Mobile Augmented Reality (AR) Market Size, Share, and Trends 2024 to 2033

Mobile Augmented Reality (AR) Market Size and Growth

The global mobile augmented reality (AR) market size was USD 28.71 billion in 2023, calculated at USD 37.73 billion in 2024 and is expected to reach around USD 441.25 billion by 2033, expanding at a solid CAGR of 31.42% from 2024 to 2033. The rising integration of emerging technologies like artificial intelligence into the several end-use industries is driving the growth of the mobile augmented reality (AR) market.

Mobile Augmented Reality (AR) Market Key Takeaways

• North America led the mobile augmented reality (AR) market with the largest market share in 2023.
• Asia Pacific is expected to witness the fastest growth in the market during the forecast period.
• By component, the services segment dominated the market with the highest market share in 2023.
• By device type, the smartphones segment held the largest share in the market in 2023.
• By application, the consumer segment dominated the market with highest market share in 2023.

Market Overview

Mobile augmented reality (AR) is the one of the advancements in the augmented reality. Mobile augmented reality is the integration of the augmented reality into the mobile device is to integrate computer-generated content in the real-world. The rising use of augmented reality into the different mobile applications like gaming, e-commerce, designing, and others. Augmented reality plays an important role in retail and e-commerce applications, it increases the overall consumer experience. Additionally, the rising adoption of augmented reality by tech tech-giants, and the increasing mobile users globally is further driving the growth of the mobile augmented reality (AR) market.

Mobile Augmented Reality (AR) Market Growth Factors

• The increasing adoption of mobile devices due to the rising adoption of digitization and technologies by the population is driving the demand for the mobile augmented reality market.
• The mobile augmented reality is one of the highly emerging trends in the augmented reality technologies, it supports the augmented reality in the hardware devices like mobile, tablets, etc.
• The rising adoption of the emerging technologies like machine learning, virtual reality (VR), and augmented reality (AR) and the rising integration of technologies in the mobile devices like smartphones, tablets, laptops, and others are further propelling the expansion of the mobile augmented reality (AR) market.
• Augmented reality is catering services like the heath apps for the patient’s beneficiaries. Additionally, the rising consumer bases of e-commerce, entertainment, retail, gaming, and several other industrial applications that contributing to the expansion of the mobile augmented reality (AR) market.
• The rising advancement in mobile technology and the rising market competition in smartphone companies and increasing consumer base is boosting the growth of the mobile augmented reality (AR) market.

Mobile Augmented Reality (AR) Market Scope

Mobile Augmented Reality (AR) Market Dynamics

Driver

The rising integration of the augmented reality into the different mobile applications

The adaptation of emerging technologies like artificial intelligence, machine learning, and virtual and augmented reality into the several end-use applications that driving the growth of the mobile augmented reality market. Augmented reality is the combination of digital data into the real world. The increasing integration of augmented reality into the various mobile applications such as shopping, education, design, contextual information, GPS, games, translation, advertising, quests, and graffiti. The integration of augmented reality in the e-commerce application enhanced the consumer shopping experience.

Brands like Converse, IKEA, Topshop, and others are using technologies like augmented reality for offering consumers easy and comfortable shopping experience. Additionally, augmented reality is also used in designing activities like landscape design, architecture, and construction, AR helps the designing process and shows the final results before the work starts. Thus, the rising adoption of the augmented reality into the mobile applications that drives the growth of the mobile augmented reality (AR) market.

Restraint

Privacy issues

The adoption of augmented reality into the mobile applications increases the threats about the privacy and security issues related to the user data that are limiting the expansion of the market. Furthermore, technical limitations, unawareness about consumers, and hardware requirements are restraining the growth of the mobile augmented reality (AR) market.

Opportunity

Trends in the mobile augmented reality (AR)

The rising investments in research and development activities in technological innovations and launch of technologies are driving the growth opportunities in the market. The advancements like AR-gaming, mobile AR tools, wearable technologies, 3D design and prototyping, immersive navigation, computer vision, 5G connectivity, virtual try-on, spatial audio, and depth sensing LiDAR. Furthermore, the augmented reality into the mobile applications that emerges as the useful tool in the several businesses, such as industries or business using augmented reality in the complex tasks like training, assisting, product visualization, and others. Augmented reality adopted by the various industrial applications for enhancing consumer experience.

Component Insights

The services segment dominated the market with the largest market share in 2023. The increasing demand for augmented reality in the different applications like AR software, AR hardware, AR content, and AR support. Augments reality helps in reducing cost, it minimizes the overall upfront investment in hardware procurement, and software development. It is used in quick deployment, scalability, and continuous support. Augmented reality is further adopted by the retail manufacturing, education and training, and healthcare sector.

On the other hand, the hardware segment is observed to grow at the fastest rate in the mobile augmented reality (AR) market during the forecast period. The range of applications for mobile AR is expanding beyond gaming and entertainment to include education, healthcare, retail, real estate, and more. This diversification of use cases requires specialized hardware to meet the specific needs of different industries, further driving growth in the hardware segment. Major consumer electronics companies are integrating AR capabilities into their flagship devices. For example, Apple’s inclusion of LIDAR sensors in its iPhones and iPads enhances AR functionality, encouraging other manufacturers to follow suit and driving growth in the hardware segment.

