According to a new report from research firm Markets and Markets, the augmented reality and virtual reality market will reach $1.06 billion in 2018, with a compounded annual growth rate of more than 15 percent.
The immersive virtual reality market specifically is projected by reach $408 million by 2018.
“The major driving forces of augmented reality technology and virtual reality are the advancement and in computer technology and internet connectivity,” the company said in its announcement.
The increased demand in virtual reality and augmented reality application in healthcare industry in particular will be a major driver of growth, according to the report.
Major players identified in this report include augmented reality device manufacturers Qualcomm, Metaio, and Vuzix, and virtual reality hardware companies Eon Reality and OculusVR, Inc., which was recently purchased by Facebook for $2 billion.