PUBLISHER: The Business Research Company | PRODUCT CODE: 1712306
PUBLISHER: The Business Research Company | PRODUCT CODE: 1712306
Augmented reality (AR) involves digitally enhancing the representation of the physical world through the incorporation of digital visual elements, audio, and other sensory inputs delivered via technology.
The primary categories of augmented reality services encompass hardware and software. Augmented reality software functions in tandem with a range of devices, such as tablets, smartphones, headsets, and other compatible equipment. These devices typically include sensors, digital projectors, and the necessary software to superimpose computer-generated objects into the real-world environment. These services find application in various sectors, including training, the creation of annual reports and augmented brochures, architectural projects and new construction, gaming, and trade show environments. End users of augmented reality services span across industries such as commercial, healthcare, automotive, and more.
The augmented reality services market research report is one of a series of new reports from The Business Research Company that provides augmented reality services market statistics, including augmented reality services industry global market size, regional shares, competitors with a augmented reality services market share, detailed augmented reality services market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality services industry. This augmented reality services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The augmented reality services market size has grown exponentially in recent years. It will grow from $191.13 billion in 2024 to $274.54 billion in 2025 at a compound annual growth rate (CAGR) of 43.6%. The growth in the historic period can be attributed to gaming and entertainment adoption, increased consumer awareness, corporate training and simulation, cost reduction and accessibility, content development.
The augmented reality services market size is expected to see exponential growth in the next few years. It will grow to $1105.79 billion in 2029 at a compound annual growth rate (CAGR) of 41.7%. The growth in the forecast period can be attributed to integration with 5g technology, enterprise adoption, healthcare and therapeutic expansion, smart cities and iot integration, education and remote learning. Major trends in the forecast period include retail and e-commerce integration, spatial computing and interaction, ar in social media and communication, art and design applications, immersive experiences in tourism.
The COVID-19 pandemic has prompted companies to adopt more advanced and virtual solutions to sustain their operations, which is expected to be a key driver for the growth of the augmented reality (AR) services market in the short term. The growing demand for AR across various industries post-pandemic is expected to lead to an increased need for AR services. For example, in January 2022, the Department for Business and Trade, a UK-based government department, projected a growth rate of 78.3% in spending on augmented reality (AR) and virtual reality (VR) technologies in the UK through 2024. This growth is expected to result in a total expenditure of £62.5 billion ($79.84 billion) by 2030. The demand for AR services is further supported by the increased focus on remote learning, training, and demonstrations for both employees and consumers.
The growing adoption of e-commerce is expected to be a significant driver for the future expansion of the augmented reality services market. E-commerce, the practice of buying and selling goods and services using digital platforms, most notably the global internet, involves the exchange of data or money to complete transactions. Augmented reality (AR) technology is revolutionizing the e-commerce industry by providing customers with a more immersive and engaging shopping experience. AR allows customers to interact with products and services in their own environment, offering a level of realism and personalization that can lead to higher conversion rates. For example, data from the Australian Ecommerce Report 2022, based on surveys of 1,000 online shoppers in Australia conducted between June 2021 and June 2022, reveals that clothing, shoes, and fashion items were the most preferred online purchases, with a 74% preference rate, up from 72% in 2021. Groceries emerged as the fastest-growing online shopping category, increasing from 54% in 2021 to 64% in 2022. This data underscores the role of rising e-commerce adoption in driving the augmented reality services market.
The integration of blockchain technology is gaining significant popularity within the augmented reality services market. Blockchain, a Distributed Ledger Technology (DLT), involves the assignment of unique attributes to digital assets through cryptography and their distribution on a decentralized and publicly accessible ledger. Beyond its applications in digital currency, blockchain technology offers various capabilities that augmented and virtual reality developers are actively exploring. Blockchain enables the creation of unique digital assets that cannot be easily copied by users or other developers, facilitating the sale of virtual real estate, tracking virtually represented data, and more. For example, in April 2022, Metallika.Inc., a France-based company specializing in blockchain-powered mineral mining services, announced the integration of blockchain technology into its mining operations. The Metallika team devised a mechanism that operates autonomously on the blockchain, known as a decentralized autonomous organization (DAO). It strictly adheres to the rules outlined in the smart contract and maintains a record of each financial transaction within the DAO, along with the software rules embedded in the smart contract. Consequently, the incorporation of blockchain technology with augmented reality is anticipated to drive market growth during the forecast period.
