North America Augmented and Virtual Reality Market
North America Augmented and Virtual Reality Market by Enterprise, Technology (Augmented Reality, Virtual Reality), Offering (Hardware, Software), Device Type (HMDS, HUDs, Gesture Tracking Devices), Application, and Country - Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
North America augmented and virtual reality market is projected to reach USD 39.96 billion by 2030 from USD 10.25 billion in 2025, at a CAGR of 31.3% from 2025 to 2030. The rapid adoption of AR and VR applications across the gaming and entertainment industry is a key driver for the North America augmented and virtual reality market. Furthermore, the regional market is driven by AR’s ability to transform how users interact with digital content, along with advancements in VR that improve performance, form factor, and user comfort through devices such as Apple Vision Pro and Meta Quest 3, which have seen strong traction in the region.
KEY TAKEAWAYS
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By RegionThe US held the largest market share of 86.4% in 2024.
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By TechnologyThe virtual reality segment accounted for a market share of 55.5% in 2024.
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By OfferingThe virtual reality software segment captured a market share of 56.3% in 2024.
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By Device TypeAR head-mounted displays (HMDs) and VR gesture tracking devices are expected to witness the highest CAGR during the forecast period.
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By ApplicationBy application, the enterprise and consumer segment accounted for the largest market share in 2024.
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Competitive LandscapeMeta (US) and Apple, Inc. (US) are identified as star players in the market, given their substantial market share and product footprint.
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Competitive LandscapeVRchat (US) and Praxis Labs (US), among others, have distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.
The North America augmented and virtual reality market is expected to grow during the forecast period. Governments support the development of the augmented reality market through funding, R&D support, startup grants, and partnerships with academic institutes. For instance, in September 2023, a UK-based holographic company, Envisics, which manufactures in-car technology that projects navigation and safety alerts onto the windscreen, raised USD 100 million in its Series C round. The company is projected to commercialize AR head-up displays during the forecast period.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The revenue in the North America augmented and virtual reality market is primarily driven by hardware components such as sensors, displays, semiconductor devices, cameras, and head-mounted systems, along with a rapidly expanding software ecosystem. While VR initially gained momentum through the adoption of hardware in gaming and entertainment, it has increasingly penetrated enterprise applications across various industries. AR, on the other hand, has seen strong consumer and business interest, particularly in applications such as smart glasses, mobile AR, and near-eye displays for training, industrial operations, and remote assistance. Continuous innovation in AR-powered displays, microdisplays, and immersive visualization technologies is expected to create significant growth opportunities for AR and VR vendors in North America over the next five years.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Strong adoption of AR/VR in gaming and enterprise applications
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High cost of AR/VR hardware and content development
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Expansion of AR smart glasses and spatial computing
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User comfort, privacy, and data security concerns
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Strong adoption of AR/VR in gaming and enterprise applications
North America has a mature gaming ecosystem and a high level of enterprise digitalization, which drives the demand for AR and VR technologies. Advanced headsets, such as Apple Vision Pro and Meta Quest, are accelerating user adoption by offering improved performance and immersive experiences. In parallel, enterprises deploy AR/VR for training, simulation, design, and remote collaboration, supporting sustained market growth.
Restraint: High cost of AR/VR hardware and content development
The high upfront cost of advanced AR/VR devices, along with expenses related to custom software and content creation, limits widespread adoption. Small- and medium-sized enterprises and price-sensitive consumers often delay investment due to unclear return on investment. This cost barrier slows penetration beyond early adopters in North America.
Opportunity: Expansion of AR smart glasses and spatial computing
Growing interest in hands-free, spatial computing solutions presents a major opportunity for AR smart glasses in North America. Industries such as healthcare, manufacturing, logistics, and defense are increasingly adopting AR for real-time guidance and productivity enhancements. Continuous investment and innovation by major technology players are expected to accelerate the commercialization and widespread adoption of these technologies.
Challenge: User comfort, privacy, and data security concerns
The prolonged use of AR/VR devices still raises concerns regarding user comfort, eye strain, and motion sickness. Additionally, the use of cameras and sensors in AR/VR systems creates privacy and data security challenges, particularly in enterprise and public environments. Addressing these technical and regulatory concerns is critical for long-term adoption in the North America augmented and virtual reality market.
