AR/VR Smart Glasses Market

The global AR/VR smart glasses market size was valued at $8.31 billion in 2019, and is projected to reach $33.16 billion by 2027, registering a CAGR of 16.6% from 2020 to 2027. AR/VR smart glasses are wearable electronics that act as an interface between humans and computers. Smart glasses have multiple features, which allow the users to analyze the information relevant to the surroundings. AR/VR smart glass technology has evolved significantly during recent years.
 
The global AR/VR smart glasses market was valued at $8.31 billion in 2019, and is projected to reach $33.16 billion by 2027, registering a CAGR of 16.6% from 2020 to 2027. AR/VR smart glass technology is already advancing in numerous industries such as manufacturing, logistics, field service, inspection, and operation. According to AR/VR smart glasses market trends, it is estimated that 93% of large industrial companies are using smart glasses wearable electronics for their operations.

AR/VR smart glasses have the potential to enhance and even replace existing technology solutions within enterprise supply chains and also change the structure of the work environment. Companies implementing augmented reality wearable electronics are demonstrating use cases that lead to increases in workplace efficiency, productivity, and compliance, which is expected to be lucrative when the technology matures.

Advancements in artificial intelligence (AI) and machine vision in combination with big data and analytics are expected to generate opportunities for the AR/VR smart glasses industry in the near future. Face & object tracking improvements, voice recognition for input, and others will improve and grow in usage for AR and VR. 

For instance, Facebook is all set to launch its first AR smart glasses in collaboration with luxury eyewear brand Luxottica by Ray-Ban. The product’s R&D is being undertaken by Project Aria, a research project set up through Facebook’s Reality Labs. In addition, Amazon’s smart specs will also be available to the masses in the coming years. The product is made from carbon fiber and titanium and uses an IPX4 water and splash-resistant rating. The frames uses a mic and four directional speakers that let the user interact with Alexa smart assistant. 

The growth of the global AR/VR smart glasses market is primarily driven by the increasing adoption of industry 4.0 practices and the growing demand for AR/VR technology in the gaming industry. Additionally, the visual experience of AR/VR smart glasses has been significantly enhanced by advancements in display technology, particularly OLED and MicroLED. These advancements have led to improved immersion and realism, driving higher user adoption rates.

Furthermore, the integration of AR/VR smart glasses with other platforms and technologies, including smartphones, gaming consoles, and social media, enables seamless cross-platform integration. This integration facilitates content sharing, multiplayer experiences, and social interaction, thereby expanding the reach and applications of AR/VR smart glasses and enhancing their overall value proposition.

However, the AR/VR smart glasses market faces challenges such as the high costs associated with smart glasses and a lack of sufficient investments in AR/VR research and development. These factors pose potential threats to the AR/VR smart glasses market growth.

Nevertheless, the market also presents lucrative opportunities. The emergence of trends related to 5G technology and the increasing transition toward digitization provide promising prospects for the global AR/VR smart glasses market. The deployment of 5G networks offers low-latency and high-bandwidth connections, essential for delivering real-time AR/VR experiences. Additionally, as various industries undergo digital transformation, there is an increasing demand for AR/VR smart glasses, creating opportunities for enhanced productivity, training, and customer experiences.

Increasing trends toward industry 4.0 and rising demand for AR/VR technology in the gaming industry are the major factors driving the global AR/VR smart glasses market growth. However, high costs associated with smart glasses and lack of investments in R&D of AR/VR are expected to pose major threats for the AR/VR smart glasses market. Furthermore, emerging trends toward 5G technology and increasing transition toward digitization are expected to offer lucrative opportunity for the global AR/VR smart glasses market.

Segmentation

The AR/VR smart glasses market is segmented based on type, end use, and region. By type, the market is bifurcated into optical see through and video see through. By end use, the market is analyzed across gaming industry, healthcare, education, military & defense, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA along with their prominent countries.

The key players profiled in this report include Avegant, Epson, Everysight Ltd, Kopin Corporation, Lumus Ltd, Optinvent, RealWear, Ricoh Company Ltd., Royale Corporation, and Vuzix.

These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, regional expansion, and collaborations, to enhance their market penetration..

Covid-19 Banner:

The ongoing spread of COVID-19 has become one of the biggest threats to the global economy and is causing widespread concerns and economic hardship for consumers, businesses, and communities across the globe. The “new normal” that includes social distancing and working from home has created challenges with daily activities, regular work, needs, and supplies, causing delayed initiatives and missed opportunities.

