Building a slide deck, pitch, or presentation? Here are the big takeaways:

  • The AR market is forecast to reach $60.55 billion by 2023, at a CAGR of 40%, while the VR market is forecast to reach $34.08 billion by 2023 at a CAGR of 34%. — ReportsnReports, 2018
  • Key players in the AR/VR market include Sony, Oculus, Samsung, Google, and HTC. — ReportsnReports, 2018

The augmented reality (AR) and virtual reality (VR) market are set to explode in the next few years, thanks in part to rising investments in commercial and defense applications, according to a recent analysis from ReportsnReports.

The AR market is forecast to reach $60.55 billion by 2023–up from $11.14 billion this year, at a CAGR of 40%, the report found. The VR market is forecast to reach $34.08 billion by 2023 (compared to $7.9 billion this year), growing at a CAGR of 34%.

AR and VR are gaining ground in the enterprise, with AR showing the strongest potential for growth with its business-oriented applications, as reported by our sister site ZDNet: As of 2016, 67% of companies were considering adoption of AR.

SEE: Mixed reality in business (ZDNet/TechRepublic special feature) | Download the free PDF version (TechRepublic)

Key companies driving the AR and VR market include Sony, Oculus, Samsung, Google, HTC, PTC, Microsoft, Wikitude, DAQRI, Zugara, Blippar, Osterhout Design Group, Magic Leap, Upskill, Continental, Visteon, Eon Reality, and Vuzix, the report noted.

In terms of VR, high penetration of head-mounted displays (HMDs) in gaming and entertainment and availability of affordable devices are major drivers of the market.

The AR market, meanwhile, will be largely driven by demand for AR devices in healthcare, retail, and e-commerce, the report noted. Enterprise use of HMDs like smart glasses for AR applications related to training and instruction is also growing, and likely to continue to boost the market, the report found.

“The augmented reality market for enterprise application is expected to witness high growth during the forecast period,” according to a press release. “Augmented reality is used in enterprises for training personnel, providing information about the industrial facility, remodeling and redesigning, and industrial simulations.”

However, while the sales of AR and VR devices may be on the rise, the implementation of this technology remains slow. When the TechRepublic CIO Jury was asked “Has your company implemented, or is it considering the use of, AR and VR?”, 10 tech leaders said no, while two said yes.

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