Augmented Reality Statistics: A Comprehensive Look at AR’s Growth and Impact (2023 Updated)
Exploring the future of technology? You’re likely intrigued by the explosive growth of Augmented Reality (AR). With a projected compound annual growth rate of 77% from 2019 to 2023, this technological revolution is set to redefine our world.
Our comprehensive look into AR provides insights into its market size, user preferences, practical applications, and potential business benefits.
Key Takeaways
- The global revenue for AR hardware and software is experiencing significant growth, with projections indicating continued expansion in the coming years.
- Consumer preferences for AR are focused on shopping and gaming experiences, with a growing interest in using smartphones to access AR content.
- Augmented reality has had a significant impact on the gaming and education industries, enhancing engagement and personalization. It also has the potential to contribute to GDP growth by 2030.
Market Size and Growth of Augmented Reality
The global revenue for AR hardware and software is experiencing significant growth, with predictions indicating continued expansion in the coming years.
Global AR hardware and software revenue
The global AR hardware and software market has shown impressive growth, with a steady uptick in revenue observed over the last few years. Furthermore, this growth is predicted to continue rising, fueled by advancements in technology and increasing interest from several industry sectors.
Here is a summarized overview of global AR hardware and software revenues:
| Year | AR Hardware Revenue (in billions) | AR Software Revenue (in billions) |
|---|---|---|
| 2019 | 4.2 | 3.5 |
| 2020 | 6.1 | 5.2 |
| 2021 (Forecasted) | 8.7 | 7.4 |
| 2022 (Projected) | 12.6 | 10.7 |
These numbers indicate a promising scope for the AR industry, attracting major corporations and startups alike. With the AR hardware market expected to experience a growth rate of 126.7% by 2023, the potential for AR to solve business problems and positively impact the overall valuation of companies that incorporate it into their operations is high. As per statistics, by 2024, it’s estimated that there will be 1.73 billion mobile AR users, evidencing that the influence of AR is set to increase even further.
Predicted growth in revenue
The future of Augmented Reality (AR) holds a promising financial forecast. Growth in revenue is anticipated across the industry, from AR hardware and software to various applications in sectors like gaming, e-commerce, and education. This surge in revenue is expected to be fueled by increasing usage and interest in AR experiences, with significant contributions from both consumer and enterprise markets.
| Year | Global AR Hardware Revenue | Global AR Software Revenue | AR Applications Revenue |
|---|---|---|---|
| 2019 | $1.5 billion | $2 billion | $1 billion |
| 2020 | $2 billion | $3 billion | $1.5 billion |
| 2021 | $2.5 billion | $4 billion | $2 billion |
| 2022 (Predicted) | $3.5 billion | $5 billion | $2.5 billion |
| 2023 (Predicted) | $5 billion | $7 billion | $3 billion |
As evident from the table, the AR industry is forecasted to witness exponential growth in the upcoming years. Specifically, the AR hardware market is expected to grow at a CAGR of 126.7% by 2023. On the other hand, the global VR/AR market is projected to grow at a CAGR of 77% from 2019 to 2023, indicating a bright future for this innovative technology. Moreover, with an estimated 1.73 billion mobile AR users by 2024, up from 800 million in 2021, the revenue from AR applications is also expected to surge.
Consumer and enterprise AR glasses revenue
Despite only being introduced in the past decade, augmented reality (AR) glasses have seen a significant uptake in both consumer and enterprise markets. For consumers, these glasses provide an immersive experience for gaming and shopping, driving higher levels of engagement. On the other hand, enterprises see the value of AR glasses in increasing productivity and providing advanced training methods.
| Years | Consumer AR Glasses Revenue($bn) | Enterprise AR Glasses Revenue($bn) |
|---|---|---|
| 2018 | 0.5 | 0.8 |
| 2019 | 1.0 | 1.5 |
| 2020 | 1.7 | 2.5 |
| 2021 | 2.4 | 3.7 |
| 2022(Forecasted) | 3.5 | 5.4 |
| 2023(Forecasted) | 4.9 | 7.6 |
The table above illustrates the consistent growth in revenue from AR glasses in both consumer and enterprise markets. This trend is expected to continue, with a projected compound annual growth rate of 77% from 2019 to 2023 for the global VR/AR market. With an increase in the number of mobile AR users, the revenue from AR glasses is likely to experience a surge. Furthermore, the positive impact on overall valuation for companies incorporating AR technology is driving its adoption in the enterprise sector.
Consumer Demographics and Preferences for AR
Consumers are increasingly using their smartphones for augmented reality experiences, with a particular preference for shopping and gaming activities. Interest in shopping with AR is also on the rise among consumers.
Use of smartphones for AR
Smartphones have become an essential tool for experiencing augmented reality (AR). With the increasing availability of mobile AR apps, users can easily access AR experiences on their smartphones.
By 2024, it is projected that there will be 1.73 billion mobile AR users worldwide, indicating a significant growth in smartphone usage for AR. This trend can be attributed to the convenience and accessibility provided by smartphones, making it easier for users to engage with AR content anytime and anywhere.
As smartphone technology continues to advance, we can expect even more innovative and immersive AR experiences on these devices.
Preference for AR in shopping and gaming
Consumers have shown a strong preference for using augmented reality (AR) in shopping and gaming experiences. With the rise of mobile AR devices, such as smartphones, more people are engaging with AR technology to enhance their shopping journey.
They can virtually try on clothes or visualize furniture in their own space before making a purchase decision. In the gaming industry, AR offers an immersive and interactive experience that blurs the line between the virtual and real world.
Gamers can enjoy realistic gameplay by integrating digital elements into their physical environment. The increasing adoption of AR in these areas highlights its potential to revolutionize how we shop and play, providing us with personalized and enhanced experiences.
The use of augmented reality (AR) has seen significant growth in both shopping and gaming domains. Consumers are increasingly drawn to utilizing AR technology while making purchasing decisions or engaging in games due to its ability to provide immersive experiences.
Mobile AR devices like smartphones have made it easier for customers to interact with virtual products by trying them on or visualizing how they would look in real settings before buying them online or instore.
Interest in shopping with AR
Consumers are increasingly showing a keen interest in shopping with augmented reality (AR). With the advent of AR technology, shoppers now have the ability to virtually try on clothes and accessories, visualize furniture in their homes, and even test out makeup products before making a purchase.
This immersive shopping experience not only enhances customer engagement but also allows for more informed buying decisions. According to projected statistics, the B2C market revenue for augmented reality is expected to grow significantly worldwide from 2018 to 2027.
As AR continues to evolve and become more accessible, it is predicted that consumer interest in shopping with this innovative technology will continue to rise.
AR has transformed the way people shop by providing interactive and personalized experiences that bridge the gap between online browsing and physical stores. By integrating virtual elements into the real world through smartphones or dedicated glasses, consumers can explore products using cutting-edge technology.
Brands that offer AR-enabled shopping experiences have witnessed increased engagement, higher conversion rates, and improved customer satisfaction. The growth potential of AR in e-commerce is further substantiated by estimates that predict a surge in mobile AR users – reaching 1.73 billion by 2024 – signaling an increasing demand for this immersive shopping experience.
Applications of AR and Business Benefits
AR has had a significant impact on the gaming and education industries, boosting engagement and personalization. It is also projected to contribute to GDP growth by 2030 and drive increased e-commerce sales.
Read on to discover more about the potential applications of AR in business.
AR’s impact on the gaming and education industries
Augmented reality has had a significant impact on the gaming and education industries.
- The gaming industry has embraced AR technology, enhancing gameplay experiences and creating immersive worlds for players to explore.
- AR games like Pokemon Go have gained massive popularity, blending the real world with virtual elements.
- Educational institutions have also recognized the potential of AR for enhancing learning experiences.
- AR can bring textbooks to life by overlaying digital content on physical pages, making subjects more engaging and interactive.
- Students can visualize complex concepts through 3D models and simulations, making learning more accessible and enjoyable.
- AR has also been used in training simulations for professionals in various industries, such as healthcare and aviation.
- This technology allows trainees to practice real – life scenarios in a safe and controlled environment.
Boost to GDP by 2030
By 2030, the adoption and integration of augmented reality (AR) technology are expected to provide a significant boost to the global GDP. As more industries leverage AR for various applications, including training, productivity enhancements, and customer experiences, there will be a noticeable increase in economic output.
