Augmented Reality Software and Services Global Market Report 2024

The augmented reality software market size has grown exponentially in recent years. It will grow from $47.88 billion in 2023 to $74 billion in 2024 at a compound annual growth rate (CAGR) of 54.5%. The growth observed during the historical period can be attributed to several key factors, including increased market penetration in the entertainment sector, greater adoption by enterprises, the emergence of augmented reality (AR) hardware, the development of developer tools, and enhancements in user interfaces. These factors have collectively contributed to the expansion of the AR industry in the past.

The augmented reality software market size is expected to see exponential growth in the next few years. It will grow to $333.06 billion in 2028 at a compound annual growth rate (CAGR) of 45.7%. The anticipated growth in the forecast period can be attributed to various factors, including the integration of augmented reality (AR) with 5G technology, the expansion of enterprise applications, the development of consumer-friendly AR apps, and advancements in AR cloud technology. These elements are expected to drive the growth of the AR market in the upcoming period. Additionally, several notable trends are expected to shape the AR landscape during this forecast period. These trends include the emergence of immersive gaming experiences, the integration of AR in retail and e-commerce, the adoption of AR for remote assistance and collaboration, the development of education and training solutions, and advancements in spatial computing technology. These trends are likely to play a significant role in the evolution of the AR industry.

Augmented reality (AR) is finding increasing application across a range of fields, including entertainment, retail, and medicine. In the medical domain, the utilization of AR software for surgical procedures and diagnosis has seen significant growth in recent years. AR technology enhances surgical precision, reduces medical errors, and provides both doctors and patients with a clearer understanding of complex medical conditions. For instance, at Imperial College and St. Mary's Hospital in London, surgeons and doctors have begun using Microsoft's HoloLens AR glasses during reconstructive surgery for patients with severe injuries. Previously, handheld scanners were employed to locate major blood vessels near the wound, making surgery more challenging. The growing adoption of AR in various industries is driving the expansion of the augmented reality software and services market.

The key functions of augmented reality software and services include enabling remote collaboration, optimizing workflows, enhancing visualization, facilitating documentation, enabling 3D modeling, and providing navigation support. Workflow optimization entails the process of improving existing workflows by reducing operational costs, enhancing work efficiency, adding new functionalities to current workflows, reducing task completion times, and other measures aimed at ensuring the optimal efficiency of the workflow. These augmented reality software and services are employed in various industry verticals, including aerospace and defense, medical, commercial, oil and gas, mining, telecom, IT/data centers, and across enterprise and consumer segments. They are utilized by both commercial and consumer end users to enhance various aspects of their operations and experiences.

The augmented reality software and services market research report is one of a series of new reports that provides augmented reality software and services market statistics, including augmented reality software and services industry global market size, regional shares, competitors with a augmented reality software and services market share, detailed augmented reality software and services market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality software and services industry. This augmented reality software and services 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 growing educational technology (ed-tech) sector is expected to be a driving force behind the expansion of the augmented reality software and services market. Educational technology, or ed-tech, involves the integration of information and communication technology tools into educational settings to create more engaging, inclusive, and personalized learning experiences. Augmented reality (AR) is increasingly employed within the ed-tech sector to visualize complex concepts, enabling interactive learning experiences through simulations, games, and other engaging activities that make the learning process more enjoyable for students. For example, according to data from Graphy, a UK-based AI-powered data visualization company, the educational technology sector is projected to reach a market value of $680 billion by 2027. This underscores the significant growth potential of the ed-tech industry, which, in turn, is driving the augmented reality software and services market as it becomes increasingly integrated into educational settings.

Privacy and security concerns are significant challenges faced by the augmented reality (AR) software and services industry. The absence of specific regulations that define the limitations of the AR environment poses a substantial threat to privacy within the AR environment. AR portals typically rely on web browsers, which can expose data used by AR software and services, making them susceptible to potential attacks by third parties. Safeguarding the privacy and security of personal information is of utmost importance, as the consequences of inadequate protection can be severe. For instance, hackers could manipulate a navigation system to display false computer-generated speed limit signs or provide incorrect route directions to the driver. The compromise and broadcast of a user's geolocation or field of view could pose significant dangers. These threats to privacy and security ultimately limit the growth potential of the augmented reality (AR) software and services market. Addressing these concerns is essential for the industry's continued advancement.

