Augmented Reality Market Report by Component (Hardware and Software), Device Types (Head-mounted Displays, Head-up Displays, and Others), Application (Automotive, Healthcare, Education, E-commerce and Retail, Entertainment and Gaming, Industrial and Manufacturing, Aerospace and Defence, and Others), Region and Company Analysis 2024-2030

Augmented Reality Market Analysis

Augmented Reality Market size is expected to be approximately US$ 289.05 Billion by 2030 compared to US$ 32.18 Billion in 2023. Renub Research states that Augmented Reality Industry to grow with a CAGR of 36.84% from 2024 to 2030.

Augmented reality (AR) is the real-time combination of digital information with the user's environment. Unlike virtual reality, which creates an artificial ambiance, AR allows users to observe a real-world environment with manufactured perceptual information layered on top of it. Applications for augmented reality range from decision-making help to amusement. It can give users more information or visually modify natural environments. The main advantage of AR is its capacity to blend digital and 3D elements with an individual's reality experience. AR gives users access to visual elements, music, and other sensory data through smartphones, glasses, or headsets.

Global Augmented Reality Market Size, 2024-2030 (Billion US$)

Note: The chart above shows dummy data and is only for illustration purposes. Please get in touch with us for the actual market size and trends.

Augmented Reality Market Growth Trends

    Use of AR in various industries

Augmented reality (AR) is changing how we connect and interact in manufacturing, driving the worldwide augmented reality market. AR enhances the world by blending audio-visual and digital elements to create an effortless transition between the real and virtual realms. When combined, AR improves manufacturing capacities and is an ideal instrument for Industry 4.0.

• The University of Patras' Research on augmented reality-enabled human-machine collaboration discovered that “AR interfaces can integrate into the working environment and improve it, making the interaction with [robots] natural and intuitive.”
• AR has several intriguing applications in healthcare now, even if the technology is still developing. According to a ScienceDirect article, despite the technology's early stages, researchers found that it might be helpful for patient education, whether preoperative or dietary advice.
• Curiscope, a UK-based business, already produces AR t-shirts that are sold commercially and offer basic anatomy knowledge.
• In 2020 - Johns Hopkins University neurosurgeons conducted the first spinal fusion procedure with AR assistance.
• Research has indicated that students' focus and involvement increase when using augmented reality (AR) in the classroom. The US Episcopal School in Baton Rouge is a prime example of this, as its teachers have been utilizing AR learning experiences as a "hook" to captivate and astound their students.
• AR facilitates the creation of engaging classes that promote learning! For instance, students can study 3D models of Hawk aircraft in this interesting Physics lesson from the Royal Air Force Aerobatic Team, the Red Arrows, and then build their own using CoSpaces.

    Technological advancements

AR used to be a futuristic idea that was only seen in science fiction films. However, once tech businesses started creating products and software, things really took off. This has propelled the global augmented reality market. Among the technological advancements in the augmented reality sector are wearable AR technology, AR application development kits (software development kits, or SDKs), and spatial mapping.

• In October 2021 - Lenovo unveiled Stylish ThinkReality A3 Smartglasses for Workplace & Industrial Applications. The A 3 is a next-generation augmented reality device that is portable, strong, and adaptable. The cutting-edge augmented reality gadget, ThinkReality software, and Motorola smartphones are all components of Lenovo's all-inclusive, integrated digital solution, including smart glasses. The ThinkReality A3 empowers employees to perform better no matter where they are, whether they are collaborating in virtual environments or providing remote support.
• In November 2020, Epson announced a new OLED microdisplay and AR display engine. It has created its fourth-generation optical engines for smart glasses, which will be available to clients in the consumer and business smart glasses industries and utilized in the company's upcoming Moverio series.

Growth Driver in the Augmented Reality Market

Increasing Adoption in Retail and E-commerce

The market of augmented reality is currently rapidly developing primarily due to the active use of AR in retail and e-commerce segments. Hence, retailers use AR to improve the quality of how consumers engage with a product by allowing the latter to preview the product in use in his/her environment before purchasing it. For instance, furniture stores provide their customers with erect applications that allow them to visualize furniture in their homes. This interactive shopping feature helps to decrease customer’s uncertainty and, consequently, engages customers more and sell more. With increased adoption of the AR for creating engaging shopping experiences more brands being consider, the usage of AR in retail will help to drive market growth.

Advancements in AR Technology and Devices

The constant developments in the technology and devices related to AR are much driving force behind the growth of AR market. The growth of the mobile devices like Smartphones, tablets and Augmented Reality glasses have enhanced the usability of applications based on AR. Better computing ability, improved display arrays, and longer battery life guarantee richer and finer augmented reality experiences. In addition, related software such as machine learning and computer vision are also increasing the ambit of AR applications. New technologies are being released in the market and application of AR solutions is expanding across gaming, entertainment, education and training industries in particular, all of which are factors stimulating further growth in the market as a whole.

