AR Glasses Market

AR Glasses Market Growth Outlook (2023 to 2033)

The global AR glasses market is valued at US$ 15.4 billion in 2023 and is forecasted to reach US$ 72 billion by 2033, expanding rapidly at a CAGR of 16.6% from 2023 to 2033.

Augmented reality glasses are those that when worn with prescription eyewear, project information about the user's surroundings directly in front of the eyes. Smart glasses for augmented reality can also effectively overlay virtual objects on top of the physical world. Hologram interaction is made simple by the sensors and location trackers integrated into smart AR glasses.

Demand for augmented reality (AR) glasses is mostly driven by the desire to enhance the real-world experience with valuable facts and information. The purpose of AR smart glasses is to improve the user's daily domestic and professional experience. The display, sensors, and accelerometers in AR glasses, together with intelligent software and internet connectivity, all work together to make them function.

In company supply chains, AR/VR smart glasses have the ability to improve upon and potentially replace current technological solutions while also altering the organizational layout of the workplace. Companies utilizing wearable augmented reality technology are demonstrating use cases that increase workplace efficiency, output, and compliance, which is predicted to be advantageous for the technological development of AR glasses.

Great standards are placed on tiny electronic assistants, particularly in the context of the Smart Factory and Industry 4.0 initiatives. According to industry experts and businesses evaluating the wearables market, so-called "smart glasses" have a specific place in the market. The user may quickly and easily get continually updated information about the task at hand with these smart glasses because they can communicate via the Internet.

The tiny devices' full potential is realized, in specific, when combined with augmented reality, which projects data from the Internet into the wearer's range of vision. This makes regular work easier and much safer and more productive.

To be able to note and dismiss message notifications that show covertly in the field of view without having to take out the phone. The usage of GPS technology will produce floating virtual arrows that will guide users and ensure they never get lost again. Such factors are expected to drive the sales of AR glasses during the forecast period.

A point to be noted is that this technology is ever-evolving and pretty complex. An apt example regarding this is,

• Apple's augmented reality glasses that were to be released in 2022 have been delayed. Development has been hit by overheating issues related to the device.

 

Report Attributes	Details
Market Size in 2022	US$ 13.2 Billion
Estimated Market Value (2023)	US$ 15.4 Billion
Forecasted Market Value (2033)	US$ 72 Billion
Global Market Growth Rate (2023 to 2033)	16.6% CAGR
China Market Growth Rate (2023 to 2023)	104% CAGR
Companies Profiled	Microsoft Corporation; Google; SEIKO EPSON CORP.; Laster Technologies; Penny; Sony Mobile Communication Inc.; Recon Instruments; LUMUS

What are the Key Drivers of the Augmented Reality Glasses Market?

“Increasing Demand from Social Media Platforms and e-Commerce Sector”

A key market driver is the high demand for augmented reality on social network platforms. The main end-users of the product are the large social media platforms such as Facebook. Also, during the predicted period, the idea of virtual networking via social networks promotes remarkable demand.

Another significant demand-suppressing element in this market is the explosion of the e-commerce sector. The number of purchases of new technologies is continuously rising as a result of online purchasing. In the end, it raises consumer demand for AR glasses and product awareness. Customer presence in the global augmented reality glasses market is driven by the soaring demand for mobile applications and growing awareness of augmented reality through mobile applications.

“Rising Investments and R&D Activities for Cutting-edge Solutions”

The market for augmented reality glasses can be characterized as a mostly untapped market with enormous potential. Companies are making significant investments and R&D activities to provide cutting-edge AR solutions for everyday uses as well as for businesses to streamline workflows and improve procedures.

Offering an immersive experience is especially helpful in encouraging technology and e-commerce enterprises to use fresh, cutting-edge solutions based on AR technology. Augmented reality (AR) glasses allow for informed purchasing decisions, which helps Lenskart succeed in its sales of eyeglasses and sunglasses.

• For instance, Lenskart Solutions Pvt Ltd. is employing augmented reality (AR) technology in its smartphone app to let users virtually place eyeglasses, sunglasses, and other products on their faces before making a purchase. Similarly, to this, LG Corporation's AR function on its electronics website enables people to see on their mobile devices how a specific television set might look in their home before they decide to buy.

What Could Slow Down AR Glasses Market Revolution?

“High Price of AR Glasses Dampening Market Expansion”

One of the things impeding the growth of the augmented reality glasses market is its expensive price. The application used to get information raises the cost of the AR/VR smart glasses since it can be customized to the user's needs, increasing the cost and decreasing adoption. Consumers in poor countries emphasize buying necessities because they have less disposable income.

Customers in the majority of Asia Pacific countries are budget conscious and prefer glass that can meet their fundamental needs. Most consumers are unaware of how much money may be saved on energy costs by using smart glasses.

“Lack of Operations and Low Investments in Several Regions”

High-end technology, augmented reality smart glasses can be used for a variety of purposes. The market for AR glasses is, however, constrained in some areas due to poor AR implementation. Because of the inadequate operations, there is less market demand.

Research & development and investments in AR are lower in several regions. Also, the major tech businesses demand the best AR smart glasses. The market's profitability is impacted when these standards are not met. One of the main causes of weak apps is a lack of research.

