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Augmented Reality vs Virtual Reality – Knowing the Key Differences Between AR and VR

Augmented Reality (AR) and Virtual Reality (VR) are groundbreaking technologies that revolutionise how we all interact in this era of digitalisation. AR overlays digital content onto the physical world, enhancing real-life experiences with computer-generated information, while VR immerses users entirely into a computer-generated environment, separating them from the physical world.


Both AR and VR have rapidly evolved, transforming industries ranging from entertainment and education to healthcare and commerce. These technologies offer exceptional opportunities for innovation, changing how we perceive and engage with the world around us, whether by adding layers of information to reality or transporting us to entirely new digital landscapes.


As per the forecasts of Research and Markets, the market size of AR/VR in India is projected to grow at a compounded annual growth rate (CAGR) of 38.29%, reaching an estimated value of US$ 14.07 billion by 2027. This growth surge is attributed to the rising prevalence of smartphones and expanded internet access.


Table of Contents:



What is Augmented Reality?


Augmented Reality (AR) is an innovative technology that blends digital information with the physical environment, providing an enhanced perception of reality. Unlike Virtual Reality (VR), which immerses users in a completely simulated environment, AR overlays digital content onto the real world.


AR achieves this fusion by utilising cameras, sensors, and displays on devices like smartphones, tablets, smart glasses, or specialised AR headsets. These devices capture the surrounding environment and superimpose virtual elements, such as images, videos, 3D models, or text, onto the user’s view, creating a composite or augmented scene.


There are various types of AR:


  • Marker-based AR: It uses specific markers, like QR codes or images, as triggers to display digital content when detected by an AR-enabled device.

  • Markerless AR: Also known as location-based or position-based AR, it doesn’t require markers. Instead, it uses GPS, accelerometers, or other sensors to position digital information in the user’s environment.

  • Projection-based AR: It involves projecting digital content onto physical surfaces, like walls or floors, to create an interactive experience. It doesn’t generate entirely immersive settings; instead, it primarily produces holograms for movies and events.

  • Superimposition-based AR: Replaces or augments specific parts of the real world with virtual objects. For instance, this can involve placing virtual furniture in a real room to visualise how it would look.


How Does AR Work?


AR utilises computer vision, mapping, and depth tracking to present relevant content to the users. This functionality enables cameras to gather, transmit, and analyse data to display digital content relevant to the user’s view.


Augmented Reality enhances the user’s real-world environment with contextually fitting digital content instantly. You can engage with AR using a smartphone or specialised hardware.


What is Virtual Reality?


Virtual Reality (VR) is an advanced technology that creates immersive, simulated environments, transporting users into entirely digital or computer-generated worlds. Unlike Augmented Reality (AR), which overlays digital content onto the real world, VR aims to entirely replace the user’s real-world surroundings with a synthetic environment.


The types of virtual reality are as follows:


  • Non-immersive Virtual Reality: It is often disregarded as a VR category due to its prevalent use in daily life and offers a computer-generated setting while enabling users to remain aware of and in control of their physical surroundings. These systems, reliant on a computer or gaming console along with displays and input tools such as keyboards, mice, or controllers, allow users to engage with virtual environments.

  • Semi-immersive Virtual Reality: It offers users a partially virtual environment, allowing them to experience an alternate reality while staying connected to their physical surroundings. When users focus on digital imagery, they perceive themselves within a different reality, yet they maintain an awareness of their actual environment. Semi-immersive technology achieves realism through high-quality 3D graphics, termed as vertical reality depth, where enhanced graphics contribute to a heightened sense of immersion.

  • Fully-immersive Virtual Reality: It offers users the most lifelike simulation encounters, encompassing both visual and auditory elements. To engage and interact with this fully immersive virtual reality, users require appropriate VR glasses or a head-mounted display (HMD). These VR headsets deliver high-resolution content and a broad field of view. The display is usually divided between the user’s eyes, producing a stereoscopic 3D effect, and integrates input tracking to establish a deeply immersive and credible experience.


