Augmented Industrial Reality Global Market Report 2024

The augmented industrial reality market size has grown exponentially in recent years. It will grow from $3.56 billion in 2023 to $4.61 billion in 2024 at a compound annual growth rate (CAGR) of 29.3%. The growth observed in the historical period can be attributed to the early adoption of augmented industrial reality in manufacturing, its pioneering use in maintenance and training applications, integration with IoT devices, precision in assembly and quality control processes, and the enhancement of remote assistance capabilities.

The augmented industrial reality market size is expected to see exponential growth in the next few years. It will grow to $12.93 billion in 2028 at a compound annual growth rate (CAGR) of 29.4%. The anticipated growth in the forecast period can be attributed to the enhancement of customer experiences, the increasing adoption of augmented industrial reality across various industries, a rise in data visualization needs, a focus on safety and compliance, and the growing demand for remote assistance. Major trends expected in the forecast period include a shift towards sustainability and eco-friendly practices, the utilization of augmented reality for training and skill development, expanded use in maintenance and support functions, improvements in security and privacy measures, and the development of customized and scalable solutions.

The anticipated surge in remote work is poised to drive the augmented industrial reality (AIR) market's growth in the foreseeable future. Remote work, synonymous with telecommuting or telework, involves employees working without the need to commute to a physical office. This growing trend has become a significant catalyst for the adoption and advancement of AIR solutions. Particularly beneficial in industries relying on physical operations and requiring collaboration between on-site and remote teams, AIR offers innovative solutions for enhanced efficiency. According to Forbes Media LLC, approximately 12.7% of full-time employees in the United States worked from home as of 2023, with an additional 28.2% adopting a hybrid model. By 2025, an estimated 32.6 million Americans are expected to embrace remote work, constituting about 22% of the workforce. Consequently, the increasing prevalence of remote work is a driving force behind the augmented industrial reality market's growth.

The growing adoption of augmented reality (AR) technology is another key driver for the augmented industrial reality market. AR technology overlays digital information and virtual objects onto the real world through cameras or displays. In an industrial context, augmented industrial reality enhances manufacturing, maintenance, and training processes by providing real-time data and visual guidance to workers. This integration leads to heightened efficiency, accuracy, and safety measures, ultimately reducing downtime and increasing productivity. Notably, the Department for Business and Trade in the UK projects a growth rate of 78.3% in spending on AR and virtual reality (VR) until 2024, with anticipated total expenditures reaching £62.5 billion ($65.53 billion) by 2030. Hence, the increasing adoption of augmented reality technology contributes significantly to the augmented industrial reality market's growth.

The augmented industrial reality market faces a substantial restraint in the form of cybersecurity risks. As a cutting-edge technology, augmented reality (AR) becomes susceptible to cyber threats, including ransomware, viruses, and malware. Cybercriminals exploit AR systems, potentially compromising data integrity and promoting harmful content. In 2022, a staggering 493.33 million ransomware attacks were reported globally, with the average cost of a data breach reaching $4.35 million. Breaches caused by compromised or stolen credentials incurred an average cost of $4.50 million. Consequently, cybersecurity risks pose a considerable challenge for the augmented industrial reality market.

Leading companies in the augmented industrial reality market are focusing on developing innovative technologies to explore AR's potential, as exemplified by Magic Leap's ActiveSphere concept UI in cars. This AR user interface, designed for automotive use, was launched by Audi AG in April 2023. Based on the Magic Leap 2 AR headset, it employs hand and eye tracking, enabling drivers to interact with the UI without diverting their attention from the road. The screenless interface eliminates distractions, enhances safety, and offers customization options for drivers to choose essential information and features, thereby improving efficiency and personalization.

In July 2023, Atlas Copco AB, a Sweden-based industrial technology company, acquired Extend3D GmbH. This acquisition positions Atlas Copco to expand its presence in the AR market, offering a broader range of AR solutions and leveraging Extend3D's expertise in industrial augmented reality (AR) systems. Extend3D GmbH, based in Germany, is known for its contributions to AR technology development.

Major companies operating in the augmented industrial reality market report are Apple Inc., Google LLC, Microsoft Corporation, Huawei Technologies Co. Ltd., Sony Group Corporation, Amazon Web Services Inc., Siemens AG, Lenovo Group Limited, International Business Machines Corporation (IBM), Oracle Corporation, Xiaomi Corporation, Honeywell International Inc., SAP SE, ABB Ltd., Infosys Limited, Dassault Systèmes SE, Snap Inc., PTC Inc., Unity Technologies Inc., Sofvie Inc., Magic Leap Inc., Rokid Inc., Epson America Inc., Zappar Limited, Vuzix Corporation, RealWear Inc., Atheer Inc., Spatial Systems Inc., Blippar Limited, Wikitude GmbH.

North America was the largest region in the augmented industrial reality market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the augmented industrial reality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the augmented industrial reality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The augmented industrial reality market consists of revenues earned by entities by providing services such as consulting services, integration services, maintenance services, technical support services, safety solutions, remote assistance, inventory management, and data visualization. The market value includes the value of related goods sold by the service provider or included within the service offering. The augmented industrial reality market also includes sales of wearable sensors, smart glasses, head-up displays, head-mounted displays, and handled devices. 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.

The main components of augmented industrial reality include hardware, software, and services. Hardware refers to the physical components and devices that constitute a computer system. Various technologies, such as marker-based AR technology, marker-less AR technology, and anchor-based AR technology, are utilized. Augmented Industrial Reality finds applications in product design and development, maintenance and repair, quality assurance, training and education, assembly instructions, and more. The industries benefiting from this technology span automotive, healthcare, energy and utilities, chemical, and others.

The augmented industrial reality market research report is one of a series of new reports that provides augmented industrial reality market statistics, including augmented industrial reality industry global market size, regional shares, competitors with augmented industrial reality market share, detailed augmented industrial reality market segments, market trends and opportunities, and any further data you may need to thrive in the augmented industrial reality industry. This augmented industrial reality 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 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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