Augmented Reality (AR) is one of the biggest technology trends in today’s digital world. Its applications range from product visualization, home designs, and AR games like Pokemon Go to augmented shopping experiences. Many industries, like retail, gaming, healthcare, and education, use this technology to solve business challenges and enhance user experiences.

With how sporadic AR is in terms of usage, this analysis looks at valuable statistics to prove its importance for people and societies. We’ll also examine the trends industry by industry, and look at industries that most capitalize on the use of this ever-in-demand technology.

Key Statistics

  • Approximately in 2022, the users of AR devices were 1.07 billion
  • The number of users will increase to 1.4 billion by the end of 2023 and 1.73 billion by 2024 ending
  • The AR market is valued at USD 57.26 billion in 2023
  • In 2030, the market will increase at a CAGR of 39.8% between 2023-2030, resulting in USD 597.54 billion
  • The use of AR is at its highest levels among users aged between 16 to 44, accounting for 70% to 75%
  • South Korea, the USA, China, Japan, England, and Vietnam/Thailand are the six top regions with the largest AR and VR market
  • The 2023 AR in Education market size is worth USD 3.47 billion
  • The market size for AR in Education is set to reach USD 55.84 billion in 2033, reaching USD 19.71 billion in the US over the same timeline
  • The global market growth rate is predicted at 32% CAGR between 2023 and 2033
  • The AR growth rate in e-commerce is expected to be at a CAGR of 20% within the period 2022-2028
  • By 2028, the adoption in the e-commerce and retail industry will result in an expected market value of USD 6.74 billion
  • In 2022, the global AR in healthcare was valued at USD 1,605.9 Million
  • The market value is expected to grow at a CAGR of 23.12% from 2023 to 2028, reaching USD 5,734.9 Million by 2028
  • In the gaming industry, 2021, AR reached USD 6.39 billion in value
  • The AR in gaming was expected to reach USD 38 billion at a CAGR of 33.8% between 2022 and 2027

Global Augmented Reality Market

It was reported that in 20221, the global augmented reality market was valued at USD 42.20 billion. The market size prediction for 20231 is USD 62.75 billion.

Global Augmented Reality Market

Predicted Market Growth rate

The user penetration of the AR/VR market is expected to be at a CAGR of 28.8% in 20232. By 20272, the market is expected to reach 32.6%.

AR/VR market

Major Players in the Augmented Reality Market

The growth in the augmented reality market is a result of key companies entering the market. Each of them wants to prove their superiority, hence, necessitating significant transformation. Some major players in the AR market are:

  • Google LLC
  • Microsoft Corporation
  • Apple Inc.
  • Meta Inc.
  • Samsung Electronics
  • Sony Corporations
  • Nvidia
  • Niantic Inc., etc

Major Factors Driving the Augmented Reality Market Growth

One of the factors is the rapid technological advancement and increased consumer demand for immersive technology. The widespread use of smartphones makes AR more accessible to people. This is a result of the technology integration into their smartphone devices.

Another factor is that many industries have adopted the use of AR in their business operations. Some sectors include gaming, education, healthcare, retail, and manufacturing. This adoption will lead to more innovations as needs for advancement arise.

Sources: Fortune Business Insights, Statista

Augmented Reality Adoption and Penetration Stats

The market for AR is doing well, as many industries have adopted it in their operations. There are stats for how the technology has grown from past years to the recent, and how the market will grow as the future gets closer. Let’s attend to the adoption and the penetration stats one after the other.

  • South Korea

The South Korean AR and VR market will reach USD 738.60 million in 20231. The predicted revenue for the South Korean AR and VR market is over USD 1.2 million by 20271. The annual growth rate (CAGR 2023-20271) is expected at 13.20%.

South Korean AR and VR market
  • United States

The United States AR and VR market will reach USD 8.57 billion in 20232. The predicted revenue for the United States AR and VR market is USD 14.24 billion by 20272. The annual growth rate (CAGR 2023-20272) is expected at 13.54%.

United States AR and VR market

In the United States, the largest market in the AR and VR market is AR Software. It has a market volume of USD 3.61 billion in 2023.

  • China

The United States AR and VR market will reach USD 6.61 billion in 20233. The predicted revenue for the China AR and VR market is USD 10.75 billion by 20273. The annual growth rate (CAGR 2023-20273) is expected at 12.95%.

China AR and VR market
  • Japan

The AR and VR market in Japan is projected to reach USD 1,880.00 million in 20234. Revenue in Japan’s AR and VR market is projected to hit USD 3,113.00 million by 20274. In addition, the annual growth rate (CAGR 2023-20274) will be 13.44%.

AR and VR market in Japan

AR Software is the largest market in Japan’s AR and VR market. The market has a volume of USD 719.70 million in 20234.

