The augmented reality software market was valued at USD 2.13 billion in 2016 and is expected to reach USD 35.22 billion by 2022, growing at a CAGR of 57.36% during the forecast period. The increasing demand for AR-based software applications for 3D visualization in the medical sector, growing interest of large tech companies in AR, and increase in demand for AR in the e-commerce and retail sectors are the major drivers for the market.

This report covers the market on the basis of software function, vertical, and geography. The consumer, commercial, and enterprise verticals are expected to witness high growth in the overall market during the forecast period. The rising adoption of augmented reality technology is driving the growth of this market. The market for the consumer vertical is expected to grow at the highest rate between 2016 and 2022.

Smartphones have been recognized as the most promising device for the market in the future. Currently, with the growing usage of smartphones and AR browsers, consumers have started accepting this human–computer interaction (HCI) and augmented reality has gained more research interest and attention recently.

North America is expected to lead the market in terms of market size, and APAC is likely to witness the highest growth rate in the market. The augmented reality software market in APAC is expected to grow at a high rate between 2017 and 2022. The increasing number of players, increased adoption of AR technology, and the high growth in consumer and enterprise verticals are the major factors driving the growth of this market in APAC.

Augmented reality software applications in consumer, commercial, and enterprise drive the growth of AR software market

Consumer

The augmented reality technology offers remarkable results in terms of visual effects when used in gaming and sport broadcasts. Gaming and entertainment applications are the early adopters of new technologies; the recent addition to the list is 3D technology and augmented reality. AR can be used to enhance the gaming experience. There are some AR gaming applications in which players can create virtual objects and characters and then link those digital creatures to defined locations in the real world. Players can then easily interact with those digital objects in the real world. The entertainment industry is one of the major markets for 3D display technology. 3D cinema is one of the key applications of 3D technology, followed by 3D animation. Currently, an increasing number of movies are being made in 3D to cater to the growing demand for augmented reality experience in movies and music.

Commercial

The demand for AR applications in the education and e-retailing sectors is very high owing to the benefits of easy learning and attractive promotions. The technological advancements have completely changed the traditional approach to marketing and promotion. The use of the Internet and smartphones combined with digital content, such as augmented reality, has helped boost the marketing activity. These augmented reality applications are expected to revolutionize the world of online marketing and e-commerce.

Enterprise

Augmented reality is used in the enterprise vertical mainly for the training of personnel, providing information about industrial facility, remodeling and redesigning, and industrial simulations. Traditionally, training was conducted using classroom methods; however, the introduction of augmented reality has helped enhance the training methodology. It has given better visibility to the users.

Critical questions the report answers:

• What would be the role of gaming and entertainment sector to boost the growth of AR software market?
• Which would be the major countries adopting the AR software market technology in the manufacturing sector?

The limited user interface (UI) is affecting the navigation performance of AR applications, while the limited processing power and inadequate storage capacity are the major restraints for the market. This report discusses the drivers, restraints, opportunities, and challenges pertaining to the AR software market. In addition, it analyzes the current market scenario and forecasts the market size till 2022.

Some of the major companies operating in the augmented reality software market are PTC Inc. (U.S.), Wikitude GmbH (Austria), DAQRI LLC (U.S.), Zugara, Inc. (U.S.), Blippar (U.K.), Upskill (U.S.), Aurasma (U.K.), Augmate (U.S.), Catchoom Technologies S.L. (Spain), and Ubimax GmbH (Germany).

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