AUGMENTED REALITY MARKET

Augmented Reality Market size reached USD 45.9 billion in 2023 and is estimated to reach USD 512.0 billion in 2031, and the market is estimated to grow at a very high CAGR of 35.2% from 2024-2031 driven by innovations in technology and AR rising popularity in various industries.

Major Market Drivers and Trends

The augmented reality market size growth is largely fueled by technological progress along with continued innovations in AR hardware like mobile devices or smart glasses which make its applications easier to use and more accessible. Moreover, combining AR with AI and machine learning is creating more tailored and engaging experiences which drives increased enthusiasm for the technology. The growing potential has drawn significant investments from major companies like Intel and Samsung.

The market is witnessing substantial growth driven by its revolutionary uses in various industries including gaming and healthcare. Consumers and businesses are increasingly turning to AR technology as they recognize its potential to enhance user experiences while driving operational improvements. Retailers and ecommerce platforms are embracing AR to enrich customer experiences. It allows users to try products virtually and visualize items in actual environments before making a purchase. Its captivating nature increases consumer interaction and sales which contributes to rapid market growth.

AR is also poised to revolutionize the tourism industry by offering travelers enriched information and immersive experiences. The technology allows cultural institutions to captivate their audience by offering real-time navigation along with dynamic and interactive exhibits. AI can enrich outdoor locations by allowing tourists to access real-time information about physical landmarks using their smartphones or handheld devices.

AR is also revolutionizing medical fields such as surgery and patient care by boosting the accuracy along with success rates in medical procedures. Companies are creating AR tools to support complex surgical procedures and medical training which is significantly increasing demand in healthcare.

The Augmented Reality market growth is being supported by numerous government initiatives aimed at promoting its development. Such initiatives are often manifested through R&D funding and academic partnerships to drive innovation in the AR field. Government also implemented regulations primarily to ensure privacy and protecting users from potential harm. Because AR technologies handle extensive data including personal details, governments around the world are introducing regulations to protect user privacy and data security.

Offering Insights: Hardware segment is expected to register the largest market share

The hardware segment dominated the Augmented Reality market share fueled by the rising demand for AR headsets and smart glasses across key industries including gaming or manufacturing. These devices are vital for enabling enticing experiences in fields such as remote guidance and interactive simulations. Significant advancements in miniaturization and display technology have further driven their broader adoption. The growing demand for advanced AR hardware in gaming along with aerospace & defense is significantly fueling growth in this segment.

The software segment is also anticipated to experience rapid growth fueled by the increasing demand for AR applications which improve user engagement in industries like education and retail. The increasing popularity of cloud AR solutions combined with the demand for development platforms is further fueling segment growth. The increasing integration of AR software with current hardware is also anticipated to drive growth in the segment.

Device Type Insights: Head-mounted displays segment is anticipated to register the largest market share

The large market share can be attributed to the widespread use of HMDs in industries such as healthcare and military training where they are used to create immersive learning and deliver accurate training simulations. HMDs are particularly desirable in entertainment and professional environments due to their ability to deliver hands-free functionality. HMDs deliver an engaging AR experience by blending virtual elements with the real world as it enriches how users perceive and engage with their environment. With their broad applicability in education and industrial training, HMDs are evolving through technological advancements which makes them more advanced and accessible to users.

The Head-Up Display segment which is primarily utilized in aviation and automotive sectors is also experiencing growing popularity. By displaying essential information on transparent surfaces, HUDs help pilots and drivers to stay focused on their surroundings which contributes to increased safety in transportation.

Type Insights: Marker-based Augmented Reality segment is projected to register the largest revenue share

This AR technology is commonly used in advertising and training where it enables users to interact with augmented content by scanning markers with their devices.

Application Insights: Consumer segment is projected to dominate the largest revenue share

Consumer electronics dominated the market as tablets and smartphones have paved the way for greater accessibility to AR technology which makes it more reachable for more consumers. With AR features integrated into many mainstream smartphones, users can access augmented reality experiences directly from their devices which eliminate the need for additional hardware.

In the automotive sector, AR is revolutionizing design and marketing processes. With virtual prototypes and augmented reality showrooms, it enhances experiences while improving operational efficiency. The aerospace & defense industry uses AR for maintenance and simulation exercises as it provides realistic solutions that enhance operational readiness and safety. The precise visual guidance and data integration that AR offers are essential for ensuring accuracy and safety in high-stakes fields like aerospace & defense.

Regional Insights: Asia Pacific is projected to experience the fastest growth rate

The market in Asia Pacific is growing rapidly due to the ongoing digital transformation with AR playing a key role in improving manufacturing processes and worker training efficiency. The market in the region is being propelled by the extensive smartphone usage and strategic government efforts to integrate AR into educational and retail environments.

