Augmented reality market skyrockets with a projected worth of $52 billion by 2027
Augmented reality (AR) has come a long way since the days it was viewed as too expensive and sophisticated for businesses looking to invest in digital transformation.
Today, AR is being used by both businesses and consumers to improve everything from team collaboration to shopping experiences.
Data collected by Statista states that revenue in the AR and virtual reality (VR) market is projected to reach US$31.12bn worldwide in 2023 with an annual growth rate of 13.72% (combined annual growth rate 2023-2027), resulting in a projected market volume of US$52.05bn by 2027. The largest market is AR software with a market volume of US$11.58bn in 2023.
Try out your own augmented reality (AR) experience
Elsewhere a 2022 Snapchat and Ipsos MORI report stated that there is a growing desire for this technology, which found that interacting with products that have AR experiences leads to a 94% higher purchase conversion rate.
According to XR Today, the main factor driving the continued growth of the augmented reality space is the discovery of new and valuable uses for the technology, such as production line management, virtual blueprint production, virtual exhibitions, and mobile app try-before-you-buy experiences.
Due to this, AR is becoming more prevalent across numerous industries – advertising and marketing are providing companies with opportunities to reconnect with customers, healthcare is offering AR tools to facilitate remote care, education is proving to be a valuable tool for immersive learning, and navigation is revolutionizing both indoor and outdoor navigation.
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Furthermore, AR technology has the potential to revolutionize both indoor and outdoor navigation, particularly when paired with new generations of vehicles. It has proven to be an effective tool for immersive learning in the educational setting, supporting the development of several essential skill sets.
Over the next decade, the augmented reality market is expected to grow further due to the emergence of Web 3 and metaverse technologies, the birth of mixed reality headsets, as well as the advancement of artificial intelligence and computer system algorithms.
Lastly, new platforms and content creation tools are constantly being developed, enabling new entrepreneurs to participate as the demand for immersive experiences rises.