U.S. AR/VR Market to Hit $134.76B by 2030, Driven by Gaming & Tech Innovation
The U.S. AR/VR market is expanding rapidly, driven by immersive tech adoption across gaming, healthcare, retail, and enterprise applications.
WILMINGTON, DE, UNITED STATES, November 20, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market U.S. Augmented and Virtual Reality Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component (Solution, Services and Connectivity Type), Application (Consumer and Enterprise), Enterprise Size (Large Enterprises and Small & Medium Sized Enterprises (SMEs)), and Industry Vertical (Gaming, Entertainment & Media, Aerospace & Defense, Healthcare, Manufacturing, Retail, Education, and Others): Opportunity Analysis and Industry Forecast, 2021-2030, The U.S. augmented and virtual reality market size was valued at $4.39 billion in 2020, and is projected to reach $134.76 billion by 2030, registering a CAGR of 41.6% from 2021 to 2030.
The U.S. Augmented and Virtual Reality (AR/VR) market has emerged as one of the fastest-growing technology segments, driven by increasing consumer demand for immersive digital experiences. With advancements in hardware, improved processing power, and widespread smartphone integration, AR and VR are becoming more accessible across industries. Companies are leveraging these technologies to enhance interaction, engagement, and productivity in various applications.
Additionally, the growing investment from tech giants, startups, and government initiatives supporting digital transformation is accelerating market expansion. AR/VR solutions are increasingly being utilized in training, simulation, entertainment, healthcare, and industrial applications, reshaping how users interact with the digital and physical world. This surge in adoption positions the U.S. as a global leader in AR/VR innovation and commercialization.
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The primary driver of the U.S. AR/VR market is the rapidly rising demand for immersive gaming and entertainment experiences. Consumers are increasingly seeking realistic simulations and interactive environments, prompting game developers and device manufacturers to launch advanced AR/VR platforms with improved motion tracking, haptic feedback, and visual clarity.
In healthcare, AR/VR is transforming medical training, remote surgeries, mental health therapy, and patient education. The need for precise, interactive, risk-free medical simulations has accelerated the adoption of AR/VR tools in hospitals and medical institutions. This has resulted in significant investments in specialized headsets and AR software tailored for medical use.
The corporate sector is also witnessing strong AR/VR adoption, particularly for training, remote collaboration, and workforce development. Enterprises are using these technologies to reduce training costs, enhance employee skillsets, and improve operational efficiency. VR-based virtual workspaces and AR-assisted remote support have become essential tools in the modern hybrid workplace.
Retailers are integrating AR technology to enhance online and in-store experiences through virtual try-on solutions, 3D product visualization, and interactive displays. These solutions are helping brands reduce product returns, improve customer satisfaction, and boost conversion rates in highly competitive retail environments.
Despite strong growth, the market faces challenges such as high device costs, limited content availability, and user discomfort during prolonged use. However, ongoing R&D, miniaturization of devices, and advancements in display technology are expected to reduce these barriers, strengthening long-term market potential.
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The U.S. AR/VR market is segmented by type (hardware, software, and services), device type (head-mounted displays, smart glasses, handheld devices), and application (gaming, healthcare, education, retail, automotive, manufacturing, and others). Hardware currently dominates with strong demand for HMDs and smart glasses, while software is expected to grow rapidly due to expanding AR/VR content ecosystems and enterprise application development.
By industry vertical, the gaming segment accounted for the largest share of the U.S. augmented and virtual reality market and is expected to retain its lead in the coming years. This is driven by the rising adoption of advanced gaming technologies, including virtual reality, augmented reality, and enhanced 3D and 4D graphics. AR/VR enhances video-graphic applications with real-time motion creation, improved environment and lighting effects, photo-realistic pack shots, noise reduction, and highly realistic visuals—factors that continue to attract youth seeking immersive gaming experiences. Meanwhile, the healthcare segment is poised for the fastest growth due to the increasing need for advanced medical procedures such as ultrasound probe visualization and internal anatomy mapping. In addition, members of the VR & AR Association’s digital health committee report that hospitals are expanding budgets for clinical simulation centers, enabling greater investment in VR/AR equipment. Collectively, these factors are expected to significantly drive market growth during the forecast period.
By component, the solution segment dominated the market and is anticipated to sustain this trend as major players introduce innovative features integrated with virtual meeting software, expanding the scope of AR/VR applications. However, the services segment is projected to experience the highest growth, supported by the rising demand for service offerings that ensure the smooth and efficient operation of AR/VR platforms throughout implementation and usage.
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The U.S. AR/VR market is primarily concentrated in regions with strong technology ecosystems, such as the West Coast, where Silicon Valley leads development through major players including Meta, Google, Apple, and numerous startups. The presence of advanced R&D facilities, high digital literacy, and a strong investor network supports continuous innovation in AR/VR solutions.
The East Coast and Midwest are also gaining momentum, especially in enterprise, healthcare, and manufacturing applications. States like New York, Massachusetts, Illinois, and Michigan are adopting AR/VR technologies for retail innovation, medical research, and industrial automation. As adoption spreads across sectors and regions, the U.S. is projected to maintain its leadership in the global AR/VR market.
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The key players profiled in the U.S. AR/VR market analysis are Apple Inc., Cyberglove Systems, Inc., Facebook Technologies, LLC (Oculus), Google, Inc. Intel Corporation, Magic Leap, Inc., Microsoft Corporation, Niantic, Inc., PTC and Sixense Enterprises, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the U.S. augmented and virtual reality industry.
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• By component, the solution segment accounted for the largest U.S. augmented and virtual reality market share in 2020.
• By application, the healthcare segment is expected to attain significant growth during the forecasted period.
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