Growing Demand for Enhanced Learning and Training Solutions

The need for fresh approaches to learning and training is a fundamental factor that fuels augmented reality technology. AR technology is steadily finding its way into learning environments due to its unique approach in delivering customized learning experiences. The augmented reality improves the ability to capture and maintain student interest through the use of the real environment layers, thereby making a complex topic easy for understanding. Incorporating AR in corporate training, the organization can get to practice on real lives’ situations, which makes it easier for the employee to get an experience of the real situation without Daniel. Since organizations such as educational institutions and industries appreciate the positive impact of AR in improving learning and skill, market for AR in educational and training purpose will expand tremendously.

Challenges in the Augmented Reality Market

High Development Costs

The problem of augmented reality market is the complexity and cost of developing AR applications and experiences. The creation of AR content is the best done by professionals who have adequate experience in software engineering and developing, 3D modeling, and design. The requirement for new hardware – for example, AR glasses or just enhanced smartphones – can also upgrade costs for producers and buyers or influence their way of utilizing the application. The financial barriers may help the small companies from entering the market and may hinder the enterprise and different innovations. The main issues that still make it difficult to implement AR across multiple fields are the interlinkage between the price, quality, and user experience.

Limited Consumer Awareness and Adoption

Consumer awareness and knowledge on augmented reality technology remains small and, in this sense, present a monumental challenge to market evolution. AR has only recently started finding some level of adoption in certain industries like the gaming and retail industries but out there are so many potential customers who have yet to discover the potential uses of AR and the benefits associated with incorporating the technology into their operations. This lack of awareness leads to skepticism with regards to the importance of technology and thus slows the diffusion of these technologies to other sectors to include education health and real estate. To tackle this issue, the stakeholders in AR market need to spend more in marketing and spreading awareness of how the technology is useful and how it can be embedded in real and meaningful applications which common end-users can readily embrace.

United States Augmented Reality Market

United States augmented reality market is still is in a growth stage and its growth can be primarily attributed to the development of the technology and its usage in the various domains like video games, shopping, healthcare and education. Businesses are spending a lot on AR advancement, optimizing interaction and application effectiveness and devices of use. It is also a factor that there is an increasing demand for trainers that provide realistic training scenarios in industries such as healthcare manufacturing. Optimal use of AR solutions is important to retailers due to the growth in the number of e-commerce companies. There is every reason to believe that as people become more familiar with the safety and utility for ARs, the market will grow dramatically in the near future. Meta is expected to launch its first AR glasses known in internal codename Project Nazare, in 2024.

China Augmented Reality Market

China is expected to influence the global augmented reality market. This is due to the region's growing presence of 5G and cloud infrastructure. The area also has a solid consumer base for AR use in gaming, leisure, schooling, and retail. Government initiatives and funding also expand the augmented reality market in China.

• According to the Ministry of Industry and Information Technology (MIIT), China had 3.38 million 5G base stations nationwide by the end of 2023.
• To help restore and grow consumption, the Ministry also stated that the nation has more than 10,000 5G-powered industrial internet projects and that 5G pilot applications have been launched in essential fields like cultural tourism, healthcare, and education.
• EON Reality revealed that a significant rollout of EON-XR is being piloted by the Jinshui district government in Zhengzhou, China. The launch will offer more than 100 academic institutions cutting-edge and captivating learning opportunities for thousands of elementary and secondary school students in China through VR and AR. 
• In September 2023 - The comprehensive Three-Year Action Plan for the Industrial Innovation and Development of the Metaverse (2023–2025) was unveiled by the Chinese Ministry of Industry and Information Technology (MIIT) and four other departments.

Augmented Reality Industry News

Apple Inc., Microsoft Corporation, Samsung Electronics Co. Ltd., Kopin Corporation, Seiko Epson Corporation, Vuzix, Lenovo Group Limited, and Google LLC (Alphabet Inc.) are some of the world's top augmented reality companies.

•    Kopin Corporation

In January 2024 - A strategic partnership between Kopin Corporation and MICLEDI Microdisplays was announced. The partnership aims to design, develop, and produce cutting-edge microLED displays that will enhance the augmented reality experience by offering richer information and more immersion in high-brightness lighting.
In June 2023 - Kopin Corporation declared that it had reached a crucial stage in developing its ultra-bright 2K x 2K monochrome MicroLED display. The business claims that brightness levels of more than 2.8 million units have been attained in the first production verification samples for Kopin's 1″ diagonal 2K x 2K MicroLED display (2048 x 2048 resolution), which makes use of the company’s exclusive backplane and drive technology. Kopin continued, stating that it expects its production displays to reach a brightness of 3.2 to 3.5 million nits. According to the business, the 1′′ diagonal 2K x 2K MicroLED display was created to support high-performance defense and augmented reality applications.
In April 2023 - Kopin Corporation declared that it had secured a follow-up production order worth USD 1.1 million for a long-range optical weapon sight module tailored to a particular application. According to the manufacturer, the weapon sight module has an advanced video "see-through" augmented reality (AR) feature that gives soldiers vital information through distinct, brilliant symbology in their weapon sights.
In January 2023 - Kopin separated into a different business organization to capitalize on its organic LED (OLED) technology advancements. The spin-off, Lightning Silicon, has already agreed with Lakeside Lightning Semiconductor (LLS), a company in China. LLS is now establishing a more significant site in Jiangsu, where it plans to make ultra-high definition, high-brightness gadgets that promise to enhance the augmented and virtual reality (AR/VR) experience. LLS already manufactures OLED microdisplays at its factory in Changzhou.

