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AR/VR Chip Market Analysis: Key Trends, Share, Growth Drivers, And Forecast 2025-2034

2025-06-06  |  12:55:05
The Business Research Company

The Business Research Company

The Business Research Company’s AR/VR Chip Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

The Business Research Company’s Latest Report Explores Market Driver, Trends, Regional Insights - Market Sizing & Forecasts Through 2034”
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LONDON, GREATER LONDON, UNITED KINGDOM, June 6, 2025 /EINPresswire.com/ -- The AR/VR chip market size, which has grown significantly over recent years, is expected to make strides from $3.96 billion in 2024 to $4.82 billion in 2025. This exceptional growth, occurring at a compound annual growth rate CAGR of 21.9 %, can be pegged on a variety of factors, with prime among them being the proliferation of augmented reality AR and virtual reality VR applications. Other factors such as advances in graphics processing unit GPU technologies, the booming gaming and entertainment industries, increased adoption of AR/VR in healthcare and education, and demand for high-performance computing in AR/VR devices all contribute to the healthy historic growth.

What Does The Future Hold For The AR/VR Chip Market?
In view of the evident potential and continued innovation in the industry, the AR/VR chip market size is forecasted to undergo an exponential growth trajectory in the coming years, scaling up to a soaring $10.1 billion in 2029 at a compound annual growth rate CAGR of 20.3%. This exceptional surge is forecasted to be fueled by factors such as the expansion of augmented reality glasses and headsets, integration of AR/VR in enterprise and industrial applications, adoption of 5g technology for enhanced AR/VR experiences, an upswing in demand for compact and power-efficient AR/VR chips, as well as growth in extended reality XR and mixed reality MR applications.

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What About The Catalyst That Propels This AR/VR Chip Market Growth?
High adoption of mobile devices is anticipated to be a significant market propellant in the foreseeable future. A mobile device, including portable tablets and other small and light enough devices to be carried around, can now execute virtually all tasks that were traditionally associated with larger personal computers. This leap in functionality has been made possible due to advancements in data storage, computing and display technologies. AR/VR chips embedded in smartphones facilitate realistic virtual and augmented reality game experiences, allowing users to interact with their surroundings using their own hands.

Who Are The Key Industry Players Taking Advantage Of This Burgeoning AR/VR Chip Market?
A multitude of major companies are operating in the AR/VR chip market, these 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, Lytro, Inpria.

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What Are The Latest Trends In The AR/VR Chip Market?
A significant trend taking hold in the AR/VR chip market involves technological advancements. Major companies operating in the AR/VR sector are focusing on technological breakthroughs to maintain their competitive edge. For instance, in September 2023, Qualcomm Technologies Inc., a US-based semiconductor company, launched its newest chips for XR and AR platforms: the Snapdragon XR2 Gen 2, designed for VR and mixed-reality devices, and the AR1 Gen 1, created specifically for smart glasses. These new offerings provide a 2.5x boost in GPU performance and a whopping 8x better AI, facilitating immersive mixed and virtual reality experiences, while the Snapdragon AR1 Gen 1 Platform gives sleek smart glasses real-time AI features like visual search and hands-free live streaming.

How Is The AR/VR Chip Market Segmented?
The AR/VR chip market is segmented as follows:
1 By Chip Type: Processor ICs, User Interface ICs, Power Management ICs
2 By Device Type: Head Mounted Display, Gesture Tracking Device, Projector and Display Wall, Head Up Display, Handheld Device
3 By End User: Gaming, Entertainment and Media, Aerospace and Defense, Healthcare, Other End Users

What Are The Regional Insights Of The AR/VR Chip Market?
Asia-Pacific took the lead as the largest region in the AR/VR chip market in 2024, followed by North America as the second-largest region. The regional markets covered in this report spread across Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

Browse Through More Similar Reports By The Business Research Company:
Augmented Reality Software and Services Global Market Report 2025
https://www.thebusinessresearchcompany.com/report/augmented-reality-software-and-services-global-market-report

Augmented Reality Devices Global Market Report 2025
https://www.thebusinessresearchcompany.com/report/augmented-reality-devices-global-market-report

Augmented Reality In Training And Education Global Market Report 2025
https://www.thebusinessresearchcompany.com/report/augmented-reality-in-training-and-education-global-market-report

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