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Augmented Reality (AR) Market Size, Share & Industry Analysis, By Industry (Gaming, Media, Automotive, Retail, Healthcare, Education, Manufacturing, Real Estate, Defense & Aerospace, Law Enforcement, and Others), By Application (Interactive Showroom, Driving Experience, Virtual Fitting Room, Brand Engagement, Space Visualization and Virtual Tours, Augmented Surgeries, eLearning Apps, Professional Training, Developing & Designing, Quality Control, Virtual Walkthrough and Others), and Regional Forecast, 2024-2032

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI102553



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The global augmented reality (AR) market size was valued at USD 62.75 billion in 2023 and is projected to grow from USD 93.67 billion in 2024 to USD 1,869.40 billion by 2032, exhibiting a CAGR of 45.4% during the forecast (2024-2032). North America accounted for a market value of USD 20.02 billion in 2023. 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, and quality control to name a few. The COVID-19 pandemic severely impacted global industries. However, during such crisis, the technology showcased potential uses in different sectors. According to IBM’s U.S. Retail Index report of 2020, retail businesses and their customers shifted to digital shopping during the pandemic.

For instance, brands, such as IKEA, Home Depot, Louis Vuitton, Gucci, and more implemented the augmented reality technology to offer “try-before-you-buy” experiences. Similarly, as per Shopify, products with augmented content interaction gained 94% conversion compared to those without technological assistance during the pandemic crisis. Similarly, U.K.-based hospitals implemented an augmented and virtual reality-based platform Virti to deal with mental health and support training during the pandemic. Similarly, in various industries, the on-site laborers received supervised expertise from engineers working from home to rectify faulty machines. Thus, during the pandemic, the demand for AR technology witnessed significant growth.

Augmented Reality Market Trends

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.

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Augmented Reality Market Growth Factors

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.

Augmented reality enables the non-invasive assessment of wound parameters by providing visual feedback on the wound’s healing status. To demonstrate wound progression, an accurate 3D model is integrated with AR functionalities based on a miniaturized projector. AR-based wound healing assessment helps a patient better understand their ailment, so their compliance to doctor’s advice improves significantly. Also the technology is used for physical therapy & rehabilitation, robotic-assisted surgery, and other applications in the healthcare industry.

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.

Augmented Reality Market Segmentation Analysis

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. Brands use AR to help customers virtually try on clothes, glasses, or to see how goods including paint and furniture would look like. As interfaces and customer experiences are becoming more efficient in 2024, the demand for a refined and feature-rich mixed reality retail experience is increasing. Also, offline stores are integrating elements of online retail stores into their in-store experiences, thereby merging convenience and flexibility of online shopping with offline stores. 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.

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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.


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

North America Augmented Reality Market Size, 2023 (USD Billion)

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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.

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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.

List of Key Companies in Augmented Reality Market

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 Key Companies Profiled:


  • January 2024 - Qualcomm Technologies entered a collaboration with RayNeo for developing next-generation market leading AR glasses.

  • June 2023 - Apple, Inc. introduced Apple Vision Pro, its new augmented reality headset, in its first major hardware launch. The headset has a two-hour battery life.

  • 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.

  • 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. 

  • 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.


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.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 45.4% from 2024 to 2032


Value (USD Billion)


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 (By Industry, By Application and By Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • South America (By Industry, By Application and By Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

  • Europe (By Industry, By Application and By Country)

    • 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 (By Industry, By Application and By Country)

    • 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 (By Industry, By Application and By Country)

    • 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

The market value is projected to reach USD 1,869.40 billion by 2032.

In 2023, the market size was valued at USD 62.75 billion.

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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