Augmented Intelligence Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The augmented reality gaming market size has grown exponentially in recent years. It will grow from $14.32 billion in 2024 to $18.56 billion in 2025 at a compound annual growth rate (CAGR) of 29.6%. The growth in the historic period can be attributed to increased smartphone adoption, advancements in AR hardware, growing developer interest, rising consumer awareness, improvements in AR content quality and graphics.

The augmented reality gaming market size is expected to see exponential growth in the next few years. It will grow to $52.31 billion in 2029 at a compound annual growth rate (CAGR) of 29.6%. The growth in the forecast period can be attributed to integration with 5G networks, emergence of cloud gaming platforms, expansion of AR in e-sports, innovations in social AR gaming, increased investment in AR startups. Major trends in the forecast period include ubiquitous integration with everyday life, expansion of social AR experiences, convergence with other technologies, rise of location-based AR games, diversification of AR gaming platforms.

The surge in smartphone penetration is poised to drive significant growth in the augmented reality gaming market in the coming years. Smartphones, compact mobile devices equipped with advanced computing capabilities and internet connectivity, have become ubiquitous tools for communication, multimedia consumption, and productivity. Augmented reality (AR) gaming leverages the capabilities of smartphones, utilizing built-in cameras and sensors to superimpose virtual elements onto the real-world environment, delivering users an immersive and interactive gaming experience. For instance, data from Uswitch Limited in November 2023 indicates a notable increase in mobile connections in the UK, reaching 71.8 million in 2022, marking a 3.8% growth from the previous year. Moreover, with the UK population projected to reach 68.3 million by 2025, an estimated 95% of individuals (around 65 million) are anticipated to own smartphones, further fueling the adoption of augmented reality gaming. Consequently, the burgeoning smartphone penetration emerges as a key driver propelling the expansion of the augmented reality gaming market.

Leading players in the augmented reality gaming market are strategically introducing innovative products to solidify their market position and capitalize on the growing demand. Notably, these companies are developing geolocation-based augmented reality games, which utilize technologies such as GPS, Wi-Fi, and cellular networks to pinpoint real-world geographic locations. For example, Niantic Inc., a prominent US-based software development company, unveiled NBA All-World in January 2023 - an immersive, free-to-play augmented reality basketball game. This innovative game celebrates basketball culture by enabling players to locate and challenge opponents on a map, recruit NBA players onto their teams, and compete in real-world locations such as neighborhood courts and branded drop zones. By promoting physical activity, exploration, and engagement with basketball culture, NBA All-World offers various challenges, gear drops from renowned brands, and opportunities for players to showcase their teams, exemplifying the convergence of technology and entertainment in augmented reality gaming experiences.

In January 2024, eWorld Companies Inc., a US-based software and tech service company, acquired 21 Moves Gaming Studios Inc. for an undisclosed amount. Through this acquisition, eWorld aims to bolster its presence in the gaming and entertainment sectors by leveraging 21 Moves Gaming Studios' innovative multimedia gaming experiences and capitalizing on the industry's rapid growth and broad audience. 21 Moves Gaming Studios Inc. is a US-based game development company specializing in PC, mobile, VR, and AR interfaces.

Major companies operating in the augmented reality gaming market report are Apple Inc., Alphabet Inc., Microsoft Corporation, Sony Group Corporation, Qualcomm Technologies Inc., Hexagon AB, Niantic Inc., Magic Leap Inc., Meta Platforms Inc., Sixense Enterprises Inc., EON Reality Inc., DAQRI LLC, RE'FLEKT GmbH, Seabery S.L., Zappar Ltd., VividWorks Ltd., Marxent Labs LLC, Scope Technologies US Inc., Total Immersion Inc., Augmented Pixels Inc., Blippar Limited, Upskill VR, Ubimax GmbH, Catchoom Technologies S.L., Infinity Augmented Reality Ltd.

North America was the largest region in the augmented reality gaming market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the augmented reality gaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the augmented reality gaming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The augmented reality gaming market consists of revenues earned by entities by providing services such as game development services, cloud services, advertising services, and social media services. The market value includes the value of related goods sold by the service provider or included within the service offering. The augmented reality gaming market also includes sales of gaming applications, headsets, augmented reality glasses, wearable, and gaming consoles which are used in providing the services. 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 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).

Augmented reality gaming refers to an interactive gaming experience that merges elements of the physical world with computer-generated sensory input, often facilitated by devices such as smartphones, tablets, or AR glasses. This technology aims to provide a more immersive and engaging gaming experience compared to traditional video games.

The main products associated with augmented reality gaming are head-mounted displays (HMD), handheld displays, and spatial displays. Head-mounted displays (HMDs) are wearable devices that resemble goggles or a helmet, enabling users to experience augmented reality by overlaying digital information onto their physical surroundings. These products involve both software and hardware components and are utilized in various devices, including mobiles and smart glasses. Augmented reality gaming finds applications in both commercial and home settings.

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

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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