USD 32.1 Billion
Augmented Reality Market Size, Share, Growth Analysis, By Offering(Hardware (Sensors [Accelerometers, Gyroscopes, Magnetometers, Proximity sensors]), By Device Type(Head up displays (HUD), and Helmet mounted displays (HMD) (AR Smart Glasses and Smart Helmets)), By Technology(Marker-Based AR Technology (Passive Markers and Active Markers), Markerless AR Technology (Model-based Tracking and Image Processing-based Tracking), and Anchor-Based AR Technology), By Application(Commercial (Gaming, Sports & Entertainment [Sports, Entertainment, Theme parks), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45J2039 |
Region:
Global |
Published Date: June, 2024
Pages:
157
|Tables:
119
|Figures:
77
Augmented Reality Market Insights
Augmented Reality (AR) Market was valued at USD 32.1 Billion in 2022 and is expected to grow from USD 42.85 Billion in 2023 to reach USD 432.35 Billion by 2031, at a CAGR of 33.5% during the forecast period (2024-2031).
The growth of the market is driven by rising adoption of AR technology in the healthcare sector, as well as in the increasing demand for AR in the retail and e-commerce sectors. The AR Market now occupies its growing position in the technology sector with the introduction of digital enhancements into the real world to improve users' experiences and operations of different industries. AR devices impose digital information into real world settings, which can be photos, videos, or three-dimensional figures. This is how users discover their own setting for reality. The market now has the most intense growth among all industries, because of several factors and provided the enterprise and the consumer with both opportunities and challenges at the same time. The main goal of the AR industry is to change the sensation of individuals in the way they engage with digital content and information in real-life settings. The fact is that AR in the gaming industry & remote health services, along with advanced virtual reality, is aiming to create a world where digital & physical realms interact. Based on Skyquest’s in-depth analysis, it is found that approximately 1.4 billion are active users of AR devices. Furthermore, an enormous scope is available with the implementation of Augmented and Virtual Reality in Education, Training, Marketing, and entertainment, where users are increasingly able to create and become more involved.
US Augmented Reality Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Hardware
Growth Rate
33.5% CAGR
Global Augmented Reality (AR) Market ($ Bn)
Country Share for North America Region (%)
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Augmented Reality Market Segmental Analysis
The Augmented Reality (AR) Market is segmented based on Type, device type, application and regions. Based on Component, the market is further sub segmented into Hardware (Sensors [Accelerometers, Gyroscopes, Magnetometers, Proximity sensors], Semiconductor Components, Displays And Projectors, Position Trackers, Cameras, Others), and Software (Software Development Kits and Cloud-based services). Based on Device Type, the market is further sub segmented into Head up displays (HUD), Helmet mounted displays (HMD) (AR Smart Glasses [Cinema Display Glasses and XR Glasses] and Smart Helmets), and Handheld Devices. Based on Technology the market is further sub segmented into Marker-Based AR Technology (Passive Markers and Active Markers), Markerless AR Technology (Model-based Tracking and Image Processing-based Tracking), and Anchor-Based AR Technology. Based on Application, the market is further sub segmented into Commercial (Gaming, Sports & Entertainment [Sports, Entertainment, Theme parks, Art galleries and exhibitions]), Commercial (Retail & E-commerce [Jewellery, Beauty and cosmetics, Apparel fitting, Grocery shopping, Footwear, and Furniture & lighting design], Travel & Tourism, E-learning), Enterprises (Manufacturing), Healthcare (Surgery, Fitness Management, Patient Care Management, Pharmacy Management, Medical Training and Education, and others), Aerospace & Defense, Energy, Automotive, and Others (Agriculture, Construction, Transportation & Logistics, Public Safety, and Telecom/IT Data Centers). Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Component
The software segment accounts for the largest market share. Based on SkyQuest in-depth analysis, it was found that AR software alone has the market volume of USD 4 Billion by 2024. AR applications across various industries such as gaming, healthcare, retail, and education is driving the need for software solutions. Additionally, continuous improvements in AR software capabilities which includes better graphics, real-time data processing, and enhanced user experiences have further propelled the adoption of AR technology. They include artificial intelligence, cloud computing, cybersecurity, as well as digital transformation initiatives. In addition, its intangible characteristics promote perpetual updates, customization, and implementations, which ultimately contribute to the software component to hold the face of technology progression.
