Augmented Reality Headsets Market Analysis Report By Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global augmented reality (AR) headsets market size was valued at USD 1.64 billion in 2018. It is projected to witness a 73.8% CAGR over the forecasted years, 2019 to 2025. The surging usage of graphical objects prevailing among several enterprises for improving consumer experience is projected to drive the market growth for AR headsets.

These headsets help in enhancing the understanding of real-time object instances among the users. Thus, many industries like healthcare, education, retail, and entertainment have started adopting this AR technology. Also, the surging need for overlaying virtual objects across the environment coupled with the need to experience objects is expected to propel the demand for AR headsets.

The popularity of AR headsets is increasing at a faster pace due to their wide applications like HMDs (Head Mounted Displays) and smart wearables. Several enterprises have started investing hugely to develop the latest computing frameworks for the improvement of business operations, business, and marketing. Such factors are triggering the demand for AR headsets across the globe.

The rise in investments and funds by several venture capitalists, VR enterprises, and major technological firms for the development of AR headsets is projected to drive market growth. For example, an AI, AR & Robotics-based Chinese company named Rokid had raised revenue of USD 100 million from Credit Suisse, IDG Capital, and CDIB Capital to produce smart glasses on a large scale.

Type Insights

The global market can be classified into tethered, smartphone-enabled, and standalone headsets based on their type. In 2018, the standalone segment held the largest share of around 48.0% across the global market. These headsets include features like near-eye display, LCoS cameras, and optical see-through. Their ability to provide an enhanced user experience without taking the help of other devices is anticipated to drive the market growth for this segment.

The tethered AR headsets were conventionally used across the global market. Their growth was associated with their higher performance in many AR applications. For example, Seiko Epson Corporation assisted the training department of Volkswagen AG to enhance training functions by using smart glasses named Moverio BT-200.

Application Insights

The global AR headsets market can be segmented into consumer and enterprise based on application. In 2018, the enterprise segment held the largest share of around 84.0% across the global market. This can be associated with the rising usage of such products to carry out activities like product assortment, advertisement, catalog management, and research. Further, applications like machine visioning and remote monitoring across the automobile industry are anticipated to propel market growth.

The consumer application segment is still in the babyhood stage across the globe. Many players are producing AR headsets to cater to the demand of several enterprises and developers. But, the surging adoption of smartphones and AR applications is anticipated to propel its demand in the upcoming years. Also, rapid technological advancements, the need for an enhanced view field coupled with the incorporation of highly accurate sensors at a lower price is projected to drive the market growth for this segment.

Regional Insights

North America dominated the global augmented reality headsets market with a share of 38.0% in 2018. This can be attributed to the increase in spending on technologies like AR by several enterprises coupled with the emergence of many AR-based startups. The U.S. held the largest share across this region owing to the presence of key players and a rise in headset shipments.

Asia Pacific is expected to register the highest CAGR from 2019 to 2025 across the global market. This can be associated with the increase in AR spending, the availability of AR apps, and a rise in demand for headsets among the millennial population. Also, development in R&D activities coupled with the easy availability of raw materials from countries like China is anticipated to trigger market growth over the forecasted years.

COVID-19 Impact Insights

The global market for AR headsets has been impacted positively due to the COVID-19 pandemic. The rising trend of work from home prevailing across several organizations is facilitating the need for AR headsets owing to their ability to provide deep and clear visualization. Also, the rising inclination towards online education on account of travel restrictions and lockdown imposition by several countries is anticipated to propel the demand for AR headsets. Further, rapid technological advances coupled with the need for enhancing the virtual experience are projected to drive the market for AR headsets in the post-pandemic period.

Augmented Reality Headsets Market Share Insights

The global AR headsets market is in the embryonic stage and is characterized by the rising presence of emerging players. The key players in the market are Microsoft; Google LLC; RealWear, Inc.; Sony Corporation; Kopin Corporation; and VUZIX. The key players are also engaged in implementing strategies like mergers and acquisitions to gain a competitive advantage.

Several players are developing technologically advanced products that can be produced on a large scale. For example, Google LLC has launched Edition 2 of Google Enterprise that encompasses Qualcomm’s Snapdragon XR1 platform along with enhanced camera performance features. Many players like Ride On, Lenovo, and Orcam have started entering the global market which is expected to fuel the upcoming demand over the forecasted years.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2015 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global Augmented Reality (AR) headsets market on the basis of type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Standalone Headsets
    • Tethered Headsets
    • Smartphone-enabled Headsets

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Enterprise
    • Consumer

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
    • Middle East & Africa