Augmented Reality Market

Augmented Reality Market Overview

Augmented Reality (AR) Market size is projected to grow from USD 50.25 Billion in 2024 to USD 570.79 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 35.49% during the forecast period (2024 - 2032). Additionally, the market size for augmented reality was valued at USD 35.5165 Billion in 2023.

The growing usage of smartphones and the rising popularity of digital media have led to an increased demand for 3D visualization in the healthcare industry are the key market drivers enhancing market growth.

Figure 1: Augmented Reality Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Augmented Reality (AR) Market Trends

Rising investments in AR are driving the market growth

The augmented reality market has experienced significant growth in recent years, attracting investments from notable companies such as Facebook, Intel, Qualcomm, Alphabet, Comcast Ventures, and Samsung. Research institutes are also actively exploring AR applications across various industries, with funding from private firms, venture capitalists, and governments. Industries like consumer, aerospace & defense, healthcare, enterprises, retail, and marketing are embracing the advantages of AR technology. For example, Boeing Company has established HorizonX, an investment fund focused on external partnerships, including investments in Upskill, a leading enterprise software company for industrial AR devices, and Zunum Aero, a startup aircraft manufacturer based in Kirkland, Washington.

Additionally, Information plays a vital role in the thriving tourism market worldwide. Augmented reality (AR) is poised to revolutionize the industry by offering travelers enriched Information and immersive experiences. Cultural institutions can employ AR to captivate visitors through real-time navigation and interactive exhibits. Similarly, AR applications can enhance outdoor locations, enabling tourists to use their smartphones or handheld devices for real-time access to Information about physical objects. For instance, users can instantly access reviews and menus by pointing their devices at restaurants or learning about the history of landmarks by aiming their tablets at them. This integration of AR in tourism will significantly elevate the overall visitor experience. This can greatly enhance the Augmented Reality (AR) market revenue.

Augmented Reality (AR) Market Segment Insights

Augmented Reality (AR) Device Type Insights

Based on device type, the global Augmented Reality (AR) market segmentation includes Head Mounted Displays and Head-up Displays. The head-mounted display segment dominated the market; HMDs provide an immersive and interactive AR experience by overlaying virtual elements onto the real world, enhancing the user's perception and interaction with the environment. This makes HMDs well-suited for various applications such as gaming, education, healthcare, and industrial training, and advancements in HMD technology have led to the development of more sophisticated and user-friendly devices.

Augmented Reality (AR) Device Vertical Insights

Based on vertical, the global Augmented Reality (AR) market segmentation includes consumer electronics, commercial, aerospace & defense, and medical. The consumer electronics segment dominated the market; the widespread adoption of smartphones and tablets has made AR technology more accessible to consumers. Many popular smartphone models have AR capabilities, allowing users to experience AR applications and content without needing additional devices or hardware.

Augmented Reality (AR) Device Technology Insights

The global Augmented Reality (AR) market segmentation, based on Technology, includes Marker-based and Markerless. The marker-based held the largest category in the market. Marker-based AR is widely used in advertising, marketing, gaming, education, and training. It offers a user-friendly and intuitive AR experience, requiring users to simply scan or point their devices at the markers to activate the augmented content.

Figure 2: Augmented Reality (AR) Market, by Technology, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Augmented Reality (AR) Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American augmented reality (AR) market will dominate this market, owing to immersive technologies becoming more popular in the Region due to continued investment, which will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: AUGMENTED REALITY (AR) MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Augmented Reality (AR) market accounts for the second-largest market share due to the snowballing adoption of digital media and an upsurge in demand for 3-D visualization in the healthcare sector. Further, the German Augmented Reality (AR) market held the largest market share, and the UK Augmented Reality (AR) market was the fastest-growing market in the European Region.

