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Augmented Reality Market Size, Share & COVID-19 Impact Analysis, By Industry (Gaming, Media, Automotive, Retail, Healthcare, Education, Manufacturing, Real Estate/Architecture/Interior Design, Defense & Aerospace, Art & Designing, Law Enforcement, and Others, By Application (Interactive Showroom, Driving Experience, Brand Engagement, Space Visualization and Virtual Tours, Augmented Surgeries, Medical Education, Drug Information, Well Being, eLearning Apps, Professional Training, Developing & Designing, Quality Control and Others), and Regional Forecast, 2023-2030

Report Format: PDF | Latest Update: Jan, 2024 | Published Date: Jun, 2023 | Report ID: FBI102553 | Status : Published

The augmented reality market size was valued at USD 42.20 billion in 2022 and is projected to grow from USD 62.75 billion in 2023 to USD 1,109.71 billion by 2030, exhibiting a CAGR of 50.7% during 2023-2030. North America dominated the global market with a share of 32.51% in 2022.

The scope of study considered AR solutions provided by players such as PTC Inc., Google LLC, and Apple Inc., Qualcomm Technologies, Inc., Magic Leap, Inc., Sony Corporation, and more. These players offer various solutions. For instance, PTC Inc. offers product offerings such as Vuforia AR, Vuforia Studio, Vuforia Expert Capture, Vuforia Instruct, and Vuforia Spatial Toolbox. Similarly, Google LLC offers ARCore, an AR platform that provides cloud anchors, environmental HDR, and depth of digital objects.

Augmented Reality (AR) technology has a wide range of applications in entertainment, training, brand engagement, augmented surgeries, virtual tours, quality control to name a few. Small and medium enterprises are adopting the technology to sustain high competition in the market by enhancing customer experience. Industries such as manufacturing, healthcare, retail, gaming, education, automotive among others, are focused on adopting AR technology for training, maintenance, assistance, and monitoring. Increasing adoption of smartphones and integration of apps is expected to boost the market growth in the near future. Further, the rise in collaboration of the key market players with the 5G providers to reduce latency issue is likely to fuel augmented reality market growth. For instance,

  • In May 2022, Australia-based telecommunications company Telstra collaborated with Google LLC and Accenture LLC to develop 5G powered augmented reality for real-world experience at Melbourne’s Marvel Stadium. The collaboration of major technology provider is expected to boost the potential of AR across various innovative and immersive applications. 


AR-based Remote Assistance across Industries to Propel Market Growth Amid COVID-19

The COVID-19 pandemic has severely impacted global industries. It has resulted in restricted traveling, social distancing, fewer on-site staff, lack of training tools, and much more. However, during such crisis the technology has showcased potential application use cases. According to IBM’s U.S. Retail Index report of 2020, the retail businesses and their customers have shifted to digital shopping during the pandemic. For instance, brands such as IKEA, Home Depot, Louis Vuitton, and Gucci, and more implemented augmented reality technology to offer “try-before-you-buy” experiences. Similarly, as per Shopify, products with the augmented content interaction gained 94% conversion compared with those without technological assistance during the pandemic crisis.

Similarly, in industries, the on-site laborers can get supervised expertise from engineers working from home to rectify faulty machines and more. For instance, to assist the on-site worker during the pandemic crises, PTC Inc. provided an AR remote assistance solution named Vuforia Chalk to offer safety during production and maintenance work. Similarly, the U.K.-based hospitals implemented augmented and virtual reality-based platform Virti to deal with mental health and support training during the pandemic. Thus, during the pandemic, the demand for AR technology witnessed significant growth.


Increasing Demand for Enhanced Customer Experience to Boost Market Growth

In today’s world, maintaining customer relationships has become the most important factor for business expansion. The decreasing number of loyal customers and fast switching between the brands boosted the demand for innovative customer engagement solutions. Many companies are experimenting with AR to create a long-lasting impression on their customers as it offers a personalized and interactive experience that helps maintain enriched customer satisfaction. For instance, as per Adloid.in, a business-to-business AR solution provider, businesses implementing its online augmented tools for customer engagement witness a 200% rise in sales. According to a white paper by Infosys, the brands offering customized products are witnessing six to ten times higher growth in revenue generation. Thus, the technology can vastly support marketers to provide a personalized customer experience. 

Additionally, the technology can offer online customer support systems, where the customers can see and interact with agents as they visit a store. For instance, in July 2021, Matterport, Inc. partnered with PTC. Inc. enabled the customer to create an AR experience for large spaces with its augmented reality software Vuforia Studio and Vuforia Engine. This factor is expected to provide a seamless experience to the customers. Thus, the adoption of augmented reality technology is increasingly catering to deliver better customer experiences.


Increasing Adoption of AR Technology in the Healthcare Industry to Drive Market Growth

The healthcare industry is witnessing the rising adoption of immersive technologies to support healthcare workers. The technology provides a real and immersive environment that helps in performing tasks efficiently. Earlier, with the limited information, conducting complex surgeries was exhausting. However, with AR adoption, the potential risk in surgeries has reduced, as the technology offers real-time alerts to the surgeons.