The vibrant entertainment culture in Asia Pacific combined with the increasing demand for AR-powered mobile games and social platforms is driving market growth in the region. The thriving manufacturing industries in Japan and China are also projected to drive market growth in the region. Additionally, the growing automotive and healthcare industries in Japan are likely to fuel the demand for augmented reality solutions in the Asia Pacific market.

North America is expected to remain the leading market for AR fueled by ongoing investments and the growing adoption of immersive technologies in the region. The growing need for augmented reality in education, particularly for remote support and advanced medical training is driving market demand. The market continues to experience rapid growth as virtual try-on technologies become common in retail and online shopping.

Europe has significant potential to drive the AR market with growing sectors like automotive and retail alongside a rising demand for digital technologies. The UK is anticipated to dominate the market due to the high presence of AR/VR companies in the country.

Top Market Players

Some of the major players operating in the Augmented Reality Market includes Google LLC, Microsoft Corporation, PTC, Seiko Epson Corporation, Lenovo, Wikitude GmbH, Vuzix Corporation, DAQRI, Magic Leap, Inc., and Zugara, Inc., Blippar, Samsung Electronics among others.

Major companies are increasing their investment in R&D efforts to broaden their product portfolios, which is expected to drive further growth in the industry. Key players are actively pursuing strategic initiatives such as launching new products and forming partnerships with other companies to strengthen their global presence while driving market growth.

Key Developments:

• • In 2024, Meta Platforms Inc unveiled Orion which marked the company’s entry into the AR glasses market with a device built to combine digital content and the real world in an interactive experience. The glasses are designed to be lightweight while incorporating advanced resolution displays and sophisticated sensors. It enables users to engage with virtual objects within their surroundings.
  • In 2023, the Deep Field application from Apple offers an engaging learning tool for students where they can experiment with vivid colors and textures. They can draw their own plants and animals using the Apple Pencil on iPad.
  • In 2023, Snap Inc launched AR Enterprise Services. It is a new tool designed to help businesses enhance customer engagement by integrating augmented reality into their operational channels. It delivers immersive AR capabilities and personalized interactions across business channels.
  • In October 2022, Epson announced that it will be showcasing its Moverio augmented reality (AR) smart glasses, including the recently its Moverio BT-45C and BT-45CS, at Augmented Enterprise Summit.
  • In July 2021, Matterport, Inc. announced its collaboration with PTC. Inc., which will enable customers create an AR experience for large spaces. The PTC’s augmented reality software Vuforia Studio and Vuforia Engine will help customers to enhance digital twin captured with Matterport platform.
  • In April 2021, Audi developed augmented reality heads up display in the Audi Q4 e-tron and Q4 Sportback e-tron. This AR based heads-up display will provide information through windshield, which will help drivers to understand display in poor visibility condition.
  • In June 2020, Microsoft announced new update in its ARKit 4. Microsoft updated the app with LIDAR scanner depth API, location anchors, and expanded face tracking support through AR capabilities.

Augmented Reality Market Segmentation

The Augmented Reality Market has been segmented on the basis of Offering, Device Type, Type, Application and regions. Based on Offering, the market is segmented into Hardware and Software. Based on Device Type, the market is segmented into Head-Mounted Displays and head-up Displays. Based on Type, the market is segmented into Marker-based Augmented Reality, Marker-less Augmented Reality, and Anchor-based Augmented Reality. Based on Application the market is segmented into Consumer, Commercial, Enterprise, Healthcare, Aerospace & Defence, Energy, Automotive, and Others.

Market Segmentation

Global Augmented Reality Market by Offering

• • Hardware
  • Software

Global Augmented Reality Market by Device Type

• • Head-Mounted Displays
  • Head-up Displays

Global Augmented Reality Market by Type

• • Marker-based Augmented Reality
  • Marker-less Augmented Reality
  • Anchor-based Augmented Reality

Global Augmented Reality Market by Application

• • Consumer
  • Commercial
  • Enterprise
  • Healthcare
  • Aerospace & Defense
  • Energy
  • Automotive
  • Others

Global Augmented Reality Market by Region

• • North America Augmented Reality Market (Option 1: As a part of the free 25% customization)

    • By Offering
    • By Device Type
    • By Type
    • By Application
    • US Market All-Up
    • Canada Market All-Up

  • Europe Augmented Reality Market (Option 2: As a part of the free 25% customization)

    • By Offering
    • By Device Type
    • By Type
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Augmented Reality Market (Option 3: As a part of the free 25% customization)

    • By Offering
    • By Device Type
    • By Type
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Augmented Reality Market (Option 4: As a part of the free 25% customization)

    • By Offering
    • By Device Type
    • By Type
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Augmented Reality (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Google LLC
  • Microsoft Corporation
  • PTC
  • Seiko Epson Corporation
  • Lenovo
  • Wikitude GmbH
  • Vuzix Corporation
  • DAQRI
  • Magic Leap, Inc.
  • Zugara, Inc.
  • Blippar
  • Samsung Electronics