Augmented Reality (AR) is revolutionizing various industries and sectors such as gaming, education, healthcare, and retail. Moreover, several leading enterprises from film, travel & tourism, automotive, manufacturing, and banking have already moved beyond pilot phases and are reaping significant results with the adoption of AR solutions. Advancements in head-mounted displays and smart glasses are compelling organizations to experiment with the AR technology to combine real life with super-imposed or animated images; this allows a continuous view of both the virtual and real worlds. AR technology witnessed a global recognition after the launch of the popular smartphone game Pokémon GO in 2017. One of the factors contributing to market growth is the rising demand for augmented reality-based games among consumers. The growing adoption of AR technology in the automotive industry by key players such as BMW, Tesla, Volvo, Mercedes-Benz, and Jaguar for developing head-up displays used in connected cars also promotes market growth. The market has immense growth opportunities with key players such as Microsoft Corporation, Google LLC, Blippar Inc., Samsung Electronics Corporation Ltd, Sony Corporation, and PTC Inc. focuses on investment in research and development of AR solutions and platforms.
The augmented reality hardware segment accounts for a larger market share with rising shipments of head-mounted displays (HMDs) in North America, Europe, and Asia-Pacific. However, the AR software segment is expected to grow at a higher rate owing to the increasing demand for AR software kits to develop AR applications and software for mobile phones, tablets, and PCs. The AR market is further expected to grow with the advancements in digital technologies and the emergence of 5G network connectivity services. However, for AR service providers, addressing the bandwidth and latency issues associated with the delivery of immersive data to facilitate uninterrupted high-quality end-user experience remains a major challenge, which are expected to impact the market growth in the coming years.
The global augmented reality market generated a revenue of USD 12,993 million in 2018 and is expected to reach a market value of USD 2,90, 542.1 million by 2024 registering a CAGR of 67.8%. North America accounts for 36% of the total share in the augmented reality market due to the increasing adoption of AR devices and smartphone-based AR applications. The growing adoption of augmented reality services among the media and entertainment industry, specifically for gaming in North America, is expected to drive the growth of the augmented reality market throughout the forecast period. Among the North American countries, the US accounts for the larger market share owing to the presence of key market players, followed by Canada and Mexico.
The European augmented reality market acquired around 28% market share globally in 2018. Europe is witnessing high adoption rate of augmented reality services in the education sector, healthcare, consumer electronics, media & entertainment, automotive, and aerospace & defense industries. Among the European countries, currently, the UK is dominating the market with a market share of 38%, followed by Germany with a 30% market share. The UK is projected to register the fastest CAGR of 70.2% during the forecast period in the augmented reality market due to the rising number of start-ups offering AR solutions. Further, the growing adoption of AR technology in countries such as France, Russia, Italy, Spain, Portugal, and the Netherlands is also expected to boost market growth in Europe.
Asia-Pacific augmented reality market acquired 24% market share in terms of revenue generation as China, India, Japan, South Korea, Malaysia, Australia, New Zealand, Indonesia, Singapore, and the Philippines are experiencing considerable demand and adoption of head-mounted displays, head-up displays, and smart glasses. Further, growing digitalization is driving the adoption of smartphones in the region, which is thereby expected to fuel the market growth for augmented reality in the region.
The augmented reality market in the rest of the world acquired around 11% market share globally in 2018. This region is witnessing high adoption of AR software among countries such as Brazil, Argentina, Peru, Colombia, Chile, the UAE, Saudi Arabia, and South Africa. Moreover, various investments by key market players are contributing to the growth of the market in this region.