Similarly, the technology offers the capability of interactive and engaging medical learning experiences. For instance,

  • In March 2022, ImmersiveTouch, an AR medical technology company, announced collaboration with Mayo Clinics to offer 3D holographic X-Ray vision of patients’ anatomy to support surgeons. Through the collaboration, advanced AR platforms are offering seamless assistance to surgeons and enhancing the orthopedic surgeries success ratios.

Thus, the rise in technology’s adoption across the various medical application and use cases is expected to drive the global augmented reality market share.


Long-term Impacts of AR on Mental Health May Impede Market Growth

The users of the technology are facing issues owing to the excessive usage of smart devices. According to a Stanford University research report, users react to the immersive environment the same way as the physical environment, which affects their psychology and behavior. The study can cause an extreme case of post-traumatic stress disorder for some users. Similarly, wearing the devices can affect the user’s ability to interact socially, leading to loneliness and depression. Thus, the rising concerns regarding the impact of excessive AR usage on users are likely to hamper the market growth.


By Industry Analysis

Retail Industry’s Focus on Customer Experience to Boost the Segment Growth

The industries covered in the market are gaming, media, automotive, retail, healthcare, education, manufacturing, real estate/architecture/interior design, defense & aerospace, art & designing, law enforcement, and others.

AR offers a promising role in the retail industry. Its ability to provide the customers' details of any product and services through smartphones with a 3D effect is likely to fuel the market growth. Also, the AR-based gamification trend is gaining traction in the e-commerce and retail industries.

The technology plays a vital role in boosting the gaming industry and its adoption has significantly showcased the industry transformation. It offers an immersive and interactive experience that is likely to raise its adoption in the gaming industry. With Pokémon Go's success, the gaming companies extensively expanded the technology for its other games and applications. The technology offers vast scope to the media industry for providing real-time experiences and its implementation is expected to drastically change the customer engagement.

Healthcare is also witnessing an increasing demand for the technology, as it aids in surgeries and patient treatment. As per the market analysis, the growing demand for assistance and monitoring the information in real-time is boosting the adoption of the technology in the industry.

By Application Analysis

Interactive Driving Experience to Fuel the Growth Rate of Automotive Industry and Leading to the Dominance of Driving Experience Segment

Based on application, the market is segmented into interactive showroom, driving experience, virtual fitting room, brand engagement, space visualization and virtual tours, augmented surgeries, medical education, drug information, wellbeing, e-learning apps, professional training, developing & designing, training & upskilling, quality control, virtual walkthrough, designing staging, and others.

The application of the technology is gaining traction in driving experience in the automotive industry. The industry players are keen on offering interactive driving experience to enhance and ease the driver’s load in long routes.

Virtual fitting room segment to gain second most segment share considering the growing focus on customer engagement through interactive capabilities in the retail industry.  

The investment in augmented surgeries is growing significantly. Also, medical training providers are implementing the technology to offer real world experience to future doctors in the healthcare industry.

The eLearning apps are integrating immersive and communicating tools to offer advanced teaching techniques to students in the education industry.

Training & upskilling segment is expected to gain dominant share owing to the increasing demand for safe and secured training sessions for beginners in the manufacturing industry. Also, for quality control, manufacturers are investing in augmented reality technology that offers minute details of the products and its wellbeing.

The adoption of the technology is steadily growing for virtual walkthrough in real estate/architecture/interior design industries. This is expected to help customers in imagining future designs and gaining real experience of the products.


North America Augmented Reality Market Size & Share, 2022

Geographically, the market is fragmented into five major regions, North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Global augmented reality market share to surge in North America due to rising investments in immersive technologies in the region. North America is expected to gain maximum revenue share during the forecast period. Similarly, the U.S. government is keen on boosting the adoption of immersive technologies, strengthening the region’s hold on the market share. For instance, in 2019, U.S. Defense Advanced Research Projects Agency showed interest in IMT Atlantique and contacted the company to develop similar smart contactless lenses for the U.S. military.

Asia Pacific is expected to show rapid growth during the forecast period. The booming automotive, manufacturing, retail, and gaming industries are likely to fuel the regional market growth. China is expected to dominate the market owing to the presence of low-cost hardware manufacturers. India is also anticipated to offer growth opportunities for the market due to increasing demand from consumers, whereas, the investments in Japan are gaining traction considering the growth opportunity.

  • For instance, in June 2021, Livestream Technologies expanded its investment in Japan, supporting the growing customer base APAC region. Since 2019, augmented reality user growth exceeded 300% in Japan.

Europe has vast potential to boost the market. The rapidly expanding industries such as healthcare, retail, and automotive, and the demand for digital solutions is expected to fuel market growth in the region. The U.K. is expected to lead the market due to the presence of numerous AR/VR companies.

The Middle East & Africa is likely to gain traction in the forthcoming years. The implementation of the technology across learning, travel & tourism, media & entertainment, healthcare, and other industries is expected to boost the market. For instance, in September 2020, Kellogg Company collaborated with Blippar for its product launch campaign across GCC countries. With new WebAr technology, the company aims to interact with customers and open new market opportunities.

