01 Increased Demand for Ar/vr Chips in the Gaming Sector The market expansion is attributable to increased demand for games based on augmented and virtual reality over the forecast period. In recent years, the number of gamers has rapidly increased. Video games are one of the most widely used augmented and virtual reality technology applications. Smartphone manufacturing companies are also integrating additional gaming features into their devices to enhance the overall user interface experience and remain ahead of their competitors in the market, using practical augmented and virtual reality-based solutions. In addition, augmented and virtual reality provide a useful, affordable alternative for training and skill development as it simulates real scenarios using technology-enabled platforms.For instance, using an actual aircraft to teach a civil or military aviation pilot is more expensive. It might cause harm to people. Augmented and virtual reality solutions provide a synthetic counterpart to the real world, facilitating the use of mental maps in comprehending and solving problems. It is also unethical and dangerous to train future medical professionals, such as nurses or doctors, on actual patients. As a result, solutions based on augmented and virtual reality offer useful tools for training medical personnel without endangering or compromising anyone's life. Such elements are anticipated to fuel the demand for AR/VR chips.
02 Increased Demand for Ar/vr Applications The demand for AR/VR chips is increasing due to the rising expenditures and R&D activity in various applications. The medical device, educational, and other industries benefit from new and enhanced capabilities through technological developments in AR/VR chip technologies. In addition, the technology may be utilized for teaching, patient monitoring, and surgical practice. For instance, to provide a live learning experience, the education technology start-up 3rdFlix secured about USD 5 million from Exfinity Ventures. This is anticipated to raise interest in virtual reality, encouraging students to embrace concept learning.
01 Lack of Knowledge in Developing Countries Developing countries, especially African countries, cannot use augmented and virtual reality technologies due to a lack of infrastructure development or technical knowledge. People in Africa are eager to use augmented and virtual training technologies in normal settings like education, manufacturing, healthcare, and other areas, according to a survey by Docebo. Regardless, a lack of adequate infrastructure prevents them from moving forward. The equipment cost is still exorbitant in certain nations, discouraging individuals from utilizing the technology and restraining market expansion.
01 Technological Innovations in Av/pr Collaborative seminars, meetings, public lectures, aviation training, military training, training for nurses and medical professionals, and self-learning processes are all possible using augmented and virtual reality technology. It is also projected that key businesses would focus on product innovation through ongoing investments in product development to deliver improved goods or solutions. In addition, numerous industries heavily rely on augmented and virtual reality technologies, including civil aviation, military and security, healthcare, digital manufacturing, education, and entertainment. However, major competitors in the AR/VR chip market are anticipated to focus on introducing solutions tailored to certain industries to increase their market share across various sectors, including mining, oil and gas, and transportation.
June 2026 Qualcomm launched Snapdragon START, a new platform initiative aimed at accelerating the development of AI-powered personal devices, including smart glasses. The program combines Snapdragon hardware modules, AI-ready software capabilities, and manufacturing support to help companies develop next-generation wearable computing products using Qualcomm-based chip solutions.
March 2026 NVIDIA expanded its XR ecosystem through integration of NVIDIA CloudXR technology with Apple Vision Pro, enabling RTX-powered immersive applications for professional use cases. The collaboration supported high-performance spatial computing applications, including digital twins, simulation, and industrial visualization, increasing demand for advanced graphics and AI processing chips used in AR/VR environments.
November 2025 MediaTek continued strengthening its semiconductor portfolio for extended reality and wearable computing applications through advanced low-power chip development. The company focused on improving processing efficiency, connectivity, and AI capabilities required for compact AR/VR devices.
October 2025 Samsung Electronics continued advancing XR device development initiatives through semiconductor and technology ecosystem investments. The company focused on integrating high-performance computing components and AI capabilities to support future extended reality hardware platforms.