Frost & Sullivan Forecasts AR and VR Technology Market to Reach $661.4 Billion

Frost & Sullivan has recently released a report, suggesting that COVID-19 has fundamentally changed how people interact with machines. The firm noted that in every sector, organizations are increasingly using technologies to deliver personalized user interfaces. With the trend, companies and people have accelerated the transition to a remote ecosystem.

Frost & Sullivan has predicted that the global market for virtual and augmented reality technologies will climb to $661.40 billion by 2025 between 2019 to 2025. This figure corresponds to a CAGR of 86.3 percent.

In $161.29 billion most of the revenue will come from the manufacturing sphere. Here, VR and AR technologies will be combined to overhaul the engineering and broader production process with robotics.

Meanwhile, the biometrics market, which has become important for personalization, will grow to $54.97 billion. In the future, with personalization, there will be a rising need for secure identification technologies.

According to Frost & Sullivan, interest in palm vein and behavioral biometrics technologies will be particularly high. Other than that, face, fingerprint, iris, and voice recognition will also be deployed across commercial and public applications.

Other trends include the development of machines and digital twinning that interface directly with the human brain. In the future, Digital twin technology will be integrated into four out of every five IoT platforms, Neural interfaces have applications in healthcare, and EEG technology will be used to create new control schemes.

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However, like other technologies, they will need a strong digital infrastructure to support them. This is because traditional technologies will not be able to handle their interface. As a result, user interfaces need to wait on the development of next-gen IoT devices and 5G networks.

“For futuristic UIs to become ubiquitous, security and privacy will be critical,” said Frost & Sullivan Senior Industry Analyst Murali Krishnan.

“UI technologies will be an important component in the shift from the office to a virtual workplace that is mobile and more flexible.”

Recently, Frost & Sullivan handed an Entrepreneurial Award to acknowledge the company’s rapid response to COVID-19.