AR Gaming Market Size, Share, Growth, and Industry Analysis, By Type (Mobile Devices, HMDs, & Smart Glasses), By Application (Innovators, Early Adopters, & Early Majority) and Regional Insights and Forecast to 2031

Updated On: 22 April 2024

AR GAMING MARKET REPORT OVERVIEW

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The global AR gaming market size was USD 3562.5 million in 2021 and will touch USD 8631.9 million by 2028, exhibiting a CAGR of 12.7% during the forecast period.

The gaming AR market is growing faster because mass customers are adopting augmented reality tech for engaging gameplay. AR has brought an evolution in the gaming industry, and companies now use AR features to engage players more intimately and more interestingly attracting new consumers. Moreover, the popularity of AR gaming took on the wings during the period of COVID-19 as the demand for new forms of entertainment due to social distancing measures increased. Hence, there's a rising demand for AR game devices and programs that attract people who are fans of mobile and console gaming, thus stimulating market development.

Firstly, the widespread adoption of AR technology across domains like entertainment, education, and retail is now driving the expansion of the AR game development sector. By engaging AR technology, gaming goes beyond classic gaming platforms and involves players' manipulating with virtual items and scenarios making them close to reality. In spite of obstacles, like costly development and hardware limits, the sector’s view for the AR gaming market remains optimistic, as the new technology is being invented and the consumer demand is growing, which makes the market expand consistently.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Lockdown Restrictions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

One of the major reasons for the negative impact of COVID-19 on the AR gaming market is the supply chain disruptions that brought about significant delays in AR (augmented reality) hardware development as well as distribution issues. The means of physically closed retail spaces and social distancing measures worldwide have limited the purchase of AR gaming devices and accessories. Moreover, the recession led to decreased spending on non-vital items like goods for AR gaming by consumers. These elements ultimately brought down the quick growth of the AR gaming market during the pandemic, thus demonstrating a definitive bad effect on the industry’s short-term performance and revenue in the short-run.

LATEST TRENDS

"Integration of Social AR Gaming Experiences to Reshape the Market"

The largest factor to recent growth in the AR gaming space is socializing augmented reality into games. Social games and multiplayer AR platforms are becoming the norm of the gaming industry. Therefore, developers are directed to offer shared and interactive missions where opponents play along and you compete in real-time. These social AR gameplays depend on geotagging-based experiences, shared virtual places, and multiplayer competition. This shapes the way friends play together or compete against each other in multiple environments that stimulate the senses. Such a trend not only increases sociability of the players but also develops the community engagement and user loyalty by this reason accelerating expansion in the AR gaming industry.

AR GAMING MARKET SEGMENTATION

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By Type

Based on type the global market can be categorised into Mobile Devices, HMDs, & Smart Glasses.

• Mobile Devices: It refers to smartphones and tablets equipped with AR capabilities, which serve as the most accessible and widely used platform for AR gaming. Users can download AR gaming apps from app stores and experience immersive gameplay using their device's camera and sensors.

• HMDs: These include virtual reality (VR) headsets with AR functionality, which offer a more immersive gaming experience by overlaying digital content onto the user's field of view. These devices provide a hands-free and immersive gaming experience, often with more advanced tracking and interaction capabilities.

• Smart Glasses: Also known as augmented reality glasses, are wearable devices that display digital information directly in the user's line of sight. Smart Glasses enable hands-free AR gaming experiences and have the potential to revolutionize how users interact with virtual content in the real world.

By Application

Based on application the global market can be categorised into Innovators, Early Adopters, & Early Majority.

• Innovators: It represents the pioneering individuals or organizations that are at the forefront of adopting new AR gaming technologies and concepts. They are typically tech enthusiasts, developers, or innovative companies that embrace cutting-edge AR gaming experiences and contribute to pushing the boundaries of the industry.

• Early Adopters: They are the next group of users who follow the innovators' lead and are willing to experiment with emerging AR gaming technologies. These users are often enthusiasts who actively seek out new gaming experiences and are open to trying innovative AR gaming apps and devices.