On the other hand, hardware is emerging as the fastest-growing segment within the technological ecosystem. Hardware is underrated and is playing a vital role in building the physical infrastructure required to grasp the advancements. Our findings show a trend towards hardware expansion, and this can be attributed to the emergence of recent high-tech areas, such as the Internet of Things (IoT), Edge processing, and the scaling-up of quantum computing. With advanced technologies the hardware is fit enough for supporting complex algorithms, heavy data processing and real-time connectivity. The hardware sector is profiting from the fact that industries are rushing towards digitization as the demand is brisk for heavy-duty processors, high-speed network equipment, and advanced storage solutions which is pushing the hardware sector to a period of rapid growth.
Analysis by Application
The Healthcare sector is the largest segment of the AR industry. AR technology is used to revolutionize the ways patients are treated, training medical staff, and diagnostics. According to our analysis, 70% of consumers think that AR can provide them with benefits. The healthcare applications of AR offers an innovative combination of practicality and imagination. This can be seen in their market share alone. From aiding surgeons with real-time data rather than images to providing telemedicine solutions with immersive technology. AR is changing the paradigm in health care delivery. In terms of performance, the sector's growth is underpinned by a symbiosis of factors including the emergence of more sophisticated medical technology and the increasing investments in digital healthcare solutions as well as the global focus on outcome-related and experience-related care.
The commercial segment is the fastest growing in the AR market, since gaming & entertainment platforms arise as the most dynamic and the quickest growing portion of the AR market, inducing vigorous discussions and a high degree of involvement among users all over the world. It makes gaming immersive which in turn is simply transcending the boundaries of traditional gaming. Moreover, our analysis shows that every 3 in 4 adults under age 44 are aware of AR. Tech advances are becoming more and more sophisticated at the same time. Captivation features like AR games are now attracting audiences of all ages. The sector’s wide-scale financial success is powered by a perfect dump of factors, including the spread of smartphones with AR capacities & the jump of innovative gaming platforms and a booming international community craving for something fresh and immersive.
Global Augmented Reality (AR) Market By Component
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Augmented Reality Market Regional Insights
North America has emerged as the dominating force in the AR market. This is due to the leadership of the information technology industry. It is the result of the presence of leading actors, powerful technological support, and a wide range of apps in gaming, healthcare, retail, and manufacturing. Moreover, United States is expected to account for USD 10.9 billion market volume by 2024. Similarly, the U.S. government plays a crucial role in boosting the adoption of immersive technology to enhance the region's share of the augmented reality industry. Overall, the major tech hubs, including Silicon Valley, keep on driving innovation in augmented reality in this region and companies with financial capital and talent pools are also able to expand with the same knowledge.
Asia Pacific is the second largest and fastest-growing region in the AR market. China, Japan and South Korea show a growing interest in AR services because of the impact of higher smartphone level access, enormous residential areas and governmental programs to develop technology. The industry in the area has been thriving, and the entertainment sector, marketing firms and retail have started to use AR widely. Consequently, these areas become AR regions' growth sources. The adoption of AR applications by businesses and consumers in Asia Pacific is diverse and driven by many reasons, hence, the region is predicted to sustain steady growth, thereby giving AR companies more influential causes to focus on the area for emerging opportunities and increasing market prospects.
Global Augmented Reality (AR) Market By Region
- Largest
- Fastest
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Augmented Reality Market Dynamics
Driver
Rising investments in Augmented Reality (AR)
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The AR market has grown exponentially with the dramatic rise in investments during recent years. Meta, Intel Corporation, Qualcomm, Inc., Alphabet, Inc., Comcast Ventures, Samsung Group, are among a list of companies that are pumping in a lot of money, in the augmented reality sector. Based on our findings, the largest investment is going into training and industrial maintenance with USD 4.1 billion in the field of AR. Besides that, research institutes are being funded by private firms and venture capitalists, and some governments are funding some. Industries that include consumer, aerospace and defence, healthcare, enterprises, retail, and marketing are among the user base of AR.
Increasing Adoption of AR Technology in Healthcare Industry
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Hospitals and other medical care setups are rapidly seeing the use of immersive modalities to aid healthcare professionals. Based on our analysis, the AR in healthcare industry will hold market size of USD 1.2 billion by 2024. Current-day surgeons are now relying on AR to alleviate the little number of risks involved, thereby resulting in fewer errors and accordingly unsafe surgeries. For instance, the startling announcement was made by Immersive Touch, an AR-oriented medical technology firm, about co-operation with the Mayo Clinics to provide Holo-X-Ray view of the anatomy of their patients' X-rays to aid surgeons. By providing a joining force, modern augmented reality systems both noninvasively help surgeons and enhance the surgical efficiency of orthopedic procedures.
Restraints
Health Issues Associated with Excessive Usage of AR
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The young population, especially gamers will reportedly have increased AR-related health problems due to the advancement of new gaming devices, technologies and so on. The interactive AR games can very well put the user under the powerful wile of the game for many hours and ailments such as anxiety, eye strain, obesity, and poor concentration may surface. Using AR for long periods, especially with headsets, can cause dry eyes, irritation, and tired vision. Our eyes are not used to this kind of stimulation, which could affect long-term eye health.
Adoption due to Hardware Limitations and Infrastructure Requirements
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While AR technology provides the possibility of practical application across diverse sectors such as gaming, healthcare, education and retail, the capability of compatible devices with such computing power that can detect, and process signals becomes a problem. Not only it but also ensuring a smooth integration of AR with the companies' and organizations' data and network infrastructure, can create obstacles for firms and organizations intending to apply AR technologies, similarly presenting challenges.
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Augmented Reality Market Competitive Landscape
The Augmented Reality market growth is leading technology companies including Apple, Meta, and Google leaving nothing to be desired. Apple's accessibility stronghold with the support of ARKit renders a broad range of AR app builders who can build amazing AR experiences for iPhones and iPads. Similarly, Meta mirrors Oculus headsets in a bid to attain a bridge among virtual and with a priority on social interaction. On top of these so-called tech giants, there are several specialized AR hardware companies, like Magic Leap and Vuzix, who are getting into targets at this point, offering more AR-focused headsets which are — big enterprise applications. A highly competitive environment which positions collaborative partnerships and competing between both large players and niche specialists encourages innovation. Merits are made through meeting the criteria of user friendliness, hardware accessibility, developing software that encourages widespread AR usage and enhanced experience by diversity.
Top Player's Company Profiles
- Apple Inc. (US)
- Google LLC (US)
- Samsung (South Korea)
- Alibaba (China)
- AWS (US)
- Microsoft Corporation (US)
- Magic Leap, Inc. (US)
- Niantic, Inc. (US)
- PTC Inc. (US)
- Atheer Inc. (US)
- Blippar (UK)
- Zugara (Switzerland)
- Wikitude (Austria)
- Unity (US)
- Zappar (UK)
- TILTLABS (Canada)
- Scope AR (Austria)
- Vuzix (US)
- Marxent (Canada)
- ARToolKit (US)
Recent Developments
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In January 2024, Qualcomm Technologies entered a collaboration with RayNeo for developing the next-generation market leading AR glasses. This collaboration brings together the expertise of industry leading technology providers to redefine the future of AR glasses.
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In March 2023, Snap Inc. introduced ARES, its AR Enterprise Services, designed to seamlessly integrate Snap's AR technology into businesses' platforms for immersive consumer experiences. The inaugural focus is on retail, with initial clients including Goodr, Princess Polly, and Gobi Cashmere.
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In March 2023, Augmedics, a trailblazer in augmented reality (AR) surgical navigation, unveiled new, FDA-approved functionalities and applications for its xvision Spine System. This significant update, following the company's recent achievement of treating its 3,000th patient, marks the most extensive expansion of xvision since its introduction to the market.
Augmented Reality Key Market Trends
- Increasing Demand for Enhanced Customer Experience: The increasing number of fickle-minded customers and rapid change of brands is creating new challenges for brands which demand innovative customer engagement solutions. A substantial amount of business is currently utilizing AR technologies to attract their customers towards their brand. For instance, as reported by Adloid.in, a business-to-business solutions provider of AR, where clients integrating the provider's online augmented tools for customer engagement see a rise in sales by 200%. Moreover, this technology will empower customer service with an online customer support system, where the customers can see and chat with agents while they shop at the store.
Augmented Reality Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the augmented reality (AR) market continues to witness substantial growth driven by advancements in technology, increasing demand for AR applications across various industries, and rising investments in AR-enabled devices and software solutions. With the proliferation of smartphones and tablets equipped with AR capabilities, consumer adoption of AR applications for gaming, entertainment, and social media experiences is on the rise. Furthermore, AR is also making waves in serious fields like healthcare, education, and retail, where it's being used for things like medical training and virtual shopping experiences. The ongoing development of AR glasses and headsets by tech giants like Apple, Google, and Microsoft is expected to unlock new opportunities for immersive experiences and enterprise applications. However, challenges such as privacy concerns, limited content availability, and technological barriers to seamless integration remain significant hurdles to widespread AR adoption. But overall, the outlook for AR is exciting. As long as companies keep investing in research and development, and people stay interested, AR is set to change the way we interact with the world for the better.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 32.1 Billion |
| Market size value in 2031 | USD 432.35 Billion |
| Growth Rate | 33.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Augmented Reality Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Augmented Reality Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Augmented Reality Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Augmented Reality Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Augmented Reality Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Augmented Reality Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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