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Augmented Reality (AR) Market Size, Share & Industry Analysis, By Component (Product, Software, Maintenance & Support Services), By Device Type (Handheld Devices, Stationary AR Systems, Head-mounted Displays (HMDs), Smart Glasses, and Others), By Industry (Gaming, Media and Entertainment, Education, Healthcare and Medical Devices, Retail, Logistics, Manufacturing and Engineering, and Others) and Regional Forecast, 2019-2026

Region : Global | Format: PDF | Report ID: FBI102553

 

KEY MARKET INSIGHTS

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The increasing application in manufacturing, logistics, healthcare, and automotive across various applications such as monitoring, training and marketing, will drive the market. Additionally, the leading players in the market are investing heavily in immersed augmented reality technology to offer better user experience to their customers.


For instance, in May 2019, DHL group deployed smart glasses in their warehouses and hubs across the world to handle contract logistics and virtually support the vision picking process in warehouses. The staff uses Google’s Glass Enterprise Edition of second-generation smart glasses. The company has registered a productive, accurate, and efficient picking process in the warehouses after adopting this technology.


MARKET TRENDS


AI Integrated Augmented Reality Offering Enhanced User Experience


The integration of AI is expected to improve the user experience and will impel key players to integrate voice interface to further engage its customers. Therefore, the integration of AI is predicted to create lucrative market growth opportunities in the coming years and is expected to be a key market trend. For instance, in the retail industry, with the help of AR, people can directly experience the product appearance and can interact with the physical objects during the shopping. Similarly, in the manufacturing facilities, augmented reality glasses are assisting shop floor workers during day-to-day work.


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Subsequently, integrating AI is providing engaging experience and personalization for the users. For instance, with the help of AI, personalized experience is offered to a shopper along with real-time relevant information about the product. During this, AI can learn from the user experiences and reactions to every product to what exactly the user is looking for. It can then predict and make a decision based on the input data extracted from the user. Moreover, with customer preference, the designers can create 3D product designs with colours, designs and more. Also, voice recognition through natural language processing (NLP) is expected to create simplified user experiences.


MARKET DRIVERS


Fast Connectivity and Better Quality Offered by 5G Technology to Drive the Augmented Reality Market


The advancements in graphics, computation, content, sensors, and display have entirely contributed to the AR/VR technology. Mean logistics, manufacturing and retail industries are implementing immersive technology to improve user experience. This technology is coming out as a game-changer with today's techno-savvy customers. With such high growth and investment, the market for the same is facing challenges in providing a high-quality system and user experience. However, the implementation of 5G connectivity and infrastructure is expected to boost the adoption of the augmented reality technology. With the 5G technology, a user can witness high quality experience on their mobile phones and tablets. This offers instant interaction between user and the devices which will be beneficial in the industries such as gaming, manufacturing, logistics, and healthcare among others. Moreover, the 5G connectivity is also expected to provide high data transfer speed, which is expected to prove beneficial in the long term.


Several companies such as Apple, Inc., Google LLC, and Facebook, Inc. are investing in developing augmented reality apps for smartphones and tablets. Thus, with the help of 5G technology and infrastructure, the solution providers are emphasizing on delivering an enhanced and better quality user experience. This is expected to be the key driver that is boosting the adoption.


Rising Adoption of AR Technology in the Automotive Industry is Likely to Offer Prominent Opportunities for the Vendors


After the growing implementation of augmented reality technology in different industries, major players in the automotive industry are emphasizing on implementing this technology to gain competitive advantage. The automotive industry is likely to implement AR for the dashboard, which will enhance the driver experience. By providing the crucial information in the line of sight, the driver will be at lesser risk. Instead of searching data on the mobile or dashboard, the driver can access the data through its implementation. This technology will also provide available information on the head-up devices or on windshield that can be projected in the line of sight. Altogether, AR can provide navigation information along with other emergency notification regarding driver safety. For instance, Nissan Motor Co., Ltd. is implementing this technology in the old car versions, which will be performing co-pilot duties.


Furthermore, several auto manufacturers such as Bayerische Motoren Werke (BMW) AG, Jaguar Land Rover Ltd., Mercedes-Benz AG, Toyota Corporation and more are focusing on implementing augmented reality solutions in their cars. With the head-up display (HUD); these companies are likely to project data such as speed, gas level, lane guidance, direction and more to assist the driver. With all these advancements and developments related to this technology in the automotive industry, the demand for AR solutions is anticipated to create a lucrative opportunity for vendors.


KEY MARKET RESTRAINT


The Data Safety and Health Implications is Expected to Limit the Market


Today the AR applications are reaching from businesses to consumers. With the implementation of AR in every sector, the data generation is increasing. Additionally, the popular AR apps can gather user’s biometric data such as speech data, facial expressions, and even unique identity data such as retina patterns. With such technology advancements and procurement of large amounts of data, cyber-attacks and data breaching are increasing. In addition, more attacks have been recorded on the industry such as healthcare, retail, and others and directly on the user data.


