Augmented Reality Market Expected to Reach $411.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Augmented Reality Market," The augmented reality market was valued at $24.2 billion in 2021, and is estimated to reach $411.4 billion by 2031, growing at a CAGR of 33.2% from 2022 to 2031.

Augmented reality (AR) technology is an interactive experience that enhances the users experience in the real world with computer generated perceptual information. Using applications and software & hardware like AR glasses, the AR technology overlays digital content to real life environment to enrich user experience and turn one’s immediate surroundings in an interactive learning environment which is valuable in manufacturing and industry processes. AR permits users to become integrated with the systems and machines they use and optimize the technology and IoT networks with human creativity and observation.

 Technological advancements like iOS 16, the recent software update of iPhone has introduced the new Apple Room-Plan API which uses the LiDAR scanner in recent iPhone Pro models to create a 3D room plan. LiDAR is a technology that emits lasers and calculates the time it takes for the light to return to the sensor in order to precisely measure the distance between the device and the objects. According to Apple, the API can be useful for real estate, architecture, and interior design apps, since it is precise and easy to use.

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 technical solutions and lack of skilled or trained professionals or technological expertise, particularly in developing and underdeveloped economies will further restrain market expansion. The health dangers associated with technology are extremely high. Wearers of AR devices are generally lost in virtual content, which causes behavioral changes, hearing loss, and eye and/or hearing impairment. All these factors are anticipated to hamper augmented reality market growth in the forecast time frame.

The global augmented reality market has grown at an unbelievable rate as a result of the growing demands for 3D imaging in the healthcare industry. Rising digitization, especially in developing countries, coupled with a stronger focus on technology, and the development of the internet of things will generate more lucrative market growth opportunities. In addition to these, rising popularity of e-commerce will also contribute to market growth. Automotive firms are also rapidly adopting augmented reality technology into their vehicles in order to improve customer experience and differentiate themselves from their market competition. AR technology not only gives customers a more immersive experience, but it also aids producers in exploring new production and design options. These factors are anticipated to propel the market in the future.

The global augmented reality market share 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 augment reality market analysis if provided for major regions namely North America, Europe, Asia-Pacific, and LAMEA.

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 report offers a comprehensive analysis of the global augmented reality market forecast is presented by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the AR market.

Impact of Covid-19 on the Global Augmented Reality Industry

• The COVID-19 pandemic had a slight positive impact on the market growth. Following the onset of the COVID-19 pandemic, the use of augmented reality (AR) in marketing and advertising to organise virtual events, product debuts, virtual exhibitions, and online ads has gained traction.
• As less number of workers and labours were available for work in manufacturing companies in COVID-19 pandemic time period, the demand for augmented reality industry has increased considerably.
• Companies have started installing augmented reality apps for product assembly, manufacturing, task analysis, production line functions and solution seeking. Hence, the growing need for remote assistance and collaboration from companies involved in workflow optimization and management moulds well for the growth of the market.

Key Findings of the Study

• Based on component, hardware sub-segment accounted for the highest revenue share and is predicted to show the fastest growth during the forecast period.
• Based on device type, 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.
• Based on end-use, media and entertainment sub-segment is predicted to be the most dominant sub-segment and healthcare sub-segment is anticipated to have the fastest growth during the forecast period.
• Based on region, Asia-Pacific is anticipated to be the most dominant and the most lucrative region for augmented reality market.