Country-wise Insights

Why are Leading AR Glasses Companies Eyeing the United States and Canada?

“Rapid Adoption of New Technologies and High-tech Wearables”

The market for AR glasses is dominated by North America. There is a sizable market for high-tech wearables in the United States and Canada, and North America is prepared to contribute significantly to the market for AR glasses in terms of revenue.

North America accounts for a leading revenue share in 2023 at 35%, and it is anticipated that it would hold a substantial market share during the projected period as well. Many well-known technology companies are based in the United States, including Microsoft, Google LLC, and others. The country is regarded as a leader in the early adoption of new technology.

What is the Demand Outlook for AR Glasses in Europe?

“Growing Usage of AR Glasses by Gaming Industry”

Europe is positioned for tremendous growth as a pioneer in embracing augmented reality technology for entertainment and gaming applications in the coming years. A lot of praise is being given to Germany for its use of augmented reality in the gaming industry.

Through the projected period, the market in Germany is anticipated to experience considerable growth at a CAGR of 85.2% Some of the key drivers of the growth in the regional market are the rising popularity of these glasses and massive investment by key players.

The need for AR smart glasses in this region will rise as new technologies such as IoT and 5G develop. Numerous businesses in Europe are using warehouse pickup systems that employ augmented reality to show the right location of items in a warehouse. As a result, it reduced the amount of time needed to execute the order, enhancing the productivity of warehouse workers.

Why is Asia Pacific Exhibiting High Demand for AR Smart Glasses?

“5G Deployment Will Modernize Market for AR Smart Glasses”

Over the forecast period, Asia-Pacific is anticipated to sizable market share during the forecast period. By leveraging a sizable customer base and driving the adoption of internet-based platforms, developed countries such as Japan are quickly positioning themselves as regional industry leaders.

It is also projected that the continued rollout of fast 5G networks in Asia-Pacific will encourage the widespread use of augmented reality (AR) technology and AR-based goods in the region. India is emerging as one of the top Asia-Pacific countries adopting augmented reality technology in the manufacturing and healthcare sectors, where a more immersive and hands-on experience is necessary. This is due to its large population and rapidly rising internet penetration rate.

Category-wise Insights

Which Application is Forecasted to Gain a Leading Market Share?

“High Demand for AR Glasses in Gaming Industry”

Video games are one of the most widely used applications for AR/VR. Over the past few years, the number of gamers has significantly increased on a global level. This can be explained by the increase in popularity of augmented reality and virtual reality video games, which in turn promotes industry growth.

• Tencent purchased Turtle Rock Studios in December 2021. The latter's gaming selection and augmented reality features in particular were attractive to Tencent.

What Makes Video See Through Important in Augmented Reality Technology?

“Virtual Processing in Video See Through to Benefit with AR”

Video feeds from cameras inside head-mounted devices are displayed by video-see-through systems. This is how phones, for instance, use AR regularly. When the need to experience anything remotely, such as a robot sent to patch a leak inside a chemical factory or a vacation spot. This is especially helpful when employing technology for improving the quality of the image, such as thermal imaging or night-vision equipment.

As the virtual processing occurs on the same pipeline, any AR objects that are mapped to actual things are accurate, which is a major benefit of video see through. A human translation is required for optical see-through to map the AR items to the actual environment.

Competitive Landscape

The AR glasses industry has undergone tremendous change in recent years, and many changes are anticipated in the coming year as a result of improvements in production methods and shifting customer preferences toward business objectives. With a rise in usage from various industries to enhance operational efficiency and government safety laws across various countries, the market is anticipated to have considerable growth.

As there is such a strong demand for the product, AR glasses providers have developed from the initial ones, which were extremely expensive, awkward, and experimental, to ones that are stealthy and highly functional. Costs have significantly decreased as more businesses have entered the market, and competition is predicted to spur design and innovation and result in additional cost reductions.

Laster Technologies, Microsoft Corporation, SEIKO EPSON CORP., Google, Penny, Recon Instruments, Sony Mobile Communication Inc., and LUMUS are the key players in the AR glasses market. The research also involves international market positioning analysis, market share analysis, and key growth plans of relevant competitors.

• WPP and Snap Inc. formed a corporation in September 2021 to investigate AR technology and create cutting-edge immersive user experiences. Given that over 90% of people desire to use augmented reality (AR) for purchasing, according to the Snap Consumer AR Global Report 2021, the alliance had enormous potential.
• Nvidia presented its most recent work on an AR wearable at the SIGGRAPH conference in Los Angeles in July 2019. This has a foveated augmented reality feature that can track the viewer's eye and offer an improved visual experience. One or two of the top manufacturers of graphics chipsets are Tegra Graphics and Nvidia.
• After evaluating Blue Vision Labs' potential and strength as a development company in August 2020, Google Ventures made a US$ 14.5 million investment in the U.K.-based AR start-up.

Key Segments of AR Glasses Industry Research

• By Type :

  • Optical See Through
  • Video See Through

• By Application :

  • Gaming Industry
  • Healthcare
  • Education
  • Enterprises

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa