AR and VR in Education Market To Hit USD 75 Billion by 2033

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Apr 1, 2024

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Introduction

The AR and VR in Education Market is undergoing a significant transformation and is expected to grow from USD 11.9 billion in 2023 to around USD 75 billion by 2033, with a Compound Annual Growth Rate (CAGR) of 20.26% during the forecast period. The growth is indicative of the expanding role of immersive technologies in educational settings, offering novel ways to engage learners and enhance the educational experience.

Several factors contribute to this upward trajectory. The adoption of AR and VR technologies in education is driven by their ability to make learning more interactive and engaging, thereby improving students’ understanding and retention of knowledge. These technologies are particularly effective in providing immersive experiences for complex subjects, facilitating a deeper understanding of the material.

The COVID-19 pandemic has accelerated the integration of AR and VR into education, with remote learning becoming the norm for many. This shift has prompted educational institutions and tech companies to invest more heavily in these technologies, recognizing their potential to revolutionize the way educational content is delivered and consumed.

In the realm of AR/VR in education, significant corporate movements are underway, underscoring the sector’s dynamism and growth potential. For instance, zSpace, an AR/VR provider for the K-12 education market, announced its plan to go public by merging with EdtechX Holdings Acquisition Corp. II, a special purpose acquisition company (SPAC) focused on education and workforce development. This move aims to deepen zSpace’s presence in the U.S., enhance its product offerings, and broaden its geographic reach, illustrating the significant investment and interest in the AR/VR educational space.

Another notable development is the acquisition of Spectrum AMT by Ocutrx Technologies, a developer of medical devices utilizing AR, XR (extended reality), and AI (artificial intelligence). This acquisition represents the continued expansion and integration of AR technologies into various educational and training sectors, highlighting the versatility and utility of AR/VR solutions beyond traditional classroom settings.

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Key Takeaways

  • The global augmented and virtual reality in education market is forecasted to reach a substantial value of USD 75 billion by 2033, reflecting a robust CAGR of 20.26% from 2024 to 2033.
  • By 2024, it is projected that over 40% of K-12 schools in the US will incorporate AR/VR technologies, marking a significant increase from less than 20% in 2022, indicating a growing recognition of their benefits in enhancing the learning experience.
  • An overwhelming 93% of teachers express the belief that VR would be beneficial in classroom teaching, underlining strong support for immersive technologies in education.
  • The revenue generated by education-focused VR software is anticipated to surpass USD 300 million globally by 2024, compared to approximately USD 120 million in 2022, indicating a substantial growth trajectory driven by increasing demand for tailored VR solutions in education.
  • European VR education startups are poised to experience a 30% increase in funding between 2023 and 2024, reflecting sustained confidence in the potential of VR in education.
  • It is estimated that by 2024, over 60% of US colleges will offer at least one VR-based course, compared to less than 30% in 2022, highlighting the growing recognition of VR’s value in higher education for immersive and interactive learning experiences.
  • Additionally, by 2024, 70% of community colleges are expected to utilize VR for career training programs, a significant increase from 20% in 2019, aiming to broaden access to immersive learning opportunities for a wider range of students.
  • 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 dominated the market in 2023, holding more than a 71% share, owing to its scalability, flexibility, and cost-effectiveness in deploying AR/VR applications.
  • North America led the augmented and virtual reality in the education sector in 2023, with over 35% market share, driven by robust technological infrastructure, substantial investments, and proactive adoption by educational institutions.
  • The Higher Education segment emerged as the dominant player in the market, capturing a significant market share of over 39% in 2023, driven by the increasing recognition of the value of immersive technologies in tertiary education and the inclination towards adopting innovative technologies.

