GVR Report cover Augmented Reality Market Size, Share & Trends Report

Augmented Reality Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Display (Head-Mounted Display & Smart Glass, Head-Up Display, Handheld Devices), By Application, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: 978-1-68038-820-6
  • Number of Pages: 300
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2020
  • Industry: Technology

Report Overview

The global augmented reality market size was estimated at USD 25.33 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 40.9% from 2022 to 2030. Companies are putting a strong emphasis on finding unique ways to exploit the potential of augmented reality (AR) technology and providing a unique and interactive experience to end-users is expected to drive the growth of the market over the forecast period. The proliferation of handheld devices, such as smartphones and smart glasses, and the subsequent increase in the adoption of mobile AR technology to provide a more immersive experience are expected to contribute to the growth of the market.

 U.S. Augmented Reality market size, by display, 2018 - 2030 (USD Billion)

Companies are using AR-based apps for assembly functions, manufacturing functions, production line functions and analyzing tasks, and finding solutions. As such, the growing demand for remote assistance and coaction from industries working in optimization and workflow management also bodes well for the growth of the market.

The adoption of AR technology in marketing and advertising to host virtual events, product launches, virtual exhibitions, and online commercials has been gaining traction in the wake of the outbreak of the COVID-19 pandemic. For instance, the OnePlus Nord smartphone was launched in July 2020 using the AR platform Blippar. The increasing adoption of AR technology by the incumbents of the healthcare industry is also expected to play a vital role in driving the growth of the market. Several AR solution providers are collaborating with healthcare institutions and offering their AR tools to facilitate AR-powered healthcare. For instance, in February 2022, augmented reality company Altoida Inc. announced a partnership with Click Therapeutics to leverage AR technology to better help in understanding the baseline measures of cognition and the way it can potentially affect patient outcomes.

The growing use of AR technology in construction and architectural applications is expected to play a decisive role in driving the growth of the market. AR technology can potentially help in generating a 3D model of a blueprint and help in connecting imagination with reality. AR technology can also be used in the education industry to enhance the learning experience for students. AR technology can help in providing an immersive experience using 2D/3D models, AR books, and AR games, and subsequently, aid in the development of different skill sets in students, thereby driving the growth of the augmented reality market.

AR technology holds the potential to revolutionize indoor navigation. For instance, MobiDev, a software development company, has used AR technology to transform indoor navigation. The company’s ARcore platform can help in recommending the best possible route to the desired destination and displaying it on a mobile device. When it comes to outdoor navigation, AR technology can help travelers in searching for tourist spots and suitable accommodation using AR-based virtual tours. For instance, Hub Hotels by Premier Inn has used AR technology and transformed its rooms into a city map to guide tourists about the tourist attractions nearby. As such, the growing use of AR technology in navigation, and subsequently, the growing demand for AR-based solutions from the incumbents of the travel & tourism industry are expected to drive the growth of the market over the forecast period.

AR technology is evolving continuously in line with the growing adoption of the technology in consumer applications. As a result, the demand for AR chipsets has also been growing. The growing demand for AR chipsets is driving industry-leading firms, such as Qualcomm and NXP, to introduce innovative AR-powered chipsets to meet the changing needs of the end-users. For instance, in January 2022, Qualcomm announced a partnership with Microsoft to produce unique chips for Augmented Reality glasses, which will be compatible for use with Metaverse apps.

Component Insights

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. For instance, AccuVein Incorporated, a company providing medical solutions, is using AR-based solutions to assist medical professionals in finding a patient’s vein for administering intravenous treatments or drawing blood for blood tests, among other purposes. The growing demand for AR-compatible hardware shows no signs of abating as more and more companies are investing aggressively in modern AR products and solutions. For instance, in January 2020, Hangzhou Tairuo Technology Company Limited announced an advanced product called the Nreal Light AR glasses, which uses AR technology to create a vastly improved and immersive experience combining virtual reality and augmented reality.

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.

Display Insights

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. AR-powered head-mounted displays and smart glasses can potentially find innovative use cases in the supply chain & logistics industry, and subsequently, transform the entire supply chain. Although AR-powered smart glasses consume high computation resources, their SoC is capable of processing and rendering the vision in real-time for viewers.

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 applications. 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. Handheld devices integrated with mobile AR technology can help consumers in trying out products virtually before making a buying decision. The aggressive integration of AR technology within social media platforms also bodes well for the growth of the handheld devices segment. Having realized the potential held by AR technology, major technology companies, such as Google LLC and Apple Inc., are increasingly utilizing AR Core and AR Kit and investing aggressively in the technology.

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. For instance, in September 2020, Bayerische Motoren Werke AG (BMW) launched an AR head-up display device for prototype engineering and vehicle concept. The company has also developed AR apps to offer a virtual experience of their cars.

Application Insights

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. AR technology is also finding applications in the aerospace & defense industry. Nevertheless, given that the application of AR technology in the aerospace & defense industry is still in its nascent stages; the use cases are limited, such as assisting technicians in making decisions and reducing the time to search for the information required to revamp any specific product.

Global augmented reality market share, by application, 2021 (%)

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. AR technology not only enables a more immersive experience for customers but also helps manufacturers in exploring new possibilities in manufacturing and designing. AR technology has also been contributing significantly to the development of security & awareness applications and has been helping in realizing online safety features in the latest, advanced safety systems.

Regional Insights

North America accounted for the largest revenue share of 33.9% in 2021 and is anticipated to account for a significant market share in the forecast period. The U.S. accounted for the largest share of the North America regional market. The U.S. is home to several leading technology companies, such as Google LLC, and Microsoft, among others. The country is also considered an early adopter of new technologies. Europe is poised for significant growth as it has taken a lead in adopting AR technology for gaming & entertainment applications. Germany is particularly gaining recognition for implementing AR technology in the gaming industry.

Asia Pacific is predicted to emerge as the fastest-growing regional market in the forecast period. Developed countries, such as Japan and Australia, are gradually paving their path as the leaders in the regional market leveraging a large customer base and advancing the implementation of internet-based platforms. The continued rollout of high-speed, 5G networks in Asia Pacific is also expected to trigger widespread adoption of AR technology and AR-based solutions across the region. India with its large population and the rapidly growing internet penetration rate is emerging among the leading economies in Asia Pacific utilizing AR technology in the manufacturing and healthcare industries, where more immersive and hands-on experience is of paramount importance.

Key Companies & Market Share Insights

The augmented reality market can be described as a relatively untapped market, where several opportunities remain unexplored. Vendors are investing aggressively in research and development (R&D) to develop innovative AR solutions for day-to-day applications as well as for enterprises to simplify their workflows and enhance their processes. The ability to offer an immersive experience is particularly prompting technology and e-commerce companies to opt for new, innovative solutions based on AR technology. For instance, Lenskart Solutions Pvt Ltd. is using AR technology in the mobile app to allow individuals to superimpose spectacles, sunglasses, and other products virtually on their faces before making a buying decision. Similarly, the AR feature implemented by LG Corporation on its electronics website allows users to witness how a particular television set would look in their house on their mobile phones before they make a buying decision.

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. For instance, in December 2021, Tencent acquired Turtle Rock Studios. Tencent particularly found the latter's gaming library and AR capabilities lucrative. Similarly, in 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. In September 2021, WPP and Snap Inc. announced a partnership to explore AR technology to develop advanced immersive experiences for users. The partnership holds immense potential, particularly given that the Snap Consumer AR Global Report 2021 has revealed that over 90% of people want to use AR for shopping.

Some of the prominent players in the augmented reality market are:

  • Microsoft

  • Google LLC

  • Apple, Inc.

  • Sony Corporation

  • Blippar Limited

  • Infinity Augmented Reality Limited

  • Niantic, Inc.

  • Zappar Limited.

  • Magic Leap, Incorporated

  • Wikitude GmbH

Augmented Reality Market Report Scope

Report Attribute


Market size value in 2022

USD 38.56 billion

Revenue forecast in 2030

USD 597.54 billion

Growth Rate

CAGR of 40.9% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, display, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; South Korea; Brazil

Key companies profiled

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

Customization scope

Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global virtual reality market report based on component, display, application, and region:

  • Component Outlook (Revenue, USD Million, 2018 - 2030)

    • Hardware

    • Software

  • Display Outlook (Revenue, USD Million, 2018 - 2030)

    • Head-Mounted Display & Smart Glass

    • Head-Up Display

    • Handheld Devices

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Aerospace & Defense

    • Automotive

    • Education

    • E-commerce & Retail

    • Gaming & Entertainment

    • Healthcare

    • Industrial & Manufacturing

    • Others

  • Augmented Reality Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

    • Latin America

      • Brazil

    • Middle East & Africa

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