Augmented Reality & Mixed Reality Market Size
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Augmented Reality & Mixed Reality Market Analysis
Augmented reality is expected to register a CAGR of 41.50 %, and a mixed reality market is expected to register a CAGR of 43.28% over the forecast period. The world is thoroughly engrossed with two technologies, Virtual Reality (VR) and Augmented Reality (AR). An incredible merger of these two has become an extended reality known as mixed reality. It is a seamless intersection between Augmented Reality and Virtual Reality and combines both virtual worlds.
- Augmented Reality (AR) witnessed unprecedented growth in the current year with the explosion in the commercial use of the technology. It is expected to be one of the more prominent focal points in coming years as significant technology market leaders, such as Apple, Google, Facebook, Microsoft, and Amazon, are investing in innovation and adoption. The proliferation of smartphones and widespread adoption of AR in mobile gaming are driving the market, and major vendors in the market are increasingly developing solutions for the segment.
- Mobile marketers are using AR for various purposes and achieving several vital goals. Mobiles are helping customers find their way into a store by providing streamlined information, encouraging a sale by creating interactive experiences, and collecting meaningful data on demographics and behavior by analyzing who interacted through the app.
- AR has witnessed increasing implementation in existing applications and platforms, including gamification for customer engagement, AR applications, social media-based marketing, and enterprise collaboration for unified workplace communications (such as Microsoft HoloLens, for assessing insurance risks). In addition, game developers are anticipated to use AR as a differentiator that could encourage new downloads.
- One of the significant challenges AR technology faces is educating the wider audience – the broader market. The current applications being developed (to be used on smartphones, tablets, and wearables) are limited to single users. For AR to be more accessible, creating multi-user, uniform, and streamlined experiences is a must. In the current market scenario, the availability of such products is limited. This is acting as a significant challenge to market growth.
- Covid-19 has positively impacted AR/VR hardware demand, and enterprises across the globe are trying to find ways to get their internal and wider geographically spread teams to communicate, collaborate, and find a path forward during the crisis. Even after the lockdown ends, the behavioral change it has caused is likely to last for a considerably more extended period. People are expected to remain socially distant, but they would be virtually close with the usage of technologies and the comprehensive reality. These platforms and technologies may primarily allow multiple businesses to run and grow, irrespective of the challenges posed by social distancing.
Augmented Reality & Mixed Reality Industry Segmentation
Augmented reality does not take the user to the virtual world. It only enhances objects in the current world by superimposing virtual images. AR, thus, places virtual objects into an environment that exists in the real world.
Mixed reality combines the aspects of the virtual world with those of the real world. It enables users to interact with the two worlds. Unlike AR, virtual objects in MR are not just overlaid. Users can interact with them. It is the main feature that distinguishes MR from AR.
The Augmented Reality Market is Segmented by Type (Hardware, Software), End-user Verticals (Gaming, Education, Healthcare, Retail & Advertising, Automotive, Military & Defense), and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).
The Mixed Reality Market is Segmented by End-user Verticals(Consumer, Medical & Healthcare, Industrial) and Geography (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa).
The market sizes and forecasts are provided in terms of value in USD million for all the above segments.
|By End-user Vertical|
|Retail and Advertising|
|Military and Defense|
|Other End-user Verticals|
|Rest of the World (Latin America and Middle East & Africa)|
Augmented Reality & Mixed Reality Market Trends
This section covers the major market trends shaping the Augmented Reality & Mixed Reality Market according to our research experts:
Increasing Applications of Augmented Reality Drives the Market Growth
- In the current market scenario, virtual reality is leading mass market adoption, predominantly due to the large-scale availability of low-cost VR devices. However, lowering the cost of solutions and advancements in image recognition and location services have augmented the potential of the AR market.
- The precision of indoor location services has grown significantly, enabling AR location features for vehicle, campus, and in-building navigation and identification. Image recognition capabilities have allowed enterprises to use AR for object identification and display by assisting real-time decision-making. For instance, firefighters can use AR to find the ambient temperature or a building layout to know exits and potentially dangerous areas. These technologies together provide various benefits of using AR as an internal tool. This includes enhancing current business processes, facilitating and optimizing current technologies, and giving business innovation.
