Published Date: Dec 2017 | Report ID: GMI695 | Authors: Preeti Wadhwani, Saloni Gankar



Report Format: PDF | Pages: 242 | Base Year: 2016

Industry Trends

Augmented Reality Market size exceeded USD 1 billion in 2016 and is predicted to grow at a massive CAGR of over 65% from 2017 to 2024. The global industry shipments were over 100,000 units in 2016.



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Ongoing technological advancements coupled with the increasing demand for the technology in surgical visualization and healthcare education are anticipated to drive the augmented reality market growth. The technology provides real-time data and assists healthcare professionals during complicated surgical procedures. It helps to improve and secure the patient’s treatment by minimizing the risks associated with invasive surgery processes. The applications of computer-generated perceptual information related to visual, auditory, haptic, somatosensory, and olfactory will improve patient education and outcomes. These tools can also detect the signs of depression and other mental illnesses by reading the patients’ facial expressions, voice tones, and physical gestures. The integration of AI with technology is further transforming the healthcare industry. For instance, in September 2018, Purdue University in Indiana developed a technique, using telestrator technology and AR tools and connecting healthcare professionals in remote areas with more experienced surgeons and physicians. The device includes a transparent headset screen display that provides real-time on-screen feedback to patients.



Increasing smartphone penetration in developing economies is expected to boost the market over the coming years. In 2018, the number of smartphone users in India was reported to be over 335 million, followed by 710 million in China. Increase in the usage of these devices is encouraging companies to develop advanced applications for users. For instance, in June 2019, Vivo Communication Technology Co. Ltd. announced the launch of 5G smartphone with AR glass, supporting the dual screen display and Six Degrees of Freedom (6DoF) technology. The smartphones include several applications such as mobile office, AR games, 3D high-definition video, facial recognition, and object recognition. Similarly, in February 2019, Google LLC introduced the latest version of its AR Core kit for AR applications, which is compatible with Samsung Galaxy S9, OnePlus 3T, and Moto G5S Plus devices.



Augmented Reality Market Report Coverage Report Coverage Details Base Year: 2016 Market Size in 2016: 1 Billion (USD) Historical Data for: 2013 to 2016 Forecast Period: 2017 to 2024 Forecast Period 2017 to 2024 CAGR: 65% 2024 Value Projection: 50 Billion (USD) Pages: 242 Tables, Charts & Figures: 385 Geographies covered (14): U.S., Canada, Germany, UK, France, Italy, Russia, China, Japan, India, South Korea, Taiwan, Brazil, Mexico Segments covered: Component, Software, Application and Region Companies covered (25): AccuVein Inc, Affectiva, Inc., APX Labs, Blippar, Daqri LLC, Google Inc., Infinity Augmented Reality Inc., LAFORGE Optical, MAGIC LEAP INC., Marxent Labs, LLC, Medsights Tech Corp., Microsoft Corporation, Niantic, Inc., Nintendo Co. Ltd, Optinvent, Osterhout Design Group, Prologue Immersive, PTC Inc., Qualcomm Incorporated, Recon Instruments Inc., Samsung Electronics, Sony Corporation, Sphero, Inc., Total Immersion, Wikitude GmbH Growth Drivers: Emerging AR applications across e-commerce and retail

Increasing investments in the AR technology

Rising demand in medical and automotive industry

Increasing adoption of AR enabled smart glasses Pitfalls & Challenges: Privacy concerns pertaining to the AR technology

Financial constraints and complexity

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By Component

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Hardware devices accounted for the majority of the augmented reality market share owing to their wide adoption in the enterprise and commercial applications. The Head-Mounted Displays (HMD) and Head-Up Displays (HUD) markets are projected to grow at a significant rate in the coming years owing to the increasing demand in several industries including military, aerospace, military & defense, research, gaming, and healthcare. These devices include a set of smart goggles with accessories such as monitors, camera trackers, storage, and headphones. The increasing safety demand and improving the Situational Awareness (SA) among pilots will drive the device adoption in the aviation industry. These devices help the project’s vital information such as flight data, route guidance, and 3D terrain on the display. Moreover, these devices are highly adopted in military & defense applications to support deployable training solutions and simulation requirements for flight operators. For instance, the U.S. Army's Flight School XXI (FSXXI) is using an advanced helmet-mounted display in its helicopter simulation training program to enhance virtual training and operational reality.



By Application

Implementation of technology in gaming applications will allow users to scan the physical environment and provide enhanced experience by integrating visual & audio content. The technology provides users an interactive experience of a real-world environment on smartphones, tablets, and portable gaming systems. Advances in the augmented reality are helping software developers to develop innovative games to enhance the skills and experiences of the end-user. For instance, in March 2019, Niantic, Inc., a software development firm, announced the launch of Wizards Unite, an AR-based mobile game. The game allows players to interact with real-world locations, discover mysterious objects, and encounter iconic characters. Moreover, the launch of various apps by global companies such as Facebook and Microsoft are allowing users to have unique interactions with the real world.



By Region

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In 2016, the European augmented reality market accounted for 25% of the revenue share. Rising adoption of technology in the region is being witnessed. The development of industrial and automobile sectors in the region will provide ample growth benefits to the market growth. In 2018, the UK automotive manufacturing sector increased by 0.3% from USD 59 billion to USD 100 billion, driven by the presence of established sports car manufacturers in the country including Jaguar Land Rover, Daimler AG, Lister Motor Company Ltd., and Lagonda. These players are highly investing in technology for car designing and production. For instance, in August 2019, Jaguar Land Rover announced to implement 3D heads-up displays in cars, to project safety information and to allow passengers to stream 3D movies directly from their seats. Moreover, in August 2016, Volkswagen introduced heads-up displays in Volkswagen Passat.



Competitive Market Share

Key players operating in the AR market include HTC Corporation, Marxent Labs, LLC, Magic Leap, Apple Inc., Wikitude GmbH, Qualcomm, Blippar, Daqri, Facebook Inc., Google Inc., Microsoft Corporation, PTC, Samsun Electronics Co., Ltd., and Upskill. The companies are engaged in providing various hardware components including smart glasses, HMDs, HUDs, and other software services. These companies are increasingly investing in the adoption of the latest technologies to enhance productivity. For instance, in August 2019, Google LLC. introduced Live View, an AR navigation tool. The technology provides walking directions feature for Google Maps by taking real images from smartphones’ camera and superimposing navigation arrows over the top, allowing easier navigation for users.



Industry Background

Companies operating in the industry are focusing on providing advanced features to customers to attract a large customer base. They are adopting strategies such as partnerships and collaborations with leading technology providers and product innovations to expand their business operations. For instance, in May 2019, Apple Inc. announced its partnership with SAP SE, a German-based software development company. This partnership aims at enhancing the company’s AR and machine learning technologies for iPhone, iPad, and Mac users. Such product expansions and technological developments are encouraging the growth and innovations in the industry. However, the high cost of software and components may restrain growth. SMEs are experiencing slower adoption of the technology in business operations owing to their high initial costs. Moreover, insufficient storage space capacity to store these applications, the requirement of high processing power, and lack of skilled workforce are other factors restricting the market growth.

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