Prominent companies operating in the augmented reality services market are actively pursuing strategic partnerships to better address the needs of their existing consumer base. One such collaboration involves Qualcomm Technologies, Inc. joining forces with Microsoft Corporation to create proprietary AR processors, which will enable the development of a new generation of lightweight, power-efficient AR glasses that offer immersive experiences. Qualcomm Technologies is leveraging its existing expertise in spatial computing to drive the development of revolutionary experiences for the next wave of head-worn AR devices. In January 2022, Qualcomm Technologies, a US-based augmented reality company, announced its collaboration with Microsoft to expand and accelerate the adoption of augmented reality (AR) in both consumer and corporate sectors. This partnership encompasses various initiatives, including the creation of customized AR chips capable of powering energy-efficient, lightweight AR glasses that provide immersive experiences. Additionally, the collaboration involves the integration of software solutions such as Microsoft Mesh and the Snapdragon SpacesTM XR Developer Platform. Microsoft Corporation, a US-based company, is known for its software and AR technology solutions.
In June 2022, The Glimpse Group, a US-based immersive technology platform company, acquired PulpoAR for an undisclosed amount. This acquisition allows Glimpse to strengthen its AI-driven virtual try-on technology, enhancing user engagement, conversion rates, and its competitive position in the augmented reality (AR) market. The move also leverages strategic partnerships for further growth. PulpoAR is a US-based augmented reality SaaS company that specializes in providing AI-based virtual try-on technology.
Major companies operating in the augmented reality services market include Groove Jones LLC, Quy Technology Pvt. Ltd., Craftars Sp. z o.o., Wear Mobile Ltd., Next/Now Inc., Apple Inc., Microsoft Corporation, Niantic Inc., Zappar Limited, Blippar Ltd., Lucyd Ltd., Magic Leap Inc., Echo Interaction Group Inc., Notion theory LLC, Mobilab Sp. z o.o., AVRspot Inc., Transition Technologies PSC Sp. z o.o., Innovecs LLC, INDE Appshaker Ltd., Augment Inc., Metagram Inc., VironIT Inc., Scanta Inc., VR Vision Inc., 8ninths Inc., Yeppar Inc., Mutual Mobile Inc., Intellectsoft Inc., Zco Corporation, CitrusBits Inc., Oodles Technologies Pvt. Ltd., Infotrum LLC, Sumeru Inc., NewGenApps Pvt. Ltd., Chocolate Milk & Donuts LLC, Hedgehog Lab Limited, Dyfuzja Sp. z o.o., NARSUN Inc., Cortex Inc., HorizonCore Infosoft Pvt. Ltd., The Intellify Inc., Gramercy Tech LLC, HQSoftware Inc., Program Ace LLC, Xicom Technologies Ltd., Zco Corporation, Fluper Ltd., JPLoft Solution Inc., Credencys Solutions Inc., IndiaNIC Infotech Limited, Chetu Inc., Vakoms LLC, Delta Reality LLC, Setapp Inc.
Asia-Pacifica was the largest region in the augmented reality services market in 2024. North America was the second largest region in the augmented reality services market. The regions covered in the augmented reality services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the augmented reality services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada
The augmented reality services market includes revenues earned by entities by providing augmented reality services that can be used to provide an innovative human-machine interaction that overlays virtual components on a real-world environment. Augmented reality has many potential applications in different fields, such as training activities, entertainment, and head-up display in car windscreens. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Augmented Reality Services Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on augmented reality services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for augmented reality services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The augmented reality services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.