Augmented Reality Gaming 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 in travel and tourism market size has grown exponentially in recent years. It will grow from $21.44 billion in 2024 to $29.58 billion in 2025 at a compound annual growth rate (CAGR) of 38%. The growth in the historic period can be attributed to enhanced user experience, promotion of local businesses, social media expansion, positive user feedback.

The augmented reality in travel and tourism market size is expected to see exponential growth in the next few years. It will grow to $109.13 billion in 2029 at a compound annual growth rate (CAGR) of 38.6%. The growth in the forecast period can be attributed to augmented travel booking, educational tourism, adventure and nature tourism, user-generated content sharing. Major trends in the forecast period include wearable ar devices, wayfinding and navigation solutions, contactless experiences, cultural storytelling.

The growing demand for travel and tourism is expected to drive the expansion of augmented reality in the travel and tourism market. Travel and tourism encompass activities where people travel to and visit various locations for leisure, recreation, business, or other purposes. Augmented reality has sparked demand within the industry by enabling smart tourism and enhancing travel experiences, making destinations more immersive, informative, and engaging. For example, in May 2024, reports from the UK Office for National Statistics, a UK-based government agency, revealed that in 2023, overseas visitors made 38 million trips to the UK, surpassing the 31.2 million visits recorded in 2022. These visitors also spent $39.4 billion during their travels, marking an increase of $5.84 billion compared to the previous year. Therefore, the rising demand for travel and tourism is fueling the growth of augmented reality in this sector.

The rising adoption of augmented reality (AR) and virtual reality (VR) is expected to be a driving force for the expansion of augmented reality in the travel and tourism sector. Augmented reality enhances the real world with computer-generated elements, while virtual reality immerses users in a completely computer-generated environment. Together, these technologies enhance travel experiences by providing informative, interactive, and engaging encounters. They empower travelers with information, aid in overcoming language barriers, and create distinctive and memorable moments at various tourist destinations. In January 2022, the Department for Business and Trade, a UK-based ministerial department, projected an expected growth rate for spending on AR and VR in the UK to be 78.3% until 2024. This surge in investment is anticipated to lead to a total expenditure of £76.55 billion by 2030. Consequently, the increasing adoption of augmented reality and virtual reality is significantly contributing to the growth of augmented reality in the travel and tourism market.

Leading companies in the augmented reality (AR) travel and tourism market are increasingly forming strategic partnerships to develop innovative solutions in the sector. These partnerships enable AR Travel and Tourism companies to pool resources and expertise, boost research and development efforts, expand their market reach, and accelerate the commercialization of new technologies, driving innovation and growth in the AR travel and tourism space. For example, in January 2023, ARway.ai, a Canada-based company, formed a partnership with AI Safer, a Saudi Arabia-based agency. This collaboration aims to enhance the visitor experience at museums and cultural sites in Saudi Arabia by integrating ARway's advanced AR navigation technology. The partnership seeks to create immersive and interactive experiences that offer visitors a deeper connection to Saudi Arabia’s cultural heritage.

In August 2022, the US-based virtual and augmented reality platform company, Glimpse Group, finalized the acquisition of Brightline Interactive for an undisclosed sum. This strategic move is set to propel Glimpse Group's expansion in the enterprise-focused augmented and virtual reality market, enhancing its capabilities to cater to a wider customer base. Brightline Interactive, a US-based creative technology firm, specializes in the conceptualization, development, and implementation of interactive and virtual reality experiences.

Major companies operating in the augmented reality in travel and tourism market are TeamViewer SE, Apple Inc., Google LLC, Delta Air Lines, Marriott International Inc., Booking.com, Expedia Group Inc., Hilton Worldwide Holdings Inc., TUI Group, Airbnb Inc., EasyJet PLC, Japan Airlines Co. Ltd., Holiday Inn, Accor S.A, InterContinental Hotels Group (IHG), Whitbread PLC, Virgin Atlantic Airways Limited, Air New Zealand Limited, TripAdvisor Inc., Trivago N.V., Argo Group International Holdings Ltd., Hamad International Airport, WayRay, Blippar Group Limited, SmartGuide s.r.o., Wikitude GmbH, Layar.

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

The augmented reality (AR) in travel and tourism market consists of revenues earned by entities by providing services such as virtual sightseeing and exploration, interactive travel guides, virtual concierge services and AR-enabled museum exhibits. The market value includes the value of related goods sold by the service provider or included within the service offering. The augmented reality (AR) in travel and tourism market also includes sales of audio guide devices, educational AR kits, AR souvenirs, AR translation tools and AR maps. 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.

Augmented reality (AR) in the travel and tourism sector involves the application of digital technology to enhance the overall travel experience for tourists. This technology enables access to a wide range of information, providing a comprehensive and immersive experience. Additionally, it contributes to improved customer interactions and swifter customer service.

The key components of augmented reality in travel and tourism encompass hardware, software, and services. In this context, hardware pertains to the devices and equipment utilized to deliver AR experiences to travelers. AR-enabled hardware takes various forms, including smartphones, eyewear, and AR headsets. These technologies, including augmented reality and virtual reality, find applications in areas such as hospitality, in-flight entertainment, travel booking services, AR gamification, and navigation.

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