Pandemic Pushes More Virtual Experiences - AR Market to Reach $24 Bn

obile AR is growing significantly in popularity and is evolving at an unstoppable rate. These incredible developments in the technology must be partially credited to the creative industry, including retail, entertainment and gaming to name a few.  The adoption of AR technology in this side of business has challenged and pushed AR to advance and deliver better solutions. Mobile AR has a unique position in many industries, as it is designed to create immersive experiences, demonstrated with the launch of sophisticated, intricately designed games, shopping apps, and learning experiences that truly unlock the real potential of solutions showcased by AR.

The explosive growth of mobile AR is completely attributable to smartphones and tablets. Mobile AR has contributed enormously to the way we can now experience games, art and entertainment which can be accessed from remote places to urban landscapes. With new creations such as Google Glass, mobile AR has evolved to be molded to fit many other sectors, changing the game for learning experiences, healthcare and military training.

Due to these factors, one study predicts that the global mobile AR market estimated to reach  $3 Billion by the end of 2020 and surge at a whopping CAGR of 23.2% during the forecast period of 2020 to 2030. This indicated that by 2030, the AR market will be valued at around $24 Billion. 

Key Takeaways of Mobile Augmented Reality Market Study

• East Asia will lead the race in the global mobile AR market at a CAGR of 27.2% between 2020 and 2030
• Gaming sector anticipated to retain its leading position with a share of 28% by the end of 2030
• Smartphones and tablets to revolutionise educational experiences with integration of mobile AR
• Services sector to leap ahead at a CAGR of 24.6% during the forecast period as AR design and development, integration and development, and support services find applications across verticals

During one recent study, a data analyst commented:

“The mobile augmented reality market in East Asia is expected to grow at a high CAGR as sales of smartphones with AR apps remains exponential. This eliminates the need for additional hardware to support this technology, which is expected to drive the expansion of mobile AR technology in the region. Mobile augmented reality has also become the new medium for game developers to focus on creative immersive experiences to create a high value proposition for the end use…” 

COVID-19’s Affect On Mobile AR Market

The COVID-19 pandemic has worsened the economic crisis, resulting in industries re-evaluating the ways that they work, educate and entertain. With no live events to attend and the uncertainty looming over reopening of schools, shops and leisure, mobile AR found its opening to a plethora of opportunities.

The adoption of AR has also surged in healthcare, as medical professionals attempt to keep their patients and selves as safe as possible and recently, there has been the first virtual ward round in a London hospital, which students viewed from their own homes. Furthermore, there have been incredible developments in online gaming, schooling, and entertainment as artists are taking to the web to perform their gigs. This collectively has resulted in a specific demand for mobile AR which is being utilised across a multitude of industries and according to a recent study, the mobile AR market will grow 6%-8% by Q3 2020 in light of Covid-19.

E-commerce to Enhance Demand for Mobile AR

The e-commerce industry has been identified as a key contributor to the increasing adoption of mobile AR. Integration of mobile AR by brands is assisting customers to purchase the right item the first time with lower return rates. AR helps users to view virtual products in 3D, with life-like projections in real-time through smartphones or tablets.

Mobile AR offers brands the opportunity to improve consumer shopping with innovative and immersive experiences. With AR, a brand with an e-commerce platform can create a virtual table with a different range of products and project it in their customer’s living room. The growing number of purchases via mobile devices and shoppers using smartphones in-store is also increasing the demand for mobile AR adoption.

The continuous development of AR technology partnered with increased consumer engagement is projected to bode well for the market in the forecast period.