Augmented Reality in Manufacturing Market Overview
As per MRFR analysis, the augmented reality in manufacturing market size was estimated at 12.85 (USD Billion) in 2022. The augmented reality in manufacturing market industry is expected to grow from 15.38 (USD Billion) in 2023 to 77.31 (USD Billion) by 2032. The augmented reality in manufacturing market CAGR (growth rate) is expected to be around 19.66% during the forecast period (2024-2032).
Key Augmented Reality in Manufacturing Market Trends Highlighted
Augmented reality (AR) technology is rapidly transforming the manufacturing sector, offering a range of benefits such as improved efficiency, reduced errors, and enhanced safety. Key market drivers include the growing adoption of Industry 4.0 principles, the increasing demand for personalized and customized products, and the need for more efficient and cost-effective manufacturing processes.
Furthermore, AR presents numerous opportunities for exploration and capture within the manufacturing market. This includes the development of new AR-based applications for training, remote assistance, and quality control. Additionally, the use of AR technology for predictive maintenance and supply chain management is expected to further drive market growth.
Recent trends in the AR in manufacturing market include the integration of artificial intelligence (AI) and machine learning (ML) to enhance the capabilities of AR systems. The use of wearable AR devices is also gaining traction, providing hands-free operation and increased mobility. The convergence of AR with other technologies, such as the Internet of Things (IoT) and edge computing, is also creating new opportunities for innovation and market expansion.
Figure1: Augmented Reality in Manufacturing Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Augmented Reality in Manufacturing Market Drivers
Increasing Adoption of Digitalization in Manufacturing
The ongoing digitalization of the manufacturing industry has led to its transformation, as more and more businesses begin to adopt various digital technologies to better their operations. Augmented Reality, or AR, is one of the key technologies of such a transformation, as it allows manufacturers to see and interact with digital data overlaid on top of physical reality.
In manufacturing, its areas of application include but are not limited to the product design, assembly work and maintenance. The increasing role of digital technologies in manufacturing is expected to benefit the market, as more manufacturers come to appreciate the benefits of AR technology. Some of the most prominent benefits of using AR in manufacturing include:
Efficiency: By providing access to real-time data, AR allows its users to maximize their efficiency, as they can receive the necessary information even when they are working on particularly complex operations. Additionally, as technology allows us to minimize the number of errors, productivity is increased even further.
Costs: AR can help to reduce the costs of manufacturing in several ways, first and foremost by removing the need for physical prototypes from the process of product design. Furthermore, it can also lower the costs of service, by enabling remote access and on-line help for the workers across the globe.
Safety: By providing real-time information on the machines and the environment that the workers interact within, AR can help to increase the level of safety in manufacturing.
Growing Demand for Immersive Technologies
The demand for immersive technologies has been exploding across a wide variety of industries including manufacturing. One of such technologies is AR, which is the most promising and allows users to interact with digital content in a realistic way.
This technology can help manufacturing in training, simulation, or visualization, making it perfect for various applications. The growing demand for immersive technologies will positively affect the industry, and it is likely to experience significant growth in the coming years.
Government Support for Innovation
Governments around the world are increasingly recognizing the importance of innovation in driving economic growth. They provide financial and other support to businesses that are developing and using innovative technologies, such as AR. This support is expected to continue in the coming years, which will help to drive the growth of the Augmented Reality In Manufacturing Market.
Augmented Reality in Manufacturing Market Segment Insights
Augmented Reality in Manufacturing Market Application Insights
The application segment is vital in the Augmented Reality in Manufacturing Market, and each of the application areas identified presents different contributions to growth. One of the key application areas of augmented reality in manufacturing is product design and visualization.
Enabling engineers and designers to generate and modify designs in a virtual environment, this segment is expected to benefit from the use and growth in the coming years due to the streamlined creation of designs, decreased occurrence of mistakes, and improved collaborative opportunities.
Assembly and maintenance is another application where the use of augmented reality is transforming manufacturing. By overlaying digital guidance and information on the physical world, this technology allows technicians to assemble products faster and more effectively as a result, the use of AR is expected to grow in the period under analysis.
Quality control and inspection is yet another area where the application of augmented reality is becoming feasible. With the use of the technology, inspectors can overlay the checklist and inspection criteria devised with them in a digital format and visually available when they consider the product, thus feeding the data into AR-powered quality control systems capable of automatically handling it for future improvements.
Training and simulation is an activity that can be augmented by the use of this technology, and it can benefit from the increased application of AR in the identified period. Finally, the use of augmented reality in remote collaboration is also expected to see rising adoption rates, as manufacturers are increasingly seeking to link experts and assembly/production teams.
