Augmented Reality Technology Combines the Physical With Digital

Introduction

According to Augmented Reality Statistics, Augmented Reality, or AR, is a technology that combines the physical world with digital content, enriching reality by overlaying computer-generated elements. Unlike virtual reality (VR), which immerses users entirely in virtual worlds, AR enhances the real world by adding digital features. It’s a versatile tool with applications across various industries.

AR is rapidly advancing and finding uses in gaming, healthcare, education, retail, and industry. It can transform how we interact with information, the world, and each other. As technology progresses and becomes more accessible, AR will likely play an increasingly important role in our daily lives.

Editor’s Choice

• The Augmented reality and virtual reality market size is expected to be worth around USD 26.38 Billion by 2031
• The AR market is on track to achieve substantial revenue, with a projected total of approximately US$198.17 billion in 2025.
• The AR and VR market is expected to grow at an annual rate of 13.72% from 2023 to 2027, ultimately reaching an estimated market size of US$52.05 billion in 2027.
• Among the market segments, AR Software is the most prominent, forecasted to have a market value of around US$11.58 billion in 2023.
• The United States is set to be the leading revenue generator in 2023, with an expected market volume of US$8.57 billion.
• In terms of users, the AR and VR market is anticipated to reach approximately 2,593.0 million users by 2027.
• The user penetration rate is expected to surpass 28.8% in 2023 and is projected to rise to 32.6% by 2027.
• The average revenue per user (ARPU) is expected to be around US$14.08.

Global Augmented Reality (AR) Market Size

• The augmented reality (AR) market has grown remarkably in recent years.
• In 2017, the market was valued at approximately USD 3.48 billion; by 2018, it had already surged to USD 5.91 billion.
• These early figures signified the increasing interest and adoption of AR technology. The AR market is poised for explosive growth, with projections estimating a market size of around USD 198.17 billion by 2025.

Market Segmentation by Industry

• The revenue distribution across various industries reveals exciting insights into the market landscape. Electronics takes the lead with the largest share at 32.0%, demonstrating its significant presence in the overall revenue generation.
• Following closely behind are services with a 12.9% share and manufacturing at 10.3%, highlighting their substantial contributions.
• E-commerce, government, and social media sectors contribute 5.2%, 4.9%, and 4.8%, respectively, showcasing their relevance in the market.
• Telecommunications and advertising both hold a share of 4.7%.
• Meanwhile, robotics and gaming represent 2.2% and 2.0% of the revenue, respectively, while healthcare follows closely at 1.9%.

AR Average Revenue Per User

• Between 2020 and 2027, the average revenue per user (ARPU) in various augmented reality (AR) sectors saw notable trends.
• In the AR Advertising sector, ARPU started at 122.5 billion USD in 2020 and consistently increased, reaching 279 billion USD in 2027.
• Meanwhile, ARPU began at 109.2 billion USD in 2020 in the AR Hardware sector but gradually decreased to 85.31 billion USD in 2027.
• In contrast, the AR Software sector maintained a relatively stable ARPU, starting at 5.71 billion USD in 2020 and ending at 6.66 billion USD in 2027.

AR User Statistics

• Every year, there has been a steady growth in the usage of active AR user devices.
• In 2019, the count stood at around 440 million devices.
• By 2021, this number had almost doubled, reaching approximately 810 million.
• As we move into 2023, we find ourselves with 1.4 billion AR user devices actively in use.
• When we look to the future, there is a significant expected surge, with predictions indicating that this figure will soar to a remarkable 17.3 billion in 2024.
• In 2023, the adoption of AR and VR increased by 3.8% compared to the previous year, reaching a penetration rate of 28.8%.

User Adoption and Engagement

• The extended reality market is anticipated to reach USD 519.5 Billion by 2032
• Most consumers, precisely 55%, derive entertainment from shopping with AR.
• A recent study reveals that 32% of AR users engage with it simply because they have an affinity for it.
• Notably, 91.75% of Generation Z individuals express a strong interest in AR-based shopping, focusing on AR furniture placement, capturing the attention of 94% of Gen Z.
• Regarding shopping habits, 70% of shoppers believe that AR apps could influence how often they shop.
• Furthermore, 70% of consumers see AR as a valuable tool for acquiring new skills.
• In the workplace, according to 72% of US consumers, improved collaboration ranks among the top four advantages of using AR.

AR Devices and Hardware

Hardware Market Size

• The AR Hardware industry is poised for significant revenue growth, with approximately US$2.36 billion expected in 2023.
• This growth is projected to continue at an impressive annual rate of 40.13% from 2023 through 2027, ultimately resulting in a market size of roughly US$9.10 billion by 2027.
• The United States is anticipated to lead in revenue generation, with an estimated market volume of US$868.50 million in 2023.
• Regarding user adoption, it is predicted that the AR Hardware market will increase to approximately 106.6 million users by 2027.
• User penetration will start at 0.3% in 2023 and rise to 1.3% by 2027.
• The average revenue per user (ARPU) is around US$103.40.

