The augmented reality market was valued at USD 14.7 billion in 2020 and is projected to reach $88.4 billion by 2026, according to a report by business data firm MarketsandMarkets. The 216-page report also forecasts Compound Annual Growth Rate (CAGR) of 31.5% in the same period.
The report states that hardware will account for the largest share of the augmented reality market during the forecast period to 2026. It also predicts that the consumer market will continue to outstrip enterprise, citing "The flourishing gaming and sports and entertainment sectors".
Outside of the consumer sector, the key factors driving market growth identified include demand for AR devices and applications in healthcare, retail and e-commerce, as well as the global automotive industry. MarketsandMarkets point to remote collaboration and training as key opportunities.
While the report is bullish on healthcare applications as a result of the global pandemic, it also urges restraint based on security and privacy issues, "Due to the inconsistencies in AR programming and negligence and oversight of both the developers and end users of AR apps and devices". It notes the concern that some AR applications, "Do not have the capabilities to secure user identity and privacy".
Also noted is an increase in demand for devices during COVID, coupled with a shortfall in global manufacturing processes. Ironically, the report highlights growth potential specifically in the manufacturing industry in the APAC region.
Find out more about the report here.