Device Insights

The smartphones segment held the largest share in the mobile augmented reality (AR) market in 2023 and the segment is expected to sustain its position in the market during the forecast period. The rising mobile consumer base and the demand for the technologically advanced smartphone in the market is driving the growth for the mobile augmented reality. Smartphones are the popular choice for the medium to popularize the augmented reality to the masses due to their higher presence in human life and it also has the necessary hardware (GPU, CPU, and sensors) as per the technology requirements.

• There are 5.9 million people who own smartphones while 171 million owns virtual reality (VR) headsets.
• As per the Nielsenl’s survey report, 86% of the people comes into the contact with augmented reality (AR) technology due to their smartphones that is much higher than the other devices.
• Furthermore, Meta is one of the significant advancements that confirmed importance of smartphones in the augmented reality (AR).

Application Insights

The consumer segment dominated the mobile augmented reality (AR) market with largest market share in 2023. The rising global population is driving the consumer segment over several industries. The rising consumer of mobile devices like smartphones, tablets, and other devices and the rising demand for technologically advanced mobile devices are driving the growth of the mobile augmented reality market. The increasing consumer base is further driving the existing market competition and encourages the new market entrants that are contributing to the growth of the mobile augmented reality (AR) market.

The commercial segment is observed to grow at a notable rate in the mobile augmented reality (AR) market. AR technology allows customers to visualize products in their real-world environment before making a purchase. This is particularly beneficial for furniture, home decor, fashion, and cosmetics, where customers can see how products fit into their lives, reducing uncertainty and increasing confidence in their purchasing decisions. The commercial segment encompasses a wide range of industries, including retail, real estate, tourism, and entertainment. Each of these industries can benefit from AR in unique ways, driving widespread adoption and growth.

Regional Insights

North America led the mobile augmented reality (AR) market with the largest market share in 2023. The growth of the market in the region is increasing due to the early adoption of technologies into the region. The rising advancements in technologies such as artificial intelligence into the several end–use industries that further driving the growth of the market.

The increasing availability of tech-giants into the region, and the demand for technological evaluation in mobile devices like smartphones, tablets, and others are driving the growth of the market. The major retail business in the region is adopting augmented reality for the customer engagements and profitability is also contributing to the growth of the mobile augmented reality market.

• Approximately, 83.1 million people used augmented reality (AR) in the United States in 2023.

Asia Pacific is expected to witness the fastest growth in the market during the forecast period. The growth of the market is owing to the rising population in the regional country like India, and China and the heavy consumer bases for the mobile and smart devices are driving the growth of the market. The higher investment on the digitization and artificial intelligence integration into the various industries are driving the digital infrastructure into the region that further contributing in the expansion of the mobile augmented reality (AR) market in the region.

Mobile Augmented Reality (AR) Market Companies

• Qualcomm Inc.
• Microsoft Corporation
• Samsung Electronics Co. Ltd.
• Blippar.Com Ltd.
• Google
• Apple
• Magic Leap
• Groove Jones
• Wikitude
• Marxent Labs

Recent Developments

• In May 2024, VueReal, a Waterloo-based company in MicroSolid Printing, launched the ColourFusion microDisplay, a revolutionary augmented reality (AR) display that sets a new standard in color precision and virtual clarity. The launch will be relevant for the industries such as automotive, consumer electronics, medical, aerospace, and industrial.
• In May 2024, Jones Soda adopted augmented reality that can be accessed through phone cameras and helps in engaging and educating consumers.
• In May 2022, Students of Ermysted’s Grammar School and Skipton Academy developed the mobile app Dogs’ Dales Augmented Reality (AR) which will help the residents and visitors find their way. The app is free to use and attracts tourism and entertainment in town.
• In May 2024, Augmented reality startup Magic Leap, and the Alphabet’s Google announced the strategic technology collaboration and working on the revolutionary and mesmeric experience which blends digital and physical reality.
• In January 2022, Apple launched its first augmented reality headset in January 2023. The analysts of Apple Ming-Chi Kuo said it was the game-changer in the headset industry.
• In June 2024, Rokid, the augmented reality company launched the Rokid AR Lite. With the newly launched AR glasses people can engage themselves into the interactive experience that fades the lines between reality and fantasy.
• In May 2024, an augmented reality (AR) retail has launched by Verizon, the activation will enable for the customers to live in the world of Bridgerton. It will be available in the 300 Verizon stores for giving customers a chance to use AR filter for transforming store into Queen’s Ball, and extravagant regency-era environment which will features on Netflix.

Segment Covered in the Report

By Component

• Hardware
  • 3D Camera
  • Sensors
  • Processor
  • Other
• Software
• Services

By Device

• Smartphones
• Tablets Personal
• Digital Assistants (PDAs)
• Others

By Application

• Consumer
• Healthcare
• Enterprise
• Commercial
• Aerospace & Defense
• Others

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa