PUBLISHER: The Business Research Company | PRODUCT CODE: 1712307
PUBLISHER: The Business Research Company | PRODUCT CODE: 1712307
Augmented reality software and services encompass applications and solutions that merge digital information with a user's real-time environment. Augmented reality (AR) involves digitally enhancing the representation of the physical world through the integration of digital visual elements, audio, and other sensory inputs delivered via technology.
The key functions of augmented reality software and services include enabling remote collaboration, optimizing workflows, enhancing visualization, facilitating documentation, enabling 3D modeling, and providing navigation support. Workflow optimization entails the process of improving existing workflows by reducing operational costs, enhancing work efficiency, adding new functionalities to current workflows, reducing task completion times, and other measures aimed at ensuring the optimal efficiency of the workflow. These augmented reality software and services are employed in various industry verticals, including aerospace and defense, medical, commercial, oil and gas, mining, telecom, IT/data centers, and across enterprise and consumer segments. They are utilized by both commercial and consumer end users to enhance various aspects of their operations and experiences.
The augmented reality software and services market research report is one of a series of new reports from The Business Research Company that provides augmented reality software and services market statistics, including augmented reality software and services industry global market size, regional shares, competitors with a augmented reality software and services market share, detailed augmented reality software and services market segments, market trends and opportunities, and any further data you may need to thrive in the augmented reality software and services industry. This augmented reality software and 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 software and services market size has grown exponentially in recent years. It will grow from $28.63 billion in 2024 to $45.14 billion in 2025 at a compound annual growth rate (CAGR) of 57.7%. The growth in the historic period can be attributed to market penetration in entertainment, enterprise adoption, rise of ar hardware, development of developer tools, improvement in user interface.
The augmented reality software and services market size is expected to see exponential growth in the next few years. It will grow to $298.07 billion in 2029 at a compound annual growth rate (CAGR) of 60.3%. The growth in the forecast period can be attributed to integration with 5g technology, expanded enterprise applications, expanded enterprise applications, consumer-friendly ar apps, ar cloud development. Major trends in the forecast period include immersive gaming experiences, ar in retail and e-commerce, remote assistance and collaboration, education and training solutions, spatial computing advancements.
Augmented reality (AR) is finding increasing application across a range of fields, including entertainment, retail, and medicine. In the medical domain, the utilization of AR software for surgical procedures and diagnosis has seen significant growth in recent years. AR technology enhances surgical precision, reduces medical errors, and provides both doctors and patients with a clearer understanding of complex medical conditions. For instance, at Imperial College and St. Mary's Hospital in London, surgeons and doctors have begun using Microsoft's HoloLens AR glasses during reconstructive surgery for patients with severe injuries. Previously, handheld scanners were employed to locate major blood vessels near the wound, making surgery more challenging. The growing adoption of AR in various industries is driving the expansion of the augmented reality software and services market.
The growing educational technology (ed-tech) sector is expected to be a driving force behind the expansion of the augmented reality software and services market. Educational technology, or ed-tech, involves the integration of information and communication technology tools into educational settings to create more engaging, inclusive, and personalized learning experiences. Augmented reality (AR) is increasingly employed within the ed-tech sector to visualize complex concepts, enabling interactive learning experiences through simulations, games, and other engaging activities that make the learning process more enjoyable for students. For example, according to data from Graphy, a UK-based AI-powered data visualization company, the educational technology sector is projected to reach a market value of $680 billion by 2027. This underscores the significant growth potential of the ed-tech industry, which, in turn, is driving the augmented reality software and services market as it becomes increasingly integrated into educational settings.
Major companies operating in the augmented reality (AR) software and services market are focusing on developing advanced products that simulate robot movement with a virtual gripper to gain a competitive edge. Simulating robot movement with a virtual gripper in augmented reality (AR) allows users to control and interact with the robot's actions in real time, providing a hands-on experience for tasks such as object manipulation. This technology combines real-world environments with virtual robotic movements for enhanced training or design visualization. For instance, in February 2024, Kuka AG, a Germany-based robotics company, launched its innovative augmented reality (AR) software, KUKA.MixedReality. The software aims to enhance the setup and operation of robotic systems by merging real and virtual environments. It allows users to visualize robotic cells through their smartphones, facilitating faster, safer, and more intuitive robot startups.
Major companies operating in the augmented reality software and services market are placing a heightened focus on developing advanced technologies, including Next Generation XR (Extended Reality) and AR (Augmented Reality) Platforms. These next-generation XR and AR platforms are innovative technologies being designed to enhance the performance, efficiency, and accessibility of augmented reality experiences. They aim to address the limitations of current AR technologies, such as restricted field of view, low resolution, and high costs. For example, in September 2023, Qualcomm Incorporated, a US-based semiconductor company, introduced two spatial computing platforms including the Snapdragon XR2 Gen 2 and Snapdragon AR1 Gen 1. These platforms are aimed at improving mixed reality (MR), virtual reality (VR), and smart glasses experiences. The Snapdragon XR2 Gen 2 Platform offers advanced MR and VR technologies in thinner and more comfortable headsets without the need for an external battery pack. This results in lag-free immersive experiences with high-quality visuals and sound. On the other hand, the Snapdragon AR1 Gen 1 Platform is designed for sleek, lightweight smart glasses, allowing hands-free capture, sharing, and live streaming capabilities. It also includes on-device AI features like audio enhancement and real-time translation, as well as support for a visual heads-up display for seamless content consumption. The development and adoption of these next-generation XR and AR platforms signify a commitment to enhancing and expanding the capabilities of augmented reality, offering users more immersive and convenient experiences. This technological advancement is expected to drive the growth of the augmented reality software and services market.
In May 2024, Stayinfront, Inc., a US-based software company, acquired SAS Augment for an undisclosed amount. This acquisition enables Stayinfront to enhance its retail optimization platform by integrating advanced augmented reality technology, thereby improving sales effectiveness and driving growth through innovative retail solutions. SAS Augment is a France-based developer of an augmented reality platform focused on creating and managing 3D models.
Major companies operating in the augmented reality software and services market include PTC Inc., Wikitude GmbH, Daqri LLC, Zugara Inc., Niantic Inc., Augmate Corporation, Ubimax GmbH, Upskill, Catchoom Technologies S.L., Aurasma, EON Reality Inc., Hewlett-Packard Development Company LP, Zappar Ltd., Immerseport, Infinity Augmented Reality Inc., Inglobe Technologies Arl, Jbknowledge Inc., Kudan, Magic Leap Inc., Marxent Labs LLC, Mortar Studios Ltd., Amazon Web Services Inc., Re'flekt GmbH, Scope Technologies Inc., Viewar GmbH, Atheer Inc., ARToolKit, Arway Corporation, CraftAR, EasyAR
The Asia-Pacific was the largest region in the augmented reality (AR) software and services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the augmented reality software and services industry during the forecast period. The regions covered in the augmented reality software and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the augmented reality software and services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada
The augmented reality (AR) software and services market includes revenues earned by entities by providing marker-based AR, markerless AR and location-based AR. This also includes companies solely involved in designing and developing or publishing only. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. 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 Software and 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 software and 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 software and 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 software and 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.