South America is expected to grow steadily owing to the collaborations and partnerships with global companies. For instance, in March 2021, Canada-based ImagineAR Inc. announced collaboration with a professional football team Clube Atlético Mineiro to offer fan engagement through immersive solutions.


VR Companies Converge on AR Technology and Smart Glasses

The companies in the global market are receiving huge funds and investments across the globe. Companies such as Facebook and Google are acquiring start-ups in the market to gain expertise. Similarly, companies such as Microsoft Corporation, Vuzix Corporation, and Qualcomm Technologies, Inc., and others, are collaborating with different industries to expand their businesses. Apple is aiming to develop AR smart glasses similar to Google LLC. The company offers technology apps such as ARKit for developers to build augmented solutions.

November 2022 – GE Healthcare announced partnership with MediView XR, Inc., to design and develop interventional suite. Its 3D AR would help enhance the collaboration capabilities, surgical navigation, procedural data insights, and more.

September 2021 – Snapchat’s camera company, Snap Inc., announced partnership with Flipkart Private Limited to support e-commerce businesses in delivering immersive experiences. The partnership would enable the two brands to communicate with their customers and drive sales.

List of the Key Companies Profiled in Augmented Reality Market:

  • Samsung Electronics Co. Ltd. (South Korea)

  • Apple Inc. (U.S.)

  • Vuzix Corporation (U.S.)

  • Meta Platforms, Inc. (U.S.)

  • PTC, Inc. (U.S.)

  • Qualcomm Technologies, Inc. (U.S.)

  • Magic Leap, Inc. (U.S.)

  • Sony Corporation (Japan)

  • NVIDIA Corporation (U.S.)

  • Google LLC (U.S.)


  • March 2023 – Snap Inc. introduced a new tool, AR Enterprise Services (ARES), for enterprises to boost their customer experiences. It integrates businesses operating channels with ARES that can help in offering personalized and immersive user experience.

  • March 2023 – Augmedic, an augmented surgical navigation provider company, launched Spine System on its AR platform xvision. It provides AI-enabled 3D and 2D images that helps doctors with visualization and navigation.

  • March 2022 – Vuzix Corporation collaborated with innovative software provider, Icona Srl, to offer remote video assistance hardware and software. The Vuzix smart glasses guide technicians at every step during operational procedures.

  • January 2022 – Qualcomm Technologies, Inc. announced collaboration with Microsoft Corporation to expand its enterprise and customer sector’s AR adoption. Through the collaboration, the companies aimed to offer transformation experience for next generation augmented reality devices for metaverse ecosystem.  

  • June 2021 – Magic Leap Inc. partnered with AMD to semi-custom visual computing and enterprise-class AR devices. The partnership will allow enterprises to transform and re-imagine how information and virtual content are merged and visualized in the real world.


The augmented reality market report highlights leading regions worldwide to offer a better understanding to the user. Furthermore, the report provides insights into the latest market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 50.7% from 2023 to 2030


Value (USD Billion)


By Industry, Application, and Geography

By Industry

  • Gaming

  • Media

  • Automotive

  • Retail

  • Healthcare

  • Education

  • Manufacturing

  • Real Estate/Architecture/Interior Design

  • Defense & Aerospace

  • Art & Designing

  • Law Enforcement

  • Others (Government, Logistics, and Others)

By Application

  • Interactive Showroom

  • Driving Experience

  • Virtual Fitting Room

  • Brand Engagement

  • Space Visualization and Virtual Tours

  • Augmented Surgeries

  • Medical Education

  • Drug Information

  • Well Being

  • eLearning Apps

  • Professional Training

  • Developing & Designing

  • Training & Upskilling

  • Quality Control

  • Virtual Walkthrough

  • Designing Staging

  • Others

By Region

  • North America

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • South America

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

  • Europe

    • U.K. (By Industry)

    • Germany (By Industry)

    • France (By Industry)

    • Italy (By Industry)

    • Spain (By Industry)

    • Russia (By Industry)

    • Nordics (By Industry)

    • Benelux (By Industry)

    • Rest of Europe

  • Middle East & Africa

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa

  • Asia Pacific

    • China (By Industry)

    • Japan (By Industry)

    • India (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific

Frequently Asked Questions

How much will the global augmented reality market be worth in 2030?

The market is projected to reach USD 1,109.71 billion by 2030.

What was the value of the global augmented reality market in 2022?

In 2020, the market size was USD 42.20 billion.

At what CAGR is the market projected to grow in the forecast period (2022-2030)?

The market is projected to grow at a CAGR of 50.7%.

Which is the leading segment in the market?

The retail segment is likely to lead the market.

Which is the key factor driving the market growth?

The increasing adoption of AR technology across the healthcare industry is driving the market growth.

Who are the top players in the market?

Samsung Electronics Co. Ltd., Apple Inc., Vuzix Corporation, Meta Platforms, Inc., PTC, Inc., Qualcomm Technologies, Inc., Magic Leap, Inc., Google LLC, and more are the top players in the market.

Which region is expected to hold the highest market share?

North America is expected to hold the highest market share.

  • Global
  • 2022
  • 2019-2021
  • 120
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