Augmented Reality Market Research, 2031
The global augmented reality market was valued at $24.2 billion in 2021 and is projected to reach $411.4 billion by 2031, growing at a CAGR of 33.2% from 2022 to 2031. AR stands for augmented reality, which combines the real world with virtual reality and virtual environments to enhance customer experience. AR augments or adds new elements to the real environment that surrounds users. It increases the interactivity of the environment, which can also be altered digitally. AR technology is constantly changing in response to the rising use of the technology in commercial applications. This has resulted in an increase in AR chip demand in various fields like medical devices. Industry-leading organizations such as Qualcomm and NXP have introduced novel AR-powered chipsets to satisfy the changing needs of end-users, owing to the growing demand for AR chipsets. For instance, in January 2022, Qualcomm, an American multinational corporation struck a deal of partnership with Microsoft, where they agreed to develop unique semiconductors for AR glasses that will be interoperable with Metaverse apps. Such strategies by major market players are expected to increase the augmented reality market share in the future.
The augmented reality market is segmented into Component, Device Type and End Use.
Excessive use of augmented reality technology has a high chance to cause post-traumatic stress disorder and also affect their psychology and behavior. Also, the user’s ability to interact socially has been depleting which has led to symptoms of depression or anxiety. Thus, rising concerns like this are most likely to negatively impact the growth of the market.
Industries and manufacturing plants are incorporating augmented reality-driven technologies because it enhances operational efficiencies by reducing production downtime, identifying problems quickly, and keeping manufacturing and production processes smooth and frictionless. For instance, implementing AR during the design phase makes it possible for designers to respond well to modern consumer requirements like long product shelf life. Thus, in the current industry scenario where increasing efficiency and productivity is important, AR can be the best-suited option in the future. All such factors are predicted to propel augmented reality market growth in the forecast time period.
Some of the leading augmented reality market players are Google LLC, Microsoft, DAQRI, Niantic Inc, Ptc Inc., Apple Inc, Magic Leap Inc, Seiko Epson Corporation, TreeView, and CXR.
The global augmented reality market is segmented on the basis of component, device type, end-use and region. By component, the market is sub-segmented into hardware and software. By device type, the market is sub-segmented into head-mounted display, handheld display and others. By end use, the market is sub-segmented into retail, healthcare, manufacturing & construction. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By component, hardware sub-segment accounted for the highest revenue share and is predicted to show the fastest growth during the forecast period. Owing to the growing acceptance of augmented reality technology around the world, the hardware component of the market is expected to develop faster than the software segment. According to data from research firm International Data Corporation (IDC), in 2021, the total AR/VR headsets shipped 2021 was an increase of 92.1% over the previous year. In May 2022, Meta (formerly Facebook) opened its first hardware store in California to give its consumers a first-hand experience of its hardware products such as virtual reality headsets and augmented reality goggles and glasses. With this, the company has set the wheel in motion for metaverse-the next evolution of the Internet and will contribute to increasing the augmented reality market size.
By device type, the handheld devices sub-segment is predicted to be the most dominant and head-mounted display is anticipated to show the fastest growth during the forecast period. The rise in the demand for mobile augmented reality in the retail sector to improve customers' shopping experiences is considered as the factor of the growth. The adoption of AR in social media apps such as Snapchat (filters), Facebook, and Instagram will drive demand for more rich content in mobile AR for social media.
By end-use, the media and entertainment sub-segment is predicted to be the most dominant and the healthcare sub-segment is anticipated to have the fastest growth during the forecast period. The adoption of the AR-based solution in the healthcare industry is increasing considerably. The augmented reality model offers hands-free solutions and AI-based diagnostic tools. AR healthcare apps can be useful for surgeons while conducting minimal invasive surgeries by locating a tumor or a relatively abnormal disorder in an organ and saving patients’ lives seamlessly. The growth in surgeries across the globe is one of the major factors that help AR technology to grow fast in the healthcare sector in the forecast period.
By region, Asia-Pacific is anticipated to be the most dominant and the most lucrative region for industry growth. The booming manufacturing sector in China and Japan is expected to drive the augmented reality market in the region to new heights. This region's advancing gaming industry has also seen tremendous expansion, contributing to APAC's rising need for augmented reality technologies. Additionally, increased investments in commercial augmented reality applications are likely to contribute to the market's growth in APAC. Furthermore, Japan's burgeoning healthcare and automotive industries are expected to fuel demand for AR technology in the region.
Impact of COVID-19 on the Global Augmented Reality Industry
- The initial entry and spread of the Covid-19 virus made all industries highly unstable but has positively impacted the augmented reality industry. During the pandemic, hospitals were unable to accommodate and treat the growing number of patients due to the lack of vacant beds and equipment such as ventilators and oxygen supply.
- AR helped to reduce face-to-face interactions of patients with doctors in pandemics. It also helped to improve the surveillance system of the current situation of patients through live video streaming.
- Thus, in this difficult situation, AR aided the healthcare experts in several ways such as medical marketing, telemonitoring and managing patients’ wellness for improved patient care and treatment. The technology also helped in virtual rehabilitation and pain management.
Key Benefits For Stakeholders
- The report provides an exclusive and comprehensive analysis of the Global augmented reality market trends along with the augmented reality market forecast.
- The report elucidates the AR market overview along with key drivers, and restraints of the market. It is a compilation of detailed information, inputs from industry participants and industry experts across the value chain, and quantitative and qualitative assessment by industry analysts.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the market for strategy building.
- The report entailing the augmented reality market analysis maps the qualitative sway of various industry factors on market segments as well as geographies.
- The data in this report aims at market dynamics, trends, and developments affecting the augmented reality market share.
Augmented Reality Market Report Highlights
| Aspects | Details |
 By Component |
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 By Device Type |
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 By End Use |
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 By Region |
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 Key Market Players | Niantic, Inc., PTC Inc., Apple, Blippar Limited, Microsoft, Google LLC, TreeView, DAQRI, Magic Leap, Seiko Epson |
Analyst Review
Increase in demand of augmented reality market technology in healthcare sector is a major factor projected to drive the augmented reality market growth during the forecast period. In addition, growing demand for 3D imaging in healthcare sector and application in manufacturing plants to increase efficiency by reducing production downtime are further expected to boost the market share growth in the forecast years. However, growing augmented reality security and privacy concerns will present a significant technical challenge to the market. The high cost associated with research and development for cutting-edge augmented reality technical solutions and lack of skilled or trained professionals and technological expertise, particularly in developing and underdeveloped economies will further restrain market expansion. Rising digitization, especially in developing countries, coupled with a stronger focus on technology, and the development of the internet of things in healthcare sector will generate more lucrative market growth opportunities.
Among analyzed regions, Asia-Pacific is anticipated to be the most dominant and the most lucrative region for augmented reality market. The growing manufacturing sector in China and Japan and incorporation of augmented reality technology in different product manufacturing industries is expected to drive the augmented reality market in the region to new heights. The region has also experienced tremendous expansion in gaming industry and use of augmented reality technologies in virtual games. This factor has also contributed to the rising need for augmented reality technologies, thereby accelerating market growth even further.
The leading applications of augmented reality are healthcare, manufacturing, retail, and media & entertainment.
Asia-Pacific is the largest regional market for augmented reality.
The estimated industry size of augmented reality is $411,396.90 million by 2031.
The upcoming trends in augmented reality are AR based image filters, AR animations, deep learning works for AR shopping, and its growing applications across healthcare sector.
Google LLC, Microsoft, DAQRI, Apple Inc. are the top companies to hold the highest market share in the augmented reality market.
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