Augmented Reality Market Share to Approach $411,396.9 Mn by 2031Download Sample Reports Overview
The Global Augmented Reality Market Size is predicted to be valued at $411,396.9 million by 2031, surging from $24,169.3 million in 2021, at a noteworthy CAGR of 33.2%.
Impact Analysis of COVID-19 on the Augmented Reality Market
The COVID-19 pandemic has accelerated digitization and provided a much-needed boost to global technology adoption. The coronavirus-caused lockdowns compelled people to seek new solutions for everyday needs ranging from food delivery to medical needs and education. A crisis can be a catalyst for the development of new technologies, and the current coronavirus outbreak increasingly fueled the AR market adoption rates. These technologies are useful in a variety of industries, including healthcare, education, tourism, and retail. After the lockdown restrictions are lifted, the behavioral changes brought about by the pandemic will last much longer, if not forever. People would remain socially distant while being virtually close using Augmented Reality Market technologies and extended reality. AR platforms would enable businesses to operate and grow in the face of social distancing.
Global Augmented Reality Market Analysis
Augmented Reality (AR) technology overlays an image onto a user’s viewpoint of the real world. Then it improves it using sound, touch as well as smell. The interactive experience of a real-world environment by combining our environmental surroundings with digital information enhances the user experience. Many businesses and industries have taken benefit of implementing AR in their operations. Global businesses are expected to use AR technology capabilities to enhance workplace experiences through improved collaboration and more inclusive decision-making processes. The Healthcare industry is one of the main industries where there is an increasing demand for AR technology. For ensuring that doctors can deliver the best health care for the patient, healthcare professionals are using AR technology to its highest potential. many children and adults also need numerous attempts to locate the right vein for the blood draw. AR technology can help in mapping out the vein in patients. Such advantages are anticipated to generate huge augmented reality market share growth in future.
The most difficult challenges for the AR industry are security and privacy concerns. These concerns have arisen as a result of inconsistencies in AR programming, as well as the negligence and oversight displayed by both AR app and device developers and end-users. The main impediment to augmented reality market growth is the inability of a few AR apps to protect users' identities and privacy.
AR technology adoption is increasing in retail, healthcare, and other top industries, creating ample augmented reality market revenue growth opportunities during the forecast period. AR technology in retail bridges the gap between the online and offline environments, allowing customers to be more involved in the purchasing process. It also fosters and improves the relationship between consumers and brands by boosting brand awareness and presence.
Global Augmented Reality Market, Segmentation
The global augmented reality market forecast is segmented based on component, device type, end use, and region.
The component segment in the augmented reality market is further divided into Hardware and software. Among these, the hardware sub-segment held the major market share in 2021 and is predicted to show the fastest growth over the forecast period. The number of smartphone users around the globe is continuously growing and all these smartphone devices generally contain a processor, camera, microphone, GPS, etc., which is all the hardware required for AR. Over the last few years, AR developers are mainly focusing on the creation and development of apps. Social media apps such as Snapchat, Facebook, Instagram, etc. have numerous filters and stickers that can be used, and which are example AR technology.
The device type segment in the augmented reality market is further classified into head mounted display, Handheld Devices, and others. Out of these, the handheld devices sub-segment held the major market share in 2021 and the head mounted display sub-segment is anticipated to show the fastest growth by 2031. AR applications, which run on handheld devices used as virtual reality headsets, can also digitize human presence in space and provide a computer-generated model of them in a virtual space in which they can interact and perform various actions. Companies are leveraging mobile AR technology and implementing AR-based solutions to enhance consumer experience and differentiate themselves from competitors as smartphones and tablets proliferate.
The end use segment in the augmented reality market is segmented into media & entertainment, manufacturing and construction, healthcare, education, retail, and others. Among these, Media and Entertainment sub-segment held the highest market share in 2021. AR technology is one of the biggest reasons for the consumer's shift towards a more personalized digital experience. This technology adds a new dimension to entertainment allowing the audience to become active participants in the movies, games, music, etc. AR brings interactivity and engagement in the media & entertainment industry merging the real world with the virtual one.
The Asia-Pacific region was the most dominant in 2021 and will be sustaining its dominance of the augmented reality market over the forecast period. The booming manufacturing industry in China, India, and Japan is anticipated to drive the augmented reality market opportunity in the Asia-Pacific region. This region's gaming sector has also seen a massive expansion in the last decade, contributing to Asia’s rising need for AR technologies. Moreover, increased investments in commercial augmented reality applications, developing 5G infrastructure, and a growing number of smartphone users are likely to contribute to the market's growth in Asia.
Key Players in the Global Augmented Reality Market
- Niantic Inc.
- Apple Inc.
- Magic Leap Inc.
- Seiko Epson
- Treeview Company Limited
- ScienceSoft USA Corporation.
In 2021, Discord, a gaming chat app giant acquired augmented reality startup Ubiquity6. Launched in 2017, Ubiquity6 building an app that would allow mobile phone users to browse the augmented reality content. In the year 2019, Uniquity6 launched Display land, a product that scans physical environments with smartphone’s camera in 3D.