In this article, we will talk about the 20 biggest augmented reality and virtual reality companies in the world. We will also discuss the emerging trends and key players in the extended reality industry. If you want to skip our detailed analysis, head straight to the 5 Biggest Augmented Reality And VR Companies In The World.
Extended reality is an umbrella term encompassing all immersive technologies, including augmented, virtual, and mixed reality. Immersive technologies combine or replace our physical reality with a virtual one. In augmented reality, the user experiences virtual information intermingled with the real world. Instead of being isolated from the physical world, the user experiences the interplay of virtual elements like images, animations, and information with their actual surroundings. Snapchat by Snap Inc. (NYSE:SNAP) and Pokémon Go by Niantic are some of the most well-known examples of augmented reality.
On March 23, Snap Inc. (NYSE:SNAP) launched a separate division for businesses, AR Enterprise Services (ARES), that facilitates them to build AR features for their websites and apps. As of March, almost 250 million people interact with AR on Snap Inc. (NYSE:SNAP) daily, posing a good opportunity for enterprises to correspond with their customers. The first product by ARES is Shopping Suite, which lets consumers virtually try different products and find their right fit before buying. Businesses can optimize and manage their augmented reality assets and integrations and measure performance analytics using this feature. Snap Inc. (NYSE:SNAP) is one of the leading names in bringing AR to the mainstream.
In virtual reality, the user is fully immersed in the digitally created environment. The user feels transported into an alternate reality completely disconnected from the real one. Virtual reality requires the user to put on a VR headset, whereas augmented reality can be accessed using a screen like a mobile or tablet. Mixed reality merges the physical and virtual worlds.
The Extended Reality Industry Outlook
Extended reality technology has found numerous applications in our everyday life. It can be used in entertainment, education, training, estate tours, and many other areas. In healthcare, it is used to train medical professionals in simulation. It helps them visualize the patient's organs prior to surgery and target organs better. The surgeons then operate, greatly reducing the risks involved. According to a reportby Knowledge Sourcing Intelligence LLP, the extended reality market was valued at $11.514 billion in 2021 and has been estimated to reach $95.438 billion by 2028, growing at a compounded annual growth rate of 35.27% through the forecasted period.
The popularity of extended reality is constantly rising; however, the growth has been relatively slow. The two main factors for this slow growth include privacy concerns as well as the high cost of production. The VR headset needs to be compact but efficient, thus increasing the production cost. The high cost implies fewer people could afford it, and sales would be low. Thus developments and advancements in the hardware segment would catalyze the market growth for extended reality. Furthermore, to create a truly immersive experience large amounts of information from the user's environment is collected. This extensive flux of information creates a privacy concern.
North America currently has the biggest share in the global extended reality market. The main reason for this large claim is the presence of most of the key players in this region. Companies like Apple Inc. (NASDAQ:AAPL), Meta Platforms, Inc. (NASDAQ:META), and Snap Inc. (NYSE:SNAP) are all present in this region. However, the Asia Pacific region is expected to grow rapidly in the future. The rapid boost in technology development, 5G, and the use of smartphones would be the main contributors to this growth. The pandemic also catalyzed the popularity of extended reality products as the shift towards remote work caused a surge in demand. The gaming industry especially poses a great opportunity for the growth of extended reality technology in this region. According to a reportby Technavio, the Asia Pacific region is estimated to contribute 37% to the growth of the global extended reality market from 2023 through 2027.
On June 1, Meta Platforms, Inc. (NASDAQ:META) announced that the company will soon launch the next generation of its mixed-reality headset, the Meta Quest 3. The new generation would be 40% thinner and have enhanced graphics performance than the previous product. The device will be launched in a few months, and CEO Mark Zuckerberg has promised to give more details at the company's annual AR/VR conference on September 27. VR headsets are currently used predominantly in gaming. However, companies like Meta Platforms, Inc. (NASDAQ:META) have been trying to market it as a productivity and fitness tool.
On June 5, Apple Inc. (NASDAQ:AAPL) announced their extended reality headset, Vision Pro. The Vision Pro starts at $3,499 which is almost three times the price of Meta Platforms, Inc.'s (NASDAQ:META) headset. The Vision Pro uses a new chip, R1, that claims to process information from its sensors faster than the blink of an eye. The headset has a transparent display allowing the user to still see their environment while interacting with virtual elements. The users can select options by just blinking or tapping their fingers together. On June 5, Erik Woodring, equity research executive director at Morgan Stanley, in a CNBC interview talked about the future of the product and gave valuable insight into how the extended reality market would grow with time. Here are some comments from his interview:
"I did partially (use the word consumer as opposed to enterprise) because I think the early use cases are going to be more on the consumer side; that's not to say we're excluding the enterprise market at all. There are use cases that exist today in AR and VR and that will exist in the future with AR VR in the enterprise, but think of Apple as largely a consumer brand getting into the enterprise. I think of the same way when it comes to mixed reality headsets, the consumer is the primary customer today, the enterprise will be a customer tomorrow, but the opportunity today is bigger for the consumer."
In addition to Apple Inc. (NASDAQ:AAPL), some other big tech names that are making hefty investments in AR and VR include Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT).
20 Biggest Augmented Reality And VR Companies In The World
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Our Methodology
To make our list of the 20 biggest augmented reality and VR companies in the world, we sifted through various AR/VR ETFs and identified their top holdings. We also looked up AR/VR companies manually and checked which companies are making strides in this space. Finally, we narrowed down the 20 biggest AR/VR companies in the world by market cap and ranked them in ascending order of this metric.
20 Biggest Augmented Reality And VR Companies In The World
20. Snap Inc. (NYSE:SNAP)
Market Cap: $15.15 billion
Snap Inc. (NYSE:SNAP) is one of the leading companies in the augmented reality industry, with millions of daily average users. Snap AR by Snap Inc. (NYSE:SNAP) enables users from all across the globe to create their own AR lenses. The ease of interacting and developing augmented reality filters has made it one of the biggest augmented reality companies in the world.
Axon Enterprise Inc. (NASDAQ:AXON) develops and sells conducted energy devices (CEDs) under the brand name TASER. The company is focused on transforming public safety and is using extended reality technology to further this cause. Axon VR Training replaces traditional training with innovative immersive training. More than 1,400 law enforcement agencies are currently using Axon VR training. Axon Enterprise Inc. (NASDAQ:AXON) offers VR simulator training in de-escalation and community engagement. The company is investing heavily in research and development of immersive reality technology.
PTC Inc. (NASDAQ:PTC) is one of the biggest AR and virtual reality companies in the world. PTC Inc. (NASDAQ:PTC) was founded in 1985. Vuforia AR, a platform by the company, enables users to make their own augmented reality products. The company also offers industrial augmented reality services which allow enterprises to transfer interactive digital information intermingled with the real world efficiently. The employees can better understand and implement instructions for various procedures received through augmented reality. PTC Inc. (NASDAQ:PTC) aims to provide the right augmented reality technology to every client based on their needs.
Hewlett Packard Enterprise Company (NYSE:HPE) is based in Texas. HP Reveal, a platform by Hewlett Packard Enterprise Company (NYSE:HPE), enables users to experiment and create unique augmented reality experiences by engaging various animations, overlays, and sounds. HP Reverb G2 and HP Reverb G2 Omnicept Edition VR headsets offer a hyper-realistic virtual reality experience. These VR headsets also provide data-driven insights based on natural user responses for businesses to better develop software.
16. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Market Cap: $23.53 billion
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is an American company based in New York City. The company was founded in 1993 by Ryan Brant. It is a leading name in immersive entertainment and owns two major publishing labels, Rockstar Games and 2K. The company has launched many extended reality games under these labels. L.A. Noire: The VR Case Files under Rockstar Games is one of the top-rated virtual reality experiences in the gaming industry. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is one of the best stocks for investing in the metaverse.