However, with stringent government rules on data privacy, the companies are assuring the security and safety of data and opting for necessary security solutions to protect the data.


SEGMENTATION


By Component Analysis


Rising Demand for AR products and software to Aid the Market


Based on the component, the market is segmented into products, software, and maintenance & support services. This market is growing exponentially owing to the high demand for products and software. The market revenue of the products is expected to be high. Companies such as Samsung Group, PTC, Inc. are highly investing in AR technology and related products such as HMDs, glasses, among others. Whereas, the software market is also projected to experience significant growth during the forecast period. The companies such as Samsung Group, Facebook, Inc. are offering software to integrate augmented reality in smartphones, tablets, and other devices.


By Device Type Analysis


Smart Glasses and Handheld Devices Are Expected to Gain Traction During the Forecast Period


By device type, the market is segmented into handheld devices, stationary AR systems, head-mounted displays (HMDs), smart glasses, and others. The smart glasses allow users to analyze the displayed information relevant to the environment. The smart glasses do not entirely immerse the user but integrate the technology with the surroundings. The demand for smart glasses is expected to increase owing to its advanced functions and application in industries like manufacturing and engineering, automotive. These devices offer safety and workplace efficiency, ease of use, and portability. For instance, in 2019, Google LLC re-launched its smart glasses for businesses with the integration of artificial intelligence technology to deliver high quality and enhanced user experience. Several manufacturers are entering and offering integrated AR solutions. The other technological improvement in smart glasses such as extended battery life and drop in video latency is expected to boost the augmented reality market.


Initially, the technology was introduced on stationary or head-mounted devices which were not available with everyone. With the introduction of smart devices such as smartphones, tablets that are widely adopted and less expensive, the augmented reality technology reached maximum people. At present, handheld devices such as smartphones and tablets are also supplementing the adoption of integrated AR solutions. The popularity of augmented reality games over mobile phones has boosted the augmented reality (AR) market. The demand for handheld AR devices is expected to increase during the forecast period owing to the growing adoption in interactive marketing & advertising and education. Whilst, the HMDs and stationary AR devices are also anticipated to see significant growth during the forecast period.


By Industry Analysis


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Gaming, Media Entertainment and Retail Industries Are Key Industries to Support the Market Growth


The industry segment in augmented reality market is categorized into gaming, media and entertainment, education, healthcare and medical devices, retail, logistics, manufacturing and engineering, others (automotive, real estate, etc.). The adoption is growing intensely across all the industries. The gaming, media & entertainment industries are expected to see healthy growth during the forecast period.


The gaming industry is growing extensively in the overall market by offering a wide range of augmented reality games. It is gaining huge traction in the gaming industry owing to its advanced applications. With the adoption of AR, the gaming industry can provide more interactive games, which varies from traditional games. The real world is used as a platform and it is offered with the integration of various animated and graphical elements. In 2016, the launch of “Pokémon Go” had a huge success in the gaming industry is one of the best- examples. Moreover, Zynga also integrated AR with its “Cars Racing 2” game, in which players can envision themselves as the drivers. This variety of applications are boosting the adoption in the gaming industry.  


The demand is steadily increasing in the media and entertainment industry. Through the implementation of AR in the advertisement, marketers can reach and interact with their customers. Similarly, the retail industry is also highly adopting. For instance, people can virtually see and try clothes on them through a stationary AR system. The other example is through the IKEA augmented reality app; the customer can see the selected furniture in their homes and check how it looks.


REGIONAL ANALYSIS


North America Augmented Reality (AR) Market Size, 2018 (USD Billion)

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Regional market analysis is provided across five key regions namely North America, Europe, Asia Pacific, Middle East and Africa and Latin America


North America is expected to hold a maximum global augmented reality market share. With the presence of companies such as Google LLC, Facebook, Inc. and Apple, Inc. among others, the development and investment in the augmented reality market are increasing in the U.S. Additionally, the U.S. government is implementing various initiatives and funding the startups to invest in advanced AR technology. The leading companies are organizing various AR/VR conferences for large and small & medium enterprises to develop innovative solutions and showcase their product segment. Industries such as gaming, retail, manufacturing, and logistics, among others have witnessed high adoption in North America.


Europe is expected to have the second-largest market share during the forecast period. The U.K. and Germany are expected to have the maximum number of AR device users and are spending heavily in the market. Germany is likely to adopt AR at a fast rate and witness steady growth during the forecast period. Numerous European companies are highly investing in research and development of hardware and software products.


Similarly, Asia Pacific is the fastest-growing region in the augmented reality (AR) market. Asia Pacific region is projected to lead the hardware segment during the forecast period. In the Asia Pacific, China and Japan have a maximum market share in the region. Companies such as Samsung Electronics, PTC, Inc., and Sony Corporation are some of the key players in the Asia Pacific market. China and India have a huge market of smartphones, which is likely to offer various opportunities for handheld devices.


Latin America is expected to grow steadily in the augmented reality market. Brazil and Mexico are likely to have maximum market share in the Latin America market. The companies in this region are investing in the related software. Whilst, the Middle East and Africa are also adopting the augment reality technology owing to the development and adoption of 5G and smartphones market.