NORTH AMERICA AUGMENTED AND VIRTUAL REALITY MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Apple Vision Pro used for spatial computing applications in enterprise collaboration, medical visualization, immersive media consumption, and advanced design workflows. | Enhanced productivity | Realistic 3D visualization | Improved user experience | Acceleration of spatial computing adoption across industries in North America |
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Meta Quest headsets deployed for gaming, social VR, enterprise training, and virtual collaboration through Horizon Workrooms | Cost-effective immersive experiences | Scalable enterprise training | Reduced training time | Strong ecosystem support for developers and content creators |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
This illustrates the ecosystem of the North America augmented and virtual reality market, spanning the entire value chain from research and development to end users. Academic and research institutions drive core innovation, while component providers enable software platforms and processing capabilities. Device manufacturers translate these technologies into commercial AR/VR hardware, supported by distributors that ensure large-scale market reach. End users across various industries, including aerospace, automotive, tourism, and healthcare, ultimately drive the demand and real-world adoption of AR and VR solutions.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
North America Augmented and Virtual Reality Market, By Country
The US is expected to hold the largest share of the North America augmented and virtual reality market due to the presence of major technology players, strong R&D capabilities, and early adoption of immersive technologies. High consumer spending power and a well-established gaming and entertainment industry further augment the demand for AR and VR devices and applications. In addition, significant investments across defense, healthcare, and enterprise training accelerate large-scale deployment in the US market.
North America Augmented and Virtual Reality Market, By Application
In North America, the enterprise application segment is expected to dominate the augmented reality market during the forecast period. This growth is due to the increasing need to enhance workforce training, reduce human error, and improve operational efficiency, particularly across manufacturing, healthcare, and logistics. The integration of AR into training and workflow optimization aligns strongly with Industry 4.0 initiatives, offering greater visibility and real-time guidance to employees.
North America Augmented and Virtual Reality Market, By Technology
Augmented reality is expected to grow at the highest rate among immersive technologies in North America due to its wide applicability across enterprise and consumer use cases. Strong adoption of mobile AR, smart glasses, and spatial computing solutions boosts the deployment in industries such as healthcare, manufacturing, retail, and logistics. Continuous advancements in computer vision, AI, and 5G connectivity are enhancing AR performance and real-time capabilities.
North America Augmented and Virtual Reality Market, By Offering
Software holds the largest share of the North America augmented and virtual reality market due to the growing demand for content platforms, development tools, and enterprise application software. The increasing use of AR/VR in gaming, training, simulation, and remote collaboration drives recurring revenue from software licenses and subscriptions. Strong adoption of engines and platforms, such as Unity, Unreal Engine, and enterprise AR solutions, further supports software dominance. Additionally, continuous updates, customization needs, and integration with AI and cloud services reinforce software’s leading market position in the region.
REGION
US to be fastest-growing region in North America augmented and virtual reality market during forecast period
The presence of industry giants, such as Google, META, Microsoft, PTC Inc., and Apple, significantly drives the US augmented and virtual reality market. Forecasts indicate that the use of AR and VR technologies for marketing and promotional campaigns contributes to accelerated growth in this market within the country.
NORTH AMERICA AUGMENTED AND VIRTUAL REALITY MARKET: COMPANY EVALUATION MATRIX
Stars are the leading market players in new developments, such as product launches, innovative technologies, and the adoption of growth strategies. These players have a broad portfolio, innovative product offerings, and a global presence. They have well-established channels throughout the value chain. Meta(US) comes under this category. Emerging Leaders demonstrate more substantial product innovations than their competitors. Companies are investing more in R&D to launch several products in the market. A few players have a unique portfolio, while others have heavily invested in R&D or recently launched several innovative products. Intel Corporation (US) comes under this category.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Google (US)
- Meta (US)
- Microsoft (US)
- Apple Inc. (US)
- PTC (US)
- Eon Reality (US)
- Magic Leap, Inc. (US)
- Atheer, Inc. (US)
- Vuzix (US)
- Ultraleap (US)
- Intel Corporation (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 7.86 Billion |
| Market Forecast in 2030 (Value) | USD 39.96 Billion |
| Growth Rate | CAGR of 31.3% from 2025-2030 |
| Years Considered | 2021-2030 |
| Base Year | 2024 |
| Forecast Period | 2025-2030 |
| Units Considered | Value (USD Million/Billion), Volume (Thousand Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Countries Covered | US, Canada, and Mexico |
WHAT IS IN IT FOR YOU: NORTH AMERICA AUGMENTED AND VIRTUAL REALITY MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Enterprise & Industrial Clients | Competitive benchmarking of AR/VR hardware and software providers (headsets, smart glasses, platforms), assessment of use-case feasibility for training, remote assistance, digital twins, and Industry 4.0 adoption across North America. | Enables enterprises to select cost-effective and scalable AR/VR solutions, reduce training errors, improve operational efficiency, and accelerate digital transformation initiatives. |
| Gaming & Media Companies | Evaluation of VR platforms, content engines, and immersive media solutions for gaming, live events, and sports broadcasting, including user experience and monetization analysis. | Supports development of immersive consumer experiences, improves engagement and retention, and identifies high-growth revenue opportunities in the North America entertainment market. |
RECENT DEVELOPMENTS
- June 2024: Apple Inc. launched VisionOS 2, which provided Vision Pro with new spatial computing experiences. Through this, the user can turn their photos into spatial photos, gestures for navigating visionOS, and many more ways to take advantage of spatial computing.
- May 2024: Alo Moves and Meta entered a partnership deal that will feature 3D classes for a new level of immersion. Under this partnership, Alo Moves will utilize Meta Quest 3 in the same rooms as the instructors for yoga, Pilates, and meditation classes.
- April 2024: Meta and EssilorLuxottica partnered to produce second-generation smart glasses, which expanded the Ray-Ban Meta smart glasses collection. It includes additional features, such as updates to Meta Al, that will make the glasses more useful.
- June 2023: Apple Inc. launched Vision Pro, a revolutionary spatial computer that allows users to stay present and connected to Other Hardware Components. It creates an infinite canvas for apps that scales beyond the boundaries of a traditional display and introduces a fully three-dimensional user interface controlled by the user's eyes, hands, and voice.
Table of Contents
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Methodology
The research study involved 4 major activities in estimating the size of the North America Augmented and Virtual Reality Market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the supply chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information required for this study. The secondary sources include annual reports, press releases, and investor presentations of companies, white papers, and articles from recognized authors. Secondary research has been mainly done to obtain key information about the market’s value chain, the pool of key market players, market segmentation according to industry trends, regional outlook and developments from both market and technology perspectives.
Primary Research
In primary research, various primary sources from both supply and demand sides have been interviewed to obtain qualitative and quantitative insights required for this report. Primary sources from supply side include experts such as CEOs, vice presidents, marketing directors, manufacturers, technology and innovation directors, end users and related executives from multiple key companies and organizations operating in the North America Augmented and Virtual Reality Market ecosystem.
Market Size Estimation
Top-down and bottom-up approaches have been used to estimate and validate the size of the North America Augmented and Virtual Reality Market. The key players in the market have been identified through secondary research, and their market shares in respective regions have been determined through primary and secondary research. This entire research methodology includes the study of key insights by top players, as well as interviews with experts (such as CXOs, vice presidents, directors, and marketing executives) for quantitative and qualitative key insights. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that affect markets covered in this research study were accounted for, viewed in detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been competitive and supplemented with detailed inputs and analysis from the MarketsandMarkets data repository and presented in this report.
