India Augmented Reality and Virtual Reality Market is Expected to grow at a robust CAGR of 23.24% through 2031F
The India Augmented Reality
and Virtual Reality market is driven by rising digital adoption, expanding
gaming and entertainment sectors, immersive learning solutions, and increasing
enterprise investments in simulation, training, and customer engagement technologies.
According to TechSci Research
report, “India Augmented
Reality and Virtual Reality Market – By Region, Competition, Forecast &
Opportunities, 2031F, The India Augmented Reality and Virtual Reality
Market was valued at USD 60.55 Billion in 2025 and is expected to reach USD
214.05 Billion by 2031 with a CAGR of 23.24% during the forecast period. The
India Augmented Reality (AR) and Virtual Reality (VR) market is witnessing
strong momentum, largely fueled by the rapid expansion of the country’s digital
ecosystem and the growing adoption of immersive technologies across diverse
industry verticals.
As enterprises, government
bodies, and consumers embrace digital transformation at an accelerated pace, AR
and VR are emerging as critical enablers of innovation, efficiency, and
customer engagement. This transformation is driven by advancements in connectivity,
rising smartphone penetration, increasing affordability of AR/VR devices, and
the growing integration of these technologies with cloud, artificial
intelligence, and Internet of Things (IoT) platforms.
One of the primary drivers
for AR and VR adoption in India is the demand for enhanced customer experience
and engagement. Sectors such as retail, real estate, and entertainment are
leveraging AR and VR to deliver personalized, immersive experiences that help
consumers visualize products, interact virtually with environments, and make
better-informed decisions. For instance, real estate developers are using VR
platforms to showcase property walkthroughs, while e-commerce companies are
integrating AR to enable virtual try-ons of apparel, furniture, and
accessories. This not only enhances customer satisfaction but also reduces
return rates and strengthens brand loyalty.
The education and training
sectors are also fueling growth in the AR/VR space. With India’s focus on
digital learning and skill development, immersive technologies are being
integrated into classrooms, vocational training, and corporate learning
programs. AR-based interactive content and VR-enabled simulations make complex
subjects more engaging and accessible, while also providing hands-on learning
experiences in a risk-free environment. This is particularly valuable in
sectors such as healthcare, aviation, and manufacturing, where VR training
modules can replicate real-world scenarios, allowing trainees to practice
procedures and operations with precision and safety.
Healthcare is another
critical area driving AR/VR adoption in India. Medical professionals are
increasingly leveraging VR for surgical training, patient education, and
treatment planning, while AR is being used in diagnostic imaging and real-time
guidance during complex procedures. The integration of AR/VR with telemedicine
platforms is also enabling remote consultations and therapies, which is
particularly impactful in rural and underserved regions of India. These
applications are not only improving healthcare delivery but also contributing
to the overall quality and accessibility of medical services.
The growth of India’s gaming
and entertainment industry further amplifies the AR/VR market potential. The
rise of e-sports, interactive gaming platforms, and immersive content
consumption is creating strong demand for AR/VR devices and applications. Content
creators, production houses, and streaming platforms are investing heavily in
immersive experiences to capture the attention of a digitally savvy audience.
This trend is further supported by the rollout of high-speed 5G networks, which
enhances the performance and scalability of AR/VR applications by reducing
latency and enabling real-time interactivity.
Additionally, the Indian
government’s initiatives promoting digitalization, innovation, and smart
infrastructure are playing a pivotal role in supporting AR/VR adoption.
Policies encouraging startups, technology incubators, and skill development
programs are fostering an innovation-driven ecosystem. Collaborations between
global technology leaders and Indian enterprises are further accelerating the
development of AR/VR applications tailored for local needs.
In summary, the India AR and
VR market is being driven by the convergence of digital transformation,
consumer demand for immersive experiences, advancements in connectivity, and
industry-wide applications across education, healthcare, retail, and entertainment.
As affordability improves and technology ecosystems mature, AR and VR are set
to become integral components of India’s digital growth story, unlocking new
opportunities for enterprises and creating enhanced value for consumers.
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Based on the End-User, Consumer
Electronics segment held the largest Market share in 2025. The consumer electronics segment is playing a
pivotal role in driving the growth of the Augmented Reality (AR) and Virtual
Reality (VR) market in India. The increasing penetration of smartphones,
tablets, and wearable devices has significantly expanded the scope of AR and VR
applications, making immersive technologies more accessible to consumers. With
India being one of the world’s largest smartphone markets, the availability of
AR/VR-enabled devices at competitive price points has created a strong foundation
for growth. As hardware capabilities such as high-resolution displays, powerful
processors, and advanced graphics improve, consumer electronics are becoming
the primary enablers of seamless AR and VR experiences.
One of the major drivers in
this segment is the rising demand for immersive entertainment. Indian consumers
are increasingly embracing AR- and VR-powered gaming experiences, as well as
interactive content in video streaming and social media platforms. Global
gaming companies and local developers are integrating AR and VR features into
mobile and console-based games, fueling adoption among younger demographics.
This trend is further supported by the expansion of affordable VR headsets, AR
glasses, and smartphone-based viewers, which allow consumers to enjoy immersive
experiences without heavy upfront investment. The growing popularity of
e-sports and online gaming communities in India also contributes to sustained
demand for AR/VR-enabled consumer electronics.
Another critical factor
driving growth is the adoption of AR and VR in e-commerce and retail through
consumer devices. Leading online marketplaces and retailers are increasingly
offering AR-enabled features that allow customers to virtually try on products,
visualize furniture or décor in their homes, and test how electronic gadgets
would look or fit before purchase. These innovations are reshaping the consumer
buying journey by providing convenience and enhancing decision-making. With the
rapid growth of India’s e-commerce sector and increasing trust in digital
shopping platforms, AR and VR technologies in consumer electronics are emerging
as valuable tools for both businesses and end-users.
Education and learning are
also contributing to this market driver. The rise of affordable tablets,
smartphones, and VR headsets is enabling students to access immersive learning
content that enhances comprehension and engagement. Virtual field trips, 3D
simulations, and interactive science experiments delivered via consumer
electronics are redefining traditional education models. In India, where
digital learning adoption surged after the pandemic, AR and VR tools are
gaining acceptance as complementary technologies that enhance accessibility and
knowledge retention. This is particularly impactful in regions with limited
access to physical educational infrastructure.
Healthcare-related
applications of consumer electronics also play a role in market expansion.
AR-enabled apps on smartphones and VR headsets are being used for mental health
therapies, fitness training, and patient engagement. Consumers are increasingly
exploring these solutions for wellness, rehabilitation, and lifestyle
improvements. The integration of AR and VR with wearable devices such as
smartwatches further extends the scope of personalized healthcare, aligning
with the growing demand for proactive health management.
Additionally, government
initiatives supporting digital transformation and the proliferation of 5G
connectivity are amplifying this market driver. Faster internet speeds and
lower latency enable smoother AR and VR experiences on consumer electronics,
making immersive technologies more practical for mass adoption. With telecom
providers rolling out 5G services across urban and semi-urban regions, AR and
VR applications in entertainment, commerce, and education will become more
widespread, driving sustained demand.
In conclusion, the consumer
electronics segment is a critical driver of the India AR and VR market. The
rapid adoption of smartphones, VR headsets, AR glasses, and wearables is
expanding access to immersive experiences across entertainment, retail, education,
and healthcare. Rising affordability, improved hardware performance, and the
expansion of 5G are further accelerating adoption. With Indian consumers
increasingly seeking interactive, personalized, and engaging digital
experiences, AR and VR technologies integrated into consumer electronics are
set to transform everyday life, creating significant growth opportunities for
the market.
Based on region, North India
is emerging as the fastest-growing region in the India Augmented Reality (AR)
and Virtual Reality (VR) market, driven by a concentration of IT hubs,
educational institutions, and enterprise headquarters in cities such as Delhi,
Gurugram, and Noida. The region is witnessing accelerated adoption of AR/VR
solutions for training, simulation, remote collaboration, and interactive
customer experiences. Growing investments in digital transformation, smart
classrooms, healthcare technology, and immersive retail solutions are further
fueling demand. Additionally, government initiatives supporting technology
innovation, coupled with the proliferation of 5G and high-speed connectivity,
position North India as a strategic growth hub for AR/VR adoption.
Key market players in the India
Augmented Reality and Virtual Reality Market are: -
- Tata Elxsi
- Infosys Limited
- Tech Mahindra
- Wipro Limited
- HCL Technologies
- Zensar Technologies
- Reliance Jio (Tesseract
Division)
- Imaginate Technologies
- SmartVizX
- PlayShifu
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“The India Augmented Reality
and Virtual Reality Market is expected to rise in the upcoming years and
register a significant CAGR during the forecast period. The India Augmented
Reality (AR) and Virtual Reality (VR) market is positioned for significant
growth, driven by increasing adoption across education, healthcare, retail,
real estate, and entertainment sectors. Rising demand for immersive training,
simulation, and remote collaboration solutions is accelerating market
expansion, particularly as enterprises pursue digital transformation
initiatives. E-commerce platforms are leveraging AR for virtual try-ons and
interactive shopping experiences, while the gaming and media industries
continue to drive VR adoption. Coupled with government-led digital innovation
initiatives, growing smartphone penetration, and 5G deployment, the focus on
scalable, cost-efficient, and localized AR/VR solutions presents substantial
business opportunities. Therefore, the Market of Augmented Reality and Virtual
Reality is expected to boost in the upcoming years.,” said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based management consulting
firm.
“India Augmented Reality and Virtual Reality Market, By Product Type (Head Mounted Display, Handheld Device Applications, Smart Glass, and Head Up Display), By Organization Size (Small & Medium Sized Enterprises, Large Enterprises), By End-User (Consumer Electronics, Automotive, Healthcare, Manufacturing, Defense, and Others), By Region, Competition, Forecast & Opportunities, 2021-2031F,” has evaluated the future growth potential of India Augmented Reality and
Virtual Reality Market and provides statistics & information on
market size, structure, and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in India Augmented
Reality and Virtual Reality Market.
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