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The mobile augmented reality (AR) market size is estimated to grow by USD 83.48 billion at a CAGR of 30.78% between 2022 and 2027.
The market expansion relies on several factors, notably the growing reliance on applications and the widespread use of augmented reality (AR) apps across various domains. Additionally, the integration of AR technology has significantly enhanced advertising effectiveness, contributing to market growth. Moreover, the expanding smartphone and tablet market in the Asia-Pacific region has further fueled the demand for AR apps. As businesses and consumers increasingly adopt AR for various purposes, the market continues to experience robust growth. This trend is expected to persist as AR technology becomes more sophisticated and its applications more diverse, driving further market expansion in the coming years. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is further segmented into Vehicle Type and Type categories, providing a comprehensive overview of the diverse offerings and sub-segment available within the industry.
The market share growth by the marketing and advertisement segment will be significant during the forecast period. They provide marketers and advertisers with innovative ways to engage with consumers and create interactive and immersive brand experiences. They provide 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.
The marketing and advertisement segment was valued at USD 4.74 billion in 2017. It 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 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 market during the forecast period.
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.
Mobile augmented reality (AR) is transforming user experiences by leveraging mobile device capabilities to offer immersive entertainment applications. Despite technical limitations and security concerns, skilled designers are driving AR content creation and advancing UI/UX design for interactive applications. With features like GPS, compass, and cameras in smart devices, mobile AR enables a range of experiences. Additionally, the integration of mobile projection devices enhances health interventions and other applications. The market is also evolving with advancements in virtual reality and teleconferencing, along with the emergence of AR smart glasses for varied uses.
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.
The availability of high-speed Internet and the expansion of 4G and 5G networks have indeed facilitated real-time data processing, enabling seamless augmented reality (AR) experiences that require constant data exchange. This advancement has also led to developments in mobile technologies, immersive user experiences, interactive application development, virtual reality, teleconferencing, and AR smart glasses. 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 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 market during the forecast period.
Stringent government regulations on the privacy of data are the challenges that affect 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 market during the forecast period.
The market 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 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 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 (AR) offers immersive user experiences but faces challenges like limited consumer awareness. AR app development focuses on innovative applications in healthcare, education, and delivery platforms. Collaborations with mobile device manufacturers are key to unlocking untapped AR potential. Technologies like WebAR, AI, and machine learning enhance AR experiences, including remote assistance and teleconferencing. The market is expanding with wearable AR devices and applications in smart cities, supported by government investments. In healthcare, AR aids in telemedicine and accurate diagnoses. The tourism industry benefits from AR's visualization capabilities. Advanced GPS data and multimedia formats enrich educational experiences, impacting schools, colleges, and students positively.
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 83.48 billion |
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 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. |
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 Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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