer of immersive learning technologies, said that the US Air Force's 821 Contingency Response Squadron had given it a new Small Business Innovation Research (SBIR) Phase II contract (CRS). The SBIR contract aims to expand the company's EMPACT immersive training technology to improve the development, creation, deployment, and measurement of immersive environments and interactive, virtual training content in support of the 821 CRS's global mobility operations.

AR/VR/MR/XR Chipsets Market Drivers

The growing use of AR/VR/MR/XR Chipsets in gaming vertical is expected to boost the AR/VR/MR/XR Chipsets Market:

One of the most important applications of augmented and virtual reality technologies is video games. The number of gamers worldwide has expanded rapidly in recent years. This is due to an increase in demand for augmented and virtual reality-based games, which promotes market growth. Smartphone manufacturers are boosting the number of gaming features in their handsets in order to improve the overall user interface experience and stay ahead of their market competitors. Significant drivers influencing the global AR/VR chip market include an increase in demand for AR/VR/MR/XR Chipsets in the gaming vertical, the cost-effective benefits of augmented and virtual reality-based solutions, and an increase in the necessity for AR/VR adoption in various applications. HMDs are widely used in the gaming and entertainment industries. With the introduction of VR and 3D technology, the gaming industry has undergone a technical metamorphosis. The usage of HMDs has aided in providing a fully immersive experience for users and has elevated the gaming experience. The seamless transition accomplished with the usage of VR HMDs has contributed to providing consumers with a new and enhanced experience. HMDs are widely used in the video gaming industry. Users of video games prefer HMDs to enhance their gaming experience and amusement. HMDs project digital visuals, allowing for a 3D view that improves the user experience. As a result, the expanding gaming sector would fuel the market for HMDs and, as a result, the market will grow. In February 2022, Synthesis VR, a subsidiary of Immersive Tech, introduced full support for Android standalone/mobile HMDs for location-based VR operators.

Growing Adoption of AR/VR/MR/XR Chipsets in various applications:

AR/VR/MR/XR Chipsets technologies are being used in a variety of industries, including automotive, entertainment, healthcare, and aerospace and defence. AR/VR/MR/XR Chipsets gadgets have altered enterprises by enabling new ways of developing, manufacturing, and marketing. The rising popularity of AR/VR/MR/XR Chipsets HMDs and HUDs is propelling the market for AR/VR/MR/XR Chipsets displays. The rise of lightweight wearable technology has resulted in increased innovation in the HMD sector. With the advancement of lightweight displays, manufacturers worldwide have begun to position HMDs for consumer applications. HMDs boost consumer application demand due to developments in display technology, which now offer superior vision as well as capabilities such as high-resolution visuals and 3D viewing. Displays improve the efficiency of headsets. In the healthcare and aerospace and defence industries, AR and VR devices can be used to retool high-cost training and simulation settings. In April 2022, Canon introduced a new mixed reality (MR) head-mounted display (HMD). Known as MREAL X1. The Canon MREAL X1 replaces the MREAL S1, which was released last year. The MREAL series of mixed-reality head-mounted displays as a whole is all about combining the actual world with computer-generated visuals.

AR/VR/MR/XR Chipsets Market Challenges 

Global economic slowdown due to Covid may limit the market growth

Due to the unanticipated circumstance of lockdowns in crucial places, the current epidemic has raised the demand for extended reality gadgets (Europe, APAC, and North America). Following the COVID-19, employees from various firms are working from home, boosting the demand for virtual meetings, training, and conferences. The epidemic has also had an impact on the global production of virtual reality gadgets. The pandemic's catastrophic impact on the manufacturing industry has interrupted the global supply of extended reality gadgets. Leading players in the United Kingdom, Germany, and elsewhere are focusing on product delivery rather than R&D. This is predicted to limit market growth since novel solutions to current difficulties that have yet to be solved will not be developed.

AR/VR/MR/XR Chipsets Market Landscape

Technology launches, acquisitions, Partnerships and R&D activities are key strategies adopted by players in AR/VR/MR/XR Chipsets Market. In 2021, the market AR/VR/MR/XR Chipsets Market share has been fragmented by several companies.  AR/VR/MR/XR Chipsets top 10 companies include

1. Qualcomm Technologies, Inc.
2. NVIDIA Corporation
3. Imagination Technologies Limited
4. MEDIATEK INC
5. Intel Corporation
6. Spectra7
7. Advanced Micro Devices, Inc.
8. International Business Machines Corporation (IBM)
9. SAMSUNG ELECTRONICS CO. LTD
10. Huawei Technologies Co., Ltd.

Recent Developments

• In December 2021, Oppo introduced the Air Glass, Augmented Reality (AR) glasses with a Cicada Wing Design and an internally designed Spark Micro Projector. The Air Glass has a waveguide display with diffraction that allows touch, voice, head tracking, and gestures. For the glass, the frame employs a monocle design, with an attachable AR-capable display that snaps onto existing prescription glasses. Furthermore, the company's connectivity with the rest of its ecosystem has enabled it to provide seamless consumer experiences. When an Air Glass is coupled with an Oppo Watch 2, for example, users can confirm, cancel, and switch application cards using hand gestures.
• In October 2020, LG Display signed a three-year collaboration agreement with The Walt Disney Studios' StudioLAB to develop exceptional viewing experiences by merging cutting-edge OLED display technology with the Studios' world-class content.
• In March 2020, Epson America, Inc., a division of Seiko Epson Corporation of Japan, partnered with 3D HoloGroup (US), a company that specializes in AR software architecture and systems integration, to sell Epson’s AR glasses.

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