Augmented and Virtual Reality in Aviation Market: Current Analysis and Forecast (2024-2032)

Global Augmented and Virtual Reality in Aviation Market Size & Forecast

The Global Augmented and Virtual Reality in Aviation market was valued at USD 527.55 million in 2023 and is expected to grow at a strong CAGR of around 49.04% during the forecast period (2024-2032), owing to rising demand for Augmented and Virtual Reality in Aviation in the spacecraft industry across the globe.

Global Augmented and Virtual Reality in Aviation Market Analysis

Augmented and Virtual Reality in Aviation are used for predictive maintenance, remote assistance, visualization of maintenance issues, training purposes, and flight simulation for realistic scenarios. These technologies have provided interactive modules for immersive training scenarios for engineers and technicians. Additionally, various safety procedures and real-time guidance for crew and ground staff can also be provided with the help of AI and VR technologies, which has caused the market to witness a sizeable growth in recent years.

The Global Augmented and Virtual Reality in Aviation market was valued at USD 527.55 million in 2023 and is expected to grow at a strong CAGR of around 49.04% during the forecast period (2024-2032). One of the key factors that has remarkably supported the integration of the AR and VR solutions market in aviation is the integration of digital cockpits and head-up displays. These displays are integrated with the new generation of aircraft to overlay critical flight information such as navigation data, air speed, engine temperature, fuel, and altitude directly in the pilot’s view. Many of the aviation companies have started integrating head-up displays to offer such functionality to provide a compressive field of view to the pilot and offer better situational awareness. For instance, in 2024, the government of Singapore announced its plans to purchase 8 new F-35 aircraft. This purchase would be on top of an earlier 12 F-35A aircraft purchase signed by the government of Singapore.

In another instance, in 2024, the government of Germany announced its plans to purchase 20 additional Eurofighter Typhoon aircraft (4.5 generation) by the end of 2025.

Global Augmented and Virtual Reality in Aviation Market Trends

This section discusses the key market trends that are influencing the various segments of the Global Augmented and Virtual Reality in Aviation Market as identified by our team of research experts.

AI and Machine Learning to Promote Predictive Maintenance

One of the key concerns of the aviation industry across the globe is timely maintenance and reducing the risk to a greater degree. With the advent of flight safety analytics and the integration of artificial intelligence and machine learning techniques, the ability to anticipate and mitigate possible risks has drastically improved. With the help of real-time data analysis, AI and machine learning can reduce the risk by providing predictive insights, which has earmarked its presence through its adoption by leading aircraft manufacturers. Airbus is one of the leading companies among these to adopt similar technologies as it uses Skywise, an open data platform that collects vast amounts of data from all the aircraft of Airbus, which helps to improve operational excellence by greater fleet operational performance and reliability.

With the growing need for predictive systems, AI diagnostics, and maintenance in the aviation industry, the demand for augmented and virtual reality in aviation in this category is anticipated to find rapid growth, subsequently improving its market in the coming years.

Augmented and Virtual Reality in Aviation Industry Segmentation

This section provides an analysis of the key trends in each segment of the global Augmented and Virtual Reality in Aviation market report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Augmented Reality Market Holds the Largest Share of the Augmented and Virtual Reality in the Aviation Market.

Based on Technology, the augmented and virtual reality in the aviation market is bifurcated into augmented reality and virtual reality. Of these, augmented reality has held the major market share due to its increasing usage in training purposes for pilots, crew, and ground staff. Additionally, augmented reality offers an added overlay of vision on the existing vision of the pilots, which provides a realistic scenario of training in different environments. Augmented reality offers various advantages such as integration with the existing systems, hand-free operation, real-time information overlay, enhanced maintenance efficiency, safety, and accuracy while repair tasks, extensive usage in training scenarios, as well as helping to ensure compliance with stringent aviation regulations by providing documented procedures, checklists, and audit trails of maintenance activities.

The Training Segment is Expected to Witness a Higher CAGR than the Augmented and Virtual Reality in the Aviation Market.

Based on the function, the global Augmented and Virtual Reality in Aviation market has been segmented into training and operations. Considering the shift in aircraft cockpits, there is a growing need to offer simulation-based training. As new-generation aircraft are equipped with digital systems focused on visual representation for the access of controls, there is a rising demand for flight simulation training. This training solution, based on AR and VR, could provide a realistic scenario and help the aviation and military industry to save costs spent on actual training. Operational training is another facet of AR and VR in the aviation industry, which is done for predictive maintenance and repair work through the visual representation of an actual aircraft. This technology is in a growing phase as a considerable number of aircraft are still from the older generation, and there is a lack of skilled staff for deploying, using, and maintaining such systems. However, with the shift in the aviation industry, the operational segment would be integrated at a faster pace and exhibit a faster growth rate.

North America is Expected to Hold a Major Market Share During the Forecast Period

North America Augmented and Virtual Reality in the Aviation market has held the major market share across the globe. Some of the key factors that have contributed to the growth are the presence of the largest commercial and military aircraft fleet requiring maintenance, repair, and overhaul activities regularly. The North American aviation industry is further anticipated to rise due to massive orders being placed by the leading aviation companies in recent years. For instance, in 2024, American Airlines ordered 260 new aircraft from Airbus, Boeing, and Embraer. With the massive purchase, the airline is looking forward to expanding its international operations for trans-Atlantic operations.

Boeing is one of the key manufacturers that has a vast list of unfilled orders, YTD deliveries, etc. For instance, according to Boeing, total unfilled orders for 737, 767, 777, and 787 models were 4763, 96, 539, and 790 units as of 5/31/2024.

Considering the vast unfilled orders that are to be delivered in the coming years, the demand for AI and VR technology services for maintenance and pilot training is anticipated to rise in the forecasted years, i.e., 2024-2032.

U.S. Dominates the North American Augmented and Virtual Reality in the Aviation Market

The US aviation market for augmented and virtual reality (AR/VR) is steadily growing since several airlines, defense contractors, and aviation training companies integrate AR/VR into their operations and products to increase safety, optimize processes, and attract passengers. Virtual and Augmented Reality is being adapted in pilot and crew training simulation, aircraft maintenance, and design models, where real-time interaction is provided along with high levels of risk elimination and improvement of training efficiency. And these technologies are fast replacing traditional practices in commercial and military aviation by making the tasks less complex, reducing errors, and encouraging teamwork that is done through networks. The increase in the general interest towards innovation and digital transformation of business processes contributes to the constant increase in demand for new, scalable AR/VR solutions in the aviation industry of the United States.

Augmented and Virtual Reality in the Aviation Industry Competitive Landscape  

The Augmented and Virtual Reality in Aviation market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Augmented and Virtual Reality in Aviation Market Companies

Some of the major players operating in the market are Microsoft Corporation, Google Inc., Eon Reality, Aero Glass, Honeywell International Inc., Sita, IBM, Bohemia Interactive Solutions, Oculus VR, and Elbit Systems Ltd.

Recent Developments in the Augmented and Virtual Reality in Aviation Market

• In January 2024, the French government announced the purchase of 42 additional Rafale Jets with a total cost of USD 5.5 billion. The respective aircraft will be delivered between 2027 to 2032.
• In 2024, the government of the Czech Republic signed a deal with the government of the US to buy 24 new F-35 jets. The total worth of the deal would be USD 6.6 billion, to be delivered between 2031 to 2035.

Global Augmented and Virtual Reality in Aviation Market Report Coverage

Reasons to Buy Augmented and Virtual Reality in Aviation Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at a glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional-level analysis of the industry.

Customization Options:

The Global Augmented and Virtual Reality in Aviation market can further be customized as per the requirement or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.