The Asia-Pacific Augmented Reality (AR) Market is expected to grow fastest from 2023 to 2032. This is because the increasing adoption of AR technology in India's manufacturing and healthcare industries is driving market growth in this Region. Moreover, China’s Augmented Reality (AR) market held the largest market share, and the Indian Augmented Reality (AR) market was the fastest-growing market in the Asia-Pacific region.

Augmented Reality (AR) Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Augmented Reality (AR) market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Augmented Reality (AR) industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Augmented Reality (AR) industry to benefit clients and increase the market sector. In recent years, the Augmented Reality (AR) industry has offered some of the most significant advantages to medicine. Major players in the Augmented Reality (AR) market, including Blippar, Google Inc., Microsoft Corporation, PTC, Wikitude GmbH, Samsung Electronics Co. Ltd., Zugara, DAQRI, and Upskill., and others, are attempting to increase market demand by investing in research and development operations.

Microsoft Corporation is a renowned multinational technology corporation. The company is widely recognized for its flagship software products, including the Windows operating system, Microsoft Office suite, and web browsers like Internet Explorer and Edge. Recently, Microsoft introduced a new application called Microsoft Mesh. This innovative app enables users to engage with others and 3D content in AR/VR meeting spaces, simplifying sharing of immersive multi-player experiences over the web by managing the technical complexities.

Magic Leap, Inc. is a technology company based in the United States that introduced a head-mounted display named Magic Leap One. This display overlays computer-generated 3D imagery onto real-world objects, creating an augmented reality experience. Notably, Magic Leap has collaborated with Google Cloud to introduce Magic Leap enterprise solutions available on the Google Cloud Marketplace. Through this partnership, they aim to explore cutting-edge cloud-based spatial computing solutions driven by Google Cloud's capabilities.

Key Companies in the Augmented Reality (AR) market include

• Blippar
• Google Inc.
• Zugara
• Microsoft Corporation
• PTC
• Wikitude GmbH
• Samsung Electronics Co. Ltd.
• DAQRI

Augmented Reality (AR) Industry Developments

On March 25, 2024, Microsoft presented the fourth-generation HoloLens AR headset during an event aimed to push industrial applications and AI technologies. The enhanced gadget, which can provide new ways to visualize processes and enables hands-free manipulation, is intended to help improve efficiencies in areas like manufacturing, healthcare, logistics, etc.

In January 2024, Snap Inc. Offer extend its AR tools to their businesses which make the e-commerce brands allow their customers to virtually try on the goods.

In February 2024, Apple, the smartwatch leader, unveiled augmented reality features on the Vision Pro that emphasizes the need for integration with iOS apps and systems. This shift is aimed at gig consumers in the gaming, virtual shopping, and social learning who can easily use AR.

In September 2023, AR applications in the medical field developed easily as AccuVein, Medtronic and other appropriate organizations started providing AR tools for increased vein visibility and guidance during surgery. These innovations help improve medical procedures and enhance accuracy and targets in politics and world’s economies.

In August 2023, AR in education expanded with new in-app applications encouraging AR remote learning and remote training. For example, Google ARCore was used for subjects such as science, engineering and history which helped students to better engage with various topics and understand the lessons more.

In June 2023. new AR interface led to the improvement of the design of AR relay glasses by Magic Leap, Vuzix and other firms into lightweight portable standalone devices. The devices support industrial applications such as training and assisting field technicians during work to the enabling of complex works.

In May 2023, the new areas in the gaming scope created by Niantic Peridot enhanced the interactive and geographical dimension of the game and reinforced the use of AR in the gaming sector. This trend emphasizes the importance of AR in the revitalization of monotone gaming into active participative activities.

