AR/VR Emerging Trends and Predictions for 2025 and Beyond

We’re entering a thrilling time for AR and VR, as these technologies are starting to change how we live, work, and play. With new advancements in devices, faster internet connections, and smarter AI, AR and VR trends are becoming more a part of our everyday lives.

Formerly started as experimental technology is now used daily in various industries, including healthcare, education, retail, and entertainment. These advancements highlight the evolving AR and VR trends that are shaping innovation across sectors.

AR and VR aren’t just flashy add-ons anymore — they’re solving real-world problems and creating authentic connections between the physical and digital worlds.

Let’s take a closer look at the emerging trends of AR and VR, how the market is evolving, and what predictions for 2025 and are beyond. Let’s get started.

Major VR/AR Emerging Trends for 2025 and Beyond

Augmented and virtual reality technology dates back to the 1960s, but in the last decade or so, AR and VR have moved from innovative new trends to practical real-world technologies. The likes of Google Glass AR glasses (2014), the Pokemon Go AR-driven game (2016) add Microsoft HoloLens as well and the Apple Vision Pro mixed reality headset (2024) have put AR and VR technology into the hands of the general public.

The AR/VR market is on the rise due to technology advancement and the growing demand from all kinds of industries. By 2030, it’s expected to hit $200.87 billion, growing at a healthy CAGR of 22% between 2025 and 2030. Looking even further ahead, forecasts suggest it could reach a staggering $589 billion by 2034, with sectors like gaming, healthcare, education, retail, and manufacturing leading the charge.

The XR market is also expected to grow significantly, reaching an estimated $520 billion in the upcoming 10 years.

What are the Emerging Trends in AR/VR?

AI in AR/VR

Advances in AI have driven major enhancements to AR and VR technology, improving rendering, tracking and processing. This has made an especially big difference in gaming, in the realism of 3D characters and environments, and the dynamic possibilities of game scenarios and interactivity. AI streamlines the generation of environments, reducing the need for extensive work by 3D artists. Instead of manually creating every detail, such as mountains or forests, AI can automatically generate these locations, making the process faster and more cost-effective.

AI has also taken VR gesture-tracking to the next level. Devices like Orion glasses can interpret hand and finger movements. AI is also raising the bar for object recognition in AR. Tools like Google Lens can identify objects, translate text, or provide a helpful context in real time. In retail, this aligns with augmented reality market trends, as customers can visualize products in their homes or pull up reviews instantly. This makes shopping more interactive and personalized.

Rise of AR Avatars and Virtual Beings

Digital avatars are now bridging the gap between the physical and digital worlds and transforming the customer service landscape, offering businesses a new way to engage with customers. AI-driven 3D characters are changing the way businesses interact with consumers. AR glasses and smartphone cameras bring interactive digital elements to the real world; they can help social media users identify and interact with other users on their chosen platform, while more and more retailers will use them as virtual assistants that can provide tailored support and personalized offers and recommendations.

Augmented Reality Onboard Your Vehicles

In the coming times a lot of automotive industry leaders will embrace the idea of using this AR technology trend in the form of voice assistant, In-car AR, and more.

Volvo, for example, has always been a marque that prides itself on innovative safety technology. Trialing implementation of Microsoft’s HoloLens in their production lines. With the headset on, workers putting together new XC90s and S60s can follow the instructions and animations Currently, the Swedish automaker is in the trial stages of an Augmented Reality feature that can allow the driver to see ‘through’ the car in front. Front-mounted cameras and a highly sophisticated algorithm allow the software to essentially ‘Photoshop’ out the car in front and display this on a dashboard-mounted screen.

5G and Its Impact on the Future of AR and VR

As already mentioned in our blog The Impact of 5G Technology on IT Services and Cybersecurity the technology will bring an impactful difference in the way we embrace AR/VR. 5G services have the potential to take AR and VR to the next level, i.e. the speed of experience that 5G can enable. It not only supports real-time customer service and support but also aids in product demonstrations, teaching during live medical procedures, in-person instruction, and collaboration on design and architecture projects.

Web AR and Cross-Platform Application

Web AR lets users access augmented reality directly from their browsers, with no additional app required, making AR more accessible across platforms. As the name shows, this will facilitate users to interact with augmented reality in the web space. For example, Ikea allows users to view products in their space using their phone’s camera through a browser, streamlining the experience and supporting broader AR adoption. Likewise WebAR help shoppers visualize furniture in their homes using nothing more than a smartphone or tablet — a clear example of how AR and VR make shopping more interactive.

Even education is benefiting from WebAR. Google’s Search AR lets students explore 3D models of animals, scientific concepts, and historical artifacts directly from a browser.

Wearable AR/VR Devices

Wearable AR/VR devices are transforming from bulky gadgets into sleek, practical tools that are easier to use and integrate into everyday life. With longer battery life, more powerful hardware, and compact designs, these devices are becoming indispensable across industries. Wearable AR and VR devices, such as smart glasses and headsets, will rise in popularity by 2025. Two examples include the Meta Ray-Ban Stories and the Apple Vision Pro visor.

