India AR/VR Market: Current Analysis and Forecast (2024-2032)

AR/VR (Augmented Reality/ Virtual Reality) are the strategic materials found in modern technology; they form the basis of practically all electronic devices. It is made of components such as silicon, due to which it exhibits electrical conductivity between that of a conductor and an insulator thus delicately allowing control of electrical currents. This application makes AR/VR essential in most uses, from mobile phones, laptops, and home appliances, to automobiles, and manufacturing industries. AR/VRs are very competitive and continuously evolving due to trends in miniaturization and improvement of technologies. AR/VR remains quite vital in enhancing the continuous growth of global electrical and electronic product demand.

The India AR/VR Market is expected to grow at a steady rate of around 38.3% owing to the expanding product portfolio. For instance, in May 2023, Reliance Jio launched its first-ever virtual reality (VR) headset called JioDive. The new device offers a new way for users to enjoy the online IPL 2023 matches on a virtual 100-inch screen with a 360-degree view of the stadium. Users can also watch other videos on the device for a more immersive feel. Moreover, increasing investment and innovation, rising government initiatives, and rising demand for immersive experiences are anticipated to boost the Indian AR/VR market.

Based on technology, the Indian AR/VR market is bifurcated into augmented reality and virtual reality. The virtual reality segment acquired a significant share of the Indian AR/VR market owing to innovations in devices, content creators, and users. Many industries have expanded from the use of video games and gone to areas such as health, aviation, manufacturing, entertainment, and tourism where training simulations are used. The availability of cheap headsets and better interfaces has meant market penetration across the spectrum - from the end user to the professional. In the same year, social VR platforms are also improving the chances of user engagement and co-creation in virtual spaces. With further growth in demand in the postmodern world, driven by improvements in the sphere of graphics and the ability to process information, the VR segment has the potential for qualitative change and quantitative growth, giving new opportunities across industry sectors and changing the perception of digital content by the customer. Thus, virtual reality held a significant share of the market in the year 2023.

Based on the offering, the market is bifurcated into hardware and software. The hardware segment held the major share of the market in the year 2023. The hardware segment is in a robust position presently in India's AR/VR market owing to surging demand for immersive technologies in all the verticals ranging from gaming to education and from healthcare to real estate. With the increasing popularity of quality and engaging content, modern businesses are sinking significant amounts of capital into modern hardware products such as VR headsets, AR glasses, and motion capture tools. High performance and reasonable prices of the devices also contribute to the development of AR/VR technology in consumer and business markets due to content and applications. Moreover, there are increasing numbers of manufacturers and startup companies that are seen creating custom hardware that fits the Indian market which strengthened the argument on the hardware segment. Thus, the hardware segment dominated the Indian AR/VR market in the year 2023.

Based on application, the Indian AR/VR market is segmented into gaming, education, healthcare, aerospace & defense, and others. The gaming segment in India is a large segment of the overall augmented reality/virtual reality market, driving even further development in this area. The technologically advanced and young populace of India has been experiencing a want for the compelling worth of secondary play in the shape of AR and VR-based games. Several backbone video game producers and nearly all startups have developed impressive content that leverages these technologies thereby making the video gaming environment very vibrant. Thus, such applications due to the availability of affordable VR headsets and the increase in mobile gaming have become available for more people. Further, the ongoing rise in esports and competitive gaming continues to drive more investment in AR/VR solutions because these technologies enable better experiences. This dominance of the gaming segment not only propels the revenue but also technology and content development for AR/VR gaming in India making it one of the key markets on a global level. Thus, the gaming segment held a significant share of the market in the year 2023.

For a better understanding of the market adoption of Indian AR/VR, the market is analyzed based on its state-wise presence in India such as North India, East India, West India, and South India. The market for AR/VR is on the right growth trajectory in North India as there is continuous progress in technology, investment, and startup growth. Places like Delhi, Gurugram, and Chandigarh are gradually emerging as innovation centers covering both domestic and international industry players working with AR/VR applications. Various fields including the education sector especially the Northern part of India and industries like Real Estate and Tourism sectors are benefiting from Augmented and Virtual Reality applications for developing Virtual Tours and marketing. Also, the increasing penetration of gaming in the region is creating the need for AR/VR content thus technology companies form partnerships with gaming developers. The government policies and programs related to utilizing technology and innovation also foster this growth, making North India one of the major regions contributing towards the overall growth of the AR/VR market in India. Due to increasing awareness and adoption, the region shall gradually be in a crucial position to determine the future of AR/VR technologies in India. Thus, north India is growing at a significant rate in the Indian AR/VR market.

Some of the major players operating in the market include Imaginate Software Labs Private Limited; Merxius Software; Simbott; Immersafety; Parallax Labs LLP; Tata Elxsi; MobilizAR Technologies Pvt Ltd. (Playshifu); QUYTECH; Trezi; Simulanis Solutions Private Limited.