Augmented Reality Statistics, Trends 2023

Before we jump to some fascinating augmented reality stats, let’s start from the beginning.

The augmented reality concept first appeared in 1968. It was nearly half a century ago that a Harvard associate professor and computer scientist Ivan Sutherland invented the first head-mounted display called the Sword of Damocles.

We’ve come a long way since then, and today, we’ve become so familiar with augmented reality that it’s only a matter of time before we stop making the distinction between where digital reality ends and physical reality begins.

AR Statistics

Market size and growth

1. The global AR market size was valued at $7.86 billion in 2020 and is expected to reach $78.7 billion by 2026, growing at a CAGR of 51.2% during the forecast period (2021-2026).
2. In 2020, the AR gaming segment accounted for the largest market share, with a value of $2.50 billion.
3. In 2020, North America held the largest share of the AR market, accounting for 40.6% of the total market.

Year	Market Size (in Billion USD)	CAGR
2020	4.33	39.7%
2021	6.12
2022	8.51
2023	11.63
2024	15.69
2025	21.14
2026	28.31
2027	43.59

Adoption and usage

4. In 2020, approximately 30% of organizations in the U.S. used AR technology in their operations.
5. In 2020, 64% of consumers in the U.S. reported using AR at least once in the past 12 months.
6. In 2020, the most popular use case for AR was entertainment, with 60% of consumers using AR for gaming or video content.
7. In 2020, the second most popular use case for AR was shopping, with 25% of consumers using AR for product visualization and comparison.

Year	AR App Downloads (in Billion)	Growth Rate
2019	2.25
2020	2.73	21.8%
2021	3.35
2022	4.11
2023	5.06
2024	6.23
2025	7.67
2026	9.44

Demographics

8. In 2020, the age group with the highest AR usage was 25-34 years old, with 70% of this group reporting AR usage in the past 12 months.
9. In 2020, the income group with the highest AR usage was households with an annual income of $75,000 or more, with 72% of this group reporting AR usage in the past 12 months.
10. In 2020, the educational level with the highest AR usage was individuals with a college degree, with 69% of this group reporting AR usage in the past 12 months.

Benefits

11. In 2020, the top benefits of AR technology reported by organizations were increased efficiency (58%), improved customer experience (48%), and reduced costs (42%).
12. In 2020, the top benefits of AR technology reported by consumers were improved decision making (53%), increased convenience (49%), and enhanced entertainment (48%).

Challenges and barriers

13. In 2020, the top challenges and barriers to AR adoption reported by organizations were the high cost of implementation (52%), lack of skills and expertise (42%), and lack of standardization (34%).
14. In 2020, the top challenges and barriers to AR usage reported by consumers were privacy concerns (54%), lack of compatibility with devices (44%), and technical difficulties (40%).

AR Facts

AR in gaming

15. The first AR game, “The Wand,” was released in 1992.
16. The most popular AR game to date is “Pokemon Go,” which was released in 2016 and had over 1 billion downloads.
17. In 2020, the AR gaming market was valued at $2.50 billion and is expected to reach $17.67 billion by 2026, growing at a CAGR of 37.7%.

AR in retail

18. In 2020, retailers such as IKEA and Sephora were among the early adopters of AR in retail, using AR technology for product visualization and comparison.

AR Demographics

• Age Groups of AR Users: Younger generations are the primary adopters of AR technology, with 80% of 18-24-year-olds and 71% of 25-34-year-olds having used AR.
• Gender: More women (64%) have used AR compared to men (36%).
• Occupation: Consumers (70%) use AR more than professionals (30%).
• Geographic Location: North America is the leading region in AR adoption, with 38% of AR users residing in the United States.

AR Software

• Popular AR Platforms: The most widely used AR platforms are Snapchat (63%), Facebook (42%), and Instagram (37%).
• AR SDKs: The top AR software development kits (SDKs) include Vuforia, ARKit, and ARCore.
• AR Browsers: Popular AR browsers include 8th Wall Web, AR browser, and ARignite.

AR Opportunities

• Increased Engagement: AR creates an immersive experience for users, leading to higher engagement and brand loyalty.
• Improved Customer Experience: AR can enhance the customer experience by allowing them to visualize products in their intended environment.
• New Revenue Streams: AR offers new revenue opportunities for businesses through advertising, e-commerce, and gaming.
• Improved Accessibility: AR can make learning and accessing information easier for people with disabilities.