How Does VR Work?


Virtual Reality primarily focuses on replicating the sense of sight. Users wear a VR headset screen in front of their eyes, effectively isolating them from the real world. This setup involves two lenses placed between the screen and the user’s eyes, requiring individual adjustments to accommodate eye movements and positioning. Visuals on the screen are generated by connecting an HDMI cable to a PC or mobile phone.


VR utilises goggles, speakers, and occasionally handheld devices to emulate a genuine real-world experience. It incorporates visual, auditory, and sometimes haptic (touch) stimulation to create an immersive constructed reality.


The Difference Between AR and VR


People often need clarification on AR vs VR. The difference between AR and VR is given in the following table to clarify this confusion.


AR and VR Difference


Augments the real-world scene Completely simulates an immersive virtual environment
The user maintains a sense of presence in the real world. The system controls visual senses.
It is 25% virtual and 75% real. It is 75% virtual and 25% real.
Partially immerses the user into the action. It fully immerses the user into the action.
It doesn’t require a headset. It requires a VR headset device.
It requires upwards of 100 Mbps bandwidth. It requires at least a 50 Mbps connection.
Enhances both real and virtual worlds. Enhances fictional reality for gaming.


The Middle Ground: Mixed Reality


Mixed Reality (MR) amalgamates Augmented Reality (AR) and Virtual Reality (VR) to offer an interactive virtual experience within the real world. It merges physical and 3D digital elements, creating an environment where both coexist and interact in real time. Unlike VR, MR maintains users’ connection to their real environment, as it incorporates a headset that doesn’t entirely obscure the real world. Virtual scenes in MR adjust based on users’ real views and change with their movements.


Unlike AR, where users view virtual images on a 2D screen without interaction, MR allows manipulation of overlaid digital images within the real world. In essence, users perceive 3D holograms of digital objects superimposed in their actual environment, enabling manipulation by altering the positions, sizes, shapes, rotation, and movement of these objects.


Applications of AR and VR in Different Sectors


Augmented Reality (AR) and Virtual Reality (VR) have diverse applications across various sectors, transforming industries by enhancing user experiences, improving efficiency, and enabling innovative solutions. Here are some sectors and their applications:




  • AR: Interactive textbooks, immersive learning experiences, virtual field trips, enhancing traditional learning materials.


  • VR: Simulated environments for practical training, historical reconstructions, virtual laboratories, and immersive language learning.




  • AR: Surgical navigation, patient education using 3D models, vein visualisation, remote assistance during surgeries.


  • VR: Therapy for pain management, exposure therapy for phobias, simulation-based medical training, creating calming environments for patients.


Retail and E-commerce:


  • AR: Virtual try-on for clothing and accessories, AR product visualisation, interactive catalogues.


  • VR: Virtual showrooms, immersive shopping experiences, retail analytics using VR data.


Entertainment and Gaming:


  • AR: Pokémon Go-style games, interactive movie experiences, and location-based AR games.


  • VR: Immersive gaming experiences, 360-degree videos, VR concerts and events.


Manufacturing and Engineering:


  • AR: Assembly instructions overlaid onto machinery, remote assistance for field technicians, and quality assurance using AR inspections.


  • VR: Virtual prototyping and design reviews, simulating manufacturing processes, and training for hazardous scenarios.


Real Estate and Architecture:


  • AR: Property visualisations and tours, augmented property listings, virtual staging of properties.


  • VR: Virtual property walkthroughs, immersive architectural visualisations, and interior design simulations.


Military and Defense:


  • AR: Heads-up displays (HUDs) for situational awareness, training simulations, and maintenance guidance for complex machinery.


  • VR: Military training simulations, scenario-based training exercises, flight simulations.


Tourism and Hospitality:


  • AR: AR-based city guides, interactive travel experiences, and historical site reconstructions.


  • VR: Virtual tourism experiences, immersive hotel previews, VR travel simulators.


