Augmented Reality & Mixed Reality Market Size

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.