AR Challenges

• Technical Limitations: AR technology is still in its early stages, and its development is hindered by technical limitations such as device compatibility and limited AR content.
• User Adoption: AR adoption is slow because of the need for specialized hardware, such as AR glasses or devices with AR capabilities.
• High Development Costs: Developing AR applications can be costly, and small businesses may struggle to keep up with larger companies with more resources.
• Privacy Concerns: AR raises privacy concerns because it collects personal data and tracks user behavior.

Challenges	Explanation
Technical Limitations	AR technology is still in its early stages and there are many technical limitations that need to be addressed, such as device compatibility, limited processing power, and software compatibility.
High Development Costs	AR development can be expensive, especially for businesses looking to create high-quality, interactive AR experiences.
User Adoption	AR technology is still new to many consumers and businesses, and it can be difficult to get users to adopt it and engage with AR experiences.
Privacy Concerns	As with any new technology, there are concerns about privacy and security when it comes to AR. Users may be wary of giving up their location or personal information when using AR experiences.

Impressive Augmented Reality Statistics for 2023

To keep you updated on the latest trends in the AR market, we have gathered some of the most fascinating augmented reality statistics for 2022. Let’s dive right into it!

1. The AR market is projected to be worth over $18 billion in 2023.

The AR market value was $1.8 billion in 2018 and rose to $3.5 billion in 2019. According to augmented reality statistics for 2022 consumer spending on AR/VR is forecast to account for a 37.4% share of the global AR/VR customer market.

2. By 2022, there should be around 3.5 billion AR users.

This amounts to over 25% of the world’s population. In the US alone, 83.1 million people were projected to use AR at least once in a month in 2020. Some are even using AR daily without noticing. 

3. The AR/VR headsets will reach 65.9 million units in 2022.

Augmented reality usage statistics show that a total of 8.9 million units were shipped in 2018. Reports went further to indicate that the total sales pooled from AR/VR headsets would hit the $9.7 billion mark by the end of 2020. As of 2018, the AR headset market size was $1.64 billion. It is predicted to grow at a CAGR of 73.8% between 2019 and 2025.

4. ARtillery Intelligence (AI) is set to reach $13.4 billion by 2024.

Remember when Microsoft won a decade-long tender to supply 120,000 pieces of military-adapted headsets worth $21.8B?

Fast forward to 2022:

The military, aircraft, and medical fields are already using them for training purposes. Too bad the regular consumer can’t do the same.

Though, let’s consult the latest augmented reality facts on the subject. They reveal the glasses are too bulky (read “uncomfortable”) and pricey. However, there are whispers that Apple might start producing some lightweight and pocket-friendly versions. Now, that’s bound to shake up things in the industry (especially in revenue)!

In fact, according to the augmented virtual reality statistics for 2022, ARtillery is estimated to grow over $13 billion in 2024 from its current $822 million.

5. AR is shifting more to industrial use.

Most people already know about AR via gaming. However, AR stats for 2022 reveal that AR companies are tilting towards industrial applications (65%) rather than custom software.

6. By 2024, the number of mobile AR users will reach 1.73 billion.

That number has steadily been rising over the years. It was only about 200M in 2015. However, in a span of five years, it hit 600 million.

Considering the inexpensive costs of setting up the technology in the devices, it’s no wonder that it’s been showing massive growth in the sector.

7. AR use will experience growth in the educational sector.

The augmented reality in education statistics indicate that AR technology was found to be incredibly useful to students with disabilities, largely because of its interactive nature. AR can scan educational materials, thus providing resources to students.

8. 63% of online shoppers claim AR will improve their shopping experience.

Another sector where AR has shown exploits is e-commerce. Augmented reality statistics in e-commerce show that 61% of online shoppers prefer making purchases on sites that offer AR. 35% claim that AR would increase how much they shop online.

In addition, 49% say that they are willing to pay more for a product as long as they are allowed to preview in AR. 45% think that AR features save time spent on decision-making.

9. AR/VR in the healthcare market is estimated to reach $7.05 billion.

AR is extremely beneficial for the health sector. The technology has made substantial changes in surgery, education of intending doctors, and diagnostics.

Due to the stimulating effect of AR/VR, it can also help in detecting signs of mental illnesses and depression. It achieves this by observing physical gestures such as facial expressions and voice tone.

10. AR is gradually gaining influence in the automobile industry.

In 2019, in-car AR was among the most significant trends. Augmented reality usage statistics show that Nvidia’s Drive AR platform used AR to incorporate cameras in their car design. This tech was able to display all historical landmarks, hazards, etc.

Reports have shown that the global automobile AR/VR market is estimated to reach $673 billion by 2025, indicating a CAGR of 175.7% from 2018 to 2025.

11. US VR and AR users will go over 185 million by 2025.

In comparison, the 2021 figure was just slightly under 142 million.