Figure2: Augmented Reality in Manufacturing Market, By Application, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Augmented Reality in Manufacturing Market Type Insights
The augmented reality in manufacturing market is segmented by type into head-mounted displays (HMDs), handheld devices, smart glasses, projectors, and industrial robots. Among these, head-mounted displays (HMDs) held the largest market share in 2023 and are expected to maintain their dominance throughout the forecast period. The segment is projected to reach USD 34.26 billion by 2032, growing at a CAGR of 19.8% from 2023 to 2032. The growth of the HMDs segment can be attributed to their ability to provide a more immersive and hands-free experience for users.
HMDs allow workers to access information and instructions without having to take their eyes off their work, which can lead to increased productivity and efficiency. Additionally, the development of new HMDs with improved features, such as higher resolution and wider field of view, is also driving the growth of this segment.
Augmented Reality in Manufacturing Market Vertical Insights
The augmented reality in manufacturing market is segmented by vertical into automotive, aerospace and defense, healthcare, retail, and construction. The automotive segment is expected to hold the largest market share in 2023, with a market value of 4.2 billion USD.
This is due to the increasing adoption of AR technology in the automotive industry for applications such as assembly line guidance, remote assistance, and quality control. The Aerospace and Defense segment is expected to be the second largest segment, with a market value of 3.5 billion USD in 2023.
AR technology is being used in this segment for applications such as aircraft maintenance, training, and simulation. The Healthcare segment is expected to be the third largest segment, with a market value of 2.8 billion USD in 2023. AR technology is being used in this segment for applications such as surgical planning, patient monitoring, and remote consultation.
The retail segment is expected to be the fourth largest segment, with a market value of 2.1 billion USD in 2023. AR technology is being used in this segment for applications such as virtual try-ons, interactive product demonstrations, and personalized shopping experiences.
The construction segment is expected to be the fifth largest segment, with a market value of 1.5 billion USD in 2023. AR technology is being used in this segment for applications such as design visualization, construction planning, and site management.
Augmented Reality in Manufacturing Market Technology Insights
The augmented reality in manufacturing market is segmented into marker-based AR, markerless AR, occlusion-aware AR, depth-sensing AR, and multi-user AR based on technology. In 2023, the marker-based AR segment held the largest market share due to its widespread adoption in industrial settings.
However, the markerless AR segment is expected to witness the highest growth rate during the forecast period (2024-2032) owing to its ability to track objects without the need for physical markers. Occlusion-aware AR is gaining traction in the manufacturing industry as it enables users to interact with virtual objects as if they were real.
Depth-sensing AR provides a more immersive experience by allowing users to interact with virtual objects in a three-dimensional space. Multi-user AR enables collaboration among multiple users in a shared virtual environment, enhancing communication and efficiency.
Augmented Reality in Manufacturing Market Deployment Model Insights
The deployment model segment of the augmented reality in manufacturing market can be categorized into on-premise, cloud-based, and hybrid. Among these, the cloud-based segment is expected to account for a significant share of the market in the coming years.
This is primarily due to the increasing adoption of cloud computing services by manufacturing companies. Cloud-based AR solutions offer several advantages over on-premise solutions, such as scalability, flexibility, and reduced costs. The on-premise segment, on the other hand, is expected to witness a steady growth rate during the forecast period.
This is because some manufacturing companies may prefer to keep their AR data and applications on-premises for security and compliance reasons. The hybrid segment is expected to gain traction as it offers a combination of the benefits of both on-premise and cloud-based solutions. Overall, the deployment model segment is expected to contribute significantly to the growth of the augmented reality in manufacturing market in the coming years.
Augmented Reality in Manufacturing Market Regional Insights
The augmented reality in manufacturing market revenue is expected to grow significantly over the forecast period. Regionally, the market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share due to the presence of major players and early adoption of advanced technologies.
Europe is expected to be the second-largest market due to the increasing adoption of AR technology in manufacturing industries. APAC is expected to be the fastest-growing market due to the increasing investment in infrastructure and the growing manufacturing sector. South America and MEA are expected to have a moderate growth rate due to the developing manufacturing sector and the increasing adoption of AR technology.
Figure3: Augmented Reality in Manufacturing Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Augmented Reality in Manufacturing Market Key Players and Competitive Insights
In the augmented reality in manufacturing market, major players are always trying to stay ahead and out-edge their rivals. The leading competitors of the given industry focus on their technological and innovation, product developments and, hence, customer satisfaction by offering an advanced experience.
At the same time, companies invest in research to find the best and most suitable solution to offer. In the meantime, the market is expected to stay somewhat unstable with its various new entrants and other forms of businesses’ cooperation.
PTC is a major player in the market. The company is focused on its advanced, end-to-end solutions for the manufacturing industry. The company is keen on offering several Augmented Reality solutions to design and establish a great connection between manufacturers and their products in real time.
