Report Overview

India Augmented Reality and Virtual Reality Market is flourishing owing to the expanding applications of augmented reality and virtual reality in industries such as healthcare, retail, entertainment, media, manufacturing, aerospace, and military.

India Augmented Reality and Virtual Reality Market - Industry Trends & Forecast Report 2028

India Augmented Reality and Virtual Reality Market was worth USD 1.69 billion in 2021 and is further projected to reach USD 9.28 billion by the year 2028, exhibiting a CAGR of 28% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the growing digital transformation of the country. The main factor propelling the growth of the India Augmented Reality & Virtual Reality Market across the nation is the accessibility of different VR devices. Also, increased augmented reality applications in healthcare, and increased AR and VR applications in retail and e-commerce support market expansion. Furthermore, government initiatives are expected to drive product demand throughout the forecast period, acting as a catalyst for the growth of the India Augmented Reality and Virtual Reality Market.

Augmented Reality and Virtual Reality - Overview

Augmented reality (AR) enhances your surroundings by adding digital features to a live view, frequently using a smartphone's camera. Virtual reality (VR) is a completely immersive experience that simulates a real-life world. Augmented reality (AR) is the utilization of information in the form of text, visuals, music, and other virtual upgrades that are combined with real-world items in real-time. This "real world" component distinguishes AR from virtual reality. Virtual reality is a software-created artificial environment that is presented to the user in such a way that the user suspends belief and accepts it as a genuine environment. Virtual reality is generally experienced on a computer through two of the five senses: sight and sound. Moreover, augmented reality and virtual reality significantly widen the range of everyday tasks that connected devices may assist with, including information search, shopping, and other activities, while virtual reality enables users to travel the world from the comfort of their own homes. Users of VR games are given access to a 3D environment that gives them a sense of the game's physical presence.

India Augmented Reality and Virtual Reality Market Forecast and Trends

Growth Drivers

Increasing Demand for Augmented Reality in E-commerce and Retail

Due to the pandemic, online purchasing has suddenly become more popular. Since many websites' return procedures were disabled during the pandemic, virtual try-on for jewelry and make-up allowed customers to see if the items suited them. Their shopping convenience was aided by this. The convenience enhances demand in this industry and, in turn, aids to fuel the market expansion for augmented reality. Augmented reality technologies make it easier for customers to be satisfied. Moreover, a few well-known instances of augmented reality in the e-commerce sector include the shopping apps Loreal and Lenskart, which allow customers to visually try on cosmetics and determine how a pair of glasses would look on them, respectively.

Increased Use of Smartphones

Smartphone adoption and technological advancements have enabled users to view virtual images immersed in real-world contexts. Furthermore, they can connect with these images and objects to interact with them simply by using the camera on their smartphone devices, which is one of the major factors driving the growth of the AR and VR market. Furthermore, augmented reality (AR) and virtual reality (VR) are becoming essential components of modern smartphones, and demand for these technologies is expected to be driven by mobile devices. Furthermore, smartphone manufacturers are now planning to develop the next wave of revolutionary computing devices, which are expected to open up new opportunities for market growth. In addition, due to location-based AR apps, AR can also be delivered by smartphone alone.

Enterprise Application Opportunities

There is a tone of chances in enterprise applications. A key factor in the enterprise industry's growth in the AR market is expected to be significant expenditures made by businesses in smart manufacturing. Companies with plants spread out throughout the country can adopt AR and hire a few engineers to oversee a big setup. It would be possible to operate businesses more successfully through remote cooperation by employing AR technology to remotely handle equipment and other installations. Also, regarding the educational usage for technicians and other employees in enterprises, enterprise AR has other significant applications. Workers are expected to be able to perform more effectively with the aid of head-up displays and smart helmets that can comprehend blueprints and instructions and offer real-time data. All these factors boost the growth of the India Augmented Reality and Virtual Reality Market during the forecast period (2022-2028).

Technological Progress and Increasing Digitization

Technological advancements and digitization have been the primary motivators for the implementation of new technologies in applications such as industrial, retail, and healthcare. Constant technological advancements have altered the way people live, communicate, travel, and learn. Technological advancements have assisted organizations and businesses in lowering production costs and saving time to gain a competitive advantage. For example, 3G and 4G have assisted small businesses in reaching their target markets at a lower cost of operation. The increased use of mobile phones has also contributed to the increased demand for digitization. The new generation is generation C (connected), which has contributed to the national digital transformation. Increased social networking has also aided the advancement of digitization.