Augmented Reality (AR) Market Segmentation

Augmented Reality (AR) Device Type Outlook

• Head Mounted Display
• Head up Display

Augmented Reality (AR) Vertical Outlook

• Consumer Electronics
• Commercial
• Aerospace & Defense
• Medical

Augmented Reality (AR) Technology Outlook

• Marker Based
• Marker Less

Augmented Reality (AR) Regional Outlook

• North America

  • US

  • Canada

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Augmented Reality (AR) Market Segmentation

Augmented Reality (AR) Device Type Outlook (USD Billion, 2018-2032)

• Head Mounted Display

• Head up Display

Augmented Reality (AR) Vertical Outlook (USD Billion, 2018-2032)

• Consumer Electronics

• Commercial

• Aerospace & Defense

• Medical

Augmented Reality (AR) Technology Outlook (USD Billion, 2018-2032)

• Marker Based

• Marker Less

Augmented Reality (AR) Regional Outlook (USD Billion, 2018-2032)

• North AmericaOutlook (USD Billion, 2018-2032)

  • North America Augmented Reality (AR) by Device Type

    • Head Mounted Display

    • Head up Display

  • North America Augmented Reality (AR) by Vertical

    • Consumer Electronics

    • Commercial

    • Bio-PET

    • Medical

  • North America Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• US Outlook (USD Billion, 2018-2032)

• US Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• US Augmented Reality (AR) by Vertical

• Consumer Electronics

• Commercial

• Aerospace & Defense

• Medical

• US Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• CANADA Outlook (USD Billion, 2018-2032)

• CANADA Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• CANADA Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

• CANADA Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Augmented Reality (AR) by Device Type

    • Head Mounted Display

    • Head up Display

  • Europe Augmented Reality (AR) by Vertical

    • Consumer Electronics

    • Commercial

    • Aerospace & Defense

    • Medical

  • Europe Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Germany Outlook (USD Billion, 2018-2032)

• Germany Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Germany Augmented Reality (AR) Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Germany Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• France Outlook (USD Billion, 2018-2032)

• France Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• France Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Bio-PA

  • Aerospace & Defense

  • Medical

• France Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• UK Outlook (USD Billion, 2018-2032)

• UK Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• UK Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• UK Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• ITALY Outlook (USD Billion, 2018-2032)

• ITALY Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• ITALY Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• ITALY Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• SPAIN Outlook (USD Billion, 2018-2032)

• Spain Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Spain Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Bio-PA

  • Aerospace & Defense

  • Medical

• Spain Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Rest Of Europe Outlook (USD Billion, 2018-2032)

• Rest Of Europe Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• REST OF EUROPE Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• REST OF EUROPE Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Augmented Reality (AR) by Device Type

    • Head Mounted Display

    • Head up Display

  • Asia-Pacific Augmented Reality (AR) by Vertical

    • Consumer Electronics

    • Commercial

    • Aerospace & Defense

    • Medical

  • Asia-Pacific Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• China Outlook (USD Billion, 2018-2032)

• China Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• China Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• China Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Japan Outlook (USD Billion, 2018-2032)

• Japan Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Japan Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Japan Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• India Outlook (USD Billion, 2018-2032)

• India Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• India Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• India Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Australia Outlook (USD Billion, 2018-2032)

• Australia Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Australia Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Bio-PA

  • Aerospace & Defense

  • Medical

• Australia Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

• Rest of Asia-Pacific Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Rest of Asia-Pacific Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Rest of Asia-Pacific Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Augmented Reality (AR) by Device Type

    • Head Mounted Display

    • Head up Display

  • Rest of the World Augmented Reality (AR) by Vertical

    • Consumer Electronics

    • Commercial

    • Aerospace & Defense

    • Medical

  • Rest of the World Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Middle East Outlook (USD Billion, 2018-2032)

• Middle East Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Middle East Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Middle East Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Africa Outlook (USD Billion, 2018-2032)

• Africa Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Africa Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Africa Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less

• Latin America Outlook (USD Billion, 2018-2032)

• Latin America Augmented Reality (AR) by Device Type

  • Head Mounted Display

  • Head up Display

• Latin America Augmented Reality (AR) by Vertical

  • Consumer Electronics

  • Commercial

  • Aerospace & Defense

  • Medical

• Latin America Augmented Reality (AR) by Technology

• • • Marker Based

    • Marker Less