Training and Skill Development:


  • AR: On-the-job training with AR overlays, interactive manuals and guides, and hands-on learning experiences.


  • VR: Soft skills training (communication, leadership), hazardous environment training, immersive simulations for various industries.


 Automotive Industry:


  • AR: Heads-up displays (HUDs) for navigation and driver assistance, AR-based maintenance guides.


  • VR: Virtual showrooms and test drives, design reviews and prototyping, employee training.


The applications of AR and VR continue to expand as technology advances, offering innovative solutions and enhancing user experiences across numerous sectors, fostering growth and efficiency in various fields.


Wrapping Up


In the digital age, Augmented Reality (AR) and Virtual Reality (VR) stand as groundbreaking technologies reshaping human interaction. AR enriches real-life experiences by superimposing digital content onto the physical world, while VR transports users into entirely computer-generated environments, disconnecting them from reality.


AR seamlessly integrates digital content with the physical world, enhancing reality by overlaying information through cameras, sensors, and displays. VR, on the other hand, immerses users in synthetic environments, achieved through headsets that isolate individuals from their surroundings and generate immersive experiences.


The difference between AR and VR lies in their levels of immersion, with AR maintaining ties to reality while VR completely immerses users in virtual environments. AR doesn’t require a headset and allows users to interact with digital objects overlaid in their real environment, while VR necessitates a headset and isolates users from reality, placing them in entirely fictional settings.


These technologies find diverse applications across sectors. In education, they transform learning through immersive experiences and simulations. In healthcare, they aid in surgeries, therapy, and patient education. From retail to automotive, manufacturing to entertainment, AR and VR enhance user experiences, offer innovative solutions, and drive efficiency across various industries.


As AR and VR technology continues to advance, their applications will further expand, promising innovative solutions, enhanced user experiences, and continued growth across diverse sectors, spearheading the digital transformation of our world.


Take a plunge into AR and VR with a Certificate Program in Extended Reality (VR+AR) in collaboration with Snapchat and Unreal Engine at Hero Vired. Reap the benefits of training focused on practical applications, thorough evaluations, and engaging, hands-on learning encounters.





  • AI (Artificial Intelligence): Artificial Intelligence refers to machines simulating human intelligence processes, including learning, reasoning, problem-solving, and decision-making. It focuses on creating systems capable of performing tasks that typically require human intelligence.
  • AR (Augmented Reality): AR overlays digital information, such as images, videos, or text, onto the physical world, enhancing real-life experiences by blending computer-generated content with the user's environment.
  • VR (Virtual Reality): VR immerses users entirely into computer-generated environments, disconnecting them from the physical world and placing them in simulated, entirely digital environments.
The use of AR and VR is given below: AR (Augmented Reality)
  • Enhances real-world experiences with digital overlays.
  • Provides information and context in real-time.
  • Enables interaction with virtual elements in the physical world.
VR (Virtual Reality)
  • Immerses users in entirely digital environments.
  • Offers simulated experiences separate from the real world.
  • Provides an immersive, computer-generated environment.
Advantages of AR:  
  • Enhances real-world experiences by overlaying digital content onto the physical environment.
  • Provides interactive and engaging learning experiences in education.
  • Assists in real-time guidance, navigation, and visualisation in various industries.
   Advantages of VR:
  • Creates fully immersive environments for realistic simulations and experiences.
  • Enables training in high-risk scenarios without real-world consequences.
  • Provides therapeutic applications for pain management, exposure therapy, etc.
AI plays a significant role in AR and VR by enhancing experiences through intelligent interactions and data processing. In AR, AI assists in recognising and processing real-world elements for accurate overlays, while in VR, it enables realistic simulations and adaptive environments through machine learning algorithms.
AR and VR have gained popularity due to their transformative capabilities, offering immersive experiences that blend digital elements with reality or transport users entirely into synthetic environments. Their appeal lies in revolutionising industries, enhancing user engagement, and presenting innovative solutions across various sectors, cultivating an entirely new way of interaction and experience.

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