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Allied Market Research published a report, titled, "AR/VR Chip Market by Chip Type (Processor ICs, User Interface ICs, and Power Management ICs), Device Type (Head Mounted Display, Head Up Display, Handheld Device, Gesture Tracking Device, and Projector & Display wall), and End User (Gaming, Entertainment & Media, Aerospace & Defense, Healthcare, and Others): Global Opportunity Analysis and Industry Forecast, 2019–2026." According to the report, the global AR/VR chip industry was estimated at $1.38 billion in 2018, and is expected to hit $7.76 billion by 2026, registering a CAGR of 23.3% from 2019 to 2026.

Drivers, restraints, and opportunities-

Surge in demand for AR/VR chips in the gaming sector and increase in need for the adoption of augmented & virtual reality technology in various applications fuel the growth of the global AR/VR chip market. On the other hand, resistance to implement the AR/VR technology and inadequate investments in R&D hamper the growth to some extent. Nevertheless, high-end technological advancement and initiation of industry-specific solution are expected to create multiple opportunities in the industry.

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The processor ICs segment to dominate by 2026-

Based on chip type, the processor ICs segment contributed to more than half of the global AR/VR chip market share in 2018, and is expected to maintain its dominance by the end of 2026. The same segment would also grow at the fastest CAGR of 24.1% from 2019 to 2026. The characteristics offered by such chips have made them highly efficient when compared to other embedded systems which, in turn, has driven the growth of the segment. The other segments discussed in the report include user interface ICs and power management ICs.

The head mounted display segment to retain its top share during the period-

Based on device type, the head mounted display segment garnered the highest share in 2018, generating more than half of the global AR/VR chip market. The prominent applications of head mounted display in military and police boost the segment growth. The head up display segment, on the other hand, would cite the fastest CAGR of 25.2% throughout the forecast period. This is attributed to its features that allow users to view data without any distraction.

Asia-Pacific, followed by North America, to remain lucrative till 2026-

Based on geography, Asia-Pacific, followed by the North America, accounted for the major share, in terms of revenue, in 2018, holding more than two-fifths of the global AR/VR chip market. The same province is also expected to manifest the fastest CAGR of 24.7% during the study period. This is attributed to the rapidly increasing Internet penetration and rising IDC standards in developing countries like China and India. The other two regions analyzed in the report include Europe and LAMEA.

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Key players in the industry-

  • NVIDIA Corporation
  • Business Machine Corporation
  • Imagination Technologies Limited
  • Huawei Technologies Co. ltd.
  • Spectra 7
  • International Samsung Electronics Co. Ltd.
  • Qualcomm Technologies Inc.
  • Intel Corporation
  • Advanced Microdevices Inc.

About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.


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