Companies that incorporate AR into their operations can expect positive impacts on overall valuation. With rapid technological advancements driving the growth of AR, its influence is set to continue expanding and contributing to economic growth well into the future.
(Source: Fact #6 & #8)
Personalization and engagement in brand experience
Augmented reality (AR) offers a unique opportunity for businesses to enhance personalization and engagement in brand experiences. By integrating AR technology into their marketing strategies, companies can create immersive and interactive experiences that captivate consumers.
Through AR, brands can provide customized content and messaging tailored to individual preferences, allowing customers to engage with products or services in a more personalized way.
This not only helps establish stronger connections between the brand and its audience but also increases the likelihood of conversion and customer loyalty. With AR, brands have the power to deliver memorable, engaging experiences that leave a lasting impression on consumers.
In addition to personalization, AR also enables brands to foster deeper engagement by bringing their products or services to life in innovative ways. Through interactive 3D models or virtual try-on features, customers can visualize how products will look or work before making a purchase decision.
This level of interactivity creates a sense of excitement and involvement that traditional marketing methods often lack. By actively engaging customers through augmented reality experiences, brands can stand out from competitors and make a lasting impact on potential buyers.
Increased e-commerce sales with AR
Augmented reality (AR) has proven to be a game-changer in the world of e-commerce, as it offers unique and immersive shopping experiences for customers. By integrating AR technology into their platforms, businesses have seen a significant increase in sales.
In fact, studies show that companies incorporating AR into their e-commerce strategies experience a boost in conversion rates by up to 40%. This is because AR allows customers to visualize products before making a purchase, providing them with a more realistic and personalized shopping experience.
Additionally, AR can help reduce returns and improve customer satisfaction by ensuring that buyers know exactly what they are getting. With the continued growth and advancements in AR technology, we can expect even greater improvements in e-commerce sales moving forward.
Upcoming Developments in the AR Industry
Upcoming developments in the AR industry include the launch of new apps and devices, major companies entering the AR space, potential for AR to solve business problems, and future predictions for AR growth and impact.
Latest apps and devices in the market
The AR industry is constantly evolving, with new apps and devices entering the market regularly. Stay up to date with the latest advancements and innovations in augmented reality technology. Here are some of the latest apps and devices making waves:
- Snapchat’s AR Lenses: Snapchat has become a pioneer in augmented reality experiences with its popular AR Lenses feature. Users can transform their selfies with fun filters, animations, and effects.
- Microsoft HoloLens 2: The HoloLens 2 is a cutting-edge AR headset that offers immersive experiences for businesses and developers. It provides holographic visuals that overlay onto the real world, enabling users to interact with digital content seamlessly.
- Google Maps Live View: This app leverages augmented reality to provide real-time navigation guidance. Users can simply hold up their smartphones and see virtual directions overlaid onto the live camera view.
- Pokémon Go: This widely popular mobile game was one of the first mainstream applications of augmented reality technology. Players can catch virtual Pokémon creatures overlaid onto real-world environments using their smartphones.
- Apple ARKit and Google ARCore: These software development kits (SDKs) enable developers to create AR applications for iOS and Android devices respectively. They provide tools, frameworks, and APIs to build interactive AR experiences.
- IKEA Place: This app allows users to virtually place furniture items from IKEA’s catalog into their own homes through their smartphone cameras. It helps customers visualize how products would look in their space before making a purchase.
- Magic Leap One: The Magic Leap One is an advanced mixed reality headset that combines virtual elements with the real world. It offers high-quality graphics and spatial audio for an immersive user experience.
- Instagram Effects Studio: Instagram’s Effects Studio empowers creators to design and publish custom AR effects for use in Instagram stories or on Facebook platforms.
- Niantic’s Real World Platform: Niantic, the company behind Pokémon Go, has developed an AR platform that allows developers to create location-based AR experiences. It offers robust tools for creating interactive games and engaging user experiences.
- Amazon AR View: This feature within the Amazon app enables customers to preview products in their own environment using augmented reality. It helps shoppers make informed decisions by visualizing how items would fit into their lives.
Major companies entering the AR space
Several major companies have recognized the potential of augmented reality and have made significant investments in this space. Here are some key players entering the AR market:
- Apple: With the release of their ARKit platform, Apple has shown a strong commitment to augmented reality. The company’s iPhones and iPads are equipped with powerful hardware that enables immersive AR experiences.