What are the augmented reality market size predictions, though? According to them, this year, over a quarter of Americans will use AR, while nearly a fifth will experience VR.

By 2025, both will grow by approximately 35%, reaching 185.7 billion. AR users alone are to increase by 20 million, while VR is expected to rise by 8.6 million.

12. Handheld devices will have a Compound Annual Growth Rate of 45% between 2021 and 2028.

Augmented reality growth statistics show that the handheld sector will grow by nearly 50% during the forecast period. This will be primarily due to the increasing demand for the gadgets in ecommerce and retail.

For instance, clients can try out clothes or makeup using AR on their phones before purchasing online.

So, companies are trying their best, trying to offer a top-notch experience for a competitive edge.

Social media application of the technology is also a significant contributing factor for the expansion. Additionally, Apple Inc. and Google LLC are also aggressively capitalizing on AR Kit and AR Core, respectively.

General Augmented Reality Stats and Facts

There is so much going on in the AR space right now, but the upcoming numbers shed some light on the industry worldwide.

13. There are 410 AR startups in the US.

AngelList, a website that compiles startups in the United States, has listed a total of 410 AR businesses as of 2022. Most are in the gaming sector, with branches in Europe and Asia.

14. Leap Motion released a prototype of the AR headset that could cost around $100 to mass-produce.

The AR company with the highest number of followers on AngelList is Leap Motion. They’ve designed an augmented reality headset that has the potential to deliver AR functionality to the mainstream user.

If we take a look at Microsoft’s HoloLens headset with a price range between $3,000 and $5,000, it’s quite transparent how Leap Motion’s headset design could win over a large community of augmented reality enthusiast and dramatically change the augmented reality market.

Last year, Leap Motion open-sourced the A headset project, and it is now up to companies from the augmented reality world to bring this project to life. We cannot expect Leap Motion’s AR headset to surpass the quality and capabilities of Microsoft’s HoloLens or Magic Leap One, but it could help bring augmented reality closer to a wide audience.

15.  70% of Americans aren’t sure what AR is.

While discussing the option of bringing AR closer to a broader audience via Leap Motion’s AR headset, we started to wonder how close augmented reality is to people today. Augmented reality stats from Skrite showed that nearly two-thirds of Americans are not even sure what augmented reality is.

Namely, Skrite interviewed around 2,000 Americans to discover that only 37% of interviewees were familiar with the concept of augmented reality.

The highest percentage of those who knew what AR is, came from Delaware (67%), while the second and third place among the AR literate states went to Colorado (59%) and Maine (58%). However, the national average AR literacy rate is 30%, which indicates that the AR adoption rate should significantly increase to reach its uncovered potential.

16. The percentage of AR knowledgeable Americans decreases over the years.

According to augmented reality statistics from ISACA, with the spread of new technologies come gaps in consumers’ knowledge. A perfect example of this claim is ISACA’s survey about the Internet of Things (IoT) and Augmented Reality (AR).

The primary focus of the 2016 ISACA study was to identify the percentage of people who can recognize and are knowledgeable about IoT devices. The results have shown that in 2016 73% of Americans said they are familiar with IoT, while in 2015, that number was slightly higher at 83%.

What’s even more interesting about ISACA’s research is that the percentage of IoT spotters decreases when another layer of technology is added. Namely, ISACA asked interviewees about their ability to recognize IoT devices that have been enhanced with AR. With AR in the equation, the percentage of Americans who could identify such IoT devices was only 43%.

17. There are 208 different meanings for the acronym AR.

As we’ve seen from the ISACA survey, the more technology advances, the more room there is for confusion. The acronym AR itself makes no exception. The Free Dictionary lists 208 different things that this acronym can stand for. These range from the US postal abbreviation for Arkansas and the chemical element Argon to the term “aspect ratio” and the record label Atlantic Records.

AR also stands for “autoregression”, a statistics term, which is why sometimes Google can suggest the question “What is AR in statistics?” if you’re researching augmented reality.

18. Nearly half of Americans are using augmented reality without realizing it.

One of the impressive stats we’ve retrieved from a 2017 Skrite survey is that 46% of Americans have used an AR app. However, as GearBrain explains, many people are using AR apps without being aware of that.

The source pointed out that one of the everyday life uses of augmented reality is Facebook’s AR tool Camera Effects. Snapchat also adds a touch of augmented reality to their users’ everyday lives with the Snap Camera and Lens tools.

Snapchat also reports over 70 million people use their AR lenses every day. So, is augmented reality the future? While the answer to this question depends on the rate at which technology evolves and is being adopted, augmented reality is already here.