  • United Kingdom

The United Kingdom AR and VR market will reach USD 1,167.00 million in 20235. The predicted revenue for the United Kingdom AR and VR market is USD 1,960.00 million by 20275. The annual growth rate (CAGR 2023-20275) is expected at 13.84%.

United Kingdom AR and VR market
  • Thailand

The market revenue for Thailand’s AR and VR market is forecast to reach USD 197.20 million in 20236. The market’s expected growth rate (CAGR 2023-20276) is expected to result in 15.31%. In addition to that, the market value is projected to hit USD 348.60 million by 20276.

Thailand's AR and VR market

The largest market in Thailand’s AR and VR market is AR Software. The market volume sits at USD 78.47 million in 20236.

The Penetration Stats

The user penetration of the AR and VR market in South Korea will be 44.5% in 20231, with expected growth to hit 52.4% by 20271. Also, the average revenue per user (ARPU) is expected to be USD 32.29.

In the United States, the user penetration of the market will be 68.1% in 20232, with growth expected to hit 82.1% by 20272. The average revenue per user (ARPU) is forecast to be USD 37.39.

Comparisons: Revenue Change by Market (2023)

In this section, we compare the revenue growth rate from their previous years to the present (2023). Let’s see which country has the highest growth rate in the year 2023 in the table below.

CountriesMarket Revenue Growth (2023)
South Korea21.9%
United States21.4%
United Kingdom24.1%

Thailand has the highest revenue growth rate in 2023 compared to the other five nations. The UK and Japan rank second and third, as well as the other three in fourth, fifth, and sixth.

Hindrance to VR and AR Adoption Stats

As good and advanced the VR and AR are for businesses, they also have their defects. These are minor deficiencies that the key leaders specialized in this field will seek to amend. Some hindrance stats are:

  1. Content offerings: For VR, the lack of content offerings is the top obstacle, with 27%7 of businesses citing it as a hindrance. In the case of AR, the biggest barrier is user experience (32%)7, followed by content.
  2. User experience: Poor user experience is a significant obstacle to VR adoption, with (19%)8 of organizations mentioning it. For AR, 65%9 of industry experts cited user experience as one of the biggest obstacles to mass adoption.
  3. Cost to consumers: The cost of VR and AR devices is a significant barrier to adoption. For example, 11% of businesses cite VR cost to consumers as a hindrance.

Sources: Back Office Pro, Statista1, Statista2, Statista3, Statista4, Statista5, Statista6, Finance online7, 99 Firms8, Statista9

Augmented Reality Users

Currently in 20231, the global number of active mobile AR users is 1.4 billion. The number is predicted to reach 1.73 billion users by 20241.

the global number of active mobile AR users

Age Demographics of AR Users Stats

According to an online source, the table below represents the AR age demographics of users’ awareness.

Age BracketUsers’ Awareness (%)
16-44270 to 75

Graphical Representation

Age Demographics of AR Users Stats

Gender Demographics of AR Users Stats

In the global use of AR or VR, 57% of users are male, while 43% represent the female gender.

Gender Demographics of AR Users Stats

Number of Consumers Using Augmented Reality in the US 

As of 2023, 110.1 million users in the United States use augmented reality. Also, the monthly record for AR users in the country will hit 93.3 million in 20233.

Number of Consumers Using Augmented Reality in the US 

Sources: Exploding Topics1, Leftronic2, Tech Penny3

Augmented Reality Applications in the Industries

Augmented reality has been in use across various sectors. The major industries that are benefiting from its applications are the following:

HealthcareMarket size of USD 1,605.9 Million in 20221, CAGR of 32.33% from 2023 to 20282, projected to reach USD 4,237.60 million by 20263
Retail/E-commerceMarket size was value $2 billion in 20214, CAGR of 41.4% by 20314, projected to reach USD 61.3 billion by 20314,
AutomotiveMarket size of USD 4.51 billion in 20215, CAGR of 18.1% in 20285, projected to reach USD 14.44 billion in 20285
EducationMarket size of USD 10.58 billion in 20226, CAGR of 65.4% in 20236, projection of USD 17.5 billion in 20236
Marketing and AdvertisingMarket sie will be USD 4.30 in 20237, CAGR of 11.80% by 20277, projected to reach USD 6.72 billion by 20277
Travel and Tourism (Virtual)Market size was worth USD 6.1 billion in 20228, CAGR of 30.2% from 2023 to 20288, projected to reach USD 23.5 billion by 20278
Gaming and EntertainmentMarket value was USD 6.39 billion in 20219, CAGR of 33.8% between 2021 and 20269, projected to hit USD 38 billion  by 20279

Augmented Reality in Industry 4.0 stats

Augmented Reality (AR) is becoming increasingly important in Industry 4.0. It connects real environments with virtual ones, providing valuable insights and improvements in various industrial processes.

