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AR Hardware - G7

The AR Hardware market in the G7 countries is predicted to achieve a revenue of US$3.5bn in 2024.
This is projected to exhibit a compound annual growth rate (CAGR 2024-2029) of 13.05%, resulting in a market volume of US$6.5bn by 2029.
The United States is expected to generate the highest revenue in the AR Hardware market, with a projected market volume of US$2,261.0m in 2024.
Furthermore, the number of users in the AR Hardware market is anticipated to reach 79.4m users by 2029.
The user penetration rate is expected to be 3.3% in 2024 and is projected to increase to 10.1% by 2029.
Lastly, the average revenue per user (ARPU) is forecasted to be US$136.0.
It is worth noting that the AR Hardware market refers to the market for augmented reality hardware devices and technologies.
The G7 countries consist of Canada, France, Germany, Italy, Japan, United_Kingdom, and in the United States.
In the G7 country of Japan, the current trend in the AR Hardware market is a strong focus on developing wearable devices for gaming and entertainment purposes.

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Analyst Opinion

The AR Hardware market in G7 countries is experiencing significant growth and development due to increasing customer preferences for immersive and interactive experiences, as well as advancements in technology and the availability of high-speed internet connections.

Customer preferences: Customers in G7 countries are increasingly seeking immersive and interactive experiences, which is driving the demand for AR Hardware. AR technology allows users to overlay digital information onto their physical environment, providing a more engaging and interactive experience. This is particularly appealing to consumers in the entertainment and gaming industries, as well as in the education and healthcare sectors, where AR can be used for training and simulation purposes.

Trends in the market: One of the key trends in the AR Hardware market in G7 countries is the increasing adoption of AR glasses. These wearable devices allow users to view digital content directly in their field of vision, without the need for a separate screen. This provides a more seamless and immersive experience, and is particularly popular among gamers and tech enthusiasts. Additionally, there is a growing trend towards the development of lightweight and portable AR glasses, making them more convenient and accessible for everyday use. Another trend in the market is the integration of AR technology into smartphones and tablets. Many smartphone manufacturers are now incorporating AR capabilities into their devices, allowing users to access AR content without the need for additional hardware. This has significantly expanded the reach of AR technology and made it more accessible to a wider range of consumers.

Local special circumstances: Each G7 country has its own unique set of circumstances that are influencing the development of the AR Hardware market. For example, in the United States, the presence of major tech companies and a strong startup culture has led to a high level of innovation and investment in AR technology. In Japan, there is a strong consumer demand for AR technology, particularly in the gaming and entertainment industries. In Germany, there is a focus on industrial applications of AR, such as in manufacturing and logistics.

Underlying macroeconomic factors: The growth of the AR Hardware market in G7 countries is also influenced by underlying macroeconomic factors. For example, the strong economies of G7 countries provide a favorable environment for investment in AR technology. Additionally, the availability of high-speed internet connections and the widespread use of smartphones and other connected devices have created a conducive environment for the adoption of AR technology. Furthermore, government support and favorable regulatory policies have also played a role in driving the growth of the AR Hardware market in G7 countries.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR hardware revenue, which includes digital spending on hardware (headsets and glasses) that enables consumers to experience augmented reality.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).