Augmented reality (AR) technology is one of the emerging technologies in the field of displays that would make a mark in the near future. Augmented reality technology is used in various fields such as aerospace & defense, commercial, retails and e-commerce. The gaming sector would be more engaging & interactive with the help of augmented reality technology.
Emerging trends such as escalating convergence between wearable devices, AR, and GPS are anticipated to drive demand of augmented reality market. High penetration of smartphones and tablet is the major factor in prompting this market adoption. User Interface (UI) limitations may curtail the growth of this market. It also shows technical inefficiency in determining various physical obstructions due to lack of information in view management.
Augmented reality (AR) market is segmented on the basis of the component, display, application, and region. Components involved in this technology are hardware (display, semiconductors, sensor) and software. The hardware components are estimated to grow robust CAGR over the forecast period. Companies such as Sony and Microsoft are expected to launch their augmented reality based devices by 2016, which is expected to intensify market competition over the forecast period. Further, several companies are working on enhancing the quality of sensors and processors which is used in AR devices. For instance, Google has collaborated with the chip manufacturers to build camera processors and components for Android smartphones.
On the basis of application the augmented reality (AR) market is segmented into aerospace and defense, commercial, industrial, retails and e-commerce. The commercial applications such as e-learning, tourism and e-commerce are predicted to exhibit substantial growth due to the penetration of smartphones, and tablet. Furthermore, by display type, head mounted display (HMD), head-up display (HUD), hand held display and the spatial display is the major segments of the industry. In the naval space, HMDs are used in difficult terrain and also for low visibility areas for improving navigational and visual capabilities. By HMD soldiers can access strategic information including thermal imaging data while viewing the real environment, which has the force to increase demand of augmented reality (AR) market.
In terms of revenue, Asia Pacific held the largest share of the global augmented reality (AR) market and is set to continue to dominate the globe marketplace throughout the foreseeable future. This growth is mainly attributed to the booming service sector in countries like China and India. China is expected to drive the regional growth with the increasing investments in augmented reality devices and software. AR market in China is mainly driven by the high production of the smartphone industry. Local vendors have invested significantly in the AR technology and are expected to launch new smartphone apps that may further fuel market growth in the region. Many companies in North America are also investing in augmented reality market through collaboration and strategic alliances with another player that is expected to escalate the AR market growth in the region.
Europe is another leading regional market and is predicted to witness noteworthy growth in the forecast period. The market growth is impelling due to the rising demand of augmented reality (AR) in automotive and retail sectors. Increasing investments by countries such as Germany and the UK are some of the major contributing factors to the growth of augmented reality (AR) market in Europe.
The developing economies in Latin America also have a potential market for the growth of the augmented reality (AR) market. High demand for technology based augmented reality devices are the key growth factors anticipated to contribute to the growth of the market in augmented reality of Latin America. The Middle East and Africa is estimated to be one of the fastest growing regional markets for augmented reality market in the coming years.