Augmented Reality Headsets Market Size, Share & Trends Analysis Report By Product (Standalone, Tethered, Smartphone Enabled), By Application (Enterprise, Consumer), By Region, And Segment Forecasts, 2024 - 2030

Augmented Reality Headsets Market Trends

The global augmented reality headsets market size was valued at USD 5.13 billion in 2023 and is projected to grow at a CAGR of 37.4% from 2024 to 2030. The market is experiencing substantial expansion due to investments in the industry, the incorporation of augmented reality (AR) technologies in various sectors, and continuous technological advancements. The increased funding is fueling innovation and making it possible to create more advanced, easy-to-use headsets. The increasing utilization of AR technologies in industries including education, healthcare, and entertainment is expanding the market's range and boosting consumer interest.

The technological advancements in display, sensor, and processing capabilities enable increasingly sophisticated and immersive AR experiences. The expanding applications of AR across industries, from gaming and entertainment to enterprise solutions such as manufacturing and healthcare, are broadening the market's potential. Significant investments in AR research and development by established tech companies and startups fuel innovation. Improvements in technology are enhancing the user experience through better headset comfort, functionality, and immersive features. The combination of these factors positions AR headsets as crucial tools for professional and personal use, indicating significant growth in the market. In addition, the rising consumer demand for interactive and engaging experiences is driving market expansion.

AR headsets help users understand real-time instances of objects around their surroundings using a camera. As a result, enterprises in industries such as education, healthcare, entertainment, and retail are adopting AR technology to provide end-users with a real-life 3D immersive experience. The rising trend of overlaying virtual objects around the environment and the need to experience the objects is expected to contribute to the product demand. For instance, the Microsoft HoloLens- an AR headset- helps users interact and detect analytical information about the displayed products during the trial.

Several other factors contributing to the augmented reality headset market's growth are the increasing integration of AR with other technologies, such as 5G, artificial intelligence, and cloud computing, which enhances AR capabilities and expands its potential applications. Moreover, the growing adoption of smartphones and wearable devices creates a more extensive user base familiar with immersive technologies, accelerating AR headset adoption. In addition, supportive government initiatives and policies promoting AR development and adoption foster a favorable market environment.

Product Insights

The standalone headsets segment accounted for the largest revenue share of 49.1% in 2023. The ability to operate independently, without relying on external devices such as smartphones or PCs, offers convenience to users. Standalone headsets have advanced processing features that allow high-quality graphics, immersive experiences, and a wider variety of applications. In addition, with advancements in standalone technology, prices have become more competitive, allowing a more comprehensive range of consumers to access them. The increasing focus on being portable and having wireless connections has also played a part in the rise of standalone headsets, as users are getting smooth and unrestricted experiences with these headsets.

The smartphone-enabled headsets are expected to register the fastest CAGR of 39.3% over the forecast period primarily attributed to the wide accessibility of smartphones, which serve as a common platform for AR experiences. As smartphone technology continuously improves with better cameras, processors, and AR software, the quality and features of smartphone-compatible headsets are also consistently enhancing.

In addition, the affordability of these headsets compared to standalone devices allows for greater accessibility to a wider range of consumers. Incorporating AR into well-known smartphone apps across various fields, such as gaming, shopping, education, and navigation, is driving higher acceptance and user engagement. These factors contribute to the rapid growth of the smartphone-connected headset sector in the augmented reality industry.

Application Insights

The enterprise segment dominated the market in 2023 owing to the increased adoption of AR technology by the manufacturing, healthcare, and logistics industries to boost operational efficiency, improve training, and simplify intricate procedures. AR headsets allow workers to access information without using their hands, helping them to complete tasks more accurately and quickly. In addition, the increased emphasis on remote assistance and maintenance has increased the demand for AR solutions, enabling experts to offer real-time guidance to on-site personnel. Furthermore, to improve workflows and gain a competitive edge, businesses are increasingly incorporating AR into their operations to drive growth in the enterprise sector of the AR headset market.

The consumer segment is projected to grow at the fastest CAGR over the forecast period pertaining to the increased affordability of AR devices, the rising demand for gaming and entertainment applications, and the growing interest in immersive digital experiences. The enhancements in AR technology offer more realistic and engaging features to consumers. These devices are attracting customers for entertainment and social purposes. Furthermore, incorporating AR into smartphones and other consumer gadgets has increased its availability, reaching a broader demographic. The explosive growth of the AR headset market consumer segment is driven by a combination of technological advancements, decreasing costs, and increasing demand for interactive digital content.

