From augmented reality games to Nomtek and Qualcomm’s new AR workflows, the augmented reality market is going strong. According to a new report by data analysts Technavio, the AR market is set to increase at a compound annual growth rate of 28.7%. Additionally, the report states that the market will grow by $157.21 billion over the next four years.
The report cites the rise in the adoption of AR-enabled smart glasses and the growth of the value of AR tech investments as two of the primary contributing factors to the industry’s growth. The increasing demand for AR tech from various application segments is also a primary factor. Technavio predicts that integrating AR into smartphones will also significantly affect the market’s growth.
The AR Market is Branching Out
New AR opportunities are popping up in healthcare, retail and media, among other sectors. Augmented reality is even expected to disrupt the automotive industry. It’s the enterprise segment, however, that Technavio data analysts expect to be the most significant in terms of market share growth through 2027. In fact, the segment saw a 5.27 billion USD rise in market share in 2017, with considerable growth since.
Currently, North America is likely to have the most significant impact on the industry’s growth, with the report projecting that the content will be responsible for 37% of the total market share growth. Specifically, Canada and the US have already played a substantial role in the development of new AR tech, according to Technavio.
However, the report also states that privacy concerns may hinder the market’s growth. A sample of the report is available by request through Technavio’s website.
VR and XR Market Growth
Technavio analysts and researchers have also published reports on the projected growth of the VR and XR markets. One report suggests that the VR market will grow at a CAGR of 28.39% from 2022 through 2027. A report on the AR and VR market predicts a CAGR of 52.37%.