Global Augmented Reality (AR) and Mixed Reality (MR) Market – Industry Trends and Forecast to 2031

Global Augmented Reality (AR) and Mixed Reality (MR) Market, By Component (Hardware, Software, and Services), Deployment Model (Cloud and On Premise), Distribution Channel (Offline and Online), Device Type (Head Up Display, Head Mounted Display, Projector, and Display Wall, and Gesture Tracking Devices), Technology (Mobile Augmented Reality, Monitor-Based Technology, and Near Eye Based Technology), Application (Workflow Optimization, Marketing Collaboration, Enhanced 2-D and 3-D, Visualizations, 3D Modelling, Documentation, and Navigation), End User (Retail and E-Commerce, IT and Telecommunication, Automotive, Aerospace and Defense, Healthcare, Animation, Travel and Tourism, Energy, Media and Entertainment, Education, Construction, Games and Sports, and Banking) – Industry Trends and Forecast to 2031.

Augmented Reality (AR) and Mixed Reality (MR) Market Analysis and Size

In the augmented reality (AR) and mixed reality (MR) market, technological advancements continuously reshape experiences. AR enhances education, training, and gaming, while MR revolutionizes industries such as healthcare and architecture. Businesses leverage these innovations for enhanced customer engagement and streamlined operations. The benefits span from immersive entertainment to improved productivity, driving the market's rapid growth.

The global augmented reality (AR) and mixed reality (MR) market size was valued at USD 52.21 billion in 2023, is projected to reach USD 1,374.15 billion by 2031, with a CAGR of 50.5% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation       

Market Definition

Augmented Reality (AR) overlays digital content onto the real world, enhancing perception through smartphones or AR glasses. Mixed Reality (MR) integrates virtual elements into the physical environment, allowing interaction and immersion beyond AR. Both technologies merge the digital and real worlds, offering diverse gaming, education, training, and more applications.

Augmented Reality (AR) and Mixed Reality (MR) Market Dynamics

Drivers

• Increasing Adoption of Smartphones and Wearables

The increasing prevalence of smartphones and wearables has fueled the demand for augmented reality (AR) and mixed reality (MR) technologies. For instance, the popularization of AR apps such as Pokémon GO, which leverages smartphone cameras and GPS to overlay digital creatures onto the real world, showcases how these devices serve as accessible platforms for immersive experiences. This adoption trend propels innovation and integration of AR and MR into everyday activities, from gaming to navigation.

• Integration with IoT and AI

The fusion of augmented reality (AR) and mixed reality (MR) with Internet of Things (IoT) devices and artificial intelligence (AI) is revolutionizing user experiences. This integration empowers AR and MR applications to offer intelligent, context-aware interactions, expanding their utility across industries and driving innovation in immersive technologies for enhanced productivity and engagement.

Opportunities

• Rising Gaming and Entertainment Industry

The gaming and entertainment industry embraces AR and MR technologies to craft captivating experiences. Games such as "Pokemon Go" seamlessly blend virtual creatures with real-world environments, engaging millions globally. MR headsets, including Microsoft's HoloLens, offer immersive gaming experiences, allowing users to interact with holographic elements in their surroundings. This trend not only attracts a wider audience but also showcases the potential of AR and MR in transforming entertainment paradigms.

• Growing Demand for Remote Collaboration

The COVID-19 pandemic has fueled a surge in demand for remote collaboration tools. Augmented Reality (AR) and Mixed Reality (MR) technologies, offering immersive and interactive experiences, are increasingly adopted by remote teams across industries. These tools facilitate effective collaboration, driving rapid adoption and integration into various workflows and communication channels.

Restraints/Challenges

• High Development Costs

Developing AR/MR applications demands specialized expertise and resources, resulting in substantial development expenses. These high costs present a significant barrier for SMEs and startups seeking to penetrate the market. Smaller businesses may struggle to compete effectively in the AR/MR industry without the financial capacity to invest in skilled professionals and technology.

