Market Overview
The AR and VR industries are on a remarkable growth trajectory, with projections suggesting combined revenues will hit $38.6 billion this year, aiming for $58.1 billion by 2028 at an annual growth rate of 10.77%. This rise reflects their growing incorporation into our everyday lives and various professional fields, fuelled by their flexible use across multiple sectors.
This surge in adoption is largely due to the technologies' expanding footprint in areas such as healthcare, where they offer innovative diagnostics and training tools, retail and e-commerce, enhancing shopping experiences with immersive technology, and in industries like manufacturing and construction, where they streamline processes and improve efficiency. High-profile product launches and strategic collaborations further spotlight the accelerated embrace of AR and VR, heralding a future where digital and physical worlds are seamlessly interconnected for various uses.
After crunching the numbers, here are 10 of the fastest-growing VR & AR startups:
Altoida
Altoida is innovating in brain health with its app that uses augmented reality (AR) to check brain health and identify early signs of neurological diseases using just a smartphone or tablet. After gaining FDA recognition in 2021, Altoida is preparing for a study to seek approval for its Alzheimer's predicting technology. This effort is part of the company's broader mission to transform the approach to diagnosing and understanding neurological diseases, aiming to significantly impact patient care and treatment.
Neelem Sheikh
Metadome.ai
Metadome.ai, a global 3D & XR technology firm, excels in creating immersive customer experiences across web, app, and in-store environments. With offices in India and the US, the company has over six years of experience in XR, serving industries like automotive, home décor, fashion, and cosmetics. Notable for powering over 5 million XR experiences for brands such as Stellantis, MG Motor, and Lexus, Metadome.ai specializes in automotive innovation with its Autodome platform, enhancing virtual product launches and customer engagement.
ORamaVR
ORamaVR is advancing medical training through its innovative Extended Reality (XR) technology, focusing on creating and deploying high-quality VR simulations for the medical field. By integrating cutting-edge research and technology, ORamaVR offers tools that enable institutions to produce medical XR content efficiently and cost-effectively. The startup has garnered attention for its collaborative approach, combining expertise from computer scientists, life scientists, and medical professionals to enhance medical education and global healthcare.
Sandbox VR
Sandbox VR, established in 2016, is quickly becoming a prominent player in the location-based VR market, notable for its rapid expansion and tripled store count in recent years. The company is seizing the current surge in VR technology investment, positioning itself at the forefront of immersive virtual reality experiences. By combining real-time motion capture with VR technology, Sandbox VR offers a unique and advanced medium that stands out in the industry, attracting attention and making it a hot company in the VR space.
Avataar
Avataar develops 3D AR technology to improve online shopping, converting 2D images and videos into 3D for various platforms. Co-founded by Sravanth Aluru and Gaurav Baid, the company has raised $55 million from investors like Sequoia Capital and Tiger Global Management. With a team of 180 engineers in San Francisco and Bengaluru, Avataar works on making online products look more like they do in real life, aiming to make digital shopping experiences better.
Squint
Squint creates AR software to make factory work easier and safer. Workers use their devices to see instructions right on the equipment. The company, with big clients like Volvo and Siemens, raised an additional $13 million last year from Sequoia and Menlo Ventures. Squint's goal is to change how workers find and use information, making it faster and more intuitive.
XYZ Reality
XYZ Reality is reshaping construction with its advanced AR headset, enabling users to view precise 3D BIM models on-site, cutting costs by up to 20%. Founded by David Mitchell, the company stands out for integrating holographic technology with construction processes, moving beyond traditional 2D methods for more natural and efficient project visualisation. With £40 million in funding and the launch of their latest cloud-connected headset, XYZ Reality is at the forefront of technological innovation in construction, making it a hot company in the industry.
Visao
Visao, a Quebec-based company, specializes in creating augmented reality models for sales and marketing, turning CAD files into interactive 3D and AR models. This method has boosted customer conversions by 94%, increased sales by 25%, and reduced returns by 50%. With clients like Henkel and Fournier, Visao's technology offers a detailed, interactive look at products, improving the online shopping experience and building customer confidence.
Basemark
Basemark, a leader in automotive augmented reality (AR), recently partnered with Luxoft to expand its AR solutions for the auto industry. This collaboration combines Basemark's AR software with Luxoft's extensive automotive service experience, aiming to enhance in-car technology and the driving experience. The partnership strengthens Basemark's ability to support large-scale AR projects for automakers, showcasing their latest innovations at key tech events.
mirrAR
MirrAR has advanced significantly since shifting focus to AR in 2017, securing an additional $1.75 million of funding last year. Present in 44 cities worldwide, mirrAR is enhancing the retail sector by introducing virtual try-ons for jewellery, eyewear, and watches. This technology is helping stores increase sales and improve customer interaction. MirrAR's practical and engaging shopping solutions have attracted significant clients, including Tanishq.