Moreover, if we take a moment to think about the NFL yellow line, we can realize augmented reality has been part of our lives since the late 20th century.

19. In 2016, Pokémon Go started the augmented reality hype.

As opposed to all augmented reality examples that seamlessly wove themselves into our everyday lives, Pokémon Go made quite an entrance in 2016. Most sources credit the Pokémon Go app for increasing awareness of AR apps.

Today, the game has over 800 million downloads, and it has generated $2 billion in revenue over the last two years. Plus, it certainly helped increase the augmented reality market size. Considering how big the mobile gaming market is, it’s no surprise how much money Pokémon Go earned. 

20. AR mobile app installations to exceed 15 billion by the end of 2022.

The incorporation of augmented reality in phones is becoming increasingly popular. AR statistics for 2022 reveal that downloads for such applications will go over 15 billion by this year’s end. What’s more, the mobile AR market is estimated at $12.85 billion in 2022 and is predicted to reach $26.06 billion by 2025.

21. Facebook acquired 11 AR/VR companies.

Tech giants are battling for their share of the augmented reality market, and to support this claim, we’ve prepared some interesting augmented reality facts. Facebook is one of the biggest investors in augmented reality. The company acquired 11 AR/VR companies including Oculus VR (2014), Surreal Vision (2015), and Pebbles (2015).

Next is Google that made two significant AR investments in 2018 alone – CTRL-Labs and Ubiquity6. In 2014, Google acquired Quest Visual and incorporated Quest Visual’s product, Word Lens with Google Translate. On the list of Google’s virtual reality acquisitions, we’ve found Skillman & Hackett, Eyefluence, and Owlchemy Labs.

Browsing through numerous augmented reality statistics, it didn’t come as a surprise that Apple was also featured heavily. In 2015, the tech company acquired Metaio, the creator of a free mobile AR browser. Next on Apple’s list was Flyby Media, followed by Vrvana and SensoMotoric Instruments. The latest Apple acquisition was Akonia Holographics, a company that creates lenses for AR glasses.

22. 32% of respondents stated user experience as the biggest hindrance to VR and AR adoption.

In a survey, over 30% of industry experts cited technical glitches and bulky software as the biggest headache for AR implementation. In addition, 19% of the group gave the same reasons for the poor adoption of VR.

According to augmented reality statistics, a further 27% said there’s limited quality content on VR. However, only 18% gave the same sentiments about AR.

23. 70% of consumers believe AR can help them learn new personal and professional skills.

A 2016 study from ISACA illustrates the benefits of incorporating augmented reality into everyday life and work. So, what are the benefits of augmented reality according to ISACA survey participants?

The highest percentage of consumers (70%) believe that using AR-enhanced devices in their everyday lives could help them learn new skills. 67% of consumers think that using AR devices could result in healthcare benefits, and 64% of them see shopping benefits.

When it comes to AR work benefits – product demonstrations, workplace training, and workplace safety guides take the top three spots.

24. 95% of US adults own a cellphone, and 77% of said phones are smartphones.

The reason we decided to look into the mobile phone statistics is that these devices are an ideal candidate for large-scale adoption of augmented reality. You may be wondering which augmented reality stats go in favor of this claim. Well, if you think about it, today almost everyone owns a cellphone. Plus, mobile phones have the required hardware for AR technology including CPU, sensors, and GPU.

On the other hand, Microsoft HoloLens headset is priced at $3,000, Magic Leap One at $2,300, and Meta 2 headsets sell for $1,495. So, the steep price of augmented reality products is an obvious obstacle for AR mass adoption.

Additionally, the highest percentage of Americans (77%) used smartphone-based AR/VR devices, according to augmented reality statistics. A significantly lower percentage of them (35%) opted for PC and console-based AR/VR devices, with only 19% of Americans using standalone AR/VR devices.

25. The number of augmented reality users is set to reach 1.73 billion users by 2024.

In 2021, that figure was at 0.81 billion.

That said, the number of AR headset shipments will reach 30+million devices by the end of 2023. For comparison, that’s 12 times more than the shipped headsets in 2020.

This comes as no surprise, considering more and more industries take advantage of augmented reality. Examples include healthcare, gas and oil, tourism, marketing, public safety, and more.

Now.

Before we move on to the augmented reality revenue projections, let’s take a glance at the age demographics of augmented reality users.

26. Augmented reality users fall into the 16-34 age group.

Last October, Global Web Index published a survey of nearly 4,000 Internet users. The goal was to find out the percentage of people who used a VR headset in the past month, as well as the percentage of people who experienced AR in the same timeframe. The survey showed that the same percentage of survey participants (23%) has used a VR headset and experienced AR in the said time period.

