Augmented Reality (AR) Market to Grow by USD 461.8 Billion (2024-2028), Boosted by Rising Investments in AR Technology, with Market Evolution Powered by AI – Technavio

NEW YORK, Jan. 31, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global augmented reality (AR) market size is estimated to grow by USD 461.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 46.1%  during the forecast period. Increasing investments in AR technology is driving market growth, with a trend towards increasing AR integration in mobile devices. However, privacy concerns over ar technology  poses a challenge. Key market players include Alphabet Inc., Atheer Inc, Dynabook Inc., Inglobe Technologies Srl, Marxent Labs LLC, Maxst Co. Ltd., Meta Platforms Inc., Microsoft Corp., Optinvent, PTC Inc., Qualcomm Inc., RealWear Inc., Samsung Electronics Co. Ltd., Seiko Epson Corp., Sony Group Corp., Ultraleap Ltd., Upskill, Vuzix Corp., Wikitude GmbH, and Zugara Inc..

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Market Driver

The Augmented Reality (AR) industry is experiencing rapid growth, driven by advancements in 5G technology and the release of AR chipsets from tech players. AR glasses are becoming increasingly popular, with companies like Meta and Livestream Technologies leading the way. The AR technology is making waves in various sectors, including automotive for enhanced driving experiences, industrial & manufacturing for quality control and training, and the education industry for interactive e-learning apps. AR is also revolutionizing industries like defense & aerospace, healthcare with augmented surgeries, and the art & designing industry for virtual staging and designing. AR hardware, such as smart glasses and head-mounted displays, are being adopted by industries like retail for virtual fitting rooms and by law enforcement for safety management. AR technology is also being used in the media industry for virtual walkthroughs and in the gaming sector for experiences. Startups and established tech companies are investing heavily in AR, with Stanford University and Home Depot among those developing and designing AR applications. The future of AR is bright, with applications in professional training, spatial computing, and brand engagement across various industries. 

Several leading smartphone manufacturers, including Apple and Samsung, are integrating hardware and software to establish AR mobile platforms. This trend is also observed among mobile device manufacturers such as smartphones, phablets, and tablets, which are utilizing AR solutions to boost user experience and add value to their products. The AR market is projected to expand during the forecast period due to the growing popularity and penetration of AR technology in these devices. Vendors have developed AR applications for mobile phones to establish a mobile AR ecosystem. Consumers can now experience AR functionality on their mobile devices, thanks to basic computer vision and positional tracking capabilities. With the introduction of Google Tango, advanced features like accurate motion tracking, depth perception, and area learning through a device have become a reality. 

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 Market Challenges

• The Augmented Reality (AR) market is experiencing significant growth, with industries like 5G providers and tech players investing heavily in AR technology. However, challenges persist in the form of the need for AR chipsets and affordable AR glasses. The AR industry is transforming various sectors, including automotive, education, and manufacturing, by enhancing brand engagement, design and visualization, and professional training. AR is revolutionizing industries like defense & aerospace, healthcare, and gaming, with applications ranging from augmented surgeries and drug information to interactive showrooms and virtual fitting rooms. Companies like Meta, Livestream Technologies, and Stanford University are leading the way in AR development and designing. The future of AR also includes Mixed Reality (MR) and Spatial computing, with potential applications in law enforcement, safety management, and retail. Engineers, designers, and professionals in various industries are using AR for installation and assembly, quality control, and interactive training and upskilling. AR is also being used in home depots, automotive sectors, media and entertainment, and e-learning apps, providing experiences and improving productivity. AR technology is also being integrated into smartphones and smart glasses, making it accessible to a wider audience. OLED technology is expected to drive the market forward, providing better display quality for AR devices. Startups are also entering the AR space, bringing innovation and competition to the market. Overall, the AR market is poised for growth, with potential applications in various industries and use cases.
• Augmented Reality (AR) technology presents significant opportunities for businesses, enabling interactive experiences that engage consumers in new and innovative ways. However, privacy concerns pose a major challenge to the global AR market. AR collects and processes vast amounts of user data, raising potential risks to individual privacy. This information can originate from various sources, including social networking accounts, and may be accessed by unauthorized parties if devices are compromised. Furthermore, AR smart glasses, which automatically screen and process users’ environments, can infringe on privacy by capturing and transmitting data from surrounding areas. These concerns may hinder the growth of the AR market during the forecast period, necessitating data protection measures and transparent privacy policies.

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Segment Overview 

This augmented reality (ar) market report extensively covers market segmentation by  

1. Component 

• 1.1 Hardware
• 1.2 Software

• 2.1 Enterprise
• 2.2 Retail
• 2.3 Healthcare
• 2.4 Media and entertainment
• 2.5 Others

• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Hardware-  The augmented reality (AR) market experienced substantial growth in 2022, with the hardware segment leading in terms of revenue share. This dominance is attributed to the increasing adoption of AR devices in various industries such as education, healthcare, construction, and retail. As businesses invest more in advanced AR solutions, the demand for these technologies continues to rise. AR hardware, which includes glasses that merge virtual reality and AR, offers enhanced and experiences. The global AR market is poised for significant expansion during the forecast period due to this growing demand.

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Research Analysis

The Augmented Reality (AR) market is revolutionizing various industries, including media and entertainment, gaming, retail, education, and more. AR technology overlays digital information onto the real world, enhancing user experience. In the gaming sector, AR games offer experiences, merging the physical and digital worlds. Smartphones and 5G providers enable widespread AR adoption, while tech players and startups innovate new applications. AR is transforming operations in industries like manufacturing, with spatial computing enabling remote installation and assembly, training, quality control, and safety management. In retail, AR is used for product visualization and customer engagement. In education, AR enhances learning experiences through interactive visualizations. In the media industry, AR is used for news reporting and content creation. Engineers at Stanford University and other institutions are pushing the boundaries of AR technology, while companies like Home Depot use AR for design and visualization, improving customer experience and streamlining operations. The future of AR is bright, with endless possibilities for innovation and industry disruption.

Market Research Overview

Augmented Reality (AR) is a revolutionary technology that overlays digital information onto the real world, enhancing user experience in various industries. AR technology is poised to transform sectors such as art & designing, automotive, defense & aerospace, education, and manufacturing, among others. AR is driving innovation in areas like brand engagement, design and visualization, and interactive showrooms. AR hardware includes AR glasses, Head-mounted displays, and smart glasses, powered by AR chipsets and OLED technology. AR is revolutionizing industries like automotive for a more driving experience, and healthcare for augmented surgeries and drug information. AR is also transforming education with e-learning apps and professional training. Startups and tech players are leading the charge in AR innovation, with key applications in gaming, media and entertainment, and safety management. AR is set to redefine operations, quality control, and retail experiences, offering virtual fitting rooms and virtual walkthroughs. Spatial computing and mixed reality (MR) are the future of AR, offering a more and interactive user experience. AR is also being explored in areas like law enforcement, industrial manufacturing, and wellbeing, offering potential solutions for safety management and training & upskilling. AR technology is poised to transform the way we live, work, and learn.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• Hardware
• Software
• End-user
• Enterprise
• Retail
• Healthcare
• Media And Entertainment
• Others
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio