The worldwide market size for augmented reality is forecast to increase drastically in the next few years. Over the period from 2017 to 2025, the augmented reality market size is estimated to increase by over 195 billion U.S. dollars, increasing from roughly 3.5 billion in 2017 to over 198 billion U.S. dollars in 2025.

Augmented reality vs virtual reality

Augmented reality (AR) is a technology that blends digital components with the physical environment in such a way that they enhance each other but are easily told apart. AR makes use of sensory devices to modify a user’s environment to make it more meaningful through the ability to interact with it. One example of AR technology is the popular mobile game Pokémon Go. Virtual reality (VR) technology, on the other hand, creates a computer-generated simulation or recreation of a physical environment. VR immerses the user by making them feel like they are experiencing the simulation firsthand through the stimulation of their vision and/or hearing. Examples of VR technology include Facebook’s Oculus Rift and Sony’s PlayStation Virtual Reality.

AR use becoming more popular?

Consumer downloads of mobile augmented reality applications have been increasing worldwide since 2016. Total consumer downloads of augmented reality applications worldwide in 2022 are predicted at over 5.5 billion, a drastic increase from the 2016 downloads which were slightly over a billion.

In 2024, there were an estimated 1.03 billion mobile augmented reality (AR) users worldwide, a market that is based on monthly active users of AR experiences on mobile devices, including apps, web AR, and visual search. In 2025, there will be an estimated 1.07 billion mobile AR users, with this figure expected to jump to 1.19 billion by 2028.

The reach in the 'AR Hardware' segment of the AR & VR market in the United States was forecast to continuously increase between 2024 and 2029 by in total 34.4 million users (+207.6 percent). After the seventh consecutive increasing year, the indicator is estimated to reach 50.96 million users and therefore a new peak in 2029. Notably, the reach of the 'AR Hardware' segment of the AR & VR market was continuously increasing over the past years.Find other key market indicators concerning the revenue and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

As of 2021, there were 1.5 billion frequent augmented reality (AR) consumers worldwide. The number of global AR consumers is expected to grow to 4.3 billion by 2025.

In 2023, visual search users were the biggest contributor toward the total number of mobile augmented reality (AR) users worldwide, with 912 million active users through this method. Other notable mobile AR platforms include Meta AR, Snap Lenses, and TikTok AR.

It is forecast that over 2.3 million jobs will be enhanced by augmented reality (AR) and virtual reality (VR) technologies in the U.S. by 2030, an increase from the 80 thousand jobs that were enhanced by AR and VR in 2019. AR, VR, and mixed reality (MR) is often referred to as extended reality (XR), an emerging term used for all immersive technologies.

As of a 2019 report, it is forecast that over 23 million jobs will be enhanced by virtual reality (VR) and augmented reality (AR) technologies globally by 2030, an increase from the 800 thousand jobs that were enhanced by VR and AR in 2019. VR, AR, and mixed reality (MR) is often referred to as extended reality (XR), an emerging term used for all immersive technologies.

Economic benefits of VR worldwide

Global spending on augmented reality and virtual reality (AR/VR) is forecast to grow once more in 2020, with the consumer VR hardware and software market also projected to experience an upward trend through to 2023. The potential impacts of new technologies like VR are now more apparent globally, with forecasts suggesting VR will boost GDP worldwide by 450.5 billion U.S. dollars by 2030. In addition to this, it is predicted that over 23 million jobs will be enhanced by VR/AR technologies globally by 2030.

Economic benefits of VR in Europe

For European nations, VR is forecast to bring about a number of social and economic benefits. A boost to gross domestic product (GDP) of 20.1 billion U.S. dollars by 2030 has been projected in the UK, whilst in France, GDP is forecast to receive a 14.4 billion U.S. dollar boost as a result of VR technology. Furthermore, over 400 thousand jobs will be enhanced by VR/AR in the UK by 2030, an increase from the 10 to 15 thousand jobs that were enhanced by VR/AR in the UK in 2019.

The statistic shows the number of virtual reality (VR) and augmented reality (AR) users in the United States from 2017 to 2023. In 2020, 83.7 million people used AR at least once per month in the United States. The corresponding figure for 2023 was forecast to reach over 110 million users.

As of 2021, the source indicates that there were 4.6 billion augmented reality (AR) photos and videos captured per day throughout the world. By 2025, the number of global AR photos and videos per day is expected to grow to 17.6 billion.

In 2024, the mobile augmented reality (AR) market was estimated to be worth 11.9 billion U.S. dollars. It is forecast to reach 13.8 billion U.S. dollars in size in 2025, before jumping to over 21 billion U.S. dollars by 2028. The market includes revenue generated from AR experiences on mobile devices, including apps, web AR, and visual search.