AR and VR in Education Statistics

  • High Student Interest: 97% of students show interest in VR courses, underlining the strong appeal of immersive educational experiences.
  • Investment Potential: Education is expected to become the fourth largest sector for VR investments, indicating significant financial support.
  • Gap in Technology Use: Although nearly 80% of teachers have access to VR devices, only 6.87% regularly use them in their teaching, suggesting a gap in technology integration.
  • Teacher Support for VR: 93% of teachers believe their students would be excited about using VR in the classroom.
  • Educational Experience Enhancement: 70% of teachers are interested in using VR to simulate experiences relevant to classroom material.
  • Public Awareness: 92% of U.S. respondents are familiar with “Virtual Reality”, showing widespread awareness.
  • Willingness to Invest: There’s a growing willingness among individuals to purchase VR gear, indicating readiness for technology adoption.
  • Popular Use in Education: VR technology’s integration into education ranks as the fourth most popular VR application.
  • VR Device Shipments: About 4 million VR devices were shipped for educational purposes in 2020, highlighting increasing usage in education.
  • Educational Value Recognition: 54% of teachers integrated VR into their classrooms in 2018, and 94% believe VR would benefit their students.
  • Learning Outcomes: Students using VR for studying achieved higher test scores by 83%, with learning up to 2.3 times more effective compared to traditional methods.
  • Home Usage: Approximately 15% of American households own VR devices, indicating a potential for classroom integration.
  • Future Sales: By 2028, global VR headset sales are estimated to reach 27.25 million units.
  • Mainstream Adoption: About 20% of U.S. adults have experienced VR technology, showing its broader societal integration.
  • Usage Frequency: Only 28% of VR headset owners use their devices daily, with 39% using them weekly.
  • Brand Investment: 75% of Forbes World’s Most Valuable Brands have invested in AR/VR experiences, signifying strategic importance.
  • Job Support: XR technology currently supports around 80,000 jobs, with expectations to reach 2.3 million roles by 2030.
  • Training Effectiveness: VR training increases learning effectiveness by 76% and helps employees train four times faster.
  • Confidence and Engagement: Learners report up to a 275% increase in confidence and four times more focus during VR training sessions.
  • Healthcare Training: Surgeons trained with VR make 40% fewer mistakes, and VR safety training in mining has led to a 43% reduction in lost time due to injuries.

Use Cases

  • Elementary and Secondary Education: AR is transforming traditional subjects by making learning more interactive. For example, geography lessons are enhanced with AR sandboxes in classrooms, enabling students to understand topographical changes in real-time, thus deepening their grasp of geography and environmental sciences.
  • Higher Education: In universities, AR and VR are being utilized to supplement traditional teaching methods. Medical education, for instance, benefits from AR simulations that allow students to explore complex medical conditions safely. This innovative approach offers invaluable insights into mental health and improves diagnostic and treatment methods.
  • Vocational and Technical Training: AR and VR are revolutionizing technical skills training by enabling learners to practice hands-on skills in a safe, controlled environment. Welding programs, for example, use AR to allow students to practice and refine their welding techniques with real-time feedback, thus accelerating the learning process while enhancing safety and reducing material waste.
  • Professional Development: Educators are leveraging AR for Teacher Professional Development (TPD), engaging in interactive learning experiences that enhance teaching skills and knowledge. Through AR simulations, teachers can explore scenarios, practice strategies, and receive instant feedback, thereby improving their instructional abilities.
  • Immersive Learning for Diverse Learning Styles: AR and VR technologies support inclusive education by catering to students with different learning styles and needs, including those with learning disabilities. By providing access to material in immersive formats, these technologies help create a more engaging and absorbing learning environment.
  • Enhancing Focus and Reducing Distractions: The captivating nature of VR and AR can help mitigate the effects of decreased attention spans by offering immersive learning experiences. This is particularly beneficial for younger learners, who are more susceptible to distractions in traditional learning settings.
  • Speeding Up Learning Processes: VR and AR technologies can significantly reduce learning times by immersing students in environments that offer direct interaction with the subject matter. For instance, virtual field trips to inaccessible archaeological sites or deep-sea explorations offer hands-on learning experiences that are both effective and time-efficient.
  • Promoting Inclusivity and Accessibility: By providing educational resources in affordable and accessible formats, AR and VR technologies help bridge the gap between students from varied socioeconomic backgrounds. They also support students with special needs by improving focus and offering personalized learning experiences.

Key Players Analysis

Meta

Meta, previously known as Facebook, is making substantial strides in the Augmented and Virtual Reality (AR/VR) in education sector. Through initiatives like Meta for Education, the company is dedicated to transforming learning experiences by equipping educators with immersive technology. This includes enhancing vocational training and fostering lifelong learning opportunities. Meta’s vision involves leveraging metaverse technologies to revolutionize school lessons, allowing educators to enrich their curriculums with engaging immersive content. Furthermore, professional development courses and training are offered to educators to help them gain new skills for creating curriculum and content within the metaverse.

