Global AR and VR in Education Market By Offering (Solutions, Hardware (Interactive Whiteboards, Portable Controllers, VR Devices (HMD, Gesture Tracking devices), Projectors & Display walls, Others), Services), By Deployment Mode (Cloud, On-Premises), By Application (K-12, Higher Education, Vocational training), By Region And Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends And Forecast 2024-2033

Report Overview

The Global AR and VR in Education Market size is expected to be worth around USD 75 Billion by 2033, from USD 11.9 Billion in 2023, growing at a CAGR of 20.26% during the forecast period from 2024 to 2033.

The augmented and virtual reality (AR/VR) in education market is experiencing significant growth, driven by the increasing adoption of immersive technologies in teaching and learning processes. This market expansion can be attributed to the demand for enhanced and interactive learning experiences, aiming to increase student engagement and improve learning outcomes. AR and VR technologies offer innovative ways to present content, enabling students to explore complex subjects through interactive simulations and virtual environments.

The integration of AR and VR in education spans various levels, from K-12 to higher education and vocational training, covering subjects such as science, history, and medicine. The growth of the AR/VR in education market is further supported by technological advancements and the decreasing cost of VR headsets, making these technologies more accessible to educational institutions. Government initiatives and investments in digital learning tools also play a crucial role in fostering the adoption of AR and VR in the educational sector.

Moreover, the ongoing shift towards remote learning, accelerated by global events such as the COVID-19 pandemic, has underscored the value of AR and VR technologies in facilitating interactive and immersive learning experiences outside traditional classroom settings.

Research Findings

The implementation of Augmented Reality (AR) and Virtual Reality (VR) technologies in K-12 schools in the US is projected to witness significant growth by 2024. It is estimated that over 40% of K-12 schools in the country will have incorporated AR/VR technologies in some capacity, marking a substantial increase from less than 20% in 2022. This indicates a growing recognition of the potential benefits of AR/VR in enhancing the learning experience.

According to a survey, 93% of teachers believe that VR would be helpful in teaching within the classroom. This strong endorsement from educators highlights the perceived value of immersive technologies in facilitating engaging and interactive learning experiences for students.

The revenue generated by education-focused VR software is expected to surpass $300 million globally by 2024, compared to approximately $120 million in 2022. This significant growth reflects the increasing demand for VR solutions tailored specifically for educational purposes. The availability of immersive educational content and software applications is expanding, providing educators with a wider range of resources to enrich their teaching methodologies.

European VR education startups are set to experience a 30% increase in funding in 2023 and 2024. This upward trend in investment signifies the sustained confidence in the potential of VR in education. The growing financial support for these startups indicates the belief in the long-term viability and impact of VR technologies on the learning landscape.

In the higher education sector, it is projected that 60% of US colleges will offer at least one VR-based course by 2024, compared to less than 30% in 2022. This demonstrates the increasing recognition of VR’s value in higher education as a tool for immersive and interactive learning experiences.

Additionally, 70% of community colleges are expected to utilize VR for career training programs by 2024, a significant increase from 20% in 2019. This expansion of VR adoption in community colleges aims to enhance access to immersive learning opportunities for a broader range of students.

Key Takeaways

• Market Growth Projection: The global augmented and virtual reality in education market is estimated to reach a significant value of USD 75 billion by 2033, showcasing a robust compound annual growth rate (CAGR) of 20.26% from 2024 to 2033.
• Growth in Implementation: Significant growth is projected in the implementation of AR and VR technologies in K-12 schools, with over 40% expected to incorporate these technologies by 2024, compared to less than 20% in 2022. Moreover, 93% of teachers believe VR would be helpful in classroom teaching, indicating strong support for immersive technologies in education.
• Revenue Generation: Education-focused VR software revenue is forecasted to surpass $300 million globally by 2024, reflecting the increasing demand for tailored VR solutions in education. Additionally, European VR education startups are anticipated to experience a 30% increase in funding in 2023 and 2024, indicating sustained confidence in the potential of VR in education.
• Higher Education Sector Leadership: The higher education segment emerges as a dominant player, with over 60% of US colleges expected to offer at least one VR-based course by 2024, compared to less than 30% in 2022. This reflects the growing recognition of VR’s value in higher education for immersive and interactive learning experiences.
• Hardware and Cloud Dominance: In 2023, hardware, particularly interactive whiteboards, portable controllers, and VR devices, held a dominant market position, capturing over 65% of the market share. Cloud-based deployment also dominated, with more than a 71% share, owing to its scalability, flexibility, and cost-effectiveness in deploying AR/VR applications.
• Regional Analysis: North America leads the augmented and virtual reality in education sector, with over 35% market share in 2023. Factors such as robust technological infrastructure, substantial investments, and proactive adoption by educational institutions contribute to its leadership position.

By Offering Analysis

In 2023, the Hardware segment held a dominant market position in the Augmented and Virtual Reality (AR/VR) in Education Market, capturing more than a 65% share. This significant market share can be attributed to the indispensable role that physical devices play in facilitating immersive learning experiences.

Hardware, including Interactive Whiteboards, Portable Controllers, VR Devices (Head-Mounted Displays, Gesture Tracking devices), Projectors, and Display Walls, forms the backbone of AR/VR technology, enabling educators and learners to interact with digital content in a tactile and engaging manner.

The demand for such hardware has been propelled by the growing recognition of AR/VR as a transformative tool for educational purposes, enhancing student engagement, improving learning outcomes, and providing experiential learning opportunities that traditional methods cannot offer.

The leading position of the Hardware segment is further bolstered by continuous technological advancements and investments in R&D by key market players. These efforts have led to the development of more sophisticated, user-friendly, and cost-effective AR/VR devices, making them more accessible to educational institutions across various levels.

Moreover, the integration of AR/VR hardware with existing educational infrastructure has been seamless, encouraging adoption. The increasing prevalence of digital classrooms and the shift towards interactive learning paradigms have also played a crucial role in driving the demand for AR/VR hardware.

By Deployment Mode Analysis

In 2023, the Cloud segment held a dominant market position in the Augmented and Virtual Reality (AR/VR) in Education Market, capturing more than a 71% share. This substantial market share is primarily due to the cloud’s ability to offer scalable, flexible, and cost-effective solutions for deploying AR/VR applications in educational settings.

Cloud-based deployment allows institutions to access AR/VR resources and applications over the internet without the need for significant upfront investments in hardware and infrastructure. This model supports the growing trend towards digital transformation in education, enabling schools, colleges, and universities to incorporate advanced technologies into their curricula with minimal logistical and financial barriers.

The prominence of the Cloud segment is also reinforced by its inherent advantages, including ease of access, high scalability, and the ability to provide a centralized platform for educational content. Educators can seamlessly update and manage content, ensuring that students have access to the latest information and learning tools.

Additionally, cloud-based AR/VR services can accommodate the needs of a wide range of users, from individual learners to large institutions, by adjusting resources according to demand. This elasticity not only optimizes costs but also enhances the learning experience by ensuring high performance and availability of educational applications.

By Application Analysis

In 2023, the Higher Education segment emerged as the dominant player in the Augmented and Virtual Reality (AR/VR) in Education market, capturing a significant market share of over 39%. The Higher Education segment’s leading position can be attributed to several factors that have contributed to its growth and adoption of AR/VR technologies.

One of the key reasons for the Higher Education segment’s dominance is the increasing recognition of the value of immersive technologies in enhancing the learning experience at the tertiary level. Higher education institutions, such as colleges and universities, have a broader range of subjects and disciplines that can benefit from immersive and interactive learning experiences offered by AR/VR. Fields like engineering, medicine, architecture, and design can utilize AR/VR to provide realistic simulations, virtual laboratories, and immersive experiences that enhance understanding and skill development.

Additionally, the Higher Education segment has been at the forefront of adopting innovative technologies and pedagogical approaches to better engage students and improve learning outcomes. AR/VR technologies offer unique opportunities to create immersive and interactive learning environments, enabling students to explore complex concepts, conduct virtual experiments, and experience scenarios that would otherwise be challenging or impossible in a traditional classroom setting.

The Higher Education segment’s inclination towards adopting cutting-edge technologies aligns with the nature of tertiary education, which emphasizes research, innovation, and practical applications. Moreover, the Higher Education segment often has more resources and infrastructure to invest in AR/VR implementations compared to other segments.

Universities and colleges have the capacity to allocate budgets for acquiring AR/VR hardware, software, and content development, as well as for training faculty and staff on the effective integration of these technologies into the curriculum. The availability of resources and institutional support enables higher education institutions to lead the way in exploring the full potential of AR/VR in education.

Key Market Segments

By Offering

• Solutions
• Hardware
  • Interactive Whiteboards
  • Portable Controllers
  • VR Devices (HMD, Gesture Tracking devices)
  • Projectors & Display walls
  • Others
• Services

By Deployment Mode

• Cloud
• On-Premises

By Application

• K-12
• Higher Education
• Vocational training

Driver

Enhanced Understanding through Visualization

The augmented and virtual reality (AR/VR) technologies significantly enhance understanding through visualization, serving as a key driver in their adoption across various sectors. By providing immersive, three-dimensional visual experiences, these technologies allow for complex concepts, data, and environments to be visualized in a manner that is both accessible and engaging.

This capability is particularly transformative in education, healthcare, and engineering, where the depth of understanding and retention of information is greatly enhanced. For instance, medical students can explore human anatomy in a three-dimensional space, offering insights that are not possible through traditional two-dimensional images. This enhanced understanding through visualization not only improves learning outcomes but also fosters innovation by enabling professionals to experiment and interact with virtual models of their work.

