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The mobile augmented reality (AR) market size is estimated to grow at a CAGR of 30.78% between 2022 and 2027. The market size is forecast to increase by USD 83,489.08 million. The growth of the market depends on several factors, including increasing dependence on apps and the proliferation of AR apps for numerous activities, the use of AR technology to make advertising more effective, and the growing smartphone and tablet market in APAC. Mobile AR is the real-time use of information in the form of audio, graphics, text, and other virtual enhancements integrated with real-world objects via smartphone. It includes AR engines, AR software, and AR hardware.
This mobile augmented reality market report extensively covers market segmentation by application (marketing and advertisement, gaming and entertainment, education and learning, travel and tourism, and others), end-user (enterprise and consumer), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increasing dependence on apps and the proliferation of AR apps for numerous activities is the key factor driving the growth of the market. Advances in mobile device technology, such as faster processors, improved graphics capabilities, and better camera quality, have made smartphones and tablets capable of handling more effective AR applications. The widespread use of smartphones and the growing availability of affordable mobile devices have broadened the potential user base for AR applications, driving demand and usage of AR applications. The availability of high-speed Internet and the expansion of 4G and 5G networks have facilitated real-time data processing, enabling seamless AR experiences that require constant data exchange.
Moreover, AR applications are used in real estate and architecture to provide virtual tours of properties, visualize architectural designs, and overlay virtual objects over physical spaces. Augmented reality is used in corporate environments for maintenance, repair, and training purposes, improving worker productivity and efficiency. Businesses that are early adopters of AR technology can gain a competitive advantage, providing unique and innovative services to attract and retain customers. Hence, these factors are expected to drive the growth of the global mobile AR market during the forecast period.
The growing availability of pico projectors is the primary trend in the market. Pico projectors are the next generation of small, lightweight devices that offer users the ease of portability compared to traditional projectors. Google's development of modular phones has taken this development a step further. This phone will allow users to integrate their hardware requirements as a module. This will facilitate the integration of high-end components, leading to the mass adoption of 3D cameras, pico projectors, and depth sensors that will benefit the mobile augmented reality (AR) market.
Furthermore, the smartphone is expected to soon come with a 3D camera, pico projector, and depth sensor that can provide a great user experience. Users can turn on the projector, run AR games, and use gestures to play games on any surface without touching the smartphone. Therefore, such factors are expected to boost the growth of the global mobile AR market during the forecast period.
Stringent government regulations on the privacy of data are the challenges that affects the growth of the market. Mobile AR apps typically collect and process user data, including location information and personal preferences. Strict regulations regarding data privacy and security, such as the General Data Protection Regulation (GDPR) in Europe, can increase costs and compliance requirements for AR developers and service providers. Failure to comply with these regulations can result in significant fines and reputational damage which affects the growth of the mobile AR market players.
Moreover, government regulations regarding content, copyright, and intellectual property can affect the development and distribution of AR content. AR applications often use location-based services, which may be subject to regulations regarding geolocation and tracking data. Compliance with these regulations may affect the functionality and user experience of mobile AR applications. Thus, such factors are expected to impede the growth of the global mobile AR market during the forecast period.
The market share growth by the marketing and advertisement segment will be significant during the forecast period. AR provides marketers and advertisers with innovative ways to engage with consumers and create interactive and immersive brand experiences. AR provides a more engaging and interactive experience than traditional advertising methods. The ability to interact with virtual objects and content in a real environment captures consumers' attention and keeps them engaged in marketing campaigns.
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The marketing and advertisement segment was valued at USD 4,744.32 million in 2017 and continued to grow by 2021. AR allows consumers to virtually view products in their own environment before making a purchase. Virtual test drives and interactive demonstrations help to improve consumer confidence and reduce purchase problems. AR features built into popular social media platforms allow brands to interact directly with users through AR filters, effects, and interactive content, expanding their reach of marketing campaigns. Hence, these factors are expected to drive the growth of the marketing and advertising segment of the global mobile AR market during the forecast period.
The enterprise segment of the global mobile augmented reality market refers to companies and organizations that use mobile AR technology for internal operations, product development, marketing, training, and a variety of business applications. Employees can share AR-enhanced images, annotate virtual objects, and solve problems collaboratively, bridging geographic distances and fostering seamless communication across borders. Furthermore, augmented reality can lead to significant cost savings and efficiency improvements in different areas of business operations. From reducing training costs to streamlining maintenance and service processes in the field, augmented reality can optimize workflows and resource usage. Thus, such factors are expected to fuel the growth of the enterprise segment of the global mobile AR market during the forecast period.
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North America is estimated to contribute 33% 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 mobile augmented reality market during the forecast period. North America is known for its robust technology infrastructure and ongoing advancements in mobile devices, processors, graphics, and networking. These advancements enable seamless, high-quality AR experiences on smartphones and tablets, driving user adoption.
Moreover, the popularity of mobile apps in North America has created a favorable environment for integrating AR technology into various applications. Consumers are used to app-based interactions, making the transition to augmented reality-enabled apps easier. North America is a big market for games and entertainment. The introduction of AR-based mobile games and interactive entertainment experiences boosted user engagement and helped increase regional awareness in the mobile AR gaming space. Hence, such factors will drive the growth of the market in the region during the forecast period.
In 2020, during the initial stages of the COVID-19 pandemic, the mobile AR market experienced disruptions due to lockdowns. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the gradual return to in-person activities, including events, conferences, and entertainment venues. This has created opportunities for mobile AR applications in experience and location-based marketing. The growth of e-commerce and online shopping trends is predicted to grow even after the pandemic. Mobile AR applications that enhance the virtual shopping experience, such as AR trial features, can continue to be adopted in the retail industry. Hence, these factors are expected to boost the growth of the mobile augmented reality market in the region during the forecast period.
The Mobile Augmented Reality Market industry 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.
Global Mobile Augmented Reality Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The mobile augmented reality 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.
Mobile Augmented Reality Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 30.78% |
Market growth 2023-2027 |
USD 83,489.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
28.87 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Apple Inc., Augmented Pixels Inc., Blippar Ltd., Independiente Communication Ltd., Inglobe Technologies Srl, Lenovo Group Ltd., Magic Leap Inc., mCloud Technologies Corp., Niantic Inc., Plural Technology Pvt. Ltd., PTC Inc., QuestUpon, Robert Bosch GmbH, Seabery Augmented Technology SL group, Seiko Epson Corp., VividWorks Oy, weAR Srl, Wikitude GmbH, and Zugara Inc. |
Market dynamics |
Parent market analysis, 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. |
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.
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