KEY INDUSTRY PLAYERS


Google LLC is Aiming to Offer Advanced AR Products and Software


Google offered smart glasses initially for consumers. In the year 2017, the company re-launched the smart glasses enabled with AI technology for the businesses. Google also offers an augmented reality platform ARCore for the developers. The company is investing in developing tools and software to provide enhanced immersive solutions to its customers. Additionally, the company is also establishing a partnership with different retailing companies in its project.


August 2019: Google LLC has initiated a new walking direction feature for AR devices. This Google Map Live View AR feature will be available on android phones and iPhones. With the help of the user’s camera, the company will offer real-time navigation through Google Maps. Moreover, Google is planning to enable its users to plan trips through Live View AR.


December 2019: The company announced its planning to offer and implement next-gen depth detection and physics in their solutions. Google LLC is constantly upgrading its platform ARCore after its launch. With the new Depth API feature, the developer will be able to perform occlusion; i.e. with the real-world object, the artificial object will be blocked. This feature will also be launched for android phones.


Key Players Focusing on Adopting Various Strategies to Gain Competitive Edge in the Augmented Reality Market


The major players in the Augmented Reality market are investing in research and development to provide enhanced hardware and software solutions. The companies are offering integrated augmented reality solutions to meet the industrial requirement. These devices are integrated with the company’s provided equipment such as helmets, phones, and tablets to assist the employees at the work. Some of the players are also offering platforms and tools such as ARCore and ARKit for developers and programmers. Goggle launched its smart glasses with upgraded technology for the business.


The players including Google LLC, Samsung Electronics, Apple, Inc., Facebook, Inc., Microsoft Corporation, PTC, Inc., and Vuzix Corporation dominate the market. Among these key players, majority of the companies are headquartered in North America.


Some of the Key Companies Profiled in the Report are:



KEY INDUSTRY DEVELOPMENTS:



  • December 2019Facebook, Inc. announced the launch of a new Spark AR engine. The engine will allow the ad-makers to incorporate augmented reality features in their ads. This is available on platforms of Facebook and Instagram

  • October 2019 Vuzix Corporation announced its partnership with Librestream's Onsight to optimize the smart glasses. The collaboration is to offer expanded investment for enhancing the customer experience.


FUTURE SCENARIO


The market initially was growing steadily. The awareness among the customers grew after the launch of the AR game “Pokemon Go” in 2016. The market growth and adoption are expected to overtake the virtual reality market. However, with the integration of AR and VR technology together the demand for AR and VR solutions is expected to grow in the near future. The technological advancements and investments in the device and software segment are likely to increase with the rising AR adoption. Similarly, industries such as gaming, media & entertainment are extensively implementing these technologies. Whilst, industries like healthcare, manufacturing and logistics are now implementing and integrating these devices and software in their organizations to enhance the efficiency and mitigate the risks.


REPORT COVERAGE


The report offers qualitative and quantitative insights on the market and the detailed analysis of market size & market growth rate for all possible segments in the market.


An Infographic Representation of Augmented Reality (AR) Market

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Along with this, the report provides an elaborative market analysis in terms of key dynamics, emerging augmented reality market trends, and competitive landscape. Key insights offered in the report are also includes recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.


Report Scope & Segmentation














































 ATTRIBUTE



 DETAILS



Study Period



2015 - 2026



Base Year



2018



Forecast Period



2019 - 2026



Historical Period



2015 - 2017



Unit



Value (USD billion)



By Component




  • Product

  • Software

  • Maintenance & Support Services



By Device Type




  • Handheld Devices

  • Stationary AR Systems

  • Head-mounted Displays (HMDs)

  • Smart Glasses

  • Others (Spatial Augmented Reality (SAR) Systems, Smart Lenses, etc.)



By Industry




  • Gaming

  • Media and Entertainment

  • Education

  • Healthcare and Medical Devices       

  • Retail

  • Logistics

  • Manufacturing and Engineering

  • Others (Automotive, Real Estate, etc.)



By Region




  • North America (U.S. and Canada)

  • Europe (UK, Germany, France, Scandinavia and Rest of Europe)

  • Asia Pacific (Japan, China, India, Southeast Asia and Rest of Asia Pacific)

  • The Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico, Argentina and Rest of Latin America)



Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 5.40 billion in 2018

By 2026, the market is expected to be valued at USD 125.32 billion

A growth of 48.6% CAGR has been observed in the market in the forecast period (2019-2026)

Within the industry segment, gaming is expected to be the leading segment during the forecast period

5G to offer faster connectivity and better quality is expected to drive the market growth

Some of the top players include Google LLC, Facebook, Inc., Apple Inc., Microsoft Corporation, Vuzix Corporation, and PTC Inc. owing to a wide range of hardware and software solutions offered in the market

The market value of North America in 2018 accounted for USD 2.12 billion

Augmented Reality (AR) Market Size, Share and Global Industry Trend Forecast till 2026
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