The report also provides specific insights and recommendations for major ecosystem constituents including Advertisers and Media Companies, Artificial Intelligence Providers, Automotive Companies, Broadband Infrastructure Providers, Communication Service Providers, Computing Companies, Data Analytics Providers, Equipment Providers, IoT Suppliers and Service Providers, Semiconductor Companies, Smart City Systems Integrators, Social Media Companies, and Software Developers.
Assisted or Augmented Reality (AR) represents a live (direct or indirect), view of a physical, real-world environment in which certain elements are augmented by computer-generated sensory input. In addition to a visual overlay, AR may also provide audio and tactile inputs to the user, and rely upon presence and positioning technologies to present location-specific sensory inputs and information to the user. In this manner, AR represents a blending of information technology and media within a real-world environment for the benefit of consumer, business, and industrial users.
Mixed Reality (MR) represents a form of hybrid reality in which physical and digital objects co-exist and interact in real-time. With MR, either virtual objects are digitally mixed into reality or real-world objects are merged into virtual worlds. The latter case is sometimes referred to as “Augmented Virtuality”, and is one step closer to a more evolved Virtual Reality (VR), as real-world objects in a virtual world take on a sense of permanency with real objects, appearing to actually exist within the virtual world. Adding to this sense of permanency, real-world objects in a virtual world may be digitally controlled. Conversely, MR may also support the manipulation of virtual objects permanently placed in the real-world. In either scenario, MR will be an important aspect of telerobotics and other forms of teleoperation.
The primary goal of AR is to enrich the user's perception of the real-world, providing information and insights that otherwise would not be obtainable. AR use cases have grown substantially across many industry verticals within the last two years, providing significant market momentum, and indicating great promise to transform communications, content, and commerce across a wide range of sectors. Mind Commerce sees the goals of MR as broad, yet directionally focused on a true merging of real and virtual worlds, which we believe will be a major catalyst for wide-spread acceptance and usage of VR across all major industry sectors.
AR and MR Market Developments
The growing demand of AR in entertainment, retail, and the defense sector is encouraging manufacturers to expand their business. Both traditional advertisers and digital media companies need to get ready for increased altered reality. Advertisers are looking at using augmented reality as part of a marketing drive in order to attract new customers as well as retentive existing ones.
Apple is planning to launch its first augmented reality headset in 2022. It will follow that with a smaller pair of AR glasses in 2023. The AR smart glasses market is picking up pace as it inches away from being a niche product to becoming an industrial and enterprise problem solver. Mass consumer adoption is elusive, if not years away, but the market is building its ecosystem, refining hardware, and taking a more realistic approach for the long-run ramp-up of smart AR glasses.
AR and MR Market Outlook
The total global augmented and mixed reality market is expected to reach $94.5 billion growing at 70.5% CAGR. Hardware is the major component in the total global augmented and mixed reality market with a share of 81% of the total market, followed by software with 17%. The software segment is expected to reach $29 billion with a CAGR of 92.1%. Hardware components in training and education are anticipated to propel the market growth in the forecast period. The service segment is expected to reach $5.45 billion with a CAGR of 103.2%.
- Network operators
- Telepresence companies
- AR, MR, and VR companies
- ICT infrastructure providers
- Electronics component providers
- Robotics and automation companies
- Enterprise across all industry verticals
- Augmented and Mixed reality forecasts through 2025
- Identify market leaders and their strategies and solutions
- Understand the market dynamics within the AR/MR ecosystem
- Understand the relationship between AR/MR and other technologies
- Identify high-potential investment areas for AR/MR application development
Select Report Findings:
- Hardware is the largest market segment with HUD the largest component
- The overall market is anticipated to grow at a CAGR of 63.0% and reach $300 billion
- Consumer electronics is largest industry vertical whereas the military segment is expected to have the highest growth potential
- Latin America is expected to have the highest growth with a CAGR of 75.0%. Brazil and Argentina are the major countries within the region
- China, India, and Japan are leading countries in Asia Pac while South Africa, UAE, and South Africa are the major countries in the MEA region
- North America is the largest region, followed by Europe. USA is largest country in the North America, while Germany, France, UK are in Europe