Augmented Reality Market Size And Landscape Outlook 2030

Augmented Reality Market Growth & Trends

The global augmented reality market size is anticipated to reach USD 597.54 billion by 2030, expanding at a CAGR of 40.9% from 2022 to 2030, according to the latest report by Grand View Research, Inc. The growth of the market can be attributed to the growing adoption of augmented reality (AR) technology in various end-use industries and industry verticals, including automotive, healthcare, and education, among others. The immersive experience AR technology can potentially offer, and subsequently, the growing real-life use cases of AR technology are expected to contribute to the growth of the market in the forecast period. 

Augmented Reality Market Segmentation

Grand View Research has segmented the global augmented reality market based on component, display, application, and region:

Based on the Component Insights, the market is segmented into Hardware and Software.

• The hardware segment accounted for the largest revenue share of 59.8% in 2021 and is expected to continue dominating the market in the forecast period. The growing adoption of AR devices across various industries and industry verticals, such as education, healthcare, construction, and retail, is allowing the hardware segment to dominate the market.
• The software segment is expected to value at the highest CAGR of 41.8% in the forecast period. AR technology is penetrating daily life as a result of the outbreak of the pandemic. For instance, the touchless and immersive experience facilitated by AR technology bodes well for both students and employees working from home. As AR technology continues to evolve, it is being implemented easily and conveniently in handheld devices. Developers are leveraging the higher processing power enabled by the latest hardware and software to develop simple yet large-scale AR solutions.

Based on the Display Insights, the market is segmented into Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices.

• The head-mounted display & smart glass segment accounted for the highest revenue share of 70.7% in 2021. The segment is expected to continue dominating the augmented reality market in the forecast period as a result of the increasing demand for head-mounted displays and smart glasses in industrial & enterprise applications. Advances in OLED technology and the growing use cases for AR technology in industrial & enterprise applications are expected to drive mass availability of lightweight head-mounted displays, thereby driving the growth of the segment.
• The handheld devices segment is anticipated to value at the highest CAGR of 42.4% from 2022 to 2030. The growth of the segment can be attributed to the rising penetration of handheld devices in retail and e-commerce The proliferation of smartphones and tablets is prompting companies to leverage mobile AR technology and implement AR-based solutions to enhance consumer experience and differentiate themselves from their competitors.
• The head-up display segment is poised for significant growth in the forecast period. Continued innovations in driver assistance systems are expected to drive the growth of the segment. A driver can drive safely while simultaneously tracking vehicle data, such as speed, turning indicators, and warning signals, on the windshield of the car. Having realized the immense potential the market holds, several automotive electronics companies, such as Visteon Corporation, Continental AG, and WayRay AG, have forayed into the AR head-up display market to create immersive products.

Based on the Application Insights, the market is segmented into Aerospace & Defense, Automotive, Education, E-commerce & Retail, Gaming & Entertainment, Healthcare, Industrial & Manufacturing, Others.

• The industrial & manufacturing segment accounted for the largest revenue share of 24.3% in 2021 and is expected to continue dominating the market in the forecast period. AR technology allows incumbents of various industries and industry verticals to discover any errors or glitches, ensure that all processes remain running, and facilitate efficient operations to keep any manufacturing-related downtime to its minimum.
• The healthcare segment is expected to emerge as the fastest-growing segment in the forecast period. AR technology is increasingly being implemented in medical training, surgical visualization, and vein visualization.
• The automotive segment is predicted to grow at a CAGR of 43.3% over the forecast period. Automotive companies are aggressively integrating AR technology in their respective vehicles to enhance customer experience and ensure unique distinctions between their competitors.

Augmented Reality Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)

Market Share Insights

• December 2021: Tencent acquired Turtle Rock Studios. Tencent particularly found the latter's gaming library and AR capabilities lucrative.
• August 2020: Google Ventures invested USD 14.5 million in Blue Vision Labs, an AR start-up based in the U.K., after realizing the latter’s potential and development power.

Key Companies Profile & Market Share Insights

Market players are striking strategic alliances and partnerships and engaging in mergers and acquisitions as part of their efforts to advance technology development amid the intensifying competition

Some of the prominent players operating in the global augmented reality market include,

• Microsoft
• Google LLC
• Apple, Inc.
• Sony Corporation
• Blippar Limited
• Infinity Augmented Reality Limited
• Niantic, Inc.
• Zappar Limited.
• Magic Leap, Incorporated
• Wikitude GmbH

Order a free sample PDF of the Augmented Reality Market Intelligence Study, published by Grand View Research.