Major Applications of AR in Industry 4.0

  • Complex Assembly
  • Maintenance and Repair
  • Training Programs
  • Quality Assurance
  • Product Design and Development
  • Collaborative Work

Benefits of AR in Industry 4.0

  • Increased workforce efficiency
  • Better quality of final products
  • Reduce training costs
  • Enhanced occupational safety in industrial settings

Augmented Reality Devices and Software

AR devices and software have a wide range of applications. Let’s quickly look into what these devices and applications are. 

AR Devices

  • Microsoft HoloLens 2 – A self-contained holographic device. 
  • Magic Leap 2 – Integrates digital content. 
  • Google Glass Enterprise 2: A lightweight, wearable device. 
  • Smart Glasses: Wearable devices that overlay digital information onto the user’s field of view. 

AR Software

Some of the best AR software and development platforms include:

  • Google ARCore
  • Apple ARKit
  • Vuforia Engine
  • Spark AR Studio
  • Adobe Aero
  • Unity
  • Wikitude Augmented Reality SDK

Current Market Size for Augmented Reality Headsets

The global market for augmented reality headset was worth USD 3500 Million in 2021. The market is predicted to grow at a CAGR of 35%, and worth up to USD 211.8 million during the forecast period. 

augmented reality headset

Projected Market Size for Augmented Reality Software

The market size for AR software is projected to reach a volume of US$3,613.00 million in 2023. By 2027, the market volume is predicted to hit USD 15.51 billion.

Projected Market Size for Augmented Reality Software

Market Size for Consumer and Enterprise AR Glasses Revenue

In 2022, the revenue for consumer and enterprise AR glasses hardware and software reached USD 3.8 billion. This figure is expected to slightly decrease to USD 3.78 billion in 2023, and then significantly increase to USD 35.1 billion by 2026.

Market Size for Consumer and Enterprise AR Glasses Revenue

Sources: IMARC Group1, Market Data Forecast2, Future Visual3, Allied Market Research4, Meetanshi5, The Business Research Company6, Statista7, Market Data Forecast8, Business Wire9, Digital Journal, Statista

The global augmented reality (AR) market is experiencing significant growth, with various projections estimating its size in the coming years. According to one online source, the global AR market is estimated to reach USD 461.25 billion by 20301. This growth represents a CAGR of 41.50% from 2022 to 20301.

The AR Market size will expand from a valuation of USD 29.84 billion in 20232 to an impressive USD 174.47 billion by 20282. This represents an anticipated Compound Annual Growth Rate (CAGR) of 42.36% throughout the forecast period from 2023 to 20282.

Another source projects the global AR market size to reach USD 1,109.71 billion in 20303, exhibiting a CAGR of 50.7% during the forecast period. 

Sources: GlobeNewsWire1, Mordor Intelligence2, Fortune Business Insights3

Top 10 Facts about Augmented Reality

Below are some top highlights of augmented reality:

  • AR device users: The number of AR device users is expected to grow steadily, reaching approximately 1.4 billion by the end of 20231 and 1.73 billion by 20241
  • Market growth: The global AR market is set to grow at a compound annual growth rate (CAGR) of around 41.5 percent, reaching USD 461.25 billion by 20302
  • AR in mobile devices: By 20233, mobile augmented reality revenue is estimated to reach USD 12.8 billion. 
  • AR in various industries: Augmented reality is used across numerous industries, including retail, business, gaming, healthcare, and military, to solve various business challenges. 
  • AR in education: AR is increasingly being adopted in the education sector, providing immersive learning experiences and improving student engagement. 
  • AR in healthcare: The healthcare industry is expected to hit USD 2.4 billion by 20264, with AR being used for diagnostics, surgery, and education of healthcare professionals. 
  • AR in automotive: The automotive industry is also embracing AR, with applications such as navigation systems and heads-up displays enhancing the driving experience. 
  • AR and VR headset shipments: By 20255, AR and VR headset shipments worldwide are expected to reach USD 43.5 million. 
  • Consumer awareness: Consumer awareness of AR technology has increased significantly in recent years, with 70% to 75% of people between the ages of 16-44 being aware of AR. 
  • First AR technology: Augmented reality technology was invented in 19686 by Ivan Sutherland. 

These facts highlight the growing importance and adoption of augmented reality across various industries.

Sources: G21, XR Today2, Banuba3, Finance Online4, Teach Online5, Dataprot, G26


The future of AR technology is exciting, with significant growth expected in various industries and applications. As AR technology continues to evolve and become more accessible, it’ll play an increasingly important role in shaping our everyday lives and experiences.

Aremu Adams Adebisi is an experienced tech writer and editor. He's written extensively on gadgets and technology, including smartphones and hardware, web apps, mobile apps, and software. His work has appeared...

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