• Integration with Existing Infrastructure

Integrating AR/MR solutions with existing IT infrastructure poses challenges due to complexity and stakeholder resistance. Compatibility issues and reluctance to change hinder adoption, prolonging the process. Businesses contend with the time-consuming integration, delaying the attainment of potential benefits associated with augmented and mixed reality technologies. Overcoming these hurdles is essential for widespread implementation in various industries.    

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In November 2022, Vuzix Corporation launched the Vuzix M400C smart glasses across the US, Canada, UK, EU, and Japan. Featuring an autofocus HD camera, clear OLED display, and voice control, these glasses adhere to IP67 standards, maintaining the design success of the M400 series
• In October 2022, Micledi Microdisplays and Kura Technologies collaborated to develop AR glasses integrating Micledi's 300mm microLED displays. Kura designed these glasses to meet performance standards for their upcoming AR headset generation, merging cutting-edge display technology with innovative design
• In May 2022, Vuzix Corporation partnered with Atomistic SAS, a French mLED display solutions company, for customized backplane development and mLED technology licensing. Atomistic will provide advanced 300mm wafer backplanes, leveraging material science for mLED development in AR glasses, potentially including third-party LED sources
• In April 2021, Microsoft secured a USD 21.88 billion Pentagon contract to supply HoloLens augmented reality headgear to the U.S. military. These advanced devices enhance soldiers' situational awareness and night vision capabilities, marking a significant expansion of Microsoft's role in AR technology and military applications

Augmented Reality (AR) and Mixed Reality (MR) Market Scope

The market is segmented on the basis of component, deployment model, distribution channel, device type, technology, application, and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
• Software
• Services

 Deployment Model

• Cloud
• On Premise

 Distribution Channel

• Offline
• Online

 Device Type

• Head Up Display
• Head Mounted Display
• Projector and Display Wall
• Gesture Tracking Devices

 Technology

• Mobile Augmented Reality
• Monitor-Based Technology
• Near Eye Based Technology

 Application

• Workflow Optimization
• Marketing Collaboration
• Enhanced 2-D and 3-D
• Visualizations
• 3D Modelling
• Documentation
• Navigation

 End User

• Retail and E-Commerce
• IT and Telecommunication
• Automotive
• Aerospace and Defense
• Healthcare
• Animation
• Travel and Tourism
• Energy
• Media and Entertainment
• Education
• Construction
• Games and Sports
• Banking

Augmented Reality (AR) and Mixed Reality (MR) Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, component, deployment model, distribution channel, device type, technology, application, and end user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific is expected to witness significant growth in the augmented reality (AR) and mixed reality (MR) market as smart wearables integrate virtual information seamlessly. China's tech-savvy population and businesses drive rapid adoption, making it a major player in AR and MR technologies.

North America is expected to dominate the augmented reality (AR) and mixed reality (MR) market due to its robust technology infrastructure, strong industry presence, substantial research and development investments, and a large consumer base driving rapid growth and adoption across diverse sectors.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Augmented Reality (AR) and Mixed Reality (MR) Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are:

• HP Development Company, L.P. (U.S.)
•  HTC Corporation (Taiwan)
• Autodesk Inc. (U.S.)
•  Barco (Belgium)
•  Intel Corporation (U.S.)
•  PTC (U.S.)
•  Seiko Epson Corporation (Japan)
•  Ultraleap Limited (U.K.)
•  ASUSTek Computer Inc. (Taiwan)
•  Dell Inc. (U.S.)
•  Google (U.S.)
•  Sony Corporation (Japan)
•  Lenovo (Hong Kong)
•  Microsoft (U.S.)
•  SAMSUNG (South Korea)
•  Panasonic Corporation (Japan)
•  RealWear, Inc. (U.S.)
•  Magic Leap, Inc. (U.S.)
•  EON Reality (U.S.)
• TeamViewer (Germany)