ANSYS, Inc. (NASDAQ:ANSS) has its headquarters in Pennsylvania. It is one of the biggest AR and virtual reality companies in the world. ANSYS, Inc. (NASDAQ:ANSS) offers products that enable users to make their own augmented and virtual reality worlds. They have several optical simulation products like Ansys Speos and Ansys Zemax OpticStudio that provide information based on human visual perception. These optical simulation products are used in the development of augmented and virtual reality products.
Baidu, Inc. (NASDAQ:BIDU) is a Chinese search engine. The company in December 2021 launched its metaverse named Xi Rang. Xi Rang provides developers with the tools to make their own metaverse applications. In addition to being one of the biggest augmented reality and VR companies in the world, Baidu, Inc. (NASDAQ:BIDU) is also one of the best metaverse stocks to invest in.
Nintendo Co., Ltd. (OTC:NTDOY) is one of the biggest AR and virtual reality companies in the world. Extended reality has found its way into the gaming industry, and the company is exploring that. Nintendo Switch Joy-Con is a popular product by Nintendo Co., Ltd. (OTC:NTDOY) that provides users with an immersive augmented reality experience.
KLA Corporation (NASDAQ:KLAC) enables users to develop augmented reality solutions for customer servicing. Their specialty semiconductors, PCB, and FFPD are used in the manufacturing of augmented and virtual products. KLA knowledge network provides virtualized training and certifications. KLA Corporation(NASDAQ:KLAC) is reinventing training by using augmented reality to accelerate proficiency. It is also working to bring mixed reality support to the mainstream that would enable quick response to customer needs using augmented reality.
Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) are some of the most noteworthy companies developing extended reality products.
Sony Group Corporation (NYSE:SONY) is a Japanese multinational platform that designs and sells consumer electronics products and owns video game development platforms. The company is headquartered in Tokyo, Japan. PlayStation VR headset is a very significant extended reality product by the company. It is one of the biggest augmented reality and VR companies in the world. Sony Group Corporation (NYSE:SONY) is also among the list of best virtual reality stocks.
Qualcomm Incorporated (NASDAQ:QCOM) is an American multinational company. In September 2022, Qualcomm Incorporated (NASDAQ:QCOM) joined forces with Telefónica catalyzing its journey to become the leading name in extended reality and metaverse. The Snapdragon Spaces is a platform by the company that enables developers to create immersive experiences for augmented reality glasses. They also offer reference designs like Wireless AR Smart Viewer that enable companies to develop augmented reality glasses and products seamlessly.
Texas Instruments Incorporated (NASDAQ:TXN) manufactures various products to develop extended reality technology. Texas Instruments Incorporated (NASDAQ:TXN) offers a variety of reference designs for companies to develop their own virtual reality headsets and augmented reality glasses. It has partnered with companies like Microsoft Corporation (NASDAQ:MSFT) and Qualcomm Incorporated (NASDAQ:QCOM) to improve AR/VR technology further.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American company specializing in computer hardware. Ryzen CPUs and its Radeon GPUs are completely compatible with extended reality tech and applications. LiquidVR is another service Advanced Micro Devices, Inc. (NASDAQ:AMD) provides which enables users to make their own virtual reality platforms.
Adobe Inc. (NASDAQ:ADBE) has some of the most widely used picture and video editing software. Adobe Aero, released in 2020, enables users to create and deploy AR/VR experiences for mobile devices. Adobe Inc. (NASDAQ:ADBE) is providing an immersive storytelling experience through its extended reality products.
Meta Platforms, Inc. (NASDAQ:META) is investing heavily in designing augmented and virtual reality solutions and products. The company launched its Meta Quest headset, which offers one of the best immersive experiences. They are working to develop extended reality products further and invest heavily in them.
Companies that are leading the augmented reality and virtual reality industry include none other than tech kingpins Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT).
