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, 2023 - 2030

  • Report ID: 978-1-68038-820-6
  • Number of Pages: 170
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview 

The global augmented reality market size was valued at USD 38.56 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 39.8% from 2023 to 2030. The surge of interest among leading market players such as Google LLC, Microsoft Corporation, Apple, Inc., and others in employing augmented reality (AR) in numerous applications is creating new opportunities. Additionally, the market in media and entertainment is increasing, such as with the rising use of AR in the gaming sector to give participants a view with highly effective video, graphics, and sound, which is anticipated to be a major growth factor.

U.S. Augmented Reality market size and growth rate, 2023 - 2030

Augmented reality provides interactive experiences through various sensory modalities, such as somatosensory, visual, auditory, haptic, and others. This technology has numerous applications in education, training, and entertainment. Furthermore, it is increasingly being used in industries such as logistics, healthcare, and manufacturing for monitoring, assistance, maintenance, and training.

The growing popularity of smartphones and app integration is expected to fuel the growth of the augmented reality industry. The increasing collaboration of market participants with 5G providers to lessen latency is expected to accelerate growth prospects. For instance, in January 2022, Telefonaktiebolaget LM Ericsson collaborated with E.E. Limited to demonstrate the potential of 5G standalone using an AR experience.

Additionally, in July 2021, Samsung Electronics Inc. collaborated with GBL Systems Corp. to deploy 5F testbeds for AR at U.S. Army military bases in order to help the U.S. Army in training and planning.

Since the COVID-19 outbreak, there has been an increase in the use of AR technology in marketing and advertising to host virtual events, promotional events, virtual exhibitions, and online commercials. For instance, in July 2020, the OnePlus Nord smartphone was launched using the AR platform Blippar. The growing adoption of AR technology by healthcare industry incumbents is also anticipated to play a significant role in driving the market growth.

Numerous AR solution suppliers work with healthcare organizations and provide their AR tools to support AR-powered healthcare. For instance, in February 2022, Altoida Inc., a provider of augmented reality software, collaborated with the pharmaceutical company Click Therapeutics to use AR technology to better understand baseline cognition measures and how they may impact patient outcomes.

Component Insights

Based on component, the hardware segment dominated the market in 2022 with a share of nearly 60%. This is attributed to the growing acceptance of augmented reality technology worldwide and its compatibility with older hardware devices. For instance, in May 2021, Meta opened its first hardware store in California to give its customers a first-hand experience with its hardware products, such as AR glasses and goggles.

Augmented reality technology is constantly evolving in sync with the widening adoption of technology in consumer applications. As a result, demand for augmented reality chipsets has risen. The rapid growth of AR chipsets is driving industry leaders such as NXP and Qualcomm Technologies, Inc. to develop innovative AR-powered chipsets to fulfill end-users changing needs. In January 2022, Qualcomm Technologies, Inc. collaborated with Microsoft Corporation to develop unique chips for AR glasses that will be compatible with Metaverse apps.

The software segment is expected to register a CAGR of around 41.0% during the forecast period with the rising demand for various displays and smartphones. Moreover, companies are focusing on upgrading smartphones, tablets, and computers by integrating AR software with new features and indulging in strategic collaborations to simplify, automate and support large-scale AR deployments. In 2022, HTC launched HTC Desire 22 Pro, its first Metaverse smartphone. It is embedded with the company’s Viverse application that enables users to create their virtual space and buy NFTs from the marketplace in the virtual world.

Display Insights

The head-mounted display segment held  a sizeable revenue share of nearly 60.0% in 2022. This is attributed to the rising need for head-mounted displays in commercial and industrial applications. The widespread availability of lightweight head-mounted displays is anticipated to be fueled by the developments in OLED technology and the expanding use cases for AR technology in industrial and enterprise applications.

The smart glasses segment is anticipated to record a CAGR of around 49.0% from 2023 to 2030 as they are being widely adopted across various industries. Smart glasses are commonly used in industries, such as construction, oil & gas as well as automotive due to their structural properties. For instance, the HMT-1 smart glasses by RealWear, Inc. are highly robust, insensitive to dust and dirt, waterproof with an IP of 66, and fully functional in extreme cold or heat (from -20°C to 50 °C), which makes them suitable for the industrial environment.

Application Insights

The industrial & manufacturing segment held  a revenue share of 24.0% in 2022 and is expected to grow significantly over the coming years. The use of augmented reality technology by the market leaders in a variety of sectors and industry verticals enables them to identify any errors or flaws quickly, ensure that all processes are ongoing, and facilitate efficient operations to reduce the amount of downtime associated with manufacturing is driving the growth of the segment.

Global Augmented Reality market share and size, 2022

The healthcare segment is expected to record a CAGR of over 44.0% from 2023 to 2030. AR technology is increasingly being implemented in medical training, surgical visualization, and vein visualization. As a result, several market players are taking profound steps in this direction. In January 2022, AMA Corporation Plc strengthened its partnership with Vuzix Corporation, a leading supplier of smart glasses and AR technology and products. This partnership is anticipated to accelerate the digital transformation of their joint healthcare and industrial customer base.

Regional Insights

North America accounted for the largest revenue share of nearly 35.0% in 2022 and is estimated to record a significant growth rate during the forecast period as the region is home to several leading technology companies, such as Google LLC, and Microsoft, among others. Besides, the regional countries are considered the early adopters of advanced technologies.

