Global Augmented Reality Market by Display (Handheld Devices, HUD, HMD & Smart Glass) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2020, the global augmented reality market was worth USD 17.67 billion. The market is expected to grow at a 43.8% compound annual growth rate (CAGR), between 2021 and 2028. Market growth is expected to be driven by the increasing demand for remote assistance from businesses and collaboration with them that aid in workflow management. Augmented Reality (AR-based) apps are being used by businesses to track, identify, and resolve technical issues. They also can be used for tasks such as retrofitting and repairing production lines. Mobile AR technology is being adopted to create immersive experiences due to the increasing preference for smartphones and smart glasses. Companies are exploring AR technology's potential to provide customized and interactive experiences to their customers. In June 2018, Monki, a brand by Hennes & Mauritz AB, adopted AR technology to provide a 3D experience for customers using smartphones and present garments online.

AR is being increasingly used in healthcare applications, which will drive market growth. Many AR-based solution providers have partnered with healthcare organizations to offer AR-powered healthcare apps for different purposes. FundamentalVR and Mayo Clinic formed a strategic alliance in November 2018 to jointly develop VR surgical simulations. Fundamental Surgery, a platform developed by FundamentalVR that combines virtual reality and haptics to offer a cost-effective surgical simulator, is already being used at Mayo Clinic's campuses in Arizona, Florida, and Minnesota. AR technology is also gaining popularity in marketing and advertising, particularly since the COVID-19 pandemic. AR-based virtual events such as store launches, tradeshows, and virtual exhibitions are now the norm. Blippar.Com Ltd. launched OnePlus Nord in July 2020 with AR technology. It also provided a highly interactive digital experience.

Augmented reality is gaining popularity in architecture and construction, which bodes well for its growth. AR technology can be used by architects to create a 3D model of a building plan with mobile devices. This helps bridge the gap between imaginations and reality. AR can also be used in education to give students more detailed, immersive and real-view information. AR's potential to help students understand educational concepts through discovery-based learning, AR books and AR games as well as AR-based skill development is a boon for the market.

Indoor navigation can be transformed by AR technology. Software development company MobiDev demonstrated indoor navigation with its ARcore platform. It created the optimal route to the desired destination and displayed it on a mobile device. AR-based virtual tours can be used to assist tourists in finding suitable accommodation, and deciding which sites and places to visit. Hubs Hotels by Premier Inn, for example, has transformed its rooms into a map of the city to assist customers in finding information about nearby tourist attractions and other useful details. AR technology is being increasingly adopted in the tourism and travel industry. This will drive the market for augmented reality.

The continued advancements in AR technology, as well as the increasing adoption of the technology by consumers, are driving the demand for compatible AR chipsets. Intel, AMD, Qualcomm and AMD are all responding to this situation by launching AR-enabled chipsets. Qualcomm, for example, launched its Snapdragon XR1 chipset in May 2018. It is dedicated to extended reality platforms. The company also unveiled the Snapdragon XR2 chipset, which is 5G enabled and can be used for AR/VR hardware in December 2019. Similar to the MTK i700 chipset, MediaTek Inc., a Taiwan-based fabless chipmaker, introduced it in July 2019. It is aimed at Artificial Intelligence and Internet-of-Things applications.

Display Insights

In 2020, the Head-Mount Display (HMD), and smart glasses segment had the highest revenue share at 65.0%. The significant demand for smart glasses and HMDs in enterprise and industrial settings will continue to make it the dominant market segment over the forecast period. This segment is expected to grow due to the increasing number of applications and advances in OLED technology. Also, lightweight HMDs will be available. The SoC can process the viewer's vision in real time, despite the fact that AR smart glasses use a lot of computation power. Nvidia presented an AR wearable in July 2019 that featured a FoveatedAR, an AR tracking device that can track the eye of the viewer and provide a better visual experience. Smart glasses and HMDs are expected to transform supply chains by identifying optimal use cases and possible use cases in logistics.