The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak is growing day-by-day as well as affecting the supply chain. It is creating uncertainty in the stock market, falling business confidence, massive slowing of supply chain, and increasing panic among customers. European countries under lockdown have suffered a major loss of business and revenue due to shutdown of manufacturing units in the region. Operations of production and manufacturing industries have been heavily impacted by the outbreak of COVID-19, which led to slowdown in growth of the AR/VR smart glasses market in 2020.

According to the AR/VR smart glasses market trends, the COVID-19 pandemic has severely impacted the global manufacturing and industrial sectors as production facilities have stalled, which, in turn, led to significant demand in industries.

The emergence of COVID-19 has declined the growth of the AR/VR smart glasses market in 2020, and is estimated to witness slow growth till the end of 2021. Implementation of partial or complete lockdown across various countries globally is the prime reason for this decline in growth rate. As industries were temporarily shut, it reduced the need for maintenance from various industries.

Top Impacting Factors

Notable factors positively affecting the AR/VR smart glasses market include increasing trends toward industry 4.0 and rising demand for AR/VR technology in the gaming industry. However, high costs associated with smart glasses and lack of investments in R&D of AR/VR hamper the growth of the market. Furthermore, emerging trends toward 5G technologies and increasing transition toward digitization are expected to offer lucrative opportunities for the AR/VR smart glasses industry growth in the coming years.

Rise in Demand For AR/VR Technology in the Gaming Industry

Rapid expansion of the gaming industry worldwide has fostered the demand for augmented reality (AR) and virtual reality (VR). This is attributed to the fact that AR/VR technologies offer improved graphics and aesthetics, generating lifelike virtual environments. VR headsets provide visually fascinating and engaging gaming experiences with their high-resolution displays, 360-degree views, and realistic lighting effects. AR makes digital elements appear naturally as part of the player's surroundings in the actual world.

Moreover, AR/VR technology offers game designers the freedom to experiment with cutting-edge gameplay mechanics and design ideas. While VR delivers natural and immersive interactions through hand gestures or body movements, AR games offer new gaming situations that take advantage of the player's actual position and real-world items. By adding novelty and excitement to gaming, these creative gameplay mechanisms draw in a wider audience. Thus, the market expansion in the gaming sector is being driven by the rising demand for AR/VR-based games.

High Cost Associated with AR/VR Smart Glasses

High cost associated with AR/VR smart glasses acts as a key deterrent factor of the global AR/VR smart glasses market. The technologies involved in manufacturing these smart glasses, including hardware components and software solutions, which contribute to their expensive price. In addition, the customization of apps for specific user requirements adds to the overall cost. Maintenance and upkeep further increase the expenses. The high price barrier limits accessibility and affordability for many potential users, discouraging investments in the technology. To increase adoption rates, manufacturers and developers need to address the cost issue by exploring ways to reduce manufacturing costs, optimize software efficiency, and make the technology more affordable without compromising quality or functionality. Lowering the overall cost would enhance accessibility and drive the widespread adoption of AR/VR smart glasses.

Rising demand for AR/VR technology in the gaming industry

Video game is one of the major applications of augmented and virtual reality technology. Over the past few years, the number of gamers worldwide has increased at a rapid pace. This is attributed to increased demand for augmented and virtual reality-based games, which, in turn, drives the market growth.

High cost associated with AR/VR smart glasses

AR/VR smart glasses are expensive technology and require high cost for their maintenance. The cost associated with hardware, software solutions, and maintenance of smart glasses is high. The app used to get the information and logs adds additional cost to the price of AR/VR smart glasses as it is customizable as per the user requirement. This involves additional cost, which makes the overall product expensive and affects its adoption rate. 

Key Benefits For Stakeholders

• This study comprises analytical depiction of the global AR/VR smart glasses market size along with the current trends and future estimations to depict imminent investment pockets.
• The overall AR/VR smart glasses market analysis is determined to understand the profitable trends to gain a stronger foothold. 
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
• The present AR/VR smart glasses market forecast is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency. 
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
• Porter’s five forces analysis illustrates the potency of the buyers and the sensor market share of key vendors.
• The report includes the market trends and the AR/VR smart glasses market share of key vendors.

Key Market Segments

By Type

• Optical See Through
• Video See Through

By End Use

• Gaming Industry
• Healthcare
• Education
• Military & Defense
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe 
  • UK
  • Germany
  • France
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

 AR/VR Smart Glasses Market Report Highlights