Generative AI in Augmented Reality Global Market Report 2024

The generative AI in augmented reality market size has grown exponentially in recent years. It will grow from $1.88 billion in 2023 to $2.56 billion in 2024 at a compound annual growth rate (CAGR) of 35.8%. The expansion observed in the historic period can be attributed to several key factors, including the enhancement of user experience through personalized content and interactions, improved visualization and simulation capabilities for design and engineering purposes, heightened productivity and efficiency in content creation and design processes, the integration of real-time data for enhanced decision-making, and the advancement of accessibility and inclusivity through AI-generated language translation and captioning.

The generative AI in augmented reality market size is expected to see exponential growth in the next few years. It will grow to $8.78 billion in 2028 at a compound annual growth rate (CAGR) of 36.1%. The projected growth in the forecast period is expected to be fueled by several key factors, including enhanced collaboration and communication facilitated by AR-enabled virtual meetings and presentations, increased immersion and engagement in AR experiences through AI-generated sound and music, improved accuracy and speed in object recognition and tracking, enhanced security and privacy through AI-generated encryption and authentication, and increased scalability and cost-effectiveness in content production and distribution. Additionally, major trends anticipated in this period include the growing adoption of generative adversarial networks (GANs), the rise of transformer models, hybrid approaches that combine generative AI with other technologies, the implementation of speech synchronization and eye gazing, and a heightened focus on user engagement and personalization.

The growing prevalence of remote work is expected to drive the expansion of the generative AI augmented reality market in the future. Remote work, also known as telecommuting or telework, refers to a work arrangement where employees do not need to commute to a physical office or workplace. This increasing trend of remote work has emerged as a significant driver for the adoption and development of augmented industrial reality (AIR) solutions. Generative augmented reality (GAR) holds immense potential in remote work settings, particularly in industries reliant on physical operations and necessitating collaboration between on-site and remote teams. For example, Forbes Media LLC, a US-based media company, reported in 2023 that 12.7% of full-time employees in the United States work from home, while 28.2% follow a hybrid work model. It is estimated that by 2025, approximately 32.6 million Americans will be working remotely, constituting about 22% of the workforce. Hence, the growing prevalence of remote work is a key driver behind the growth of the generative AI augmented reality market.

Major players in the generative AI in augmented reality market are actively developing innovative solutions such as neural networks for AR to enhance the 3D AR platform. The integration of neural networks into their Generative AR Platform enables users to create optimized 3D objects and images suitable for augmented reality projects, even on low-end smartphones. For instance, in April 2023, Devar, a US-based technology company, unveiled the first neural network for AR. This neural network generates high-quality 3D models meeting the performance standards for webAR objects, including the optimal number of polygons, correct topology, and textures, which are typically labor-intensive for 3D specialists to create. Leveraging DEVAR's proprietary 3D content datasets and user feedback from the MyWebAR platform, the neural network streamlines AR asset creation, making AR development accessible to users lacking prior experience in AR content creation.

In January 2021, Snap Inc., a US-based technology company, acquired Ariel AI for an undisclosed sum. This strategic acquisition empowered Snap to enhance its Snapchat camera with advanced computer vision capabilities from Ariel AI, significantly elevating the quality of augmented reality experiences for its user base. Ariel AI, a UK-based software company, specializes in AI-driven real-time 3D human perception and reconstruction solutions tailored for augmented reality applications.

Major companies operating in the generative AI in augmented reality market are Apple Inc., Alphabet Inc., Samsung Electronics Co. Ltd., Microsoft Corporation, Meta Platforms Inc., Qualcomm Technologies Inc., NVIDIA Corporation, Snap Inc., PTC Inc., Epic Games Inc., Magic Leap Inc., Niantic Inc., WayRay AG, DAQRI, RE'FLEKT GmbH, Ubimax GmbH, Seabery, Vuzix Corporation, Scope AR, Upskill, Blippar, Atheer Inc., Wikitude GmbH, ViewAR, 8th Wall.

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

Generative AI in augmented reality (AR) involves employing artificial intelligence algorithms to generate content, including images, videos, or 3D models, within an AR environment. This technology facilitates the creation of dynamic and interactive virtual elements that enhance the user's real-world experience in AR applications.

The primary components of generative AI in augmented reality comprise software and services. Software is instrumental in developing algorithms for generative AI in augmented reality, enabling the creation of virtual objects or environments based on real-world data. This technology is applied across various sectors, including gaming, entertainment, enterprise, and education, serving the needs of both consumer and enterprise end-users.

The generative AI in augmented reality market research report is one of a series of new reports that provides Generative AI in augmented reality market statistics, including generative AI in augmented reality industry global market size, regional shares, competitors with a generative AI in augmented reality market share, detailed generative AI in augmented reality market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in augmented reality industry. This generative AI in augmented 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 generative AI in augmented reality market consists of revenues earned by entities by providing services such as augmented reality development, content creation, product visualization services, consulting and integration services. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative AI in augmented reality market also includes sales of smart glasses, headsets, smartphones, and AR-enabled tablets. 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).

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.


This product will be delivered within 3-5 business days.