Restraint

Standardization and Interoperability in AR and VR Implementation

One significant restraint in the wider adoption of AR and VR technologies is the lack of standardization and interoperability across platforms and devices. The AR/VR ecosystem comprises a wide range of hardware, software, and content, each with its own set of protocols and formats. This diversity poses challenges in creating seamless experiences for users and hinders the development of universally compatible applications.

For businesses and educators, this fragmentation requires additional investment in resources to ensure compatibility and functionality across different AR and VR systems. Without industry-wide standards, the potential for AR and VR technologies to be fully integrated into everyday practices remains limited, restraining their growth and the realization of their full benefits.

Opportunity

Immersive Collaboration and Communication

AR and VR technologies present unparalleled opportunities for immersive collaboration and communication. These technologies enable people to interact and collaborate in shared virtual spaces, regardless of their physical location. This is particularly advantageous for global teams and educational settings, where participants can engage in real-time, fostering a sense of presence and connection that traditional video conferencing tools cannot replicate.

For instance, architects and engineers can collaboratively explore and modify 3D models of their projects in a virtual space, leading to more efficient and effective design processes. Similarly, students can engage in interactive, collaborative learning experiences that transcend geographical boundaries. As AR and VR technologies continue to evolve, the potential for revolutionizing collaboration and communication practices across industries grows, presenting a significant opportunity for innovation and productivity enhancements.

Challenge

Inadequate Infrastructure and Technical Support

A major challenge facing the adoption of AR and VR technologies is the inadequacy of infrastructure and technical support. Implementing these technologies requires significant investment in hardware, software, and network capabilities. Many organizations and educational institutions lack the necessary infrastructure to support high-quality AR and VR experiences. This includes not only the physical hardware but also the high-speed internet connections required for data-intensive applications.

Moreover, the complexity of AR and VR technologies demands specialized technical support to address issues related to development, deployment, and maintenance. The shortage of skilled professionals equipped to manage these technologies further exacerbates the challenge. Overcoming these infrastructure and technical support barriers is critical for enabling widespread adoption and leveraging the full potential of AR and VR technologies.

Regional Analysis

In 2023, North America held a dominant market position in the augmented and virtual reality (AR/VR) in education sector, capturing more than a 35% share. The demand for Augmented and Virtual Reality in Education in North America was valued at US$ 4.1 billion in 2023 and is anticipated to grow significantly in the forecast period.

This leadership can be attributed to several pivotal factors. Primarily, the region’s robust technological infrastructure, coupled with substantial investments in AR/VR technologies by both private entities and government bodies, has significantly propelled the market forward.

North America’s emphasis on integrating cutting-edge technologies into the educational curriculum has further amplified the adoption of AR/VR solutions. The presence of leading AR/VR companies in this region has also played a crucial role, fostering innovation and accessibility to advanced educational tools.

Furthermore, the increasing emphasis on personalized learning and the need for interactive and engaging educational methodologies have driven the adoption of AR/VR technologies in North American educational institutions. The region has witnessed a notable rise in the implementation of these technologies in both K-12 and higher education sectors, aimed at enhancing student engagement, improving learning outcomes, and providing immersive experiences.

The proactive approach of educational institutions in adopting these technologies, supported by favorable government policies aimed at digitalizing the education sector, underscores North America’s leading position in the global AR/VR in education market.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The augmented and virtual reality (AR/VR) landscape is rapidly evolving, with several key players driving innovation and market growth. Meta, formerly known as Facebook, stands at the forefront of the VR industry, having made significant strides with its Oculus devices.

Meta’s focus on creating immersive social experiences positions it as a leader in integrating VR into daily life and education. Google, with its expansive technological ecosystem, has been pivotal in making AR accessible through mobile devices, enhancing educational content with interactive AR experiences.

Microsoft Corporation’s HoloLens, an advanced mixed reality device, has found applications in various educational settings, from medical training to engineering design, showcasing the potential of AR/VR in professional education. Magic Leap, Inc., although facing challenges in the consumer market, has shifted its focus towards enterprise solutions, including education, where its mixed reality technology can offer unique interactive learning experiences.

Top Market Leaders

• Meta
• Google
• Microsoft Corporation
• Magic Leap, Inc.
• Sony Group Corporation
• Panasonic Holdings Corporation
• HTC Corporation
• Vuzix Corporation
• Lenovo
• Anthology Inc.
• Avantis Systems Ltd
• DAQRI LLC
• Samsung Electronics Co. Ltd
• Other Key Players

Recent Developments

1. Meta (formerly Facebook):

• February 2023: Launched “Horizon Workrooms VR” for Education, a platform enabling educators to create immersive virtual classrooms and conduct interactive lessons.
• October 2023: Announced a partnership with National Geographic to develop VR educational experiences for exploring diverse ecosystems and cultural landmarks.

2. Google:

• March 2023: Expanded “Google Expeditions AR” with new features like 3D object models and self-guided tours, enhancing interactive learning experiences.
• August 2023: Introduced “Labster VR” on Google Cardboard, allowing students to experience virtual laboratory simulations in science subjects.

Report Scope