In the last one year, advanced technologies such as AI, big data, cloud, and AR/VR are helping enterprises fight the pandemic and improve productivity and operational efficiency. Enterprises have started investing, with varying degrees of caution, in these technologies in an effort to ensure business continuity. A TechSci Research report puts the spotlight on India’s AR & VR market, which it believes is expected to witness robust growth in the next 4-5 years.
In the report titled: India Augmented Reality & Virtual Reality Market 2026, researchers see AR/VR offering new opportunities to engage customers, especially as these technologies enable no-touch product interaction. AR-VR technology has seen unprecedented growth in 2020. Commercial use of the technology has exploded due to use by market leaders like Microsoft, Apple, Google, Facebook, and Amazon.
The widespread momentum of the 5G network is boosting the adoption of virtual technology. The 5G services offer high bandwidth and ultra low latency. This is supporting the adoption of the technology for its various applications such as entertainment, training, simulation and more.
Digital transformation is observed around the world and growing online gaming and tourism industry is fueling the market growth further in the upcoming five years, finds the study. While AR-VR has already made inroads in sectors such as BFSI, healthcare, entertainment and retail, industries such as automotive, education, healthcare, aerospace and defense are also investing in these technologies for virtual training and education.
However, lack of awareness in underdeveloped economies and high cost for equipment required for AR and VR had been a hindrance to market growth until recently. The silver lining is that, the last one year saw a rise in awareness regarding augmented reality and virtual reality is a major driver for the market growth. Depending on product type, market is categorized into head-mounted display, head-up display, smart glass, and handheld device applications.
The report predicts that head-mounted display is expected to hold major market share for the next five years. Growing investment for development of the technology is driving the market.
Also, rise in demand for lightweight displays and greater tech adoption owing to work-from-home is fostering the growth of the market. Presence of young population immersed in engaging content in country along with application in various sectors comprising of healthcare, tourism, defense, gaming, automotive is also contributing to surge the demand for augmented reality and virtual reality market in India. Manufacturers are increasingly focusing on research and development process to fuel higher growth in the market.
To meet evolving customer demand with respect to better efficiency and durability, several electric charging vehicle infrastructure manufacturers are also coming up with their technologically advanced offerings, the study says.
“Adoption of augmented reality and virtual reality for training purpose to replicate real life situations and instill quality training by prestigious institutions is expected to fuel the market growth,” says Karan Chechi, Research Director with TechSci Research.
For instance, healthcare sector is using 3-D modeling for training purpose, among others. AR powered diagnostics also significantly reduce the chances of contracting a virus from patients, thus, enabling the much sought after ‘social distancing’ norm and support procedures that are involved in complex surgeries.
Again in the banking and insurance sector, these technologies are letting them create immersive customer experiences. VR can create a virtual digital bank branch where customers can be engaged in more personalized way through virtual assistants. AR enabled financial apps may encourage digital payments by providing image-based product overview and price of items. In insurance, one of the most critical steps in property insurance claims is investigation. Remote property assessment can be performed in real time using AR technology when it comes to investigation of claimed losses.
Retail is another sector heavily banking on AR and VR. The technologies are appearing in many consumer applications as retailers are rushing to replicate the physical shopping experience in a virtual environment. Even in the education sector AR and VR adoption is accelerating in recent times.
AR and VR technologies are helping enterprises when it comes to collaboration and keeping the remote worker productive. We are already seeing major enterprises adopting online meetings and conferences and some have already shifted to VR meetings and seminars.
According to Chechi, high-end investments from key players to provide engaging consumer experience and productivity gains are fostering the market growth. “Also, reduction in deployment costs would benefit the new investors in settling their business in the country,” he sums up.
