Augmented Reality (AR) in Travel and Tourism Market Size, Share, Growth, and Industry Analysis, By Type (Hardware & Software), By Application (Museums, Attractions, Historical Sites & City Tours), and Regional Forecast to 2033

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AUGMENTED REALITY (AR) IN TRAVEL AND TOURISM MARKET OVERVIEW

The global augmented reality (AR) in travel and tourism market stood at USD 0.8 billion in 2024 and is expected to rise to USD 0.88 billion in 2025, maintaining a strong growth trajectory to reach USD 2 billion by 2033, with a CAGR of 10% from 2025 to 2033.

Augmented Reality (AR) for tourism and travel is transforming the experience of destinations through the overlaying of digital data on real-world environments. AR technology enhances traveler experience with interactive maps, virtual walks, and real-time information on landmarks and sights. AR apps allow visitors to relive historical moments, explore unfamiliar cities, and see customized information. The AR tourism sector is growing at a rapid rate as businesses are attempting to increase customer engagement and make their services unique. Since there is increased smartphone penetration and increased advancement in AR technology, the industry is poised for record growth.

GLOBAL CRISES IMPACTING AUGMENTED REALITY (AR) IN TRAVEL AND TOURISM MARKET

COVID-19 IMPACT

Augmented Reality (AR) in Travel and Tourism Industry Had a positive Effect Due to travel restrictions impacting tourism industry during COVID-19 Pandemic

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

The COVID-19 pandemic aggressively accelerated the utilization of Augmented Reality (AR) by the travel and tourism sector because lockups forced the industry towards digital alternatives. At times of lockdowns globally and restricted traveling, AR became a powerful means to offer virtual tours and destination introduction in a life-like manner remotely. This shift encouraged tourism enterprises to invest in AR technologies to retain customers and offer destinations through web channels. The pandemic also increased innovation and saw enhanced AR applications with enhanced functions to mimic real touring experience better. Consequently, AR gained acceptability and became recognized and was found to be a valuable asset in the recovery of post-pandemic tourism.

LATEST TREND

AR market growth driven by immersive tech enhancing travel planning experiences

A further major trend in the Augmented Reality (AR) travel and tourism sector is the application of AR to pre-trip planning, whereby tourists can virtually visit a destination and a hotel before they make a reservation. Hotels and airlines are employing AR applications to project 3D photographs of rooms and facilities onto a person's smartphone, simplifying decision-making and reducing cancellations. The technology also allows navigation around premises, with airports like Singapore, Changi Airport using AR apps that project real-time direction information through smartphone cameras, allowing passenger navigation in complex spaces to be simple. Cultural landmarks are tapping into AR to enrich visitor experiences; a prime example is the Whakarewarewa Forest Loop app in New Zealand that combines AR with multimedia to deliver Māori legends along a cycling trail. These efforts underscore the growing role of AR in maximizing travel experiences using interactive and immersive technology.

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AUGMENTED REALITY (AR) IN TRAVEL AND TOURISM MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Hardware & Software

• Hardware: Devices such as AR glasses, head-mounted display, smartphone, and tablet are used in the AR travel and tourism industry. They offer users digital overlays of reality for better navigation and sightseeing. Popular use of wearables like smart glasses is gaining popularity and enhancing experience to be more immersive and hands-free. With tourism recovery, high-end AR hardware demand is on the rise to power innovative and interactive travel experience.

• Software: AR technology powers the apps and platforms that deliver interactive content to visitors. AR mobile apps, content management platforms, and tourist experience navigation software are some of the areas covered. User-specific guides and real-time data-driven AI-based AR apps are a principal innovation. Continuous software development is powering increased customer engagement and more interactive tourist experiences.

By Application

Based on application, the global market can be categorized into Museums, Attractions, Historical Sites & City Tours

• Museums: Augmented Reality enhances museum tours by overlaying digital data like 3D models, animations, and interactive exhibits on physical ones. Museum goers view reconstructions of artifacts or watch ancient objects in their original form. AR apps also offer multilingual audio-visual tours so that the exhibits become more accessible. The technology is attractive to younger visitors and increases educational value.

• Attractions: AR transforms traditional tourist attractions by adding interactive elements such as virtual characters, games, or in-depth storytelling. Landmarks become more engaging as individuals can scan environments to uncover historical facts or hidden details. Theme parks utilize AR for game-like rides or character interactions. This increases the enjoyment of visitors and encourages social sharing.

• Historical Sites: In heritage locations, AR awakens the past because it revives old buildings, fights, or events live as one walks through. It allows visitors to see how locations looked centuries ago on the smartphone or AR glasses. It adds depth to in-depth heritage knowledge of the location and richness to cultural narratives. AR for heritage locations becomes more trendy for learning tours and heritage preservation programs.

• City Tours:  AR city tours offer tourists real-time information, history, and tips while exploring cityscapes. Travelers utilize AR software to scan streets or street buildings using mobile phones for accessing historical information, images, or historic events. They also offer gamified experiences and virtual hosts who act as guides for walking users through city landmarks. They render sightseeing simple and draw technology-savvy tourists.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                          

Driving Factor

AR market growth fueled by demand for immersive, experiential travel experiences

Travelers today yearn for richer, more immersive experiences, and AR delivers by merging the virtual and the real. AR allows travelers to tap into live information, 3D visualizations, and interactive experiences, and makes tourism more experiential. AR enriches experience in monuments, museums, and cultural attractions by providing richer context and entertainment. In a time of rising customer expectations, AR is an essential tool for destinations that must differentiate and provide meaningful experiences.

AR market growth supported by smartphones and improved internet connectivity worldwide

Increased smartphone use and better internet connectivity made AR apps more readily available to world masses. Customers can now have access to AR capability with the application of apps in smartphones without the need for special hardware. Deployment of high-speed internet, especially 5G, enhances the performance of AR content in a manner that facilitates quicker and more responsive interaction. This technology offers the basis for mass adoption and scalability of AR solutions to the travel and tourism sector.

Restraining Factor

AR market growth limited by high development costs and affordability barriers

One of the most stringent constraints in the AR travel and tourism space is the prohibitive price of development and adoption for AR technology. Developing high-level, interactive AR content involves high investment in software architecture, hardware setup, and upkeep. Smaller tourist operators and travel destinations may lack sufficient capital to adopt such sophisticated solutions. The cost factor bars mass adoption and can repress AR entry in undercapitalized or remote travel markets.

AR market growth driven by smart tourism and urban digitalization initiatives

Opportunity

The largest sector of expansion in the AR travel and tourism sector is in the creation of smart tourism and urban digitalization. Governments and tourist authorities are investing in smart infrastructure that includes AR to enhance tourists' experiences when they are visiting. AR applications are able to offer a multilingual function, accessibility, and customized information in order to make the destinations accessible. Technology companies and travel operators are also capable of igniting innovation through cooperation. This shift in Augmented Reality (AR) in Travel and Tourism Market growth can become a central aspect of global tourist planning.

AR market growth hindered by lacking infrastructure and technical expertise globally

Challenge

Among the most significant challenges facing the AR travel and tourism industry in the present day is the absence of digital infrastructure and technical expertise in certain areas. The vast majority of travel destinations, particularly in developing nations, remain non-connected with no hardware infrastructure to undertake AR solutions effectively. In addition to that, firms are discouraged by insufficient needed knowledge or staff to create and update AR content. Such a digital divide can make it more difficult for sharing and homogenizing AR experiences across world locations.

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AUGMENTED REALITY (AR) IN TRAVEL AND TOURISM MARKET REGIONAL INSIGHTS

• North America

AR market growth led by North America and Europe through strong adoption

North America dominates the Augmented Reality (AR) Travel and Tourism Market with a size of close to 35% in 2023 because of an extremely advanced technological infrastructure as well as widespread use of the internet. The region's tourist sector is equally robust, and large investment in digital growth, and this also boosts the development of AR technologies. The United States is subsequently spearheading this growth with key technology companies and tourist industries embracing AR to offer improved experience to tourists. On the whole, the United States Augmented Reality