AR Glasses Market Projected to Reach US$883.4 Million by 2025, Fueled by Enterprise Adoption
Robust CAGR of 17.8% Expected from 2021-2025 in the AR Glasses Market
The global AR glasses market is set to witness substantial growth, with a projected value of US$883.4 million by 2025, compared to US$143.8 million in 2017. This growth is expected to occur at a noteworthy CAGR of 17.8% during the forecast period from 2021 to 2025.
Augmented Reality Glasses Enhance Efficiency
Augmented reality (AR) glasses, also known as computerized eyewear, incorporate augmented reality technology to provide users with an enhanced view of the real world overlaid with digital content. Notable examples of AR glasses include Google Glass, Rokid Glasses, Focal by North, and Vuzix Blade. The global AR glasses market is experiencing growth driven by the increasing demand for streamlined operations and improved operational efficiency among enterprises.
COVID-19 Boosts Enterprise AR Glasses Adoption
The outbreak of COVID-19 has played a pivotal role in driving the adoption of AR glasses by enterprises. Law enforcement agencies have utilized AR glasses to identify individuals with high body temperatures in public areas. Similarly, manufacturing and healthcare companies have deployed these devices for remote collaboration with experts, making them invaluable for hands-free and remote operations during the pandemic.
Key Market Findings
- By the end of 2025, the global AR glasses market is projected to exceed US$883 million.
- The market is anticipated to achieve a remarkable CAGR of approximately 17.8% through 2025.
- Large enterprises are increasing their investments in AR glasses, presenting significant opportunities for market growth.
- Snap Inc. has made a substantial investment of US$500 million to acquire WaveOptics, a prominent AR display supplier.
- Google Inc. leads the enterprise AR glasses market, while Seiko Epson spearheads the consumer AR glasses segment.
Factors Influencing Growth
COVID-19 Impact: While the pandemic has positively influenced enterprise AR glasses adoption, it has had a slightly negative impact on consumer AR glasses demand. The global recession resulting from the pandemic led to decreased consumer spending, affecting the demand for AR glasses. Additionally, the cancellation of many sports events during the pandemic reduced the need for AR glasses typically used in sports applications.
Enterprise AR Glasses Dominate: The enterprise AR glasses segment holds over 90% of the global AR glasses market share in 2020. Consumer adoption of AR glasses from companies like North, Snap, and Realmax Inc. remains limited. The current generation of AR glasses has not convincingly offered unique advantages over smartphones for many potential customers.
Manufacturing Industry Leads, Healthcare Industry Shows Promise: AR glasses are being deployed across various industries, including logistics, manufacturing, and oil and gas. The manufacturing sector is the top revenue contributor, generating US$42.7 million globally in 2017. The healthcare industry represents a lucrative market for AR glasses vendors. These glasses are used in medical training, education, and telehealth services, enhancing the efficiency and capabilities of healthcare professionals.
Regional Market Dynamics
- North America: Leading the global AR glasses market with a 38.5% revenue share in 2020, North America benefits from the adoption of AR glasses for operational improvements and the presence of technology giants such as Google, ThirdEye, Apple, Vuzix, and Snap Inc.
- Asia Pacific: Expected to exhibit the fastest growth in the AR glasses market, with China as the dominant country due to its role as a technology manufacturing hub. India is also anticipated to create opportunities for consumer AR glasses manufacturers as consumer spending on wearable devices increases.
The enterprise AR glasses market is characterized by established vendors, with Google, Seiko Epson, Rokid, and Vuzix accounting for over 75% of the market share in 2020. Google holds a dominant position, contributing over 50% of market revenues in 2020. The consumer AR glasses market is still nascent but poised for rapid growth in the coming years as major technology companies, including Apple, Facebook, and Reliance Jio, plan to enter this sector.
Industry Expansion and Acquisitions: Large companies are focusing on expanding their presence in the AR glasses market through acquisitions of smaller firms that offer augmented reality components such as displays and lenses.
The future of AR glasses holds potential for significant advancements, including improved service ecosystems, data privacy considerations, and compelling use cases. Apple, for instance, has applied for a patent on a vision correction optical system aimed at eliminating the need for prescription lenses in smart glasses. Furthermore, the development of 5G support for AR glasses is expected to become more common, offering new solutions and opportunities in the market. Qualcomm’s partnership with telecom operators for 5G-powered XR2 mixed reality (MR) platforms is just one example of this trend.
Overall, the AR glasses market is poised for continued growth, with innovations, new entrants, and expanded applications driving its evolution in the coming years.
Browse Global AR Glasses Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025 – [2023 UPDATE Available – Forecast 2023-2030*] (By Type Coverage, By Industry Coverage, By Geography, By Company): https://www.fairfieldmarketresearch.com/report/ar-glasses-market
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This press release first seen on Brilad