Due to the increasing use of handheld devices in retail and online commerce, the handheld devices segment will see the highest CAGR at 45.0% between 2021-2028. Companies can enhance the consumer experience and increase their competitive edge by integrating AR into handheld devices and the proliferation of tablets and smartphones. Customers can use handheld devices to try out products in-store before buying. The handheld device market is growing because of aggressive AR deployment across social media platforms. Google LLC and Apple Inc. have been heavily leveraging AR technology using AR Core and AR Kit, respectively. In May 2019, Google LLC launched AR applications on the Pixel 3A and the older version of its smartphone.

Due to the most recent innovations in driver assist systems, the Heads-Up Display (HUD), segment will see significant growth during the forecast period. The HUD system allows drivers to focus on driving while simultaneously monitoring vehicle data such as speed, warning signs, and turning indicators on the windshield. Continental AG, Visteon Corporation, WayRay AG. and Visteon Corporation have all made forays into the AR HUD market in order to harness the potential of immersive tools for greater productivity and better quality work. Bayerische Motoren Werke AG, (BMW), introduced an AR HUD device in September 2020 for prototype engineering and vehicle design. AR apps were also developed by the company to give users a virtual view of their cars.

Application Insights

In 2020, the industrial and manufacturing applications segment was the most profitable with a revenue share of more than 20.0%. It is expected to continue its lead in the future. AR aids industries in ensuring efficiency by quickly detecting and fixing any problems, keeping the process running, and ultimately reducing downtime. AR is still in its infancy in the aerospace and defense industries. Its primary purpose is to assist technicians in making the right decisions during manufacturing activities.

Due to increasing adoption of AR technology in vein vision, surgical visualization, medical training, and education, the healthcare segment will experience the fastest growth. Over the forecast period, the automotive segment will see a CAGR exceeding 45.0%. Many automotive companies integrate AR technology into their vehicles and leverage the potential of AR technology to provide a better customer experience. AR's most important contribution has been in security and awareness. Companies are integrating AR-based advanced safety systems with online safety features.

Due to the increased use of AR technology at schools and universities, the education segment will experience significant growth in the forecast period. AR technology has been adopted in education due to the COVID-19 pandemic. Teachers are looking for innovative ways to teach and provide dynamic content for their students. AR technology is particularly useful in improving the student experience. Several educational technology companies, including Neo Bear, Strivr Labs, Inc., Talespin Reality Labs, Inc., Health Scholars, and Talespin Reality Labs, Inc., have begun to explore the potential of AR technology in educational applications. In line with increasing consumer preference for shopping online, virtual platforms are becoming more popular in the retail and ecommerce industries. AR technology can be used to offer customers a digital "try before you buy" experience and assist retailers in significantly reducing returns.

Component Type Insights

In 2020, the hardware component segment was responsible for 55.0% of the total revenue. This segment is expected to dominate the market for the forecast period due to increasing adoption of AR devices in various industries and verticals such as education, healthcare, retail, and e-commerce. AccuVein Inc. is a provider of medical imaging solutions. It uses projection-based AR technology in order to project the image onto the skin and aid doctors in finding the right vein for vaccination. AR-compatible hardware is in high demand as the market leaders are investing heavily in AR products. Hangzhou Tairuo Technology Co. Ltd. (Nreal), an AR-compatible mixed reality experience provider, introduced Nreal Light AR glasses in January 2020. It features six Degrees of Freedom (DoF), spatial tracking, and two spatial cameras to enhance mixed reality.

From 2021 to 2028, the software component segment will experience the greatest CAGR. In the wake of the COVID-19 pandemic, AR technology is seeing increased adoption. People are eager to have an immersive, real-like experience at their home. The growth of the software market is also boonened by the proliferation of smartphones. AR software providers will continue to upgrade their products and enter into strategic partnerships to support large-scale AR deployments. They also offer more data and analytics tools that can be used to make proactive decisions. AR software such as AcrossAir and Layar, Google Sky Map, Layar, or Lookator is expected to increase in popularity. The AR software market is expected to grow in the future, as well as enterprise software. Quick look, an AR-based tool from Apple Inc., is available exclusively for iOS and iPad OS. It allows users to directly experience certain products in their environment. This tool is targeted at e-commerce businesses that want to assist customers with informed purchasing decisions.

