Augmented Reality (AR) Market By Component (Software and Hardware), By Type of Device (Handheld Devices, Smart Glasses, Heads-up Display, Stationary AR Systems, and Others), By Application (Education, Healthcare, Automotive, Gaming & Entertainment, Industrial Manufacturing, Aerospace & Defense, E-Commerce & Retail, and Others), and By Region - Global Industry Insights, Growth, Size, Share, Comparative Analysis, Trends and Forecast 2022 – 2028

Industry Insights

[214+ Pages Report] According to Facts and Factors, the global augmented reality (AR) market was worth USD 15.2 billion and is expected to be worth USD 90.8 billion by 2028, growing at a CAGR of 31.5% over the forecast period. This market report offers an in-depth analysis of the market. The report provides a thorough examination of key sections, advancements, drivers, barriers, the competitive landscape, and market segments.

Market Overview

Augmented reality is a technology that combines digital data with the real-time user environment. This is done to create the illusion of an enhanced version of reality. In other words, augmented reality augments the existing real-time environment with sound, effects, and graphics to improve the effect and user experience.

The augmented reality market is experiencing unprecedented growth due to the rising demand for 3D imaging in the healthcare sector. Increasing digitization, particularly in developing economies, combined with a greater emphasis on technology and the development of the internet of things will create more remunerative and lucrative market growth opportunities. The growing popularity of e-commerce is also fueling the global augmented reality market growth rate.

COVID-19 Impact:

The COVID-19 outbreak has had a significant impact on global industries. It has resulted in limited travel, social distancing, very few on-site staff, inadequate training tools, and other consequences. However, during a crisis, this technology can provide significant assistance and fuel market growth. During the pandemic, the retail industry and its customers shifted to digital shopping.

Growth Drivers

• Increasing AR technology adoption in the healthcare industry to drive market growth

Immersive technologies are increasingly being used to assist healthcare workers in the healthcare industry. The technology creates a real and virtual environment that aids in task completion. Device accessibility, availability, and affordability are increasing, which enhances adoption across the sector and among patients. Previously, complex surgeries were exhausting due to a lack of information. However, with AR adoption, the possible threat in surgeries is reduced because the technology provides surgeons with real-time alerts. In the event of a coronavirus pandemic, hospitals around the world will use AR devices like the HoloLens to track and assist patients in 2020.

Restraints

• AR's long-term effects on mental health may stifle growth

The excessive use of smart devices is causing problems for technology users. The immersive environment affects the users' psychology and behavior in the same way that the physical environment does. Some users may experience severe post-traumatic stress disorder as a result of the study. Wearing the devices, similarly, can impair the user's capacity to converse socially, leading to loneliness and depression. As a result, rising concerns about the effect of excessive AR usage on users are probably stymieing market growth.

Segmentation Analysis

The global augmented reality (AR) market is segmented on the basis of component, type of device, application, and region.

By component, the market is divided into software and hardware. The market is expected to be led by the hardware segment. AR device demand and applications in a variety of industries are driving hardware growth. Because of the increasing demand for apps, the software is expected to grow rapidly during the forecast period. This segment is growing as smartphones become more popular. In addition, companies are focusing on integrating AR software with tablet devices, smartphones, and computer systems to provide real-time interactive solutions, which will further uplift the market.

By type of device, the market is divided into handheld devices, smart glasses, heads-up displays, stationary AR systems, and others. During the forecast period, the heads-up display is anticipated to gain the most market share. Heads-up displays are becoming more popular in the automotive industry. The increasing use of enhanced mobile games is boosting market growth.

The smart glasses segment is estimated to grow as its applications expand in production, logistics, and operations. It provides workers with practical experience and guidance.

By application, the global augmented reality (AR) market is divided into education, healthcare, automotive, gaming & entertainment, industrial manufacturing, aerospace & defense, e-commerce & retail, and others. The industrial manufacturing segment had the highest revenue share of 25% in 2021 and is expected to maintain its market dominance throughout the forecast period. AR technology enables incumbents in a variety of industries and industry verticals to detect glitches or errors, ensure that all processes continue to run, and facilitate efficient processes to keep manufacturing-related downtime to a minimum. AR technology is also exploring its uses in the aerospace & defense industries. Nonetheless, given that the use of AR technology in the aerospace & defense industries is still in its early stages, during the forecast period, the healthcare segment is anticipated to witness the fastest growth.

Report Scope

Regional Landscape

• Asia-Pacific region to account for a significant share of the market

The thriving enterprise (manufacturing) sector in Japan and China is expected to fuel the growth of the Asia Pacific augmented reality market. The gaming industry in this region has also grown significantly, making a contribution to the growing demand for augmented reality technology in the Asia Pacific. Likewise, rising investments in commercial augmented reality applications are expected to contribute to the market's growth in the Asia -Pacific region. Furthermore, the region's thriving automotive and healthcare sectors are expected to drive demand for AR technology.

The novel coronavirus has had a significant impact on the global economy. Asia Pacific economies, which include China, Japan, South Korea, Australia, and India, make significant contributions to the global economy because they are home to many of the world's manufacturing and assembly plants. China, known as the world's manufacturing powerhouse, faced a severe economic crisis as a result of the virus's spread, which halted all economic activity for several weeks. Other countries, including South Korea, India, Japan, and Australia, have seen a decline in economic activity across a variety of sectors.

Recent Development

• June 2021: Magic Leap Inc. collaborated with AMD to develop semi-custom visual computing and enterprise-class augmented reality devices. This collaboration will enable businesses to transform and reimagine how data and virtual information are fused and graphed in the physical world.
• February 2020: Qualcomm Technologies, Inc. has announced the release of an extensive reality headset centered on the Qualcomm Snapdragon XR2 Platform. It will provide premium quality augmented, simulated, and mixed reality devices to customers and businesses.

Competitive Landscape

Some of the key players in the global augmented reality (AR) market are Sony CorporationNiantic, Inc., Google LLC, Blippar Limited, Magic Leap, Incorporated, Apple, Inc., Wikitude GmbH, Microsoft, Infinity Augmented Reality Limited, and Zappar Limited.

The global augmented reality (AR) market is segmented as follows;

By Component Segment Analysis

• Software
• Hardware

By Type of Device Segment Analysis

• Handheld Devices
• Smart Glasses
• Heads-Up Display
• Stationary AR systems
• Others

By Application Segment Analysis

• Education
• Healthcare
• Automotive
• Gaming & Entertainment
• Industrial manufacturing
• Aerospace & Defense
• E-Commerce & Retail
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America