Based on component, the augmented reality and virtual reality market is segmented into semiconductor components, sensors, and others. In 2021, the semiconductor components segment accounted for the largest share in augmented reality and virtual reality market. The major components that drive AR and VR technologies include HMDs, wearable screens, computing units, and sensors. Continuous R&D over the last decade has allowed tech firms to deliver revolutionary headgear, and AR and VR systems that are inexpensive, accessible, compact, and effective.