In its broader ambition, Meta envisions learning in the metaverse as a blend of virtual and physical spaces, breaking down traditional barriers in education. This approach aims to make learning a more accessible, engaging, and effective experience by utilizing AR and VR technologies. The pandemic’s push towards online learning has only accelerated the adoption of such immersive learning models, paving the way for a hybrid approach that complements in-person learning with online and simulated environments. Meta is committed to building an ecosystem to support this new era of learning, focusing on developing AR/VR creators, transforming educational methodologies, and increasing access to education through technology.

Meta’s progress in AR and VR technology has been marked by innovations like the Meta Quest Pro, which introduced mixed reality capabilities and advanced optical systems designed to enhance immersive experiences. The company envisions these technologies playing a crucial role in educational content delivery, offering learners the ability to interact with 3D objects and explore subjects in depth that would be impossible using traditional methods. As Meta continues to invest in and develop these technologies, the potential for transforming the educational sector grows, promising a future where learning is more interactive, engaging, and inclusive.

Microsoft Corporation

Microsoft Corporation is revolutionizing the education sector with its HoloLens 2 technology, providing immersive learning experiences that help students understand complex concepts in 3D. By incorporating hands-on lesson plans and holographic instructions, HoloLens 2 enhances learning outcomes and supports hybrid teaching methods. This technology has been shown to significantly improve knowledge retention and accelerate learning, making education more interactive and engaging. Microsoft’s work in augmented and virtual reality demonstrates a commitment to advancing educational methodologies through innovative immersive experiences.

Magic Leap, Inc.

Magic Leap, Inc. has innovated in the augmented reality (AR) sector, particularly with its Magic Leap One headset, integrating 3D computer-generated imagery with real-world objects. Founded in 2010, the company aimed to revolutionize AR with advanced technology and significant backing, including from Google and Alibaba. Its focus extends into the educational sector, leveraging AR to enhance learning by overlaying digital content onto the physical world, thereby creating immersive learning experiences.

Sony Group Corporation

Sony Group Corporation has collaborated with Niantic, Inc., known for AR mobile games like “Pokemon GO,” to explore the auditory AR field specifically for headphones. This partnership aims to create an immersive gaming experience that utilizes Sony’s audio technology alongside Niantic’s AR technology, promising a new kind of AR experience that goes beyond visual AR to include auditory elements. The first initiative under this collaboration is to release “Ingress” with auditory AR capabilities through Sony’s LinkBuds headphones.

HTC Corporation

HTC Corporation has made significant contributions to augmented and virtual reality (AR/VR), particularly in the education sector through its VIVE platform. Their offerings include a range of VR headsets and accessories designed to provide immersive learning experiences. With these tools, HTC aims to transform how educational content is delivered and experienced, making learning more interactive and engaging.

Vuzix Corporation

Vuzix Corporation, founded in 1997, specializes in wearable virtual and augmented reality display technology. They produce head-mounted displays marketed for mobile and immersive augmented reality applications, including 3D gaming, manufacturing training, and military equipment. Their products, like the M100 Smart Glasses, M300 Smart Glasses, M400 Smart Glasses, and Blade Smart Glasses, highlight Vuzix’s commitment to enhancing AR experiences across various sectors.

Lenovo

Lenovo has launched the ThinkReality VRX, an all-in-one virtual reality headset designed for enterprise applications such as immersive training, collaboration, and 3D design. This headset, aimed at the enterprise metaverse, is supported by cloud software, security features, and services to facilitate business integration and ROI realization. It’s built for comfort and extended use with a slim profile, pancake optics, and high-resolution pass-through capabilities for mixed reality applications.

Samsung

Samsung is leveraging augmented and virtual reality (AR/VR) technologies to transform personalized learning. These technologies offer immersive, real-world simulations that enhance engagement and understanding, enabling personalized educational experiences that cater to individual learner’s needs and pace. By providing vivid, interactive environments, AR and VR in education promote deeper comprehension and retention, underscoring Samsung’s commitment to advancing educational methods through innovative technology.

Conclusion

the AR/VR in Education Market is poised for significant growth, supported by technological advancements, a push for more engaging educational experiences, and the global shift towards digital learning. Despite facing challenges related to costs and infrastructure, the potential for AR and VR to transform education is vast, offering opportunities for students and educators alike to reimagine the learning process in an increasingly digital world.

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Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.