Augmented Reality Market Size and Trends

The augmented reality (AR) market size is forecast to increase by USD 461.8 billion at a CAGR of 46.1% between 2023 and 2028. The market is experiencing significant growth, driven by increasing investments in AR technology and rising demand from various application segments. These segments include manufacturing, healthcare, education, and ecommerce retail, among others. Additionally, the increasing adoption of AR-enabled smart glasses is fueling market expansion. Companies are investing heavily in research and development to create advanced AR solutions that offer experiences and practical applications. The market is poised for substantial growth in the coming years as AR technology becomes more accessible and affordable.

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The market is experiencing significant growth in various industries, including media and entertainment, gaming, retail, education, and the AR industry itself. Tech players and startups are at the forefront of this innovation, integrating AR technology into smartphones and collaborating with 5G service providers to ensure seamless connectivity. In the gaming sector, AR is revolutionizing the way we play, offering experiences through computer vision and spatial computing. Operations in the media, entertainment, retail, and education industries are being transformed by AR. Installation and assembly processes are becoming more efficient with the help of AR technology. Training programs are adopting AR for more effective and engaging learning experiences. Quality control and safety management are also benefiting from AR's ability to provide real-time data and visualization. Stanford University and other institutions are leading the way in AR research and development. Engineers and designers are using AR for visualization and problem-solving, making it an essential tool in the tech industry. The future of AR is bright, with endless possibilities for innovation and integration into our daily lives.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Component
  • Hardware
  • Software
• End-user
  • Enterprise
  • Retail
  • Healthcare
  • Media and entertainment
  • Others
• Geography
  • North America
    • US
  • APAC
    • China
    • Japan
  • Europe
    • Germany
    • UK
  • South America
  • Middle East and Africa

By Component Insights

The hardware segment is estimated to witness significant growth during the forecast period. Augmented Reality (AR) is a transformative technology that is revolutionizing various industries by enhancing operational processes and providing valuable information in real-time. The AR industry is experiencing significant growth, with 5G providers playing a crucial role in its expansion by enabling faster and more reliable connectivity for AR applications.

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The hardware segment was the largest segment and was valued at USD 17.60 billion in 2018. AR technology is being integrated into various sectors, including the automotive industry for remote assistance and training using AR glasses and head-mounted displays. In the manufacturing industry, AR is used for installation and assembly, quality control, and interactive showrooms. The art & designing industry is leveraging AR technology for design and visualization, staging, and developing & designing.  Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Augmented Reality (AR) is a cutting-edge technology that is revolutionizing various industries, with a notable impact on the retail sector and safety management. AR technology enables the overlay of digital information onto the real world, enhancing user experience and productivity. Smart glasses and smartphones are the primary devices used to access AR applications. In the retail industry, AR is transforming the shopping experience through virtual fitting rooms and virtual walkthroughs, allowing customers to try on clothes and visualize home decor items in their own environment before making a purchase. Hence, such factors are driving the market in APAC during the forecast period.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Increasing investments in AR technology is notably driving market growth. Augmented Reality (AR), an innovative technology, is experiencing significant growth as 5G providers invest in its advancements. AR technology is poised to revolutionize various sectors, including social media, mobile devices, automotive, retail, healthcare, and the art & designing industry.

 AR hardware, such as AR chipsets and glasses, are essential components of this technology. In the automotive sector, AR is enhancing the driving experience, while in the retail industry, it offers interactive showrooms and improves brand engagement. The AR industry is also transforming the manufacturing and industrial sectors through operations, professional training, and quality control. In the healthcare sector, AR technology is being used for augmented surgeries and medical education. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increasing AR integration in mobile devices is the key trend in the market. Augmented Reality (AR) is a groundbreaking technology that is revolutionizing various industries by overlaying digital information onto the physical world. The AR industry is witnessing significant growth, with 5G providers playing a crucial role in enabling seamless connectivity for AR applications. AR technology is being integrated into mobile devices such as smartphones and tablets, powered by advanced AR chipsets and Head-mounted displays.

The AR industry is expanding its reach into numerous sectors, including the art & designing industry, where AR technology is used for design and visualization, and in developing and designing stages. In the automotive sector, AR technology is enhancing the driving experience by providing real-time information and interactive showrooms. The manufacturing industry is leveraging AR technology for installation and assembly, quality control, and professional training. The defense & aerospace industry is utilizing AR technology for military applications, such as augmented surgeries and maintenance operations. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Privacy concerns over AR technology is the major challenge that affects the growth of the market. Augmented Reality (AR), an advanced technology, is revolutionizing various industries by enhancing user experience and providing valuable insights. AR technology, driven by 5G providers and advanced AR chipsets, is making strides in sectors such as the automotive industry, engineering, education, and media and entertainment. In the art & designing industry, AR technology is used for design and visualization, staging, and developing and designing, offering a more interactive experience.

Moreover, AR technology is also transforming industries like manufacturing and industrial & manufacturing, enabling installation and assembly, quality control, and interactive showrooms. In the medical field, AR technology is being used for augmented surgeries, drug information, and medical education. The defense & aerospace industry is leveraging AR technology for operations, professional training, and law enforcement. AR technology is also gaining popularity in the gaming sector, with Head-mounted displays and Mixed reality (MR) providing a more engaging and realistic experience. Hence, the above factors will impede the growth of the market during the forecast period

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alphabet Inc: The company offers augmented reality solutions such as Google Lens.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Atheer Inc
• Dynabook Inc.
• Inglobe Technologies Srl
• Marxent Labs LLC
• Maxst Co. Ltd.
• Meta Platforms Inc.
• Microsoft Corp.
• Optinvent
• PTC Inc.
• Qualcomm Inc.
• RealWear Inc.
• Samsung Electronics Co. Ltd.
• Seiko Epson Corp.
• Sony Group Corp.
• Ultraleap Ltd.
• Upskill
• Vuzix Corp.
• Wikitude GmbH
• Zugara Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Augmented Reality (AR) marketing is a cutting-edge technology that enhances traditional marketing strategies by overlaying digital information onto the real world. AR technology allows businesses to create interactive and engaging experiences for consumers, making their brand more memorable and engaging. AR marketing can be applied in various industries, including retail, real estate, education, and healthcare. AR marketing solutions use computer-generated images, sounds, and haptic feedback to create experiences for consumers. These solutions can be delivered through various devices, such as smartphones, tablets, or smart glasses. AR marketing campaigns can range from simple image recognition to complex interactive experiences. The AR marketing market is expected to grow significantly in the coming years due to the increasing popularity of AR technology and the growing demand for interactive and engaging marketing experiences. AR marketing offers numerous benefits, such as increased customer engagement, improved brand awareness, and enhanced customer experience. AR marketing solutions can be used for various applications, such as product demonstrations, virtual try-ons, and interactive advertising. AR marketing can also be used for training and education purposes, making it an essential tool for businesses looking to stay competitive in today's digital marketplace. In conclusion, Augmented Reality marketing is a powerful tool that offers numerous benefits for businesses looking to engage with their customers in new and innovative ways. With the growing popularity of AR technology and the increasing demand for interactive and engaging marketing experiences, the AR marketing market is expected to grow significantly in the coming years.

Augmented Reality (AR) market is experiencing exponential growth as businesses across various industries embrace this innovative technology. The market for AR hardware, including head-mounted displays and livestream technologies, is projected to reach new heights, with applications spanning from gaming and education to automotive and retail sectors. In the automotive industry, AR is revolutionizing designing and staging, enabling real-time visualization of vehicle designs and components. The education industry is leveraging AR for eLearning apps, making complex concepts easier to understand through interactive visualizations. The gaming industry is seeing a surge in AR-based games, providing players with a more engaging and interactive experience. In the retail and e-commerce sectors, AR is transforming shopping through virtual fitting rooms and interactive showrooms.

The law enforcement industry is using AR for training upskilling and space visualization, while the media industry is exploring new ways to create experiences for audiences. The home depot and maintenance sectors are utilizing AR for remote assistance and maintenance, streamlining processes and reducing costs. OLED technology is a key component in AR hardware, providing high-quality displays with rich colors and sharp images. Virtual and augmented reality technology is also being used in the space industry for visualization and virtual tours, opening up new possibilities for exploration and discovery. In conclusion, the AR market is expanding rapidly, with applications in numerous industries, from automotive to education, gaming, media, retail, law enforcement, and more. The future of AR is bright, with endless opportunities for innovation and growth.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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