Market Trends of Augmented Reality Industry
This section covers the major market trends shaping the Augmented Reality Market according to our research experts:
Hardware to Exhibit Higher Growth
- One of the outstanding features of AR technology is the type of hardware used, as AR can be achieved without any external devices. From the hardware perspective, heads-up displays with early forms of artificial intelligence (AI) have compelled organizations to experiment with tools that tap into augmented reality (AR) possibilities. By overlaying digital information and objects "on top" of physical environments, AR can take consumer interactions to the next level.
- Most companies, like Daqri, Meta, ODG, Vuzix, Options, etc., made AR headsets focusing on enterprise applications for their devices. For instance, in September 2022, the second edition of Magic Leap's augmented reality platform for businesses, known as Magic Leap 2, has now gone on sale. The Magic Leap 2 is currently accessible to all consumers worldwide. The smallest and lightest augmented reality tool created for businesses is the Magic Leap 2. The market will likely grow during the forecast period due to the increased availability of hardware devices.
- Further, as companies in the competitive consumer electronics sector keep improving the quality of cell phones, laptops, digital recorders, and other devices, the consumption of chips will rise. During the focal period, a growing gaming community, the adoption of mobile devices and gaming consoles, and technological advancements will fuel this expansion.
- With a strong dependency on hardware, the demand for accurate measurement is expected to drive hardware changes, particularly clock synchronization of all the sensors involved. The camera with high resolution, combined with a range of IR sensors and IMUs, is expected to be developed in line with estimating precisely in the 3D space. Similar trends are anticipated among the semiconductor companies incorporating these technologies into their latest chips to support accurate AR frameworks.
- Additionally, businesses rely on MR devices to vastly increase people's knowledge of the world by overlaying information in the real world. It can also improve collaboration by enabling remote teams to see the work in real-time to provide better feedback precisely. For the entertainment sector, successful mixed reality content requires an emotional connection between the viewer and their experience.
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North America to Register Significant Growth
- The North American AR market is expected to grow significantly over the forecast period, owing to a large number of vendors also making considerable investments in market innovation, coupled with the dominance of the United States in the global software market.
- The region serves as a center for cutting-edge technology. Industrialization and increasing awareness of industrial safety is blamed for the market's expansion. Additionally, the expanding applications of augmented reality in the retail and automotive industries support the market size.
- The United States is expected to be one of the most highly innovative AR markets. Most companies advancing in this technology are based in the United States. High technology exposure and ease of availability of smart devices have created a solid regional AR market. Microsoft's AR product, Hololens, was first released in the United States and Canada, and it received a positive response from consumers in the country.
- Further, the region has the highest adoption rate of smart devices, especially smartwatches and smart glasses. As smart devices, especially smartphones, play a significant role in developing the AR market, the region offers a vast opportunity for the market studied over the forecast period.
- Smart glass is another segment witnessing a massive penetration of AR technologies in the region, and it is estimated to grow significantly in the forecast period. For instance, in early 2022, Snapchat revealed new augmented reality shopping experiences, the Dress Up tool, and more. With the help of Snapchat's latest technology, brand shops may develop AR Lenses that let customers try on shoes or apparel from their brands in augmented reality.
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