Regional Insights

North America was the dominant market for augmented reality in 2020, accounting for around 35.0% of the revenue. Because the United States is home to many technology companies such as Google LLC, Microsoft, Apple, Inc., and Magic Leap, Inc., a significant share of the region market was accounted for by the U.S. The U.S. is also a leader in the deployment and adoption of new technologies. Europe is expected to see significant growth in the coming years due to the increasing adoption of AR technology for gaming and entertainment applications. Germany is a rising gaming hub.

Asia Pacific will be the fastest growing region market, with a CAGR exceeding 45.0% between 2021 and 2028. Japan and China are the dominant players in the region, leveraging large customer bases and aggressive use of online platforms for different purposes. AR technology will be rapidly adopted in the region as a result of the ongoing rollout of 5G networks. India is also emerging as an important regional market. AR technology is expected to be adopted in India by the healthcare and manufacturing industries. These verticals rely heavily on hand-on labor to operate machinery and perform medical procedures. AR technology could allow for unrestricted streaming of real-time images and information. This can be achieved by wearing AR headsets when operating machinery or performing medical procedures.

From 2021 to 2028, the Middle East, Africa, and Latin America regions are expected to experience significant growth. The growth of these markets is expected to be driven by the rising number of AR-related start-ups, multinational companies, increasing disposable income, and growing adoption of AR within the oil and gas sector. The UAE, Brazil and Mexico are emerging as major hubs for AR adoption. This is because the governments of these countries place a great deal of emphasis on AR's potential. The Ministry of Health and Prevention in the UAE has introduced a number of AR-based health services.

Market Share Insights & Key Companies

There are many opportunities in augmented reality. To gain an advantage over their competition, market players are aggressively investing in Research and Development (R&D). This is to bring new AR innovations to consumers and businesses. It also enables them to integrate new technologies and create AR-compatible software and hardware with unique features. Many e-commerce businesses are quickly adopting AR technology in order to provide the best immersive experience for their customers and offer other advanced features. Emersya, an online publishing site, uses immersive technologies to promote its products in both stores and online. IKEA, a furniture retailer, is using AR technology to show how a piece of furniture will look in a room or other space.

To increase their market presence in the face of increasing competition, key industry players are making strategic deals with start-ups and smaller technology companies to improve their market position. Google Ventures, for example, invested approximately USD 14.5 millions in Blue Vision Labs in August 2020. Blue Vision Labs is an AR start-up company located in the U.K. In the same vein, Facebook launched its Spark AR Partner Network program in October 2020. This connects creators and brands to AR professionals, as part of efforts to create new experiences on Instagram. The following are some of the key players in the augmented reality market:

• Microsoft

• Google LLC

• Apple Inc.

• Sony Corporation

• Blippar Ltd

• Infinity Augmented Reality Ltd.

• Niantic, Inc.

• Zappar Ltd.

• Magic Leap, Inc.

• Wikitude GmbH

Up Market Research published a new report titled “Augmented Reality Market research report which is segmented by Display (Handheld Devices, HUD, HMD & Smart Glass), By Players/Companies Inc; Sony Corporation; Blippar; Wikitude GmbH; Vuzix; Microsoft; Google LLC; Infinity Augmented Reality, Total Immersion; Magic Leap, Samsung”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Augmented Reality Market Report Segments:

The market is segmented by Display (Handheld Devices, HUD, HMD & Smart Glass).

Augmented Reality Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Augmented Reality Market

Overview of the regional outlook of the Augmented Reality Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Augmented Reality Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Augmented Reality Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Handheld Devices

                2. HUD

                3. HMD & Smart Glass

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Augmented Reality Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Augmented Reality Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.