The global augmented reality market was esteemed at USD 98.81 billion in 2024 and is likely to reach USD 550.69 billion by 2029, developing at a CAGR of 41% during the forecast period.
Hardware and software are the two driving segments, adding to 64.95% and 23.91% of the general market, individually. The hardware systems market is mainly determined by expanding the surgeon's interest in an upgraded impression of depth during surgeries. The market segment involves an expansive scope of items, such as video systems, head-mounted displays, motion sensors, 360° cameras, and surgical displays.
The developing focus of organizations on the feel of AR and VR devices is a crucial pattern in the global AR and VR market. AR and VR devices, such as smart glasses, heads-up displays (HUD), and head-mounted displays (HMD), offer high flexibility and versatility to clients. The application territories of AR and VR are various, and organizations are investigating approaches to incorporate these technologies into multiple fields. Moreover, the associations working in the market are progressively concentrating on the feel of these devices so as to make them vogue and bring their appropriation up in various applications.
The haptic innovation is utilized to make the feeling of touch that clients feel as applied forces, motion, or vibrations. At the same time, gesture recognition algorithms let clients control the devices and applications by utilizing their gestures, typically hand movements. With these advancements, the client can contact a virtual object as though it were in reality. The rising prominence of these innovations has, in this manner, added a new dimension to such devices, consequently driving their adoption.
The limited user interface (UI) influencing the navigation performance of AR applications, limited processing power, less storage, the limited size of the memory card in mobile phones, and differed infrastructure quality of the digital network will restrain the development of the AR market. The health concerns identified with low resolution, lack of movement display latency, and energy consumption influencing the general execution of VR devices are the significant limitations in the VR market.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
41% |
Segments Covered |
By Application, Device Type, Component, and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Blippar, Catchoom, Innovega Inc., Laster Technologies, Metaio Gmbh, Total Immersion, Vertalis Ltd, Augmented Pixels Co., Kooaba AG, Kishino Limited, Qualcomm Incorporated, Wikitude Gmbh and others |
Based on application, the enterprise classification is expected to observe the quickest development in the global AR and VR market during the conjecture time frame. Enterprises are benefiting from AR and VR in various ways, such as optimized productivity, enhanced learning outcomes, real-time data and analytics visualization, efficient warehousing and logistics, and better collaboration with remote workers.
Based on device type, the HMD and HUD classifications are foreseen to hold a more significant share of the global AR and VR market by 2025. In particular, HMDs are progressively gaining prominence in applications such as tourism, automotive, military, gaming, and education. The gigantic appropriation of mobile AR and VR is additionally presumed to help the dynamic development of this market category.
The hardware category created a higher income in the global AR and VR market in 2019, in view of the component. This is because of the expanding interest in high-performance AR and VR devices, expanding application areas, and diminishing item costs.
North America's AR and VR Market held the biggest share in this global business in 2019, fundamentally because of technological advancements, strong penetration of smartphones and the internet, and early appropriation of rising technologies in the locale. Europe's AR and VR market is the second most prominent industry after North America, with increasing applications in end-user verticals. The APAC AR and VR market is anticipated to witness the quickest development during the foreseen period, attributed to increased investments in adopting the latest technologies.
Some of the major players operating in the global augmented reality and virtual reality market are Blippar, Catchoom, Innovega Inc., Laster Technologies, Metaio Gmbh, Total Immersion, Vertalis Ltd, Augmented Pixels Co., Kooaba AG, Kishino Limited, Qualcomm Incorporated, Wikitude Gmbh and others. Earlier, this market was operated by players with relatively low brand image. Thus, after the entrance of new huge players in the business, the interest in augmented reality & virtual reality has increased among clients.
By Application
By Device Type
By Component
By Region
Frequently Asked Questions
In healthcare, augmented reality is being used for surgical navigation, medical training, patient education, and rehabilitation. Surgeons can utilize AR to overlay digital images onto the patient's anatomy during procedures, improving precision and reducing risks.
The growth of the augmented reality market is primarily propelled by sectors such as gaming, healthcare, retail, manufacturing, and education. These industries are leveraging AR technology to enhance user experiences, improve productivity, and streamline operations.
Some of the key challenges include high costs of AR hardware and software, concerns regarding privacy and security, technical limitations such as battery life and processing power, as well as the need for robust infrastructure for seamless AR experiences.
Technological advancements such as improved AR hardware, enhanced computer vision algorithms, developments in spatial computing, and the integration of AI and machine learning are driving innovation in the augmented reality market. These advancements are enabling more immersive, realistic, and personalized AR experiences across various industries.
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