The global extended reality (XR) market was valued at 25.7 billion U.S. dollars in 2024, an industry that includes augmented reality (AR) and virtual reality (VR). Forecasts suggest that by 2028, the XR market could be worth 41.8 billion U.S. dollars. Augmented reality (AR) AR technology integrates digital information with the physical environment, live and in real-time. Through the addition of graphics, sounds, haptic feedback, or even smell to the natural world as it exists, AR can combine real life with a super-imposed image or animation using the camera on a mobile device or AR headset. As part of the wider XR industry, the global AR market is expected to grow considerably in the coming years. Metaverse Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together. As an evolution of social technologies, the metaverse allows digital representations of people, avatars, to interact with each other in various settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using VR headsets, AR glasses, smartphone apps, or other devices.

In 2020, 43.7 million people in the United States used augmented reality (AR) on social networks at least once per month. Popular types of AR content on social media include photo filters on apps like Snapchat or Instagram.

The reach in the 'AR Hardware' segment of the AR & VR market in Europe was forecast to continuously increase between 2024 and 2029 by in total 20.7 million users (+207.21 percent). After the seventh consecutive increasing year, the indicator is estimated to reach 30.65 million users and therefore a new peak in 2029. Notably, the reach of the 'AR Hardware' segment of the AR & VR market was continuously increasing over the past years.Find other key market indicators concerning the revenue and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

The reach in the 'AR Hardware' segment of the AR & VR market in Asia was forecast to continuously increase between 2024 and 2029 by in total 29.9 million users (+207.93 percent). After the seventh consecutive increasing year, the indicator is estimated to reach 44.27 million users and therefore a new peak in 2029. Notably, the reach of the 'AR Hardware' segment of the AR & VR market was continuously increasing over the past years.Find other key market indicators concerning the revenue growth and revenue. The Statista Market Insights cover a broad range of additional markets.

In 2022, the number of augmented reality (AR) and virtual reality (VR) devices shipped worldwide reached 9.11 million units, with forecasts suggesting that this is set to fall to 7.45 million units in 2023.

AR/VR market

AR, VR, and mixed reality (MR) are the cornerstones of the extended reality (XR) field. XR technologies extend the reality we experience by either merging the virtual and the “real” worlds, or by creating a fully immersive experience. AR/VR headset vendors include Meta, Sony, and HTC who offer VR devices, while Microsoft, Magic Leap, Vuzix, and Apple offer AR headsets and glasses.

Metaverse

Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using VR headsets, AR glasses, smartphone apps, or other devices. The potential metaverse market opportunity ranges from 3.75 trillion U.S. dollars to 12.46 trillion U.S. dollars, depending on the share of the digital economy that shifts to the metaverse and market expansion. Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together.

The statistic shows the number of mobile augmented reality applications worldwide in the consumer market from 2016 to 2022. In 2016, the installed base of apps with embedded AR stood at 340.8 million worldwide.

As of January 2019, 54 percent of respondents said that the gaming sector was going to witness the most investment directed to the development of virtual reality (VR), augmented reality (AR), and mixed reality (MR) technology or content in the next 12 months. Sectors like healthcare and education have also become notable investment destinations as the use cases of extended reality (XR) technology have developed.

Extended reality (XR)

Extended reality (XR) is an emerging term for all immersive technologies, including VR, AR, and MR, plus those that are yet to be created. Immersive, or XR, technologies, extend the reality we experience by either merging the virtual and “real” worlds, or by creating a fully immersive experience. VR creates an artificial environment, whereas AR simply makes use of the existing environment by overlaying new information on top of it. In both VR and AR, the information or imagery is made available to the user using headsets, with Oculus VR and Sony among notable vendors.

XR consumption

The market for XR technology is growing, with major companies like Microsoft and Intel investing into XR technology. Included in this, the number of mobile AR users globally is expected to increase, fueled in part by a growing desire for AR technology to enhance consumer experiences in media and entertainment. Music concerts and sports events are just two examples where AR technology is being used more commonly in order to help enrich the fan experience.

The number of consumer human machine interface devices dedicated to augmented reality (AR) and virtual reality (VR) throughout the world is forecast to grow to more than 73 million by 2030, an increase of more than 65 million compared to 2020.

As of a 2019 report, it is forecast that over 400 thousand jobs will be enhanced by virtual reality (VR) and augmented reality (AR) technologies in both Germany and the UK by 2030, an increase from the 10 to 15 thousand jobs that were enhanced by VR and AR in each of these countries in 2019.

In 2022, 8.83 million augmented reality (AR) and virtual reality (VR) headset shipments were recorded. In 2023, AR/VR headset shipments are expected to reach 10.06 million units, of which VR devices will account for 9.59 million.