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What Is The Current Market Size and Growth Forecast For The Global AR/VR Chip Market?
The AR/VR Chip Market has expanded significantly in recent years. According to data, it will grow from $3.96 billion in 2024 to $4.82 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 21.9%. This growth in the historic period is due to the prevalence of Augmented Reality (AR) and Virtual Reality (VR) applications, advances in Graphics Processing Unit (GPU) technologies, growth in gaming and entertainment industries, and increased adoption of AR/VR in healthcare and education.
The AR/VR Chip market size is expected to surge in the coming years, reaching $10.1 billion by 2029 with a CAGR of 20.3%. This forecasted growth can be attributed to the expansion of augmented reality glasses and headsets, integration of AR/VR in enterprise and industrial applications, and the adoption of 5g technology for enhanced AR/VR experiences.
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What Are The Key Growth Drivers Of The AR/VR Chip Market?
A major driving factor for the AR/VR chip market is the high adoption of mobile devices. With advancements in data storage, computing, and display technology, portable tablets and other gadgets now perform tasks that were previously possible only on personal computers. AR/VR chips embedded in smartphones enable very realistic virtual and augmented reality game experiences. Smartphones dominated global usage in 2023 and accounted for significant web traffic, driving the growth of the AR/VR chip market.
What Are The Key Segments of The AR/VR Chip Market?
The AR/VR Chip market is segmented by:
1) Chip Type: Processor ICs, User Interface ICs, Power Management ICs
2) Device Type: Head Mounted Display, Gesture Tracking Device, Projector and Display Wall, Head Up Display, Handheld Device
3) End User: Gaming, Entertainment and Media, Aerospace and Defense, Healthcare, Other End Users
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Who Are The Major Players In The AR/VR Chip Market?
Major companies operating in the AR/VR chip market include Nvidia Corporation, Imagination Technologies Limited, MediaTek Inc, Intel Corporation, Spectra7 Microsystems Inc, Advanced Microdevices Inc, International Business Machine Corporation, Samsung Electronics Co Ltd, Huawei Technologies Co. ltd., Broadcom Inc, Rockchip Electronics Co Ltd, Advanced RISC Machines Ltd, HiSilicon (Shanghai) Technologies CO. Ltd., Qualcomm Inc., Texas Instruments Incorporated, Xilinx Inc., Arm Limited, Cadence Design Systems Inc., Meta Platforms Inc., Apple Inc., Microsoft Corporation, QUALCOMM Incorporated, Adobe Inc., Alphabet Inc., Magic Leap, and Lytro.
What Patterns And Trends Are Emerging In The AR/VR Chip Market?
Technological advancement is a key trend gaining popularity in the AR/VR chip market. Major companies in the AR/VR sector are focusing on this trend to sustain their position in the market. For example, Qualcomm Technologies Inc, launched advanced chips for XR and AR platforms, which offer enhanced GPU performance and superior AI capabilities.
Which Regions Are Dominant In The AR/VR Chip Market?
Asia-Pacific was the largest region in the AR/VR chip market in 2024, followed by North America as the second-largest region. The regions covered in the AR/VR chip market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
What Does The AR/VR Chip Market Report 2025 Offer?
The AR/VR Chip Market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities. The AR/VR chip refers to the chip that enables a user to perform tasks in a digital setting while experiencing a sense of immersion in a real setting.
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