Augmented Reality Services Global Market Report 2024

The augmented reality services market size has grown exponentially in recent years. It will grow from $134.26 billion in 2023 to $194.44 billion in 2024 at a compound annual growth rate (CAGR) of 44.8%. The growth observed during the historical period can be attributed to several key factors, including the adoption of augmented reality in gaming and entertainment, heightened consumer awareness of AR technology, its application in corporate training and simulation, cost reduction and improved accessibility of AR solutions, and the development of augmented reality content.

The augmented reality services market size is expected to see exponential growth in the next few years. It will grow to $980.26 billion in 2028 at a compound annual growth rate (CAGR) of 49.8%. The anticipated growth in the forecast period can be linked to a range of factors, including the integration of augmented reality with 5G technology, the increasing adoption of AR solutions by enterprises, expansion into healthcare and therapeutic applications, integration with smart cities and the Internet of Things (IoT), and its use in education and remote learning. Notable trends expected in this forecast period encompass the integration of augmented reality in retail and e-commerce, advancements in spatial computing and interaction, augmented reality's role in social media and communication, applications in art and design, and the development of immersive experiences for the tourism industry.

The outbreak of COVID-19 has compelled companies to shift towards more advanced and virtual solutions to sustain their operations, which is anticipated to be a significant driver for the short-term growth of the augmented reality services market. The increased demand for augmented reality across various industries in the aftermath of the COVID-19 pandemic is expected to lead to a higher demand for augmented reality services. For example, according to a report from Analytics Insights magazine published in April 2020, the demand for technologies like augmented reality (AR), virtual reality (VR), and other innovative solutions has been on the rise due to the COVID-19 pandemic. AR companies, including Imaginate and Queppelin, have experienced a surge in the adoption of AR, mixed reality (MR), and VR technologies. Furthermore, the increasing emphasis on remote learning and development, as well as remote demonstrations and training for both employees and consumers, is contributing to the growing demand for AR services.

The primary categories of augmented reality services encompass hardware and software. Augmented reality software functions in tandem with a range of devices, such as tablets, smartphones, headsets, and other compatible equipment. These devices typically include sensors, digital projectors, and the necessary software to superimpose computer-generated objects into the real-world environment. These services find application in various sectors, including training, the creation of annual reports and augmented brochures, architectural projects and new construction, gaming, and trade show environments. End users of augmented reality services span across industries such as commercial, healthcare, automotive, and more.

The augmented reality services market research report is one of a series of new reports that provides augmented reality services market statistics, including augmented reality services industry global market size, regional shares, competitors with a augmented reality services market share, detailed augmented reality services market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality services industry. This augmented reality 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 adoption of e-commerce is expected to be a significant driver for the future expansion of the augmented reality services market. E-commerce, the practice of buying and selling goods and services using digital platforms, most notably the global internet, involves the exchange of data or money to complete transactions. Augmented reality (AR) technology is revolutionizing the e-commerce industry by providing customers with a more immersive and engaging shopping experience. AR allows customers to interact with products and services in their own environment, offering a level of realism and personalization that can lead to higher conversion rates. For example, data from the Australian Ecommerce Report 2022, based on surveys of 1,000 online shoppers in Australia conducted between June 2021 and June 2022, reveals that clothing, shoes, and fashion items were the most preferred online purchases, with a 74% preference rate, up from 72% in 2021. Groceries emerged as the fastest-growing online shopping category, increasing from 54% in 2021 to 64% in 2022. This data underscores the role of rising e-commerce adoption in driving the augmented reality services market.

The usage of augmented reality (AR) products and services is expected to face various risks that may hinder market growth during the forecast period. These risks encompass concerns related to consumer privacy, data security, and product liability and safety. AR technology often collects significant amounts of data from users, which can raise privacy and security concerns. A survey report conducted by Perkins Coie LLP, an international law firm, indicated that respondents expressed heightened apprehension regarding legal risks associated with augmented reality products and services. The primary concern was consumer privacy and data security, selected by 44% of respondents, followed closely by health and safety issues and product liability at 42%, and intellectual property infringement at 40%. These risks associated with AR solutions are likely to pose challenges for the growth of the augmented reality services market in the near future.