Companies like Oculus, one of the early pioneers of VR headsets, and Microsoft are pushing forward with ramping up the size and quality of their displays, ironing out connectivity issues, and working to make engaging VR experiences. Specially designed games and pieces of media for VR are being developed, with companies such as VR Gorilla producing interactive immersive films for headsets.

Use of XR IN Healthcare as a Medical Device

AR, MR and VR are revamping the healthcare industry by their merging. Healthcare and medical practitioners are able to ‘switch’ between these three technologies within the same application. This facilitates professionals with higher efficiency, productivity as well as relishing the perks of different use-cases at the same time. To make use of this technology, the healthcare organizations will have to establish XR platforms as a medical device.

Augmented Reality Predictions and Virtual Reality Forecasts by Industry

Education and Training

AR and VR have huge potential in making learning more immersive, engaging and interactive. In an immersive environment, students can simulate practical experiences that would normally be difficult or expensive to recreate in the real world.

We’ve already mentioned platforms like classVR. With them the students can virtually visit ancient civilization, dive deep into the oceans depth, or explore outer space. This can be through overlaying information into real-world environments, supporting remote and virtual collaboration and easy information sharing, and by enabling personalized learning environments and experiences. It will improve the chances of teaching distance learners in VR classrooms whereas AR in education will add flexibility to the on-job learning experience.

Retail and Ecommerce

VR is being used to link the gap between online and physical shopping, offering users increasingly “real” experiences. Virtual try-on technology allows customers to see how clothes will fit their bodies before committing to a purchase, reducing the risk of dissatisfaction or time-consuming returns.

Virtual Reality Trends for Healthcare Medical Training

AR and VR can be deployed in a host of healthcare-related scenarios, such as enabling surgery simulation that trains medical students in situations that closely resemble what they’ll face in the real world. Furthermore, data visualization through VR can also improve diagnosis and planning of complex interventions. These technologies can be used for training and teach very important techniques in the medical field, like in this VR CPR training simulator developed for Red Cross.

Entertainment and Gaming

The gaming industry is at the pole position of using VR and AR to deliver ever more immersive experiences. AR and VR can support games that are more engaging and accustomed to the preferences of the individual customer, maximizing their satisfaction and boosting revenue in the process.

Manufacturing and Engineering

AR and VR are key in product design and prototyping, offering realistic visualizations before physical models are created. This decreases costs and speeds up the development process. This not only improves the precision and efficiency of the development process, but also allow further gains to be found in staff training and ongoing maintenance.

Challenges and Considerations around Emerging AR Technologies

AR and VR have unlocked incredible possibilities. However, their rapid growth comes with challenges that can’t be ignored. Accessibility and inclusivity is one of them, although the growth of WebAR is going some way to addressing that in making AR and VR use more platform-agnostic. Connectivity also plays a huge role. Many AR and VR systems rely on cloud-based processing to lighten the load on your device, but that only works if the network is up to the task.

On a more physical level, the continued use of AR and VR technologies can cause some health issues, i.e. dry eyes and headaches caused by some head-mounted displays due to constant use of wearables. Safety improvements in this area are essential, and should be addressed alongside other limitations like the expense of devices, mass production requirements and limitations in battery life and field of view.

Additionally, as awareness of AR and VR technologies increases, there will be ethical considerations to account for. More people are wary of data misuse, cybercrime, privacy and invasive advertising, so companies behind AR and VR technology development will need to be careful and transparent about how users and their data will be protected.

AR and VR Trends: Final Words

AR and VR are transforming how we interact with the world, blending the physical and digital to create practical tools and exciting experiences. From training doctors and improving education to enhancing shopping and entertainment, these technologies are already making a real impact.

But, challenges like data privacy, device comfort, performance, and health concerns still need to be addressed. With unending advancements in hardware, software, and connectivity, AR and VR are becoming more accessible, reliable, and integrated into everyday life.

Finally, one of the keys to AR and VR technologies in the long-term is accessibility. Ensuring that as many people as possible are able and keen to use the technology. And that starts with experience engineering, guaranteeing that new developments are focused on what the end-users will get out of AR and VR.

FAQ

Will future of augmented reality revolve around augmented reality glasses?

Yes, future of augmented reality will revolve around augmented reality glasses. More affordable, glasses are out on the market like Nreal Air, MONOCLE – a pocket-sized AR device for the imaginative hacker.

In future, we predict that AR glasses will become more common, widely used in daily life, and more affordable. Then in around 5 to 10 years, we expect to see augmented reality glasses as sleek, lightweight frames that contain more power, capabilities, and technology than today’s smartphones.

What are the techniques used in augmented reality?

Modern mobile augmented-reality systems use one or more of the below mentioned motion tracking technologies: digital cameras / other optical sensors, accelerometers, GPS, gyroscopes, solid state compasses, radio-frequency identification (RFID). These technologies offer varying levels of accuracy and precision.

What is the future market for AR VR?

By 2030, it’s expected to hit $200.87 billion, growing at a healthy CAGR of 22% between 2025 and 2030. Looking even further ahead, forecasts suggest it could reach a staggering $589 billion by 2034, with sectors like gaming, healthcare, education, retail, and manufacturing leading the charge.