Augmented Reality in Marketing Global Market Report 2024

The augmented reality in marketing market has grown rapidly in recent years. It will grow from $4.73 billion in 2023 to $5.34 billion in 2024 at a compound annual growth rate (CAGR) of 12.9%. During the historical period, growth can be credited to several factors, including heightened consumer engagement facilitated by novel and innovative approaches, brand differentiation strategies, the widespread adoption of smartphones, and the utilization of interactive product visualization techniques.

The augmented reality in marketing market is expected to see rapid growth in the next few years. It will grow to $8.82 billion in 2028 at a compound annual growth rate (CAGR) of 13.3%. Anticipated growth in the forecast period is expected due to the increasing integration of AR in e-commerce, broader applications across social media platforms, its adoption in event marketing strategies, and the utilization of enhanced data analytics and insights.

The augmented reality in marketing market is poised for growth owing to the surging demand for AR in retail and e-commerce sectors. Augmented reality (AR) is becoming pivotal in retail by driving ingenious retail experiences that influence consumer purchasing decisions. It is transforming e-commerce by enabling digital product trials in customers' homes or through AR filters for face and body, reducing return rates. Shopify's data in July 2022 indicated a 250% increase in retail conversion rates for brands adopting AR. Additionally, Houzz reported that AR users spent 2.7 times longer on the app and made purchases 11 times more frequently. Thus, the escalating demand for AR in retail and e-commerce is poised to fuel augmented reality in marketing.

The upsurge in smartphone adoption is set to propel the growth of augmented reality in marketing. Augmented reality's utilization in marketing leverages smartphones to deliver enhanced consumer engagement through digital overlays in the real-world environment via the device's camera and display. As per Uswitch Limited's findings in February 2023, the UK witnessed a 3.8% surge in mobile connections, totaling 71.8 million by 2022. Projections suggest that by 2025, nearly 95% of the UK's anticipated population of 68.3 million will own smartphones, around 65 million individuals. Therefore, the rising smartphone adoption is instrumental in driving the expansion of augmented reality in the marketing market.

Technological advancement stands out as a pivotal trend gaining traction in the augmented reality in marketing market. Leading market players are introducing innovative products embedded with advanced technologies to fortify their market stance. Microsoft's launch of Microsoft Mesh in March 2021 exemplifies this trend, a service enabling app development for collaborative augmented reality experiences. Mesh facilitates hologram sharing, conversations, doodling, and virtual avatar appearances, making participation in Mesh-enabled meetings possible across various devices.

Major players in the augmented reality in marketing market are prioritizing next-generation marketing solutions, notably adopting an augmented reality (AR) platform-agnostic approach. This approach involves crafting applications or content compatible with diverse AR devices and platforms, transcending limitations associated with specific hardware or software ecosystems. For instance, We Are Social Inc. unveiled Make My Day in August 2023, the world’s premier augmented performance marketing agency. Backed by We Are Social, Make My Day focuses on empowering marketers to unlock AR's full potential, evolving from standalone executions to multi-platform campaigns that complement broader marketing strategies. Its platform-agnostic approach enables AR activations across various social networks such as Facebook, Instagram, and TikTok.

In May 2022, Google, a prominent multinational technology company based in the US, completed the acquisition of Raxium for a sum of $1 billion. This strategic acquisition aims to bolster Google's array of offerings in the realm of next-generation augmented, virtual, and mixed reality headsets, particularly amidst the rising interest surrounding the metaverse concept. Raxium, a US-based company, specializes in AR within the marketing market, thereby augmenting Google's capabilities in this dynamic sector.

Major companies operating in the augmented reality in marketing market report are Microsoft Corporation, Google LLC, Sony Corporation, Magic Leap Incorporated, Wikitude GmbH, Zugara Inc., Apple Inc., Blippar Limited, Infinity Augmented Reality Limited, Niantic Inc., Zappar Limited., PTC Inc., Daqri LLC, Lenovo, Seiko Epson, Vuzix, Alphabet Inc., Meta Platforms Inc., Snapchat, HP Autonomy, Augment, Marxent, Catchoom, Vuforia (PTC), ViewAR, Upskill, Scope AR, Adtile Technologies, Inlighten, Total Immersion, Re’Flekt, Vertebrae, 8th Wall Inc., Mirum Agency, INDEstry, Third Aurora.

North America was the largest market share in the augmented reality in marketing market in 2023. The regions covered in the augmented reality in marketing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the augmented reality in marketing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The key components within the augmented reality marketing landscape encompass both hardware and software. Hardware components integral to AR marketing include sensors/tracking mechanisms, input devices, and CPU and display/output devices. These components are utilized across various device types, including head-mounted displays, smart glasses, head-up displays, handheld devices, stationary AR systems, and others. These devices leverage diverse technologies such as marker-based AR, markerless AR, and anchor-based AR. Applications of augmented reality in marketing span across a spectrum of industries, including consumer markets, commercial sectors, enterprises, healthcare, aerospace and defense, energy, automotive, and various others, demonstrating the versatility of AR technology in enhancing experiences and engagements across diverse fields.

The augmented reality in marketing market research report provides augmented reality in marketing market statistics, including augmented reality in marketing industry global market size, regional shares, competitors with augmented reality in marketing market share, detailed augmented reality in marketing market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality in the marketing industry. This augmented reality in marketing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The augmented reality in marketing includes revenues earned by entities by providing marketing services through AR technology. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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