- In addition, improving shopping experiences by integrating AR with technologies (such as beacons and RFID) is expected to help brands personalize and distinguish their services, bridging the gap between customer expectations and business products and services. According to a survey conducted by Snap Inc., There were various reasons why people all around the globe would be interested in adopting augmented reality for online shopping. A third of those surveyed said they would use AR to experience a full 360-degree view of a product, while another third said they would use it to see how products would appear on them. One in every five buyers mentioned they were interested because technology may make their shopping experience more enjoyable.
- Various cosmetic companies and brands are also implementing AR into business. For instance, Sephora uses AR technology to allow customers to try out different looks, eyes, lips, cheek products, and colors on their digital faces. This is an opportunity to boost sales and give customers a fun way to try out new looks. In the same way, to inspire purchases, Rolex also makes use of AR. The company has developed a virtual try-on experience where prospective customers can try different styles and models.
- There are some fascinating applications for augmented reality in healthcare, from allowing medical students to train in AR environments to telemedicine options that enable medical professionals to interact with patients. For instance, AccuVein, a handheld device, can scan the vein network of a patient and lead to a 45% reduction in escalations with the help of AR diagnostic tools.
- The future of the AR market is expected to be augmented by the amalgamation of the virtual and physical worlds to generate new, engaging, interactive, and personalized experiences that benefit both customers and the business.
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Asia Pacific is Expected to be the Fastest Growing Market
- There has been increasing adoption of AR for different applications in Asia-Pacific, such as the automotive, healthcare, manufacturing, entertainment, infrastructure, and public and private sectors. This is one of the significant factors contributing to the growth of the AR market in the region. Also, the growing investments by the government and private institutions for developing startups based on AR are expected to drive the market's growth in the forecast period.
- China is one of the largest smartphone markets, followed by India. With the increasing penetration of mobile AR applications, smartphones play a significant role in developing the AR market in the form of mobile AR. Increasing smartphone demand in China and India, followed by Japan, South Korea, and Australia, is expected to provide further growth opportunities to the market in the region.
- In healthcare, AR helps interact with information via voice commands, gestures, and motion tracking. Companies have also been increasing the penetration of connected devices and investments to make various kinds of devices equipped with AR, such as handheld, head-mounted displays, etc., further boosting AR in the healthcare market.
- Various companies have been looking forward to building an Augmented reality ecosystem for businesses in Indonesia. For instance, Indosat Ooredoo is working with Snap to accelerate the adoption of Augmented Reality, aiming to drive innovation within the field of AR to bring communities and businesses closer despite the pandemic. As part of the partnership, Indosat Ooredoo and Snap would launch multiple AR-specific programs to empower and engage Indonesians and develop business opportunities in Indonesia.
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Augmented Reality & Mixed Reality Industry Overview
The Augmented Reality & Mixed Reality Market is highly fragmented due to the presence of both global players and small and medium-sized enterprises. The major players in the market are Google LLC (Alphabet Inc.), Seiko Epson Corporation, Vuzix Corporation, Realwear Inc., and Dynabook Americas Inc. (Sharp corporation), among others. Players in the market are adopting strategies such as partnerships, mergers, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- In November 2022: Vuzix Corporation, one of the leading suppliers of Smart Glasses and Augmented Reality (AR) technology and products, announced Vuzix M400C smart glasses are now available for customer orders in the US, Canada, UK, EU, and Japan. Vuzix M400C smart glasses use the same proven form factor as the Company's flagship M400 smart glasses and come equipped with an autofocus HD camera capable of streaming 1080p video at 60 fps, crisp OLED display noise-canceling microphone, voice control, speaker, buttons, and touchpad, all built to IP67 standards.
Augmented Reality & Mixed Reality Market Leaders
Google LLC (Alphabet Inc.)
