Augmented Reality Market size forecast to expand at over 75% CAGR up to 2024
Augmented Reality (AR) Market size was over USD 2 billion in 2015, and is expected to grow at 75% CAGR from 2016 to 2024 to exceed USD 175 billion by 2024. Growing demand of in healthcare, architecture, e-commerce and retail sectors will drive revenue in the coming years.
Global demand for AR market devices and applications in 3D visualization and disease detection is on the rise. Diagnosis of cognitive decline, relieving post-traumatic stress by exposure therapy, treatment of phantom limb pain and application in surgical treatment are some applications fueling the growth of this industry. Considerable benefits in areas such as aerospace and defense for training pilots to optimize cost and danger will augment growth. Increasing demand in the automotive and architecture industry are also forecast to drive augmented reality market share. The technology can be used to highlight all features related to design and dimensions. In the course of the designing stage of its construction, it enables designers and manufacturers to design concept models with minimum costs. It also helps users understand the precise information at their disposal.
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Enhanced, personalized and convenient shopping experiences within the comfort of user’s location and development of applications such as virtual changing room, and adoption of AR solutions will help users to visualize products realistically from any location. Growth of e-commerce and m-commerce may boost augmented reality market size. The gaming sector is expected to develop more interactive and engaging applications and products. The recent launch of Pokémon Go has led to exponential upsurge in the number of users. Augmented reality market also finds application in sight-seeing, tourism, facility management and e-learning.
Growth may be hampered by user interface (UI) limitations, such as its vulnerability to its technical inefficiency in determining various physical obstructions due to lack of information in view management. The UI performance has certain limitations that affect navigation of AR devices. Applications developed for mobile phones and portable devices have to consider the factors as low processing power and limited storage due to restricted size of memory cards. Image latency, privacy and awareness are inhibiting the growth of this sector. Cost of development, graphics, programming physics also impact the growth negatively. Unavailability of hardware and interoperability issues present a major concern. Since the technology is in nascent stage, awareness about its potential and capabilities is low, especially in developing and under-developed economies. In addition, the physical obtrusiveness of the designs developed is expected to be a critical factor preventing consumer acceptance.
By application, the augmented reality industry is segmented into consumer applications, aerospace and defense, medical, commercial and geospatial mining. The commercial applications such as e-learning, tourism and e-commerce are predicted to exhibit growth due to the penetration of mobile phones, and are predicted to have highest growth rate in the forecast period. Further, the AR industry is segmented by hardware components into sensors, semiconductor and display devices. In 2015, the handheld display segment accounted for the largest share due to increased number mobile phone users. By display type, head mounted display (HMD), head up display (HUD), hand held display and spatial display are the major segments of the industry. In the naval space, HMDs assists in areas with difficult terrain and low visibility, by improving navigational and visual capabilities. Soldiers can access strategic information including thermal imaging data while viewing the real environment, which has led to increased demand. Increasing demand for instant data accessibility in mobile workplaces has spurred production activities in order to serve a wide variety of consumer, industrial, medical and military applications.
U.S augmented reality market share led global revenue in 2015, and is expected to steadily over the forecast timeline. Asia Pacific is poised to register the highest CAGR owing to the considerable development in countries such as China, India, South Korea and Japan. Military programs are expected to continue pursuing development of HMDs coupled with investigation of virtual and human issues associated with displayed information. Popularity of video gaming advancement in 3D imaging is expected to fuel growth. Low cost displays are expected to be a key element to enable consumer oriented mobile AR development.
Key participants are Google Inc., Magic Leap Inc., Microsoft Corp., Blippar, Catchoom, Innovega Inc., Laster Technologies, Metaio Gmbh, Total Immersion and Samsung Electronics Co. AR market share can be consolidated by providing innovative, reliable and new product launches as a key strategy in the forecast period.
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