The augmented reality (AR) and virtual reality (VR) market size is expected to increase by $162.71B, according to a new report by Technavio. Moreover, the growth momentum of the market will accelerate at a CAGR of 46% during the forecast period.

The year-over-year growth for these markets in 2021 was 25.13%, with major influences coming from the U.S., China, and Japan.

According to the report, APAC will account for 34% of market growth, with China and Japan expected to expand more quickly than those in other areas.

Over the course of the forecast period, factors including the presence of key vendors, the expansion of the gaming industry in Asia—particularly in Japan, China, and India—and rising investments in AR and VR technologies to broaden their applications in various industries will support the growth of the augmented reality and virtual reality markets in APAC.

The report states that a rising number of customers are actively looking for information related to virtual reality, and that wearable technology platforms will likely enhance the utility of AR.

According to Technavio, the increasing number of partnerships and collaborations among vendors will drive the growth of the global AR and VR market during the forecast period. The report claims that vendors are opting for diverse business strategies, such as partnerships and collaborations, with end users and other vendors, which should help them improve and upgrade their product portfolios and explore new application areas for their AR and VR software platforms.

To learn more or to purchase the report, click here.