North America is expected to generate the highest revenue during the forecast period. Immersive technologies are becoming more popular in the region due to continued investment. Likewise, the U.S. government is significant in improving the adoption of immersive technology in order to enhance the region's augmented reality industry share. For instance, in 2019, the United States Defense Advanced Research Projects Agency agreed to participate in IMT Atlantique. It engaged the firm to create smart contactless lenses for the United States military.

Augmented Reality Market Trends by Region, 2023 - 2030

Asia Pacific is expected to record a CAGR of above 40.0% from 2023 to 2030 with increasing usage of internet-based platforms across various regional countries, including Japan and Australia. Besides, the continued rollout of high-speed 5G networks in the Asia Pacific is favoring the widespread adoption of AR technology and AR-based solutions across the region. The increasing adoption of AR technology in the manufacturing and healthcare industries in India is driving market growth further.

Asia Market is estimated to proliferate during the forecast period. The burgeoning logistics, manufacturing, gaming, and automotive industries are expected to fuel regional market growth. Due to the low-cost hardware manufacturers, China is expected to dominate the market. India is also expected to offer market growth opportunities due to the rising customer demand. For instance, in June 2021, Libestream Technologies increased its investment in Japan to support the APAC region's growing customer base.

Key Companies & Market Share Insights

The key players operating in the augmented reality market are investing aggressively in research and development to deliver innovative AR solutions. They are forming strategic alliances as a part of their efforts for technological advancements to gain a competitive edge in the market. For instance, in May 2022, Magic Leap, Inc. announced a strategic partnership with a digital company, Globant, to accentuate the adoption of enterprise AR. The collaboration is aimed at expanding enterprise AR applications.

Google LLC offers several products and applications based on its augmented reality technology platform, such as Google Glass, Google Goggles, Google Cardboard, Google AR apps for mapping and games, and Project Tango. In April 2021, Google LLC launched the WebXR collection to offer viewers a superior immersive experience. The Web XR platform includes Sodar, Measure UP, Floom, and Picturescape, creating an altogether immersive platform for Android users.

Samsung expanded its product portfolio by including the wearable technology market with virtual reality, Samsung Gear VR Innovator Edition. Samsung Electronics Co., Ltd. has a global market presence with a vast sales and distribution network, multiple manufacturing units, and R&D centers. In December 2021, Samsung Electronics Co. Ltd partnered with Microsoft to collaboratively work on an advanced AR/MR project that includes HoloLens. The new project is expected to unveil the next generation HoloLens by 2024. Some of the prominent players in the global augmented reality market include:

  • Apple, Inc.

  • Blippar Limited

  • Google LLC

  • Lenovo Group

  • Magic Leap, Incorporated

  • Meta

  • Microsoft Corporation

  • PTC Inc.

  • Snap, Inc.

  • Sony Corporation

  • TeamViewer AG

  • Vuzix Corporation

  • Wikitude GmbH

  • Xiaomi Corporation

  • Zappar Limited

Recent Development

  • In July 2023, Apple launched a new immersive Deep Field AR app for students. The Deep Field iPad app uses Apple Pencil to experiment with vibrant colors, textures, and shapes and draw their own flora and fauna.

  • In June 2023, Apple Inc. launched Apple Vision Pro, integrated with visionOS, the world’s first spatial operating system that lets users interact with digital content with an ultra-high-resolution display system.

  • In September 2022, Blippar launched its Unity plug-in using its WebAR SDK for developing 3D models and animations. It enables brands and businesses to interact with customers across social media platforms such as Meta, TikTok, and Snap, and e-commerce and gaming websites.

  • In September 2022, Blippar and Sketchfab collaborated to develop Blippbuiler, a platform for users to create 3D assets and engage businesses in immersive communication with customers.

Global Augmented Reality Market Report Scope

Report Attribute


Market size value in 2023

USD 57.26 billion

Revenue forecast in 2030

USD 597.54 billion

Growth rate

CAGR of 39.8 % from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2023 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; South America; MEA

Country scope

U.S.; Canada; Mexico; UK; Germany; France China; Japan; India; South Korea; Brazil

Key companies profiled

Microsoft; Google LLC; Apple, Inc.; Sony Corporation; Blippar Limited; Xiaomi Corporation; Lenovo Group; Meta; PTC Inc.; Snap, Inc.; TeamViewer AG; Zappar Limited; Magic Leap, Incorporated; Vuzix Corporation; Wikitude GmbH

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Global Augmented Reality Market Report Segmentation

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 augmented reality market report based on the component, display, application, and region:

Global Augmented Reality Market Report Segmentation

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

    • Hardware

    • Software

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

    • Head-Mounted Display

    • Smart Glass

      • Cinema Display Glasses

      • XR Glasses

    • Head-Up Display

    • Handheld Devices

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

    • Aerospace & Defense

    • Automotive

    • Education

    • E-commerce & Retail

    • Gaming & Entertainment

    • Healthcare

    • Industrial & Manufacturing

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • UK

      • Germany

      • France

      • Rest of Europe

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Rest of Asia Pacific

    • South America

      • Brazil

      • Rest of South America

    • Middle East and Africa (MEA)

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