Their PTC Vuforia offers a significant set of Augmented Reality assembly providing their users with a great product, which allows reviewing and repairing their devices. The company stays among the leading enterprises with a well-established customers’ service, which includes Boeing, Caterpillar, and General Electric.
Siemens is the other key Augmented Reality solution player. The company is also offering multiple Augmented Reality solutions, namely in the form of the Tecnomatix Plant Simulation software. Siemens also offers multiple augmented reality solutions designed specifically to meet the demand of numerous other industries and businesses, for instance in the form of automotive, aerospace, or healthcare. Factually Siemens is a highly established business, operating in nearly 200 countries and enjoying constant success.
Key Companies in the Augmented Reality in Manufacturing Market Include
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ScopeAR
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Atheer
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PTC
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Google
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Vuzix
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Microsoft
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VIVE Tech Corp
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DAQRI
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Trimble
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Magic Leap
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RealWear
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Qualcomm
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Meta Company
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Epson
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TeamViewer
Augmented Reality in Manufacturing Market Developments
The augmented reality (AR) in manufacturing market is anticipated to witness robust growth in the coming years. Increasing adoption of Industry 4.0 technologies, coupled with rising demand for efficient and error-free manufacturing processes, is driving market expansion. Furthermore, advancements in AR technology, such as the development of lightweight and affordable AR devices, are contributing to the market's growth.
Key players in the AR in manufacturing market include Microsoft, PTC, and Google, among others. For instance, in 2023, Microsoft launched a new AR headset specifically designed for industrial applications, which offers enhanced capabilities for remote assistance and training. These developments indicate continued innovation and growth potential in the AR in manufacturing market.
Augmented Reality in Manufacturing Market Segmentation Insights
Augmented Reality in Manufacturing Market Application Outlook
- Product Design and Visualization
- Assembly and Maintenance
- Quality Control and Inspection
- Training and Simulation
- Remote Collaboration
Augmented Reality in Manufacturing Market Type Outlook
- Head-Mounted Displays (HMDs)
- Handheld Devices
- Smart Glasses
- Projectors
- Industrial Robots
Augmented Reality in Manufacturing Market Vertical Outlook
- Automotive
- Aerospace and Defense
- Healthcare
- Retail
- Construction
Augmented Reality in Manufacturing Market Technology Outlook
- Marker-Based AR
- Markerless AR
- Occlusion-Aware AR
- Depth-Sensing AR
- Multi-User AR
Augmented Reality in Manufacturing Market Deployment Model Outlook
- On-Premise
- Cloud-Based
- Hybrid
Augmented Reality in Manufacturing Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.85 (USD Billion) |
| Market Size 2023 |
15.38 (USD Billion) |
| Market Size 2032 |
77.31 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
19.66% (2024-2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019-2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
ScopeAR, Atheer, PTC, Google, Vuzix, Microsoft, VIVE Tech Corp, DAQRI, Trimble, Magic Leap, RealWear, Qualcomm, Meta Company, Epson, TeamViewer |
| Segments Covered |
Application, Type, Vertical, Technology, Deployment Model, Region |
| Key Market Opportunities |
Predictive Analytics Remote Collaboration Maintenance Optimization Quality Control Workforce Training |
| Key Market Dynamics |
Rising Adoption of IIoT Growing Demand for Remote Assistance Increasing Need for Operational Efficiency Advancements in Wearable Technology Integration with Enterprise Software Systems |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The augmented reality in manufacturing market is expected to reach USD 77.31 billion by 2032, growing at a CAGR of 19.66% from 2024 to 2032.
North America, Europe, Asia-Pacific, and the Rest of the World are the key regions in the augmented reality in manufacturing market.
Augmented reality in manufacturing finds applications in assembly, training, maintenance, and remote assistance.
PTC, Microsoft, Google, Siemens, and Upskill are some of the key competitors in the augmented reality in manufacturing market.
The augmented reality in manufacturing market is expected to grow significantly in the coming years due to the increasing adoption of Industry 4.0 and the rising need for efficiency and productivity in manufacturing.
Lack of skilled workforce, high cost of implementation, and security concerns are some of the challenges faced by the augmented reality in manufacturing market.
Integration of AI and ML, the rise of cloud-based AR solutions, and the increasing adoption of AR wearables are some of the key trends shaping the augmented reality in manufacturing market.
Augmented reality can improve efficiency, reduce errors, and enhance safety in the manufacturing industry.
Benefits of using augmented reality in manufacturing include improved visualization, remote assistance, and enhanced training.
The market is expected to continue to grow rapidly in the coming years, driven by the increasing adoption of AR technology and the rising need for efficiency and productivity in manufacturing.
