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The AR gaming market size is estimated to grow by USD 24.12 billion accelerating at a CAGR of 30.11% between 2022 and 2027. Increasing investments in AR technology are driving innovation and development in the field, leading to new applications and use cases for AR technology. The rising popularity of cloud gaming technology is making it easier for consumers to access high-quality AR and VR experiences without the need for expensive hardware, driving the adoption of these technologies. The growing popularity and integration of AR and VR technologies in mobile devices are making these technologies more accessible to a wider audience, driving growth in the market.
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Our report offers an in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Type (mobile devices, HMDs, and smart glasses), Component (hardware and software), and Geography (North America, Europe, APAC, Middle East and Africa, and South America). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, and vendor analysis. The report also includes a thorough analysis of historical market data from 2017 to 2022.
The mobile devices segment is estimated to witness significant growth during the forecast period. It is anticipated that it will maintain its dominant position due to the high convenience and reliability offered by these devices while gaming. These devices are compact enough that they can be played by hand. They are also portable so that consumers can easily carry them.
AR Gaming Market
By Type
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The mobile devices segment was the largest segment and was valued at USD 1.70 billion in 2017. With the innovations in gaming technology and as the demand for IoT applications grows, companies are compelled to integrate these into their popular games. Hence, with the increasing innovations in gaming technologies and the growing online population, the convenience offered by mobile devices in playing games is expected to fuel the growth of the market during the forecast period.
North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
By North America
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In 2022, North America held the dominant share of the market. Developers, consumers, and manufacturers are keen on developing and using smart technologies such as the Internet of Things (IoT) and various advanced technologies, such as AR, mixed reality (MR), and VR. Among the most significant and fastest expanding technologies, AR is a leader.Moreover, to fund a developer ecosystem for XR experiences like health and wellness, gaming, media, entertainment, education, and entrepreneurship, the fund planned to invest capital by pooling equity investments in top XR companies Qualcomm Ventures and Qualcomm Technologies, Inc. Thus, owing to high investments in the technology and the growing number of mobile gamers are expected to fuel the growth of the regional market during the forecast period.
The market is experiencing rapid growth with the evolution of augmented reality (AR) in gaming. This technology enhances gaming experiences by integrating virtual objects into the real world. These games leverage somatosensory, visual, auditory, and haptic feedback to create immersive environments on mobile devices. The rise of 5G providers has further fueled the market, enabling seamless real-time interactions in gaming. The gaming finds applications in various sectors like education, training, logistics, healthcare, and manufacturing, offering intense video graphics and overlay of distinct features for an engaging user experience.
The increasing investments in AR technology a driving growth in the market size. This is an emerging technology attracting significant investment from both established companies and startups. These innovations are expected to find applications in various sectors including social media, mobile devices, automotive, retail, and healthcare. The gaming industry and 5G providers are particularly interested in leveraging this technology for its potential in delivering digital content and virtual objects into the real world through AR games. This technological advancement is set to transform the gaming sector, especially among mobile gamers.The widespread use of AR requires substantial data transfer and processing power to deliver real-time information to millions of users.
Furthermore, capturing and processing vast amounts of data requires substantial investment, leading some vendors to utilize augmented reality technology and pursue partnerships and acquisitions. This includes enhancing digital information and the evolution of the technology in gaming, which involves visual, auditory, and haptic feedback on mobile devices in a real-time environment. This is also used for education, training, logistics, and other industries, leveraging intense video, graphics, and the device-camera for smartphones. As a result, the investments made by IT and AR gaming vendors in AR technology are expected to drive market growth in the forecast period.
The rising adoption of AR games is a key trend in the market. The integration of the game's visual and audio content with a player's real-time environment is part of AR gaming. The increasing use of smartphones and tablets, the rising penetration of the internet, and the integration of AR technology into mobile devices are the key factors that are driving the growth of the market.
Companies are releasing AR mobile games to increase the adoption of these games. The market for augmented reality games is driven by its affordability and easy availability on mobile devices. The game is a part of the metaverse and is similar to Pokemon Go. Thus, the rising adoption of these games is expected to drive the growth of the market during the forecast period.
The high cost associated with AR gaming applications is a major challenge in the market. The scope of gaming applications is a major factor in the time and effort needed to create AR gaming solutions. In general, a simple product visualization is cheaper compared to complex and highly interactive standalone solutions. This means that features play an important role in pricing.
Moreover, animations should be smooth and realistic, and the user interface should be intuitive and easy to use. Thus, application and solution costs have risen owing to the high requirements of features in games, which, in turn, can impede the growth of the market during the forecast period.
The market analysis and trends report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing rapid growth with advancements in AR glasses and AR goggles, along with the development of innovative augmented reality applications and hardware. Industries such as automotive and healthcare are embracing this technology for surgical visualization and enhanced gameplay. Companies like Click Therapeutics are leveraging augmented reality software for educational and gaming purposes. With the evolution of AR chipsets, computer vision, and spatial computing, the market is witnessing a shift towards more immersive gameplay and multiplayer experiences, addressing privacy concerns and ensuring data security for ordinary consumers. The market intersects with various sectors like the automotive industry, education, healthcare, and military. It offers high-quality game equipment and real-time environments for immersive experiences, leveraging smartphone capabilities.
The market is rapidly evolving with advancements in augmented reality chipsets and hardware, offering immersive experiences in industries like automotive. It introduces elements like characters, targets, and racing terrains, enhancing cooperative gameplay and enabling cross-platform integration. They utilizes device-camera interactions to overlay digital content onto real-world environments, providing high-quality game equipment and intense video, graphics, and sound. This market caters to various sectors such as education, media, and entertainment, offering social gaming experiences and showcasing technological advancements in virtual reality and augmented reality.
The market is at the forefront of emerging technologies, especially in the automotive and healthcare industries. It leverages augmented reality hardware like head-mounted displays to create immersive experiences. With a focus on ethical use of thesd eapplications, this market offers various game types and high-quality equipment for gaming. It explores real-world interactions and local surroundings, providing digital information in real-time environments. The market includes large manufacturers like NXP and innovations such as Microsoft's HoloLens and Google Glass, shaping the future of gaming with virtual creatures and virtual tracks. This market explores vein visualization and hidden treasures, evolving the gaming sector with virtual reality.
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AR Gaming Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2022 |
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Historic period |
2017 - 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 30.11% |
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Market growth 2023-2027 |
USD 24.12 billion |
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Market structure |
Concentrated |
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YoY growth 2022-2023(%) |
29.67 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 40% |
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Key countries |
US, Canada, China, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Augmented Pixels Inc., Blippar Ltd., Hofli Ltd., HP Inc., Milkroom Studios GmbH, Niantic Inc., OliveX Holdings Ltd., Qualcomm Inc., Rovio Entertainment Corp., Total Immersion Inc., and Netmarble Corp. |
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Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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