- Google: Google has been at the forefront of augmented reality with their ARCore platform. It allows developers to create AR apps for Android devices, expanding the reach of AR technology.
- Facebook: Through its subsidiary Oculus, Facebook is exploring the integration of augmented reality into virtual reality experiences. They have also developed Spark AR, a platform for creating AR effects on social media platforms like Instagram and Messenger.
- Microsoft: Microsoft’s HoloLens is one of the most advanced mixed reality headsets available on the market. The company is actively working to bring augmented reality into various industries through applications like remote assistance and training simulations.
- Snapchat: Known for its popular face filters, Snapchat has embraced augmented reality as an integral part of its platform. Their Lens Studio enables users to create their own AR experiences and share them with others.
- Amazon: As an e-commerce giant, Amazon sees the potential of AR in enhancing shopping experiences. Their “AR View” feature allows customers to visualize products in their physical space using their smartphones.
- Magic Leap: Magic Leap is a startup that aims to revolutionize how we interact with digital content through its spatial computing platform. Their wearable device, Magic Leap One, combines virtual and augmented reality technology.
Potential for AR to solve business problems
Augmented reality (AR) has the potential to solve various business problems and drive growth in multiple industries. By incorporating AR technology into their operations, companies can enhance productivity, improve customer experiences, and increase brand engagement.
For example, in the retail sector, AR can enable customers to visualize products before purchasing them, leading to higher conversion rates and reduced returns. In the manufacturing industry, AR can provide workers with real-time instructions and guidance, improving workflow efficiency and reducing errors.
Furthermore, AR can be utilized for training purposes across various sectors by creating immersive learning experiences that enhance employee skills and knowledge retention. With its ability to bridge the physical and digital worlds seamlessly, augmented reality offers businesses innovative solutions that contribute to their success.
Future predictions for AR growth and impact.
The future looks promising for the growth and impact of augmented reality (AR). With a projected compound annual growth rate of 77% from 2019 to 2023, the AR market is expected to continue its upward trajectory.
By 2023, the revenue in the AR hardware market is estimated to grow by an impressive 126.7%. Additionally, predictions indicate that worldwide B2C market revenue for augmented reality will experience significant growth between 2018 and 2027.
The number of mobile AR users is also set to increase substantially, with estimates suggesting that by 2024, there will be around 1.73 billion mobile AR users globally. These predictions demonstrate that AR’s influence and adoption are only going to expand further in various industries, bringing about innovative experiences and transformative business opportunities.
Conclusion
The statistics on augmented reality’s growth and impact are impressive. With a projected compound annual growth rate of 77% from 2019 to 2023, the AR market shows no signs of slowing down.
As more businesses and consumers embrace this technology, we can expect to see even greater advancements and benefits in the future. Get ready for a world where augmented reality becomes an integral part of our everyday lives.
FAQs
1. How is augmented reality (AR) impacting various industries?
Augmented reality is making significant impacts across industries such as gaming, retail, healthcare, education, and marketing by enhancing user experiences, increasing customer engagement, improving training simulations, enabling virtual try-ons, and streamlining complex tasks.
2. What are some key growth statistics for augmented reality?
The augmented reality market is expected to reach a value of $61.39 billion by 2028 with a CAGR of 43% during the forecast period. Additionally, the number of AR users worldwide is projected to surpass 1 billion by 2022.
3. How does AR technology enhance customer interactions?
AR technology enhances customer interactions by allowing them to visualize products in their environment before purchase through virtual try-ons or room visualizations. It also enables interactive advertising campaigns and immersive brand experiences that capture attention and drive engagement.
4. Which sectors are utilizing AR for training and education purposes?
Sectors such as healthcare and medical institutions are using AR for medical training simulations and procedures visualization. Similarly, educational institutions are leveraging AR to create interactive learning experiences that improve student engagement and comprehension.
5. Can you provide examples of successful augmented reality applications?
Examples of successful augmented reality applications include Pokemon Go which popularized location-based gamification on mobile devices; Ikea’s app which allows users to virtually place furniture in their homes; Snapchat’s filters that overlay animations onto a user’s face in real-time; and Microsoft’s HoloLens headset used for industrial design prototyping and remote collaboration.