We were more interested to find out about augmented reality demographics. According to Global Web Index, 35% of participants that experienced AR in the previous month were in the 16 to 24 age group. Just as many survey participants (35%) are in the 25-34 age group, while people between the ages of 35 to 44 accounted for 27% of those who experienced AR during the previous month.

The lowest percentage of AR users comes from those in the 55-64 age group (3%). Another interesting piece of information from this study is that more men (29%) engage with AR compared to women (17%). Taking all of these stats into account, we can better understand the AR audience.

27. How much is augmented reality worth? $3.5 billion, says Statista.

More often than not, market projections for augmented reality include virtual reality market projections as well. However, we found one market projection for augmented reality alone. The source estimates that the current value of this market stands at $3.5 billion and that it will increase to $198 billion by 2025.

When it comes to predictions for the augmented and virtual reality markets combined, Statista gave us valuable insight into the fast growth of these markets. In 2016, the AR/VR market was valued at $6.1 billion, and the following year, it more than doubled ($14.1 billion). Last year, revenues from the AR/VR market managed to reach $27 billion, and they should skyrocket to $209.2 billion by 2022.

28. The UK holds a 9% share of the immersive reality global market.

According to Immerse UK’s augmented reality statistics, UK companies that specialize in virtual, augmented, and mixed reality market (immersive market) are numerous with about 1,000 of them. The source estimates that nearly half a million people in the UK work in companies that contribute to the immersive economy in one way or another and that the UK’s share of the immersive global market stands at 9%.

29. Revenue for AR will reach $340.16 by 2028.

Experts estimated that Augmented Reality would generate $120 billion in 2020. AR revenue stats show that that figure will almost triple in 2028.

30. The AR/VR chip market will grow by a CAGR of over 20% between 2019 and 2026.

(Source: Software Testing)

VR and AR stats for 2022 predict some wondrous following years for the market. They reveal that chips will be in high demand, boasting a 23% CAGR between 2019 and 2026. The upgrading of digital recorders, smartphones, laptops, etc., will propel this growth.

31. Augmented reality glasses sales will reach 22.8 million by 2022.

In 2016, about 150,000 units of smart AR glasses were sold. The number of smart AR glasses units doubled in 2017 (340,000), compared to 2016. In 2018, the number of shipments grew to 3.7 million, and in 2019, it jumped to 6.5 million. In 2020, there were 10.7 million units sold, followed by 16.6 million units in 2021. In 2022 it is expected that 22.8 million AR glasses will be sold worldwide.

32. 67% of media planners and buyers want AR/VR ads in digital marketing campaigns.

According to research from Vibrant Media, media planners and buyers (67% of them) want to incorporate more AR/VR ads into their campaigns. The ultimate goal of this type of marketing is to enhance user experience.

Apart from the high demand for AR/VR advertising, Vibrant Media discovered that 49% of media agency executives believe this new approach to marketing could prevent ad blocking. And considering most antivirus solutions and VPN services come with powerful ad-blockers, this could be the breath of fresh air that advertisers were waiting for. 

Now, we’ve already seen a myriad of companies that recorded great success with augmented reality advertising. 2018 saw L’Oreal YouCam Makeup app counting 3.5 million downloads only a year after its initial release. The IKEA Place app, which allows virtual placement of around 3,200 IKEA products into homes, is another successful AR app. There are numerous other AR apps that prove augmented reality advertising has just begun to gain momentum.

With these quick stats about AR advertising, we’ll be signing off. We covered many augmented reality stats ranging from the number and demographics of AR users and market size to how big companies are preparing for augmented reality to enter the mainstream waters. We hope you had an interesting read!

Question	Answer
What is Augmented Reality (AR)?	AR is a technology that superimposes digital information and graphics onto the real world
What are the benefits of AR?	AR can enhance customer experiences, improve training and education, and increase efficiency in various industries
What industries use AR?	AR is used in various industries, including retail, healthcare, education, and gaming
What are the challenges of AR adoption?	The challenges of AR adoption include cost, technical complexity, compatibility, data privacy, and user adoption
What is the future of AR?	The future of AR is expected to grow rapidly in the coming years, with increased use in various industries and advancements in AR technology.

In conclusion, Augmented Reality (AR) is a rapidly growing technology that has a significant impact on many industries, including gaming, education, e-commerce, and advertising. AR creates an immersive experience for users and offers new revenue opportunities for businesses. Despite its growth, AR still faces challenges such as slow adoption, high development costs, and privacy concerns. Despite these challenges, AR is poised to become an integral part of our lives and will continue to shape the future.