The integration of blockchain technology is gaining significant popularity within the augmented reality services market. Blockchain, a Distributed Ledger Technology (DLT), involves the assignment of unique attributes to digital assets through cryptography and their distribution on a decentralized and publicly accessible ledger. Beyond its applications in digital currency, blockchain technology offers various capabilities that augmented and virtual reality developers are actively exploring. Blockchain enables the creation of unique digital assets that cannot be easily copied by users or other developers, facilitating the sale of virtual real estate, tracking virtually represented data, and more. For example, in April 2022, Metallika.Inc., a France-based company specializing in blockchain-powered mineral mining services, announced the integration of blockchain technology into its mining operations. The Metallika team devised a mechanism that operates autonomously on the blockchain, known as a decentralized autonomous organization (DAO). It strictly adheres to the rules outlined in the smart contract and maintains a record of each financial transaction within the DAO, along with the software rules embedded in the smart contract. Consequently, the incorporation of blockchain technology with augmented reality is anticipated to drive market growth during the forecast period.

Prominent companies operating in the augmented reality services market are actively pursuing strategic partnerships to better address the needs of their existing consumer base. One such collaboration involves Qualcomm Technologies, Inc. joining forces with Microsoft Corporation to create proprietary AR processors, which will enable the development of a new generation of lightweight, power-efficient AR glasses that offer immersive experiences. Qualcomm Technologies is leveraging its existing expertise in spatial computing to drive the development of revolutionary experiences for the next wave of head-worn AR devices. In January 2022, Qualcomm Technologies, a US-based augmented reality company, announced its collaboration with Microsoft to expand and accelerate the adoption of augmented reality (AR) in both consumer and corporate sectors. This partnership encompasses various initiatives, including the creation of customized AR chips capable of powering energy-efficient, lightweight AR glasses that provide immersive experiences. Additionally, the collaboration involves the integration of software solutions such as Microsoft Mesh and the Snapdragon SpacesTM XR Developer Platform. Microsoft Corporation, a US-based company, is known for its software and AR technology solutions.

In March 2021, Unity Technologies Inc., a US-based company specializing in augmented reality game and software development, completed the acquisition of Visual Live 3D LLC. The financial terms of the transaction were not disclosed. This acquisition was aimed at enhancing Unity's existing portfolio and services, particularly Unity Reflect, an immersive collaboration and development platform designed to facilitate the connection between individuals, project stages, and data throughout the digital building lifecycle. The addition of VisualLive's technology complements Unity Reflect and strengthens Unity's strategic presence in the Architecture, Engineering, and Construction (AEC) market. The acquisition is expected to provide clients with enhanced efficiency and cost-saving opportunities. Visual Live 3D LLC, the company acquired by Unity Technologies, is based in the United States and focuses on providing technology solutions for the AEC industries.

Major companies operating in the augmented reality services market include Groove Jones LLC, Quy Technology Pvt. Ltd., Craftars Sp. z o.o., Wear Mobile Ltd., Next/Now Inc., Apple Inc., Microsoft Corporation, Niantic Inc., Zappar Limited, Blippar Ltd., Lucyd Ltd., Magic Leap Inc., Echo Interaction Group Inc., Notion theory LLC, Mobilab Sp. z o.o., AVRspot Inc., Transition Technologies PSC Sp. z o.o., Innovecs LLC, INDE Appshaker Ltd., Augment Inc., Metagram Inc., VironIT Inc., Scanta Inc., VR Vision Inc., 8ninths Inc., Yeppar Inc., Mutual Mobile Inc., Intellectsoft Inc., Zco Corporation, CitrusBits Inc., Oodles Technologies Pvt. Ltd., Infotrum LLC, Sumeru Inc., NewGenApps Pvt. Ltd., Chocolate Milk & Donuts LLC, Hedgehog Lab Limited, Dyfuzja Sp. z o.o., NARSUN Inc., Cortex Inc., HorizonCore Infosoft Pvt. Ltd., The Intellify Inc., Gramercy Tech LLC, HQSoftware Inc., Program Ace LLC, Xicom Technologies Ltd., Zco Corporation, Fluper Ltd., JPLoft Solution Inc., Credencys Solutions Inc., IndiaNIC Infotech Limited, Chetu Inc., Vakoms LLC, Delta Reality LLC, Setapp Inc.

Asia-Pacifica was the largest region in the augmented reality services market in 2023. North America was the second largest region in the augmented reality services market. The regions covered in the augmented reality services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

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

The augmented reality services market includes revenues earned by entities by providing augmented reality services that can be used to provide an innovative human-machine interaction that overlays virtual components on a real-world environment. Augmented reality has many potential applications in different fields, such as training activities, entertainment, and head-up display in car windscreens. 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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