Europe Augmented and Virtual Reality Market

The Europe augmented reality and virtual reality market is estimated to reach USD 30.42 billion by 2032,  from USD 9.70 billion in 2025, with a CAGR of 17.7%.

The key catalyst propelling the augmented reality and virtual reality industry in Europe is the growing adoption of immersive solutions in the training, production, and medical sectors, enabling increased efficiency and lower operating costs. The robust government backing received by Industry 4.0 projects is also propelling the adoption of AR/VR solutions in enterprises. Investments in gaming, simulations, or metaverse activities are also fueling demand in both the consumer and enterprise spaces.

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The major players in the Europe augmented reality and virtual reality market with a significant global presence are Scape Technologies (UK), Varjo (Finland), WaveOptics (UK), Improbable (UK), Blippar Group Limited (UK), Psico Smart Apps S.L. (Spain), Continental AG (Germany), Virtually Live (Switzerland), Craftars (Romania), and WayRay AG (Switzerland). The market players have adopted various strategies, such as product launches, product development, partnerships, collaborations, contracts, joint investments, strategic supplier relationships, and expansions, to strengthen their position in the augmented reality and virtual reality market. The organic and inorganic strategies have helped the market players expand globally by providing innovative and advanced AR and VR products.

In August 2025, Varjo announced a strategic investment and expanded product focus to accelerate military-grade VR/XR innovation, securing a ~USD 5.89 million minority investment from defense technology partner THEON to jointly advance high-fidelity immersive solutions for training and simulation applications.

Scape Technologies (UK)

Scape Technologies is an AR technology start-up from London, working on developing a cloud-based visual engine that allows connected devices with cameras to interpret the environment through the use of precise 3D maps, instead of just GPS. Their “Visual Positioning Service” SDK was meant for providing a location-based augmented reality platform where content can be related to real-world spaces, for use in the development of augmented reality apps, location-based services, and spatial computing. Though the firm was subsequently acquired by Meta (Facebook) in 2020, its underlying computer vision solutions for improved spatial awareness for future devices still rely on its foundational technologies.

Varjo (Finland)

Varjo provides immersive technologies, manufacturing high-performance VR and mixed reality headsets and software for professional use, featuring human-eye resolution and sophisticated interaction solutions. Varjo’s product range comprises its Varjo XR-4 range of products along with its older versions, the XR-3 and VR-3, combining photorealistic virtual objects with real-world elements for simulation, training, design, and industrial tasks, accompanied by software solutions like Teleport, a high-resolution tool for scanning and building a digital twin. Varjo solutions find extensive application in the aero, car, engineering, and research domains, where ultra-realistic immersion and exact mixed reality are paramount.

MARKET RANKING

The AR and VR market in Europe is relatively consolidated, with a small number of major global technology companies accounting for a significant share of market revenues. Meta Platforms leads the region through its strong VR hardware lineup and expansive content ecosystem, particularly in gaming and social interaction use cases. At the same time, Apple has further reinforced market consolidation with its entry into premium spatial computing through Vision Pro. Microsoft holds a solid position in enterprise and defence-focused applications with HoloLens, leveraging its cloud and software capabilities. Google and Snap enhance market concentration via mobile- and social-based AR platforms, whereas smaller European players mainly focus on niche segments such as industrial training, healthcare, and simulation.

Related Reports:

Europe 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 2032

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