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The global 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 the forecast period.
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 market growth. For instance,
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.
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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,
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.
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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.
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, 2022 (USD Billion)
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Geographically, the market is fragmented into five major regions, North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
North America is expected to gain maximum revenue during the forecast period. Rising investments in immersive technologies are boosting the demand for the technology in the region. 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.
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.
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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.
An Infographic Representation of Augmented Reality (AR) Market
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The research report highlights leading regions worldwide to offer a better understanding to the user. Furthermore, the report provides insights into the latest augmented reality 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.
CAGR of 50.7% from 2023 to 2030
Value (USD Billion)
By Industry, Application, and Geography
The market is projected to reach USD 1,109.71 billion by 2030.
In 2020, the market size was USD 42.20 billion.
The market is projected to grow at a CAGR of 50.7%.
The retail segment is likely to lead the market.
The increasing adoption of AR technology across the healthcare industry is driving the market growth.
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.
North America is expected to hold the highest market share.
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