Aviation Augmented & Virtual Reality Market Size Expected to Reach $23.6 Billion by 2031

Aviation augmented & virtual reality market was valued at $0.91 billion in 2021, and is estimated to reach $23.6 billion by 2031, growing at a CAGR of 39.2%

WILMINGTON, DE, UNITED STATES, September 16, 2025 /EINPresswire.com/ -- Several companies across the globe are working to integrate augmented reality and virtual reality technology solutions into the aviation industry to improve operational efficiency and productivity. As a result, both the civil aviation and military aviation industries are increasingly exhibiting these technologies to an edge in the industry. Airports and airlines make investments in cutting-edge technology to increase operational effectiveness and fulfil the demands of the growing air passenger traffic. Augmented reality and virtual reality offers an affordable, immersive, and interactive solution for aviation operations including airline operation, maintenance, airport operation, and aviation training. Real-time feedback to trainees is provided with augmented and virtual reality technology during training simulation. The integration of virtual reality into in-flight entertainment systems is also accelerating due to the advent of 5G, which improves the user experience. The global aviati

In 2021, North America dominated the market in terms of revenue, followed by Asia-Pacific, Europe, and LAMEA. The performance within aerospace and defense is driven by increase in demand from the commercial space sector, rise in the U.S. defense expenditure, and presence of major players.

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There are prominent key factors that drive the growth of the aviation augmented and virtual reality market, such as increased demand for higher efficiency and cost saving in aviation, and reduced chances of human error owing to use of AR and VR technology. The market economy is also responsible for the growth of the AR and VR in aviation market. Emerging countries in the region, such as India and China, are experiencing significant increases in the civil aviation market due to increase in demand for air travel. Thus, the aviation sector is witnessing prominent growth in these countries, which is expected to provide lucrative opportunities for the growth of the aviation augmented and virtual reality market.

The aviation augmented and virtual reality market is segmented on the basis of technology, type, component, end use, function, and region. By technology, the market is further segmented into marker based, non marker based, immersive, and non immersive. By type, the market is classified into augmented reality, and virtual reality. By component, it is divided into hardware, software and solutions. By end use, it is segmented into civil, and military. By function, it is divided into training, and operation. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

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COVID-19 Impact Analysis

The COVID-19 impact on the aviation augmented and virtual reality market is unpredictable, and is expected to remain in force for a few years.
The COVID-19 outbreak forced governments across the globe to implement stringent lockdown and ban import–export of essential raw material items for most of 2020, and few months in 2021. This led to sudden decline in availability of important raw materials for aircraft components.
As a result of interrupted supply chains and production schedules caused by the COVID-19 pandemic, aviation production and sales suffered severely, which, in turn, negatively impacted the market for aviation augmented and virtual reality market in 2020.
Governments across the globe implemented strict lockdowns and made social distancing mandatory to prevent the spread of the COVID-19 virus. Consequently, several organizations began work from home programs as precautionary measure. This led to a sudden decline in global demand for traveling, which has affected the aviation augmented and virtual reality market.
However, increase in air travel post pandemic creates immense opportunities for aviation augmented and virtual reality manufacturers in recent years. Various aircraft operators have started using Augmented Reality (AR) and Virtual Reality (VR) solution into in-flight entertainment system for enhanced consumer experience improved passenger experience which is driving the market for aviation augmented and virtual reality market.
Passenger transport is gradually recovering and is expected to reach pre-COVID levels by 2023. As air travel demand returns to pre-COVID levels, airlines are expanding their route networks and new airlines are introducing new domestic flights. Such plans are also expected to accelerate the market growth.

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KEY FINDINGS OF THE STUDY

By technology, the non marker based segment is expected to register a significant growth during the forecast period.
By type, the augmented reality segment is expected to register a significant growth during the forecast period.
By component, the software and solutions segment is projected to lead the global aviation augmented and virtual reality market
By end use, the civil segment is projected to lead the global aviation augmented and virtual reality market
By function, the training segment is projected to lead the global aviation augmented and virtual reality market
Region-wise, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.

The key players that operate in this aviation AR and VR market are Aero Glass, Bohemia Interactive Simulations, Elbit Systems Ltd., Eon Reality, Future Visual, Fountx (TAE AEROSAPACE), Google Inc., HoneyWell International Inc., International Business Machines Corporation (IBM), Magic Leap Inc., Microsoft Corporation, Oculus VR, PTC Inc, Sita, Skylights, Inc., Sony Corporation, Upskill (TeamViewer).

David Correa
Allied Market Research
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