Restraints

Health Risks Associated with Excessive AR Use

AR-related health issues among gamers are becoming more prevalent with the introduction of new gaming devices and technologies. AR games are highly interactive and keep users engrossed in the game for extended periods of time, resulting in issues such as anxiety, eye strain, obesity, and lack of concentration. The immersive nature of AR technology can cause anxiety or stress after wearing the AR headset for extended periods of time. Aside from stress, AR devices expose users to potentially harmful electromagnetic frequency radiation. According to research, people who are exposed to electromagnetic radiation may be more susceptible to developing cancer. Therefore, excessive use of AR gadgets may result in health problems and restrain the market growth. Moreover, for a more immersive gaming and e-sports experience, virtual reality technology, particularly virtual reality headsets, is widely employed. The excessive use of VR headsets causes health problems such as attention deficit disorder, vertigo, fatigue, hearing loss, and vision impairment. Overuse of these VR hardware devices results in general health problems; hence this element may serve as a barrier to the expansion of this market.

Impact of COVID-19 on India Augmented Reality and Virtual Reality Market

Through growing virtual training, education, and purchasing as well as industrial training and supervision using AR and VR gadgets, COVID-19 encouraged the globe to transition toward a remote work culture, whether it be for schools, universities, or corporations. But it also has a negative effect. Covid-19 affected suppliers' and distributors' businesses in addition to the operations and production of the various makers of AR and VR devices and component firms. During the first half of 2020, the major players in this sector saw the effects of the pandemic in their inventory for AR and VR device components.

India Augmented Reality and Virtual Reality Market - By Product

Based on the product, India Augmented Reality and Virtual Reality Market is segmented into Head Mounted Display, Handheld Applications, Smart Glass, Head-up Display, and AR Software. Due to the increasing use of HMD devices across a variety of applications, Head Mounted Display (HMD) accounts to hold the majority of the market share. In addition, it is anticipated that continued expansion in the nation's gaming and console industries would increase demand for HMDs in the coming years. The India Augmented Reality and Virtual Reality Market is anticipated to grow as a result of the affordability, portability, and lightweight nature of HMD devices, which present potential in several industries, including healthcare and rehabilitation.

India Augmented Reality and Virtual Reality Market – By Organization Size

Based on organization size, India Augmented Reality and Virtual Reality Market is segmented into Small Enterprises, Medium Enterprises, and Large Enterprises. Among these, the small enterprises and medium enterprises segment equally hold the largest market share. This is owing to their adaptability, which brings them closer to their consumers. All these factors boost the growth of the India Augmented Reality and Virtual Reality Market during the forecast period (2022-2028).

India Augmented Reality and Virtual Reality Market - By Offering

Based on offering, the India Augmented Reality and Virtual Reality Market is segmented into Hardware, Software, Service. The hardware segment now has the biggest market share and is likely to continue to do so during the forecast period (2022-2028). Due to the high demand from the gaming sector and the widespread accessibility of headsets, prices for AR and VR devices have significantly decreased, which has contributed to this increase. Due to the region's rapid urbanization and digital change, South India dominated the India Augmented Reality and Virtual Reality Market. This influences the hardware segment to dominate the market share in the upcoming years.

India Augmented Reality and Virtual Reality Market - By Application

Based on application, India Augmented Reality and Virtual Reality Market is segmented into Enterprise and Consumer. The consumer sector dominated the augmented and virtual reality market share and is likely to maintain its dominance in the future years. However, the enterprise segment is predicted to develop the most, as an increasing number of enterprises, in addition to gaming and other consumer entertainment subsectors, adopt and test AR and VR technologies in a wide range of work-related applications.

Competitive Landscape

The leading market players in India Augmented Reality and Virtual Reality Market are Merxius Software Private Limited, Sony India Pvt Ltd, Imaginate Software Labs Pvt Ltd, Samsung India Electronics, Tata Elxsi Limited, SmartVizx Private Limited, Northern Mind Tech LLP, Microsoft Corporation, Google India Pvt Ltd, and other prominent players.

The India Augmented Reality and Virtual Reality Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Scope of the Report

By Product

• Head Mounted Display
• Handheld Applications
• Smart Glass
• Head-up Display
• AR Software

By Organization Size

• Small Enterprises
• Medium Enterprises
• Large Enterprises

By Offering

• Hardware
• Software
• Service

By Application

• Enterprise
• Consumer

By End-User

• Consumer Electronics
• Automotive
• Healthcare
• Manufacturing
• Defense
• Others