• Early Majority: It comprises the larger segment of users who adopt AR gaming technologies once they become more mainstream and widely accepted. These users are more risk-averse and tend to adopt AR gaming experiences once they have been proven successful by innovators and early adopters.

DRIVING FACTORS

"Advancements in AR Technology to Fuel the Market Growth"

A prominent driver of the AR gaming market growth is the constant improvements in technology of AR, which is going on. Stemming from the AR currently available hardware and software evolutions, developers will continue providing advanced functionality creating realistic and immersive gaming experiences. These cutting-edge aspects include updates in AR placement, visual imaging and spatial mapping, thereby creating a less straining overall experience in weaving the virtual world into the actual world. Moreover, the AR devices that have been equipped with powerful AR-ready devices like smartphones, tablets and AR glasses, since they are available to the normal people, acts as a push factor to the market growth and to the innovation in the AR gaming market.

"Increasing Adoption of Mobile AR Gaming to Drive Demand in the Market"

The mobile AR gaming adoption is also serving as a driving force of the AR gaming market which is expanding. The ubiquitous presence of smartphones having this augmented reality feature has made it much easier to reach out to and facilitate mobile AR games for gamers. AR apps make the use of sensors and cameras of mobile devices very much feasible. The AR overlay makes the interaction a genuine experience and not just a game. The mobility property and affordability of mobile AR gaming makes it appealing universally with the hope of increasing user engagement and fanning out the market in the AR gaming sector to a large market.

RESTRAINING FACTORS

"Limited Content Diversity and Quality to Impede the Market Expansion"

One of the most detrimental factors for the expansion of AR games on the market is the quality and quantity of existing game contents. One of the concerns is the development of AR technologies along with the development of compelling and immersive AR games by developers. There is a threat of reduced engagement and decline in the market growth due to limited content diversity, which can lead to user fatigue and decreased interest. The absence of high-quality AR games with diverse content may discourage users from investing in AR games; such a situation may be a barrier to a wide range of the users to adopt AR gaming and in the market expansion. Making the content diversity and quality issues a basis for the barrier’s overcoming and releasing the full capacity of the AR gaming market is of utmost importance.

AR GAMING MARKET REGIONAL INSIGHTS

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"Asia Pacific to Lead the Market owing to Large Population Base "

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Asia Pacific region is the most dominant in the AR gaming market share, mainly due to the multiple factors that lead to its space share supremacy. One of the advantages of the region is that it serves a tech-savvy, game-loving community and boasts a thriving gaming culture that creates a high level of consumer adoption of AR-based gaming experiences. Besides, the community of smartphones and the boost of affordable internet connections across countries like China, Japan, and South Korea drives the growth of AR games. The creation of such an environment promotes AR gaming adoption in the region since Asia Pacific boasts of a large and diverse consumer base, thereby making it a driving force in the global AR gaming industry.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Multiple key industry players represent the AR gaming market by introducing the latest ideas and trends. The front runners are the companies which are at the top, leading the development in AR technology and content production. Their experience with AR software and hardware, support in market as well as user engagements, helps to influence the development of the industry towards AR gaming. These industry giants not only create AR games which have decent ratings and downloads but also work with developers and content creators in order to enlarge the AR gaming world. Generally, the input of these key players is essential because it increases the rate at which AR gaming gets to a higher level .

List of Market Players Profiled

• Catchoom (Spain)
• Infinity Augmented Reality (Israel)
• Qualcomm Technologies (U.S.)
• Augmented Pixels (U.S.)
• Aurasma (U.K.)
• Blippar (U.K.)
• Total Immersion (France)

INDUSTRIAL DEVELOPMENT

December 2021: One recent innovation in the market is the emergence of cloud-based AR gaming. This technology allows users to stream AR games directly to their smartphones or other devices, eliminating the need for powerful hardware or downloads. This opens up the possibility of AR gaming to a wider audience, as it removes a major barrier to entry.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.