The rising investment to bring technological advancements in the AR technology, followed by the increasing application of augmented reality technology in numerous sectors such as automotive, healthcare, and other sectors, are the two major factors that are propelling the growth of the market.
The increasing investments in the augmented reality by the global giants such as Alphabet, Inc., Intel Corporation, Facebook Corporation, Qualcomm, Inc., Comcast Ventures, and Samsung Group, is the primary factor that is responsible for the strong demand of the market in the next six years. Numerous technological advancements such as the smart contact lens, which can be used to remove unsafe optical radiation, are opening new doors for the growth of the AR market. Moreover, the increasing application for AR in different sectors is directly surging the demand of augmented reality solutions. Companies such as Daqri, Meta, Vurix, and other related firms have introduced AR-based headsets with an aim on enterprise application for their devices. In addition to this, the leading social media giant, Snapchat, which implemented AR technology to smartphones through its social media platforms and has launched its first version of AR glasses. This factor is contributing to the growth of the augmented reality market size.
The strong demand for this technology in surgical visualization and healthcare sector is the major factor that is propelling the growth of the market for augmented reality in the coming years. AR technology offers real-time data and assists healthcare professionals during complicated surgical procedures. It also helps to improve and secure the patient’s treatment by minimizing the risks associated with invasive surgery processes. Additionally, the growing penetration of smartphones, especially in the developing economies, is further surging the growth of the market. For example, Vivo Communication Technology Co. Ltd., announced the launch of 5G smartphone with AR glass, supporting the dual-screen display and Six Degrees of Freedom technology. Furthermore, with the emergence of the COVID-19 pandemic, the demand for AR will experience the largest hit, especially in 2020. The AR technology is allowing people to shop, talk, and socialize using immersive platforms. The increasing usage of AR technology in the e-commerce, automotive, and healthcare sector to cope up with the shortage of laborers and eliminate the spread of the coronavirus is surging the demand of the market.
On the basis of device type, the head-mounted displays segment exhibits substantial growth potential and is anticipated to gain traction in the coming years. The head-mounted display includes AR smart glasses and smart helmets. The accelerating demand for smart glasses in the industrial and enterprise sector driven by the advancements in smart glasses with more miniaturization, better battery life, and improved field view, is the main factor surging the demand of the segment in the market. In addition to this, numerous companies in the industry are emphasizing on developing advanced features in the head-mounted displays. For example, modern HMDs are capable of employing sensors of six degrees of freedom that allow free head movement. The combination of these factors will enhance the growth of the segment.
Based on the application, the automotive segment is poised to expand in the next six years. This is attributed to the rising adoption of AR in the automotive sector. Various automotive organizations are mainly focusing on implementing AR into their advertising campaigns to capture the growing demand of the market. The augmented reality technology provides a 3D walk-around view of the consumers by augmenting the print advert. Moreover, the rising emphasis on enhancing the driving experience is further encouraging the manufacturers to opt for the AR technology.
On the basis of the region, the Asia-Pacific region is projected to witness a higher CAGR over the forecast period. E-commerce is expanding and is attracting the focus of the retailers in the Asian countries. The strong demand for AR devices and software, especially in the commercial sector, is the major factor that is boosting the demand for the market in the coming years. Furthermore, the expanding consumer and commercial markets, along with the growing investments, especially in Japan, China, and India, are other factors that will surge the demand of the market. On the other hand, the European region is predicted to maintain its dominance over the forecast period. This is due to the growing number of investments, especially from Germany and the UK, along with the rising adoption of AR in the automotive and retail sectors in the European countries.
The key players of the augmented reality market include Google, Inc., PTC, Inc, Microsoft Corporation, Seiko Epson, Lenovo, Wikitude GmbH, Vuzix, Daqri LLC, Magic Leap, Inc., Zugara, Inc., Blippar, and Upskill, among others.
The research report on the augmented reality market provides an in-depth analysis of the market revenue based on offering, device type, type, application, and region for the forecast period from 2020 to 2027. The report highlights the major market drivers propelling the growth as well as challenges faced by the market participants. The research report also provides market size and forecast for the market. The report also analyses the competitive landscape, major players, and their strategies in 2019. The competitive landscape section of the report captures and highlights the recent developments in the market.