The integration of AI (Artificial Intelligence) and AR (Augmented Reality) holds vast potential for the augmented reality software and services industry in the future. AI refers to the development of systems with the capability to perform tasks that typically require human intelligence. AI augments AR by enabling functions such as real-world object tagging, predictive interface design within a virtual environment, and enhancing AR experiences to create multidimensional and responsive virtual interactions that offer new levels of insight and creativity. Examples of AI and AR working together can be seen in filters used in platforms like Instagram and Snapchat. For instance, in 2021, NexTech AR Solutions introduced standardized AI-driven chat features within its Virtual Experience Platform and ARoom streaming solution. This innovation was designed to enhance the virtual event experience for both attendees and organizers. The incorporation of AI-driven chat functionalities enables seamless networking, direct messaging, and moderated Q&A sessions, thereby boosting engagement and interaction within the platforms. By integrating advanced technology, including AR and AI, NexTech facilitates the creation of immersive virtual and hybrid event experiences. This trend of AI and AR integration is expected to make a substantial contribution to the growth of the augmented reality software and services market, offering enhanced and innovative experiences to users and businesses alike.

Major companies operating in the augmented reality software and services market are placing a heightened focus on developing advanced technologies, including Next Generation XR (Extended Reality) and AR (Augmented Reality) Platforms. These next-generation XR and AR platforms are innovative technologies being designed to enhance the performance, efficiency, and accessibility of augmented reality experiences. They aim to address the limitations of current AR technologies, such as restricted field of view, low resolution, and high costs. For example, in September 2023, Qualcomm Incorporated, a US-based semiconductor company, introduced two spatial computing platforms including the Snapdragon XR2 Gen 2 and Snapdragon AR1 Gen 1. These platforms are aimed at improving mixed reality (MR), virtual reality (VR), and smart glasses experiences. The Snapdragon XR2 Gen 2 Platform offers advanced MR and VR technologies in thinner and more comfortable headsets without the need for an external battery pack. This results in lag-free immersive experiences with high-quality visuals and sound. On the other hand, the Snapdragon AR1 Gen 1 Platform is designed for sleek, lightweight smart glasses, allowing hands-free capture, sharing, and live streaming capabilities. It also includes on-device AI features like audio enhancement and real-time translation, as well as support for a visual heads-up display for seamless content consumption. The development and adoption of these next-generation XR and AR platforms signify a commitment to enhancing and expanding the capabilities of augmented reality, offering users more immersive and convenient experiences. This technological advancement is expected to drive the growth of the augmented reality software and services market.

In September 2021, Qualcomm, a US-based multinational semiconductor provider, completed the acquisition of Wikitude GmbH for an undisclosed sum. This strategic acquisition was aimed at fulfilling specific technological requirements, accessing development resources, expanding opportunities for innovative technologies, and supporting the design and introduction of new products and services. Wikitude GmbH, a US-based company, is a prominent provider of mobile augmented reality technology.

Major companies operating in the augmented reality software and services market include PTC Inc., Wikitude GmbH, Daqri LLC, Zugara Inc., Niantic Inc., Augmate Corporation, Ubimax GmbH, Upskill, Catchoom Technologies S.L., Aurasma, EON Reality Inc., Hewlett-Packard Development Company LP, Zappar Ltd., Immerseport, Infinity Augmented Reality Inc., Inglobe Technologies Arl, Jbknowledge Inc., Kudan, Magic Leap Inc., Marxent Labs LLC, Mortar Studios Ltd., Amazon Web Services Inc., Re’flekt GmbH, Scope Technologies Inc., Viewar GmbH, Atheer Inc., ARToolKit, Arway Corporation, CraftAR, EasyAR

The Asia-Pacific was the largest region in the augmented reality (AR) software and services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the augmented reality software and services industry during the forecast period. The regions covered in the augmented reality software and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the augmented reality software and services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The augmented reality (AR) software and services market includes revenues earned by entities by providing marker-based AR, markerless AR and location-based AR. This also includes companies solely involved in designing and developing or publishing only. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. 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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