Regional Insights

North America augmented reality headsets market dominated the market with a revenue share of 38.9% in 2023. The early adoption of cutting-edge technologies in the region has created a favorable setting for the development and implementation of AR in North America. The growth of AR technology has been speeded up by the presence of big tech giants in the region and significant funding for research and development. Moreover, the growing consumer interest in immersive experiences and the presence of high-speed internet infrastructure have driven the need for AR headsets in North America.

U.S. Augmented Reality Headsets Market Trends

The U.S. augmented reality headsets market dominated North America with a revenue share of 82.9% in 2023 owing to a large consumer base with high purchasing power. The citizens highly favor advanced technologies, which increases the demand for AR headsets. In addition, the nation's established supply chain and manufacturing abilities have helped produce and deliver AR devices smoothly, further propelling market growth.

Europe Augmented Reality Headsets Market Trends

Europe AR headsets market was identified as a lucrative region in 2023 attributed to the significant presence of key industries such as manufacturing, automotive, and healthcare, which are early adopters of AR solutions and have driven demand. Moreover, the growing consumer demand for immersive experiences and the higher disposable income levels have fueled the growth of the European consumer AR market.

The UK AR headsets market is expected to grow rapidly in the coming years due to the robust technological infrastructure and flourishing digital economy, which provide a strong base for implementing AR technology. In addition, early investment in research and development, along with government support for innovation, has accelerated the advancement of AR technology in the UK.  

Asia Pacific Augmented Reality Headsets Market Trends

Asia Pacific AR market is anticipated to witness significant growth in the augmented reality headsets market. This growth owes to the significantly increasing investments in augmented reality technologies across the region. AR has the potential to revolutionize various industries, and numerous countries in Asia Pacific are heavily investing in the research and development of AR technologies. China, Japan, South Korea, Singapore, and India are leading the way in promoting AR adoption and fostering innovation through government-led initiatives.

China augmented reality (AR) headsets market held a substantial market share in 2023 owing to its large population and rapidly growing middle-class group, which resulted in a massive demand for AR devices. Moreover, China's role as a global manufacturing hub established a solid base for producing and distributing AR headsets at affordable prices. Furthermore, the Chinese government's backing of technological progress, such as AR, has resulted in substantial research and development funding, driving industry advancements. Incorporating AR technology in different sectors such as gaming, education, and manufacturing has also strengthened market expansion.

Key Augmented Reality Headsets Company Insights

Some of the key companies in the augmented reality headsets market include Google LLC, Magic Leap, Inc., Microsoft, VUZIX, Seiko Epson Corporation, RealWear Inc., and others. Key companies are concentrating on growing their customer base to obtain a competitive advantage in the industry. As a result, important players are pursuing a number of calculated risks, including partnerships, mergers, and acquisitions with other big businesses.

• Google LLC (Google), a subsidiary of Alphabet Inc., provides search and advertising services. The company’s main business areas are advertising, search, Google Maps, Google Docs, Chrome, Google Photos, and various hardware products in the Mixed Reality, Virtual Reality, and augmented reality markets.

• Magic Leap, Inc. combines scalable production, optics, and AI technology to create immersive AR experiences. The company focuses on extending the limits of AR technology, which has led to the creation of numerous patents globally covering key aspects such as projectors, eyepieces, headsets, waveguides, manufacturing processes, and related technologies.

Recent Developments

• In May 2024, Google and Magic Leap, an AR startup, formed a strategic partnership to work together on AR and optics solutions, combining Magic Leap's manufacturing expertise with Google's technological innovations.

• In September 2022, Magic Leap launched its newest AR Headset, the Magic Leap 2, and an AR headset for enterprises. Magic Leap 2 incorporates new advancements to tackle the obstacles that have prevented the acceptance of AR technology in various sectors, such as healthcare, manufacturing, retail, and defense, ultimately making AR a beneficial tool for daily use.

Augmented Reality Headsets Market Report Scope

Global Augmented Reality Headsets Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global augmented reality headsets market report based on product, application, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Standalone Headsets

  • Tethered Headsets

  • Smartphone Enabled Headsets

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Enterprise

  • Consumer

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE

    • South Africa