With the aid of computer-generated perceptual data, augmented reality (AR) is an interactive experience that improves the user's perception of the outside world. With the aid of software and hardware, such as AR glasses, augmented reality overlays digital content onto actual environments and objects to improve user experience and create an interactive learning environment that is useful for business and manufacturing processes. It enables users to integrate with the devices and systems they use, making it possible to use human creativity and observation to optimize technology and IoT networks. For instance, Shopify, Canadian multinational e-commerce company, has created a proof of concept that scans a room and then allows the customer to virtually empty it, and ready to see how new furniture would look in the space. Alternatively, the customer can also remove specific items, like a couch, and then slot new ones into the space.
Augmented reality is essential to the healthcare sector. It can be used to provide a surgeon with a digital representation of a patient's body parts so that they can evaluate the patient's condition. The surgeon may be able to perform less invasive procedures. Without dissecting the body, augmented reality allows surgeons to see joints, muscles, and internal organs which is one of the key factors driving AR adoption in the healthcare industry and potentially saving many lives is real-time patient health data.
However, growing security and privacy issues with augmented reality will be a major hinderance for the augmented reality market. AR market expansion is also expected to be hampered by the high cost of research and development for cutting-edge AR technological solutions and a lack of trained professionals, particularly in developing and underdeveloped economies. In future, the rising adoption of AR in healthcare as well as automotive and manufacturing plants will boost the Augmented Reality market growth as it provides increased efficiency, ease of monitoring and workers engagement in learning.
The COVID-19 pandemic brought several uncertainties leading to severe economic losses as various businesses across the world were on a standstill. AR helped to reduce face to face interactions of patients with doctors in pandemic. It also helped to improve surveillance system of the pandemic situation of patients through live video streaming and giving them a solution to cope up difficult situation with the adoption of AR in healthcare like in telemonitoring, pain management and patient care.
The key players profiled in this report include Google LLC, Microsoft, DAQRI, Niantic Inc, Ptc Inc., Apple Inc, Magic Leap Inc, Seiko Epson Corporation, TreeView, and CXR.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the augmented reality market analysis from 2021 to 2031 to identify the prevailing augmented reality market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the augmented reality market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global augmented reality market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Component
- Hardware
- Software
By Device Type
- Head Mounted Display
- Handled Devices
- Others
By End Use
- Media and Entertainment
- Manufacturing and Construction
- Healthcare
- Education
- Retail
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest Of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- UAE
- South Africa
- Rest of LAMEA
Key Market Players
- Google LLC
- Microsoft
- DAQRI
- Niantic, Inc.
- PTC Inc.
- Apple
- Magic Leap
- Seiko Epson
- TreeView
- Blippar Limited
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Table of Contents
Executive Summary
According to the report, titled, “Augmented Reality Market," the augmented reality market was valued at $24.2 billion in 2021, and is estimated to reach $411.4 billion by 2031, growing at a CAGR of 33.2% from 2022 to 2031.Augmented reality (AR) technology is an interactive experience that enhances the users experience in the real world with computer generated perceptual information. Using applications and software & hardware like AR glasses, the AR technology overlays digital content to real life environment to enrich user experience and turn one’s immediate surroundings in an interactive learning environment which is valuable in manufacturing and industry processes. AR permits users to become integrated with the systems and machines they use and optimize the technology and IoT networks with human creativity and observation.
Technological advancements like iOS 16, the recent software update of iPhone has introduced the new Apple Room-Plan API which uses the LiDAR scanner in recent iPhone Pro models to create a 3D room plan. LiDAR is a technology that emits lasers and calculates the time it takes for the light to return to the sensor in order to precisely measure the distance between the device and the objects. According to Apple, the API can be useful for real estate, architecture, and interior design apps, since it is precise and easy to use.
Growing augmented reality security and privacy concerns will present a significant technical challenge to the market. The high cost associated with research and development for cutting-edge technical solutions and lack of skilled or trained professionals or technological expertise, particularly in developing and underdeveloped economies will further restrain market expansion. The health dangers associated with technology are extremely high. Wearers of AR devices are generally lost in virtual content, which causes behavioral changes, hearing loss, and eye and/or hearing impairment. All these factors are anticipated to hamper augmented reality market growth in the forecast time frame.
The global augmented reality market has grown at an unbelievable rate as a result of the growing demands for 3D imaging in the healthcare industry. Rising digitization, especially in developing countries, coupled with a stronger focus on technology, and the development of the internet of things will generate more lucrative market growth opportunities. In addition to these, rising popularity of e-commerce will also contribute to market growth. Automotive firms are also rapidly adopting augmented reality technology into their vehicles in order to improve customer experience and differentiate themselves from their market competition. AR technology not only gives customers a more immersive experience, but it also aids producers in exploring new production and design options. These factors are anticipated to propel the market in the future.
The global augmented reality market share is segmented on the basis of component, device type, end-use and region. By component, the market is sub-segmented into hardware and software. By device type, the market is sub-segmented into head mounted display, handheld display and others. By end use, the market is sub-segmented into retail, healthcare, manufacturing & construction. By region, the augment reality market analysis if provided for major regions namely North America, Europe, Asia-Pacific, and LAMEA.
Some of the leading augmented reality market players are Google LLC, Microsoft, DAQRI, Niantic Inc, Ptc Inc., Apple Inc, Magic Leap Inc, Seiko Epson Corporation, TreeView, and CXR.
The report offers a comprehensive analysis of the global augmented reality market forecast is presented by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the AR market.
Impact of Covid-19 on the Global Augmented Reality Industry
- The COVID-19 pandemic had a slight positive impact on the market growth. Following the onset of the COVID-19 pandemic, the use of augmented reality (AR) in marketing and advertising to organise virtual events, product debuts, virtual exhibitions, and online ads has gained traction.
- As less number of workers and labours were available for work in manufacturing companies in COVID-19 pandemic time period, the demand for augmented reality industry has increased considerably.
- Companies have started installing augmented reality apps for product assembly, manufacturing, task analysis, production line functions and solution seeking. Hence, the growing need for remote assistance and collaboration from companies involved in workflow optimization and management moulds well for the growth of the market.
Key Findings of the Study
- Based on component, hardware sub-segment accounted for the highest revenue share and is predicted to show the fastest growth during the forecast period.
- Based on device type, handheld devices sub-segment is predicted to be the most dominant and head mounted display is anticipated to show the fastest growth during the forecast period.
- Based on end-use, media and entertainment sub-segment is predicted to be the most dominant sub-segment and healthcare sub-segment is anticipated to have the fastest growth during the forecast period.
- Based on region, Asia-Pacific is anticipated to be the most dominant and the most lucrative region for augmented reality market.
Companies Mentioned
- Google LLC
- Microsoft
- Daqri
- Niantic, Inc.
- Ptc Inc.
- Apple
- Magic Leap
- Seiko Epson
- Treeview
- Blippar Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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