The Global Augmented Reality Market is valued at USD 1.54 Billion in 2020 and is anticipated to grow with a CAGR of 55.0% during the forecast period from 2020 to 2028. The major factors that are contributing to the growth of the market include increasing demand for AR devices from various industry verticals including healthcare and media and entertainment, among others. Also, increasing investments for the development of AR technology by the major players are promoting the growth of the augmented reality market.
Augmented reality (AR) is one of the latest technologies which is a blend of various interactive digital elements, such as buzzy haptic feedback, dazzling visual overlays, or other sensory projections that are integrated into the real-world environment. Pokemon Go is the most famous use case of augmented reality. Augmented reality is rapidly growing with its application can now be seen in daily life. AR has been integrated into various mobile applications such as Snapchat lenses, which is yet another popular application of AR. Major industry verticals including healthcare, automotive, entertainment, and gaming is boosting the adoption of augmented reality in recent times.
Key players in the market are investing significantly in the development of augmented reality technology. For instance, Google Inc., in January 2019, has launched new addons in its search engine that deploys Google Lens and Augmented reality. This enables it to superimpose content and information into the real world. The major factors that are driving the growth of the augmented reality market are increasing investments by major technology leaders for the development of AR products and applications, and growing demand for AR devices in the entertainment and healthcare sector.
AR applications require AR devices, due to which the hardware segment is expected to dominate the market during the forecast period. Companies such as Google Inc, Magic Leap, and Daqri LLC are focusing more on the development of AR devices. However, the health issues associated with the continuous use of AR devices are expected to restrain the market growth during the forecast period.
Global Augmented Reality Market, by Component
In terms of component, the hardware segment is holding a major share in the global augmented reality market in 2020 and is anticipated to remain the largest during the forecast period. Among hardware, the displays and projectors have dominated the market since many major players including Visteon, Magic Leap, and others already have their AR displays. Additionally, the rising demand for AR devices in the healthcare sector is expected to drive the growth of displays and projectors in the global augmented reality market.
Global Augmented Reality Market, by Type
In terms of type, the head-up display segment of the augmented reality market is expected to grow at the highest CAGR during the forecast period. These displays are currently in the introductory phase and has a high potential in the automotive sector. Automotive companies such as BMW is set to launch the AR HUDs in its upcoming premium models, which is expected to be launched in later 2020. The current BMW 7 series models have traditional HUDs
Global Augmented Reality Market, by Technology
In terms of technology, the near eye-based technology segment of the global augmented reality market has captured the largest market share in 2020, as major AR devices such as head mounted displays use the near eye-based technology. It has witnessed significant adoption in last year.
Global Augmented Reality Market, by Application
In terms of application, the media and entertainment segment of the augmented reality market has captured the largest market share in 2020 due to the higher adoption of head mounted augmented reality devices across the media and entertainment applications.
Global Augmented Reality Market, by Region:
In terms of region, the Asia Pacific region has dominated the global augmented reality market in the year 2019 and 2020. The major contributing factor is the higher adoption of AR devices among e-commerce players of the Asia-Pacific region. Countries such as China, Japan, and India have witnessed higher adoption of these devices. Moreover, increasing adoption of AR devices in the commercial sector in China is expected to boost the market of AR devices across the Asia-Pacific region.
Some Major Findings of Augmented Reality Market Report Include:
By End-User Industry
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