Seiko Epson Corporation
Dynabook Americas Inc. (Sharp corporation)
*Disclaimer: Major Players sorted in no particular order
Augmented Reality & Mixed Reality Market News
- October 2022: Micledi Microdisplays, a leading developer of microLED displays for augmented reality (AR) glasses, and Kura Technologies, one of the top global innovators in AR headsets, announced a collaboration to manufacture AR glasses. The new glasses are designed by Kura and incorporate MICLEDI’s unique 300mm microLED displays to achieve the performance required for Kura’s next generation of AR glasses.
- May 2022: VuzixCorporation announced an agreement with Atomistic SAS (Atomistic), an mLED(micro-Light Emitting Diode) display solutions enterprise based in France. The agreement provides for the design of a custom backplane, an exclusive license of key mLED technology, and the ability to acquire the enterprise, which depends upon achieving various technical phases. The Atomistic company would be delivering a backplane on advanced node 300mm wafers, along with system-level support from Vuzix, intended to support upcoming mLEDs based upon its innovative material science and alternative LEDs from potential third-party suppliers. The mLEDs would be provided for AR glasses.
Augmented Reality & Mixed Reality Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Applications of Augmented Reality
5.1.2 High Demand for Mobile-based Augmented Reality
5.2 Market Challenges
5.2.1 Technical and Regulatory Issues
6. AUGMENTED REALITY(AR) MARKET LANDSCAPE-MARKET SEGMENTATION
6.1 By Type
6.2 By End-user Vertical
6.2.4 Retail and Advertising
6.2.6 Military and Defense
6.2.7 Other End-user Verticals
6.3.1 North America
6.3.4 Rest of the World (Latin America and Middle East & Africa)
7. MIXED REALITY(AR) MARKET LANDSCAPE - MARKET SEGMENTATION
7.1 By End-user Vertical
7.1.2 Medical and Healthcare
7.1.4 Other End-User Verticals (Education, Military, and Defense)
7.2 By Geography
7.2.1 North America
7.2.4 Rest of the World (Latin America and Middle East & Africa)
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Google LLC (Alphabet Inc.)
8.1.2 Seiko Epson Corporation
8.1.3 Vuzix Corporation
8.1.4 Realwear Inc.
8.1.5 Dynabook Americas Inc. (Sharp corporation)
8.1.6 Niantic Inc.
8.1.8 Atheer Inc.
8.1.9 Blippar.com Ltd
8.1.10 PTC Inc.
8.1.11 Ultraleap Limited
8.1.12 Wikitude GMBH
8.1.13 TechSee Augmented Vision Ltd
8.1.14 Microsoft Corporation
8.1.15 HP Development Company LP
8.1.16 Dell Technologies Inc.
8.1.17 AsusTek Computer Inc.
8.1.18 Samsung Electronics Company Limited
8.1.19 Acer Inc.
8.1.20 Magic Leap Inc.
8.1.21 Amber Garage (Holokit)
8.1.22 Occipital Inc.
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Augmented Reality & Mixed Reality Market Research FAQs
What is the study period of this market?
The Augmented Reality and Mixed Reality Market is studied from 2018 - 2028.
What is the growth rate of Augmented Reality and Mixed Reality Market?
The Augmented Reality and Mixed Reality Market is growing at a CAGR of 41.5% over the next 5 years.
Which region has highest growth rate in Augmented Reality and Mixed Reality Market?
Asia Pacific is growing at the highest CAGR over 2018-2028.
Which region has largest share in Augmented Reality and Mixed Reality Market?
North America holds highest share in 2021.
Who are the key players in Augmented Reality and Mixed Reality Market?
Google LLC (Alphabet Inc.), Seiko Epson Corporation, Vuzix Corporation, Realwear Inc., Dynabook Americas Inc. (Sharp corporation) are the major companies operating in Augmented Reality and Mixed Reality Market.
Augmented Reality & Mixed Reality Industry Report
Statistics for the 2023 Augmented Reality & Mixed Reality market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Augmented Reality & Mixed Reality analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.