Entertainment AR/VR SoC Market: Growth, Share, Competitive Insights & Forecast to 2030

The Business Research Company

The Business Research Company's Entertainment AR/VR SoC Market: Growth, Share, Competitive Insights & Forecast to 2030

Expected to grow to $8.51 billion in 2030 at a compound annual growth rate (CAGR) of 22.3%”

— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, February 20, 2026 /EINPresswire.com/ -- "The entertainment industry is rapidly evolving with technologies like augmented reality (AR) and virtual reality (VR) playing a pivotal role in creating immersive experiences. Central to this development is the system on a chip (SoC) technology, which integrates various components to deliver high-performance processing needed for these applications. Let’s explore the current market size, growth drivers, regional trends, and the future outlook for the entertainment AR and VR SoC market.

Strong Growth Patterns in the Entertainment AR and VR SoC Market Size
The entertainment augmented reality and virtual reality system on a chip market has witnessed remarkable growth recently. It is projected to increase from $3.12 billion in 2025 to $3.81 billion in 2026, registering a compound annual growth rate (CAGR) of 22.1%. This growth during the past years has been driven by the rising demand for immersive entertainment, expansion within gaming and media sectors, technological advancements in GPUs and AI accelerators, the increasing use of wearable and head-mounted displays, as well as early adoption of both standalone and tethered AR/VR systems.

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Looking ahead, the entertainment AR and VR SoC market is expected to continue this upward trajectory with even more rapid expansion. By 2030, the market size is forecasted to reach $8.51 billion, growing at a CAGR of 22.3%. Factors fueling this growth include the rising demand for premium immersive gaming experiences, the broader application of mixed and extended reality technologies, integration of cutting-edge wireless standards like 5G and Wi-Fi 6/7 into SoCs, growth in consumer media content creation, and adoption of energy-efficient yet high-performance SoC solutions. Key trends during this period will likely focus on optimizing power efficiency, reducing latency, supporting advanced graphics rendering, integrating sensor fusion and motion tracking, and increasing the use of SoCs in wearable devices and head-mounted displays.

Understanding the Role of Entertainment AR and VR System on a Chip
An entertainment augmented reality and virtual reality system on a chip is a sophisticated semiconductor platform designed for immersive digital entertainment. It enables high-speed processing, advanced graphics rendering, sensor fusion, motion tracking, and real-time rendering capabilities. These features contribute to delivering low-latency, energy-efficient, and highly responsive computing performance, which ultimately enhances the realism, interactivity, and overall experience quality of AR and VR entertainment applications.

View the full entertainment augmented reality (ar) and virtual reality (vr) system on a chip (soc) market report:
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Factors Boosting Demand in the Entertainment AR and VR SoC Market
One major driver propelling the entertainment AR and VR SoC market is the growing adoption of augmented reality technology. AR overlays digital information, images, or interactive content onto the real-world environment in real time via devices such as smartphones, smart glasses, and head-mounted displays. The demand for AR is increasing as more consumers and enterprises adopt AR-enabled smartphones and wearable devices, making immersive experiences more accessible.

Augmented reality enhances user experiences by delivering real-time interactive overlays, improved visuals, and spatial effects. This is made possible through high-performance graphics processing, sensor fusion, and low-latency computing integrated on the chip. For example, in August 2024, the Government Accountability Office (GAO) reported that US federal funding allocated for AR and VR technologies rose from $8.6 million in fiscal year 2022 to $11.5 million in fiscal year 2023. Approximately 36% of this funding between 2022 and 2023 was directed specifically toward AR and VR technologies, highlighting strong governmental support and investment. This increasing adoption of AR technologies plays a significant role in driving the overall growth of the entertainment AR and VR SoC market.

Regional Market Dynamics for Entertainment AR and VR Systems on a Chip
In 2025, North America held the largest share of the entertainment AR and VR system on a chip market. However, the Asia-Pacific region is anticipated to become the fastest-growing market during the forecast period. The overall market analysis encompasses various regions, including Asia-Pacific, Southeast Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive view of global market trends and opportunities.

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