In the market engineering process, both top-down and bottom-up approaches have been used along with data triangulation methods to estimate and validate the size of the North America Augmented and Virtual Reality Market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Analyzing the size of the North America Augmented and Virtual Reality Market by identifying segment and subsegment revenue related to the market
- Identifying the total number of augmented and virtual reality HMDs shipped at regional and/or country-level
- Estimating the ASP of augmented and virtual reality HMDs
- Estimating the size of the augmented and virtual reality HMDs market (augmented and virtual reality HMDs shipment * ASP of augmented and virtual reality HMDs)
- Estimating the market size of other augmented and virtual reality display types
- Estimating the market size of augmented and virtual reality hardware market size (summation of augmented and virtual reality HMDs market and market of other augmented and virtual reality display types)
- Estimating the market size of augmented and virtual reality’s new software by determining its percentage increase with respect to augmented and virtual reality hardware market size
- Estimating the market size of augmented and virtual reality’s retrofitted software by determining its percentage increase with respect to augmented and virtual reality new software market size
- Estimating the augmented and virtual reality software market size (summation of augmented and virtual reality’s new software market and market of augmented and virtual reality’s retrofitted software)
- Estimating the North America Augmented and Virtual Reality Market size (summation of augmented and virtual reality software market size and augmented and virtual reality hardware market size)
- Identifying the upcoming projects related to augmented and virtual reality by various companies in different regions and forecasting the market size based on these developments and other important parameters.
Data Triangulation
After arriving at the overall market size by the market size estimation process explained in the earlier section, the overall North America Augmented and Virtual Reality Market has been divided into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply side perspectives. Along with data triangulation and market breakdown, the market has been validated by top-down and bottom-up approaches.
Market Definition
AR improves the natural environment by overlaying potential digital information which includes images, text, or 3D objects. This augmentation can be actualized in many devices such as AR head-mounted displays (HMDs), smartphones, tablets, AR smart glasses, and heads-up displays (HUDs). On top of a user's view of the actual world, the technology lays computer-generated elements—thus making it interactive and enriched. One of the common examples of AR is the Pokémon GO game, whereby digital creatures seem to exist within an actual world when viewed through the camera of a smartphone.
On the other hand, VR blacks out users into a completely computer-created environment and replace the real world with a simulated one physically. Users usually put on and wear VR head-mounted displays, which, covering the field of vision, often incorporate motion tracking sensors. This sort of head mounted displays, that give users a feeling of existing in a virtual world, is called a feeling of presence in frontier interact in and navigate this digital space as if it were real. Common uses of VR include gaming, training simulations, virtual tours, and immersive storytelling experiences.
Stakeholders
- Raw material and manufacturing equipment suppliers
- Semiconductor foundries
- Original Equipment Manufacturers (OEMs)
- Augmented and virtual reality device manufacturers
- Original design manufacturers (ODMs) and OEM technology solution providers
- Software, and Technology Providers
- Standardization and Testing Firms
- Government Bodies such as Regulatory Authorities and Policymakers
- Research Institutes and Organizations
- Market Research and Consulting Firms
- Technology investors
The main objectives of this study are as follows:
- To define, analyze and forecast the North America Augmented and Virtual Reality Market size, by virtual reality technology, offering, device type, and application in terms of value
- To define, analyze and forecast the augmented reality market size, by device type, in terms of volume.
- To provide detailed information regarding the major drivers, restraints, opportunities, and challenges influencing the growth of the North America Augmented and Virtual Reality Market
- To study the complete supply chain and related industry segments for the ar and vr market
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To analyze the supply chain, market ecosystem; trends/disruptions impacting customer’s business; technology analysis; pricing analysis; Porter’s five forces model; key stakeholders & buying criteria; case study analysis; trade analysis; patent analysis; key conferences & events, 2024–2025; regulations related to the North America Augmented and Virtual Reality Market; and investment and funding scenario.
- To analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market.
- To strategically profile the key players and comprehensively analyze their market position in terms of ranking, core competencies2, company valuation and financial metrics and product/brand comparison; along with detailing the competitive landscape for the market leaders.
- To analyze competitive developments such as product launches, product developments, partnerships, collaborations, acquisitions, joint investments, strategic supplier relations, contracts, acquisitions, expansions and research and development (R&D) activities carried out by players in the North America Augmented and Virtual Reality Market.
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Growth opportunities and latent adjacency in North America Augmented and Virtual Reality Market