Augmented Reality Market Forecasts to 2028 – Global Analysis By Device Type (Handled Devices, Head Mounted Display, Head-Up Display and Other Device Types), Component (Software and Hardware), Technology (Anchor-Based AR Technology, Markerless AR Technology and Marker-Based AR Technology), Application and By Geography
According to Stratistics MRC, the Global Augmented Reality Market is accounted for $36.19 billion in 2022 and is expected to reach $308.22 billion by 2028 growing at a CAGR of 42.9% during the forecast period. Augmented reality is a real-time representation of a physical real-world environment in which components of virtual computer-generated images are integrated. AR is the utilisation of information in the form of visuals, audio, text, and other virtual improvements in conjunction with real-world goods. Unlike simulations, augmented reality (AR) integrates and enhances the user's engagement with the real environment. The growing popularity of smart glasses, smart phones, and other handheld and wearable devices is pushing the adoption of mobile AR technology for creating immersive experiences.
According to the Ecorys VR Report, the European production value for AR/VR is expected to reach USD 40 billion by 2020. The U.K. is expected to lead the market due to the presence of numerous AR/VR companies.
Market Dynamics:Driver: Rising investments in AR market
Investments in the augmented reality business have increased dramatically in recent years. Companies including Facebook Corporation, Intel Corporation, Qualcomm, Inc., Alphabet, Inc., Comcast Ventures, and Samsung Group are aggressively investing in the augmented reality market. In addition, several research institutes are conducting research in the AR application market for various goods and applications. A few research institutes are supported by private companies and venture capitalists, while others are funded by governments. Consumer, aerospace and defence, healthcare, corporations, retail, and marketing are all embracing the benefits of augmented reality.
Restraint:Long Term Impacts of AR on Mental Health
Users of technology are having problems as a result of their excessive use of smart devices. According to a Stanford University study, users react to the immersive environment in the same manner that they do to the actual environment, which influences their psychology and behaviour. Some consumers may experience a severe form of post-traumatic stress disorder as a result of the study. Similarly, wearing the gadgets can impair the user's ability to interact socially, leading to loneliness and melancholy. As a result, mounting concerns about the impact of excessive AR usage on users are expected to impede market growth.
Opportunity:High growth of travel and tourism industry
The tourism industry heavily relies on information. The travel and tourism business is one of the fastest expanding in the globe. AR will play an essential role in delivering information to users and improving the experience of tourists and travellers. Augmented reality can be utilised in cultural institutions to engage visitors and enhance their experience through real-time navigation. AR applications can be employed in outdoor settings. Tourists can use smart phones or other handheld devices to point toward physical objects in the real world dominate augmented reality market. This will enable them to enhance physical locations and tourist attractions.
Threat:Reconfiguration of applications for different platforms
The majority of AR applications are developed for specific purposes and have specified configurations. As a result, these programmes cannot be used for other reasons. Hence, creating new applications frequently necessitates more effort and time. Furthermore, there are limits to Augmented Reality Applications in terms of operating systems, Android versions, development languages, and platforms. Furthermore, mobile AR is constrained by device size and processing power for AR applications.
Covid-19 Impact
Covid-19 has had a favourable impact on the expansion of the augmented reality market share, as demand for the technology grows across industries like as media and entertainment, education, healthcare, and retail. Furthermore, the adoption of augmented reality (AR) technology has been one of the leading trends in the beauty and fashion industries. It aids brands with experiential marketing, immersive storytelling, and other endeavours. With most stores closed due to COVID-19-induced lockdowns, AR came in as a valuable resource.
The head-up display segment is expected to be the largest during the forecast period
The head-up display segment is estimated to have a lucrative growth. The segment's growth is projected to be driven by continued advancements in driver assistance technologies. A driver can drive safely while simultaneously tracking vehicle data on the windscreen, such as speed, turning indicators, and warning signs. Recognising the enormous potential of the market, various automotive electronics companies, including Visteon Corporation, Continental AG, and WayRay AG, have entered the AR head-up display market to develop immersive devices.
The hardware segment is expected to have the highest CAGR during the forecast period
The hardware segment is anticipated to witness the highest CAGR growth during the forecast period, because of the increasing popularity of AR devices across many industries and industrial verticals, such as education, healthcare, construction, and retail. AccuVein Incorporated, for example, is leveraging AR-based technologies to assist medical practitioners in detecting a patient's vein for giving intravenous treatments or taking blood for blood testing, among other things. The expanding demand for AR-compatible gear shows no signs of abating, as more and more businesses invest aggressively in current AR products and solutions.
Region with highest share:
North America is projected to hold the largest market share during the forecast period. The United States accounted for the greatest proportion of the North America regional market. The United States is home to several leading technology businesses, including Google LLC and Microsoft, among others. Furthermore, the country is regarded as an early adoption of new technologies. The governments of the United States and Canada are investing extensively in the deployment of such technology for a variety of industries, including aerospace and defence, healthcare, and education, with the goal of driving regional demand.
Region with highest CAGR:Asia Pacific is projected to have the highest CAGR over the forecast period. Developed countries, such as Japan and Australia, are rapidly establishing themselves as regional market leaders by leveraging a huge client base and accelerating the implementation of internet-based platforms. The continuing deployment of high-speed 5G networks in Asia Pacific is also projected to drive wider use of AR technology and AR-based products throughout the region. India, with its big population and quickly expanding internet penetration rate, is developing as one of the major economies in Asia Pacific utilising AR technology in the manufacturing and healthcare industries, where more immersive and hands-on experience is critical.
Key players in the marketSome of the key players profiled in the Augmented Reality Market include Wikitude GmbH, Zappar Limited., Apple, Inc., Microsoft, Infinity Augmented Reality Limited, Magic Leap, Incorporated, Google LLC, Blippar Limited, Niantic, Inc., Sony Corporation, TreeView, DAQRI and Seiko Epson.
Key Developments:In March 2021, Microsoft launched its new app called Microsoft Mesh that gives users across AR/VR meeting space to interact with other users and 3D content, handling all of the technical hard parts of sharing spatial multi-player experiences over the web.
In January 2021, Magic Leap partnered with Google Cloud to deliver Magic Leap enterprise solutions on the Google Cloud Marketplace and explore potential new cloud-based, spatial computing solutions running on Google Cloud.
In September 2020, Seiko Epson Corporation developed its fourth generation of optical engines for smart glasses. These optical engines boast the most advanced optical technology for Epson's next generation of smart glasses in the Moverio series.
In June 2020, Microsoft Corporation collaborated with the UK-based company Dimension. The partnership aims to provide a mixed reality immersive experience using extended reality content, digital humans, augmented and virtual reality technology, and Microsoft HoloLens.
Device Types Covered:
• Handled Devices
• Head Mounted Display
• Head-Up Display
• Other Device Types
Components Covered:
• Software
• Hardware
Technologies Covered:
• Anchor-Based AR Technology
• Markerless AR Technology
• Marker-Based AR Technology
Applications Covered:
• Industrial & Manufacturing
• Education
• Aerospace & Defense
• Healthcare
• E-commerce & Retail
• Automotive
• Gaming & Entertainment
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements