The augmented reality (AR) market is estimated to grow annually at a rate of 28% between 2022 and 2027. The size of the market is forecast to increase by $157.21 billion.
The report, from Technavio, is entitled Global Augmented Reality (AR) Market 2023-2027.
The increasing investments in AR technology are the key factor driving the global AR market growth. The technology is expected to be used in social media platforms, mobile devices (for virtual conference calls), and automotive devices, as well as in the retail and healthcare industries. As AR is being used every day by millions of people, it requires the delivery of copious amounts of data and vast processing power to deliver the information in real time. Massive investments are required to store the vast amounts of data being generated on a daily basis and deliver significant results, for which various vendors are investing in AR technology and engaging in partnerships and acquisitions. Several apps, such as real-time text translators, filters on camera apps, social media applications, and interactive maps with exhaustive information, use AR technology. Such advanced technologies require heavy investments to enhance the consumer experience. Vendors, therefore, are investing in AR; these investments will drive the growth of the market during the forecast period.
The increasing integration of AR in mobile devices will fuel the global AR market growth. Many smartphone vendors, such as Apple and Samsung, are integrating hardware and software to create an AR mobile platform. Several manufacturers of mobile devices, such as smartphones, phablets, and tablets, are using AR solutions to enhance the user experience and increase the value proposition of mobile devices. The market is expected to grow during the forecast period, owing to the increased popularity and penetration of AR technology in smartphones and tablets.
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The market share growth by the enterprise segment will be significant during the forecast period. AR apps improve operational processes and are used by different enterprises to check inventory and provide information on the available stock. These apps are used for remote assistance, training, data visualisation, marketing, collaboration, inspection, and repairs across various business verticals. Many enterprises augment their work using AR as the technology helps them minimise errors and solve complex problems.
The Enterprise segment showed a gradual increase in market share with $5.27 billion in 2017 and continued to grow by 2021. Enterprises use AR applications for remote assistance to save time and travel costs. For instance, Progress-Werk Oberkirch, a metal processing automotive supplier, uses Ubimax Frontline AR software to communicate with experts to receive real-time on-site assistance with the help of smart glasses. NASA, on the other hand, has introduced AR apps for Microsoft HoloLens AR headset to provide live training and instructions. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.