Global Augmented Reality Market 2022-2028

Global Augmented Reality Market 2022-2028

Global augmented reality market is estimated to grow at a CAGR of 32.5% during the forecast period (2022-2028). The market growth is attributed to technological advancement and increasing investment in the augmented reality industry. Additionally, emerging applications across e-commerce and use of AR technology for effective advertising are also estimated to be major factors that are driving the growth of the market. However, low awareness, connectivity issues, and financial constraints and complexity are some of the major barriers to the growth of the global augmented reality market. Besides, opportunities in the enterprise industry and increasing demand for augmented reality in architecture are predicted to boost the market in the near future.

Segmental Outlook

The global augmented reality market is segmented on the basis of device type, offering, and application. By device type, the market is divided into head-mounted, head-up, and handheld. The head-mounted display is expected to hold a significant share in the market owing to its increasing application in e-commerce and marketing. By offering, the market is segmented into hardware and software. Hardware involves sensors, displays and projectors, and cameras. In addition, processors and input devices are included in the hardware segment. Software is used to create and integrate interactive 3D augmented reality experiences on any screen. It is expected to have a considerable share in the market. On the basis of application, the market is segmented into enterprise, commercial, consumer, healthcare, automotive, and others.

Consumer Segment to Have Significant Share in the Augmented Reality Market

The gaming and entertainment industries are driving augmented reality technology. Augmented Reality technology enables video game players to experience digital gameplay in a real-world environment. For instance, Microsoft has rollout Minecraft Earth beta to Android users in August 2019. Moreover, image messaging and multimedia mobile applications are also using augmented reality technology to enable a user to experience augmented reality through mobile applications. Companies such as Snapchat, Facebook and others are using its mobile application to include a camera filter that enables users to give an animated version of themselves. These animated versions can be photographed, recorded and projected through a camera. Such factors tend to fuel the segmental growth of the augmented reality market.

Regional Outlook

On the basis of geography, the market is segmented into North America, Europe, Asia-Pacific and Rest of the World. North America is considered to be the dominating market with the US being the major contributor. The region is an early adopter of advanced technologies that contribute to the regional growth of the market. Further, most of the major companies including Google, Microsoft, and Qualcomm Technologies are the US-based companies that are generating a significant market share in the region.

Asia-Pacific to witness double-digit growth in the Near Future

Asia-Pacific is expected to be the fastest-growing region due to the rising demand for AR applications and devices for 3D visualization and disease detection in the healthcare industry. Moreover, the increasing use of augmented reality in retail, architecture, automobile and e-commerce industry are some additional factors driving the market growth in the region. Companies providing AR products apart from major companies in the region include Octagon Studio, EXA VR Park, ZipMatch, TaKanto, Hiverlab, VizioFly, and others. Octagon is a multimedia company that produces AR products and solutions for mobile and wearable devices. The key products of the company include 4D AR educational flashcards, which have images that pop up when they are viewed through a mobile app.

Market Players Outlook

Some of the key market players operating in the augmented reality market include Google LLC, Microsoft Corp., PTC Inc., Seiko Epson Corp., Vuzix Corp., Magic leap, Inc., Niantic Corp, Epic Games Inc., and others. Other players that account for augmented reality market share includes, Atheer Inc., Thales Group, Qualcomm Technologies Inc., and others. In order to stay competitive in the market, these players adopt different marketing strategies such as merger and acquisitions, product launch, and geographical expansion.

Recent Developments

In August 2019, Google added a range of new tools in its Google Maps that aims to make travel plans simpler and easier. One of the tools included a beta feature called Live View for iOS devices that support ARCore and ARKit. This feature uses augmented reality to show a user which way to walk using a virtual guide.

In March 2018, Universal mCloud Corp. completed the acquisition of NGRAIN (Canada), Corp. The acquisition will provide 10 patents in applied 3D technology to the company’s product portfolio.

In November 2017, Microsoft Corp. expanded geographically by making HoloLens available in 29 new markets in Europe including Austria, Belgium, Croatia, Denmark, Finland, Greece, Hungary, Italy, Iceland, the Netherlands, Norway, Poland, Spain, Sweden, and 15 more.