AR Hardware Devices and Manufacturers

• The Mixed Reality Market size is expected to be worth around USD 1,224.0 Bn by 2032
• Mobile AR, or Mobile Augmented Reality, integrates digital elements and context into the physical world using smartphones and tablets. It utilizes device cameras, sensors, and advanced computer vision.
• Vuforia and Wikitude were early pioneers.
• The big turning point came in 2017 with Apple’s ARKit for iOS and, in 2018, Google’s ARCore for Android.
• Notable players in Mobile AR frameworks include Snap AR, Meta’s Spark AR, and 8th Wall (now part of Niantic).
• Smart glasses, also called video glasses, camera glasses, or audio glasses, are eyewear types that incorporate advanced AR technology.
• Some notable examples of smart glasses include Google Glass, North Focals, Ray-Ban Stories, Echo Frames, and Snap Spectacles (versions 1 to 3).

AR Applications

Gaming and Entertainment

• AR gaming stands out as the most preferred application of augmented reality. About 32% of Americans are interested in AR video games.
• 38% of users emphasize enhancing AR to create more captivating gameplay.
• On a global scale, a staggering 2.5 billion gamers worldwide collectively spent $152.1 billion on games during early 2020.
• What’s particularly noteworthy is that 35% of individuals who are not typically gamers show a keen interest in AR, a significant statistic given that 23% of consumers fall into the non-gamer category.
• Regarding AR gamers, a substantial 60% highlight the immersive experience as a pivotal factor driving their engagement with AR games.

Retail and E-Commerce

• Global eCommerce data reveals that in 2020 the AR/VR market had an estimated value of $12.4 billion, with projections indicating an anticipated growth rate of 18.2% from 2022 to 2027.
• Breaking down the spending in 2020, consumer utility products accounted for the majority, comprising 52.9% of global AR/VR expenditure.
• Moving into 2021, the combined revenue from consumer and enterprise augmented reality glasses, including hardware and software, amounted to $1.85 billion.
• Projections foresee this figure surging to $3.78 billion in 2022 and an impressive $35.06 billion by 2026.
• Surveying global consumers to gauge their interest in augmented reality shopping experiences across generations, it’s apparent that Gen Z exhibits the highest enthusiasm for AR shopping.

Healthcare and Medicine

• The global market for augmented reality (AR) in the healthcare sector had an estimated worth of approximately $610 million in 2018.
• Projections indicate a substantial growth trend, with expectations that this market will surpass $4.2 billion by 2026. This data outlines the market’s size for augmented reality in healthcare in 2018 and provides a forecast for 2026.
• AccuVein’s AR technology has benefited over 10 million patients, increasing the likelihood of successfully locating a vein on the first attempt by 3.5 times through their AR app.

Manufacturing and Industrial Use

• The economic worth of augmented reality IoT in manufacturing is projected to be 40 to 50 billion U.S. dollars by 2025, and it’s expected to experience further expansion, reaching approximately 90 to 110 billion U.S. dollars by 2030.
• This growth is driven by an increasing number of devices entering the market, leading to an anticipated expansion in the user base for AR headsets in the years to come.
• Key industry players, including Apple and established AR glasses manufacturers like Microsoft, Magic Leap, and Nreal, are at the forefront of innovation. They are actively creating devices designed to facilitate the widespread adoption of AR across diverse industrial sectors.

AR/VR Platforms Receiving Attention from Game Developers

• The Oculus Quest takes the lead in augmented reality (AR) platforms and game development, with 27% of game developers actively creating games for this platform.
• Following closely behind, the Oculus Rift and HTC VIVE secure the second and third positions, with 13% and 12% of developers, respectively.
• The Valve Index holds the fourth spot, capturing the attention of 8% of game creators.
• iOS Phone and PlayStation VR follow closely, with 7% and 6% of developers working on these platforms.
• PlayStation VR2, Google ARCore, and Windows Mixed Reality Headsets share the next tier, each attracting 5% or 4% of game developers.
• HP Reverb, Magic Leap One, and Vive Flow round out the list, each garnering the attention of 2% or 1% of developers in the AR gaming landscape.

Statistics for AR Glasses

• The revenue generated by AR glasses is on a remarkable trajectory, with projections indicating a substantial leap to over $35 billion by 2026.
• This growth trend is evident when we look at the breakdown of AR glasses revenue over the coming years. In 2021, the revenue stood at $1.85 billion, serving as the starting point for this surge.
• By 2022, it is expected to soar to $3.78 billion, marking an impressive increase of $1.93 billion, or 104.3%, over the previous year.
• The most substantial leap occurs in 2025, with projected revenue of $23.27 billion, indicating a staggering increase of $12.59 billion, or 117.9%.
• Finally, in 2026, the revenue is set to reach an impressive $35.06 billion, showcasing a substantial growth of $11.79 billion, or 50.7%.

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