Augmented Reality Market Will Grow Rapidly In Coming Years Augmented Reality Industry The global

Rahul Nikade

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Augmented Reality Market Will Grow Rapidly In Coming Years

Augmented Reality Industry

The global augmented reality (AR) market size is expected to reach USD 599.59 billion by 2030, registering a compound annual growth rate (CAGR) of 37.9% from 2025 to 2030, according to a new report by Grand View Research, Inc. This remarkable growth can be attributed to the increasing adoption of AR technology across a diverse range of industry verticals, including automotive, healthcare, education, construction, and logistics, among others. Augmented reality interfaces significantly enhance work environments by optimizing operational efficiency and offering considerable benefits in terms of productivity, effectiveness, and safety.

AR technology continues to evolve rapidly, becoming more accessible and reliable in tandem with broader technological advancements. In response, several market players are heavily focused on introducing innovative AR offerings to attract customers and maintain a competitive edge. For instance, in 2023, Google LLC announced the launch of its Immersive Stream for XR service for its Google Cloud customers. This new offering eliminates the need for powerful hardware or specialized applications to engage in augmented reality or 3D environments; users can simply scan a QR code or click a link to access extended reality (XR) content, greatly enhancing accessibility.

The growth of the augmented reality industry has been further accelerated by the aggressive adoption of AR technology solutions by businesses and institutions, particularly in the aftermath of the COVID-19 pandemic. For example, educational institutions are increasingly leveraging AR technologies to enhance learning experiences, making educational content more interactive and engaging for students.

The retail sector is another major contributor to AR market expansion. AR technology provides shoppers with immersive experiences that help them make more informed purchasing decisions. In November 2022, Snap, Inc. announced a partnership with Amazon.com, Inc. to introduce AR-enabled digital try-on experiences for brands and customers online. This collaboration is expected to create a seamless AR shopping experience, further driving AR adoption in the retail industry.

Moreover, AR technology is gaining substantial traction in several niche markets. Mobile device manufacturers are actively launching AR-compatible devices, broadening consumer access to AR applications. As AR technology continues to evolve and new real-world use cases emerge, the augmented reality market is poised for significant growth throughout the forecast period.

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Augmented Reality Market Segments Highlights:

In terms of component, software segment is expected to register a CAGR of around 41.0% during the forecast period owing to the rising adoption of AR devices across various applications, including manufacturing, healthcare, education, retail & e-commerce, among others.
In terms of display, smart glass segment is expected to register a notable growth rate of 49.1% by 2030 with the increasing adoption of smart glasses beyond personal uses of entertainment to industrial applications such as architectural planning, manufacturing processes, healthcare, and more.
In terms of application, industrial & manufacturing segment accounted for the revenue share of around 24.0% in 2024 as AR finds important application in businesses to ensure efficient operations by keeping all processes operational, spotting anomalies, and reducing production downtime.
Asia Pacific augmented reality industry is estimated to witness a highest CAGR from 2025 to 2030 with the rapid expansion of manufacturing, logistic & transportation, automotive, and gaming & entertainment industries, especially in Japan and China.

Augmented Reality Market Report Segmentation

Grand View Research has segmented the global augmented reality market report based on component, display, application, and region:

Augmented Reality Component Outlook (Revenue, USD Million, 2018 - 2030)