Latest News- Augmented Reality (AR) Market: Hardware is expected to lead the Component segment during 2025-2029

The Augmented Reality (AR) Market is being driven by Increasing investments in AR technology

The Augmented Reality (AR) Market is expected to grow at a CAGR of 53.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 826 billion. The Augmented Reality (AR) market is experiencing significant growth, with major smartphone manufacturers like Apple and Samsung integrating advanced hardware and software to create robust AR mobile platforms. This trend is also being adopted by various mobile device manufacturers, including smartphones, phablets, and tablets, to enhance user experience and add value to their products. The market is projected to expand substantially during the forecast period due to the escalating popularity and penetration of AR technology in mobile devices. Notable companies have launched AR applications for mobile phones, fostering the development of a burgeoning mobile AR ecosystem. Consumers can now avail of AR functionality on their mobile devices, enabled by basic computer vision and positional tracking technologies. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Hardware
  • Software
• End-user
  • Enterprise
  • Retail
  • Healthcare
  • Media and entertainment
  • Others
• Type
  • Head mounted displays
  • Smart glasses
  • Mobile AR
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increasing investments in AR technology
• Rising demand from various application segments
• Increasing adoption of AR-enabled smart glasses

However, the market also witnesses some limitations, which are as follows:

• Privacy concerns over AR technology
• Financial constraints, standardization, and complexity
• Technology and customer readiness

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Market Scope in Augmented Reality (AR) Market Research Report

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Research Analysis Overview

The Augmented Reality (AR) market is experiencing significant growth as immersive technologies like extended reality merge with digital transformation. Key components include 3D scanning, facial recognition, and voice recognition, as well as advanced technologies such as eye tracking, brain-computer interfaces, haptic suits, and virtual environments. Applications span from simulated training and remote collaboration to industrial automation, supply chain management, and manufacturing processes. AR enhances quality control, product design, marketing analytics, sales enablement, customer engagement, brand awareness, social media marketing, content marketing, and search engine optimization through AI and computer vision algorithms.

Market Research Overview

The Augmented Reality (AR) market encompasses companies specializing in head-mounted displays, hand tracking, spatial computing, computer vision, 3D rendering, motion tracking, gesture recognition, object recognition, and environmental mapping. These firms contribute to the global application software market, which falls under the IT software industry. This market size is determined by Technavio based on the consolidated revenue generated by businesses providing AR software solutions, including cloud-based offerings. The application software market, in turn, is a segment of the larger IT software market, which covers all types of software production, excluding interactive home entertainment and systems software companies.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/