AR VR in Hospitality Market to Grow at over 30% through 2028
Published | 10 March 2022
The growing emphasis on offering more engaging and immersive travel and hospitality experience to customers has enabled a growing demand for AR and VR devices across some of the travel-driven economies. It has thus resulted in propelling the growth of the global AR VR in the hospitality market. In addition to this, the government is allocating a growing number of investments to uplift the travel, tourism and hospitality segments of their respective countries for providing a due push to the sector, which is fueling the growth and adoption of more technologies in such sector, thereby enabling opportunities for incorporation of AR and VR devices, thus positively impacting the growth of the global AR VR in the hospitality market…
A study recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global AR VR in the hospitality market is expected to grow at a CAGR of 34.2% during the forecast period (2022-2028). The rising number of tourist arrivals coupled with the growing investments by the governments to push the hospitality industry have been positively impacting the adoption of the latest technologies like AR and VR.
Rising inclination of some travel driven economies to adopt VR technology in tourism is driving the global AR VR in hospitality market
The rising dependence over the hospitality segments across some of the developing and emerging countries like Maldives, Macao, Aruba, Thailand, and others, have called for a growing number of investments in such sectors. The growing penetration of Metaverse-like technologies and the aim to augment it to that of the hospitality segment for some companies have enabled opportunities for the incorporation of VR and AR devices across these countries. Some travel-driven economies have even started adopting such technologies to attract more tourists to their destinations, thereby enabling a higher demand from such countries. For instance, in December 2020, Maldives Marketing and Public Relations Corporation (MMPRC) announced that the company signed an agreement with Visit Maldives Initiative to offer a 360-degree VR capability tour to its potential tourists. Such initiatives have bolstered the growth of the global AR VR in the hospitality market.
Increasing tourism expenditures to create immersive experiences have enabled higher demand for the AR VR devices
There is a rising trend in international tourism that has been recorded for the past few years, which has resulted in growing tourism expenditure across the world. According to the World Bank, the United States registered its international tourism soaring from USD 176.8 billion (2018) to USD 186.0 billion (2019). In addition to this, France witnessed an increase of USD 600 million in international expenditure for the same period. It is demonstrating a transformation that may bring about the change in technologies used in the tourism industry across the world. The AR capabilities have been found to create a more immersive travel and dining experience as it enables higher interactivity, provides more engaging views, and interfaces for tackling language barriers, which has even provided real-time information for offering a convenient journey. It has resulted in driving the demand for AR and VR devices across the tourism sector, which is positively impacting the growth of the global AR VR in the hospitality market.
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Visualization sub-segment occupied largest share in the application category of global AR VR in hospitality market
Based on the application, the global AR VR in the hospitality market has been segmented into documentation, 3D modeling, visualization, workflow optimization, navigation, and others. The visualization segment acquired the largest share in the global AR VR in the hospitality market in 2021. Since AR and VR have assisted in experiencing the next generation's visualization capabilities, they have made it possible to peek into the experience of travel tours, resorts, and other hospitable locations to enhance the way travelers roam in touristy places. The technologies have enabled a higher level of visualization to enable a more immersive experience for the travelers, and assist them in identifying the hidden gems of some places, negative and positive aspects of certain locations even more thoroughly, thus offering an extensive view and transforming the way that a tour takes place. It has been garnering attention all over the world, which has propelled the demand for such VR and AR devices, thereby driving the growth of the global AR VR in the hospitality market.
Global AR VR in Hospitality Market: Regional Insights
The global AR VR in the hospitality market is categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. Europe region held the largest share in the global AR VR in the hospitality market in 2021. According to the World Bank International tourism statistics, France stood at the top when it comes to the number of tourists visiting a country. It stated that France registered a hike from 211 million tourists in 2018 to 217 million in 2019, and fell to 117 million arrivals in 2020. Such a statistic translates into a growing number of tourists across the country, which is propelling the demand for more robust tech technologies to cater to the demands of the people and enable more extensive and memorable experiences for their tourists, which is driving the demand for AR and VR devices across the country, thereby driving the growth for global AR VR in the hospitality market.
COVID Impact Analysis - Global AR VR in Hospitality Market
The COVID-19 pandemic negatively impacted the growth of the global AR VR in the hospitality market. According to the Tourism Statistics released by respective governmental authorities, France witnessed a decline of 46.2% in tourist arrivals from 2019 to 2020. On the other hand, the United States recorded a fall of 72.8% in tourist arrivals from 2019 to 2020. It completely hampered the growth of the tourism allied sectors including travel guides, resorts, hotels, restaurants, and others, which substantially impacted the growth of technologies as they come with higher implementation costs. It resulted in reduced adoption of VR and AR technologies and hotels started resorting to conventional methods. However, the demonstrations related to AR technology have presented excellent results in diminishing the number of hands that could have been used in the documentation while registering for dining and hotels, which has helped in reducing the spread of the virus. In addition to this, some countries like the U.S. and Maldives are delivering grants to uplift the travel and hospitality sector, which is anticipated to bring about a growth in adoption of the latest technologies to augment the travel tour of the customers, which is expected to propel the growth of the global AR VR in the hospitality market in the coming years.
The leading players in the global AR VR in hospitality market are Apple Inc., Google, LLC, EON Reality, Inc., Dell Technologies Inc., Barco N.V., HTC Corporation, Microsoft Corporation, Sony Corporation, Sega Corporation, Shanghai Lexiang Technology Co. Ltd (DPVR), and other prominent players. The global AR VR in the hospitality market is moderately consolidated owing to the reduced availability of some players that have been catering to the demands of the consumers across one particular sector of the industry.
In November 2021, DPVR (a Shanghai-based company with a specialization in virtual reality (VR) device manufacturing) announced that they are entering into a partnership with Travel Africa Network (TAN) (a South African international satellite travel channel) for serving as a VR technology provider and provide customized VR hardware as well as software services to TAN.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global AR VR in hospitality market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global AR VR in hospitality market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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