•    Vuzix

In January 2024 - Vuzix declared that it would concentrate on developing new technologies, producing OEM goods, and producing a limited range of AR smart glasses. The company is introducing efficiencies, such as a significant cost-reduction program to improve operational efficiency.
In November 2023 - It was announced that a cooperation agreement between Vuzix® Corporation and Quanta Computer will support the next generation of lightweight smart glasses for broader markets. To meet the changing needs of businesses and consumers, Vuzix and Quanta have formed a partnership that will advance the capabilities of AR smart glasses and related accessories. This partnership aims to provide cutting-edge technology that blends seamlessly into daily life.
In October 2023 - Using Vuzix AR smart glasses on the Verizon 5G Network, Vuzix® Corporation demonstrated solutions for connected workers during the Augmented Enterprise Summit (AES) in Houston, Texas, from October 24 to 26.
In January 2023 - At the Consumer Electronics Show, which took place in Las Vegas, Nevada this year, Vuzix® Corporation displayed a wide range of smart glasses. Vuzix will be showcasing its M-Series, Vuzix Blade 2TM, and Vuzix ShieldTM AR smart glasses at its booth (#16991 in the Center Hall of the Las Vegas Convention Center) in addition to showcasing its new CES 2023 Innovation Awards-winning Vuzix UltraliteTM AR smart glasses OEM design, which uses Vuzix's industry-leading waveguides and the newest microLED displays.

•    Samsung Electronics Co. Ltd

In December 2023 - In preparation for the launch of their XR devices, Samsung's technological divisions submitted applications for trademark rights to the USPTO. According to the US Patent and Trademark Office, Samsung Display Co. recently applied for a new trademark, "Flex Magic," for Samsung's next XR headset.
In June 2023 - With "Can You Beat The Box," a pop-up experience at the Samsung Experience Store at CF Toronto Eaton Centre, Samsung and CAMP combines virtual reality and live play. Experiences powered by AR and the Samsung Galaxy Z Flip4 are entertaining for people of all ages.

•    Apple Inc.

In June 2023 - The first augmented reality headgear from the electronics behemoth Apple Inc. was introduced. The Apple Vision Pro headset was introduced during the 2023 WWDC or Apple Worldwide Developers Conference. It is the corporation's yearly software developer conference. With the release of Apple Vision Pro, the business has entered a new product category for the first time.
In June 2023 - A day after the Vision Pro headset was released, Apple purchased the augmented reality startup Mira.

•    Microsoft Corporation

In October 2023 - It was documented that Microsoft had presented a fresh patent application to make a micro LED display procedure to enhance virtual, augmented, and mixed reality (VR/AR/MR) experiences.

Global Augmented Reality Share, By Application (Percentage)

Note: The chart above shows dummy data and is only for illustration purposes. Please get in touch with us for the actual market size and trends.

Component – Market breakup from 2 viewpoints:

1.    Hardware
2.    Software

Device Types – Market breakup from 3 viewpoints:

1.    Head-mounted Displays
2.    Head-up Displays
3.    Others

Application – Market breakup from 8 viewpoints:

1.    Automotive
2.    Healthcare
3.    Education
4.    E-commerce & Retail
5.    Entertainment & Gaming
6.    Industrial & Manufacturing
7.    Aerospace &Defence
8.    Others

Country – Market breakup from 21 viewpoints:

1.    North America

1.1    United States
1.2    Canada

2.    Europe

2.1    Germany
2.2    United Kingdom
2.3    France
2.4    Italy
2.5    Spain
2.6    Switzerland

3.    Asia – Pacific

3.1    Japan
3.2    China
3.3    India
3.4    South Korea
3.5    Indonesia
3.6    Australia

4.    Latin America

4.1    Mexico
4.2    Brazil
4.3    Argentina

5.    Middle East & Africa

5.1    Saudi Arabia
5.2    United Arab Emirates
5.3    South Africa

6.    Rest of World

All companies have been covered from 3 viewpoints:

•    Overview
•    Recent Development
•    Revenue 

Company Analysis:

1.    Kopin Corporation
2.    Seiko Epson Corporation
3.    Vuzix
4.    Lenovo Group Limited
5.    Samsung Electronics Co. Ltd,
6.    Google LLC (Alphabet Inc.),
7.    Apple Inc.,
8.    Microsoft Corporation

Report Details: