AR/VR Chip Market

Augmented reality is a technology that uses the existing user’s environment and overlays the digital or virtual content or information over it. Augmented reality applications are developed on special 3D programs that enable developers to integrate contextual or digital content with the real world. While virtual reality is a computer-generated 3D environment—which completely immerses end users in an artificial world without seeing the real world.

According to a recent report published by Allied Market Research, titled, “AR/VR Chip Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2018–2026,” the global AR/VR chip market size was $1.38 billion in 2018, and is projected to reach $7.76 billion by 2026, registering a CAGR of 23.3% from 2019 to 2026.

The key AR/VR chip market leaders profiled in the report include Qualcomm Technologies Inc., NVIDIA Corporation, Imagination Technologies Limited, MEDIATEK Inc., Intel Corporation, Spectra 7, Advanced Microdevices Inc, International Business Machine Corporation, Samsung Electronics Co. Ltd, and Huawei Technologies Co. Ltd. 

These key players adopted several strategies such as new product launch and development, acquisition, partnership & collaboration, and business expansion to increase their AR/VR chip market share.


  • Rise in demand for AR/VR chip in gaming vertical
  • Surge in need for the adoption of AR/VR in various applications


  • Resistance to adopt the augmented and virtual reality technology
  • Lack of investments in R&D


  • Advancement in technology
  • Introduction of industry-specific solution

Increase in penetration of AR/VR chip in consumer electronic products is fueled by a highly competitive consumer electronics market, where players focus on upgrading their products such as smartphones, laptops, and digital recorders, among others. The major companies such as Sony, Apple, Samsung, Panasonic, and Google among others, follow this trend by incorporating advanced augmented technologies. Continuous advancement in technology; increased penetration of mobile devices & gaming consoles; and significant expansion in gamer’s community are projected to drive the segment growth during the forecast period. 

As per AMR analysis, by 2026, the video game industry is projected to witness around 90% increase in the number of users, as compared to that in 2019. This, in turn, is anticipated to create new growth opportunities for prominent players in the market. 

Further, rise in trend of watching live content in augmented and virtual reality, owing to enhanced user experience and availability of affordable mobile internet plans worldwide drives the segment growth. Moreover, this trend is anticipated to continue throughout the forecast period, which is projected to create lucrative opportunities for the prominent players in the AR/VR chip market.    

Key Findings of the Study:

  • By chip type, the processor ICs segment generated the highest revenue in the AR/VR chip market in 2018.
  • By device type, the head mounted display segment generated the highest revenue in the market in 2018.
  • By end user, the gaming segment generated the highest revenue in the AR/VR chip industry during 2018.
  • By region, Asia-Pacific generated the highest revenue in the AR/VR chip market in 2018.