Global AR/VR Tourism Market to Reach $32.5 Billion by 2034
A joint KPMG and PHDCCI report projects a 17.8% CAGR as immersive storytelling transforms heritage site experiences.
The global market for augmented and virtual reality (AR/VR) in travel and tourism is poised for massive expansion as digital innovation transforms how visitors interact with historical sites. According to a new joint report, the sector is expected to grow from US$ 8.2 billion in 2025 to US$ 32.5 billion by 2034.
These findings, detailed in the 3rd edition of the PHDCCI-KPMG Report on Heritage Tourism, project a compound annual growth rate (CAGR) of 17.8%. The report was unveiled on July 24, 2026, during the 15th International Heritage Tourism Conclave (IHTC) held at the Salar Jung Museum in Hyderabad. This growth is primarily driven by the integration of immersive storytelling and AR/VR tools designed to enhance the visitor experience at heritage locations.
The Digital Shift in Heritage
The report arrives as part of a broader strategic effort to reposition heritage—including culinary traditions—as a primary engine for tourism growth. The IHTC event was supported by the Indian Ministry of Tourism and several state boards, including those from Rajasthan, Tamil Nadu, and Telangana. The goal is to move beyond traditional sightseeing by utilizing public-private partnerships to implement digital transformations across cultural sites.
Economic and Cultural Implications
This transition marks a fundamental shift from passive observation to active, immersive engagement. By adopting these technologies, destinations can preserve fragile cultural legacies while creating new economic drivers for regional development and employment. Dr. Ranjeet Mehta, CEO and Secretary General of the PHDCCI, noted that the next phase of the industry must balance conservation with transformation through stronger ties between government, industry, and cultural institutions.
Future Outlook
Industry leaders suggest that the path forward involves empowering local communities alongside the deployment of AI and virtual reality. Anil Parashar, Chair of the PHDCCI Tourism & Hospitality Committee, stated that embracing these emerging technologies is essential to building a globally competitive heritage ecosystem. Observers will now watch how these projections translate into site-specific implementations and whether the projected 17.8% growth rate holds as the technology becomes more accessible to the general public.