As per Markets and Markets, the market value of global augmented reality is valued approximately USD 14.5 billion. A compound annual growth rate of 30.8% is projected from 2021 to 2026 and the market is expected to reach a value of USD 72.7 billion by 2026.
United States is one of the largest players in the AR market. The country holds a strong foot with a robust ecosystem of AR startups with major technology companies and academic institutions for innovative movement in the field. The AR market as per a report by Research and Markets is expected to grow from $4.21 billion to $61.39 billion by 2028. The CAGR is expected to be 43.9%.
The reasons for the increased use of adoption of AR technologies are such as in Walmart and Home Depot. AR technology enhances the shopping experience in customers or Hospitals AR technology is used for training medical professionals and improving patient outcomes.
Ac to Pitchbook, in 2020, AR startups raised a huge amount of $1.5 billion in funding.
China is another major AR market player with the rapid growth of AR startups in the ecosystem and major technology companies. As per Statista, the AR market was valued to be $2.63 billion in 2020 and by 2025 it is expected to grow to $31.25 billion at a CAGR of 64.5%.
The factors contributing to the growth of the AR market are the government’s support for emerging technologies through initiatives such as the Made in China 2025 program. Another factor is the penetration of the high level of smartphones in China enabling the widespread adoption of AR technologies among consumers.
Major technology companies are Tencent, Alibaba, and Huawei. Tencent is involved in developing an AR platform called ARCore enabling developers for creating AR applications for a smartphone. Alibaba also launched an AR shopping experience for its Taobao app.
One of the small players in the AR market in the West compared to the US and China is the United Kingdom. According to a report by the UK Department for Digital, Culture, Media and Sport, the UK’s immersive technology sector was valued to be £ 1.2 billion in 2019 with projected growth of £ 30 billion by 2030.
The factors contributing to the AR market growth in the UK are the strong academic and research ecosystem in the country with leading universities such as Oxford and Cambridge. Another factor is the UK Research and Innovation’s Audience of the Future program provides funding for AR projects.
In the UK, AR startups are more successful with companies such as Blippar and Zappar developing innovative AR technologies in industries such as advertising, retail, and entertainment.
As we can see the picture of the rapid growth of the AR market in countries such as China, the United States, and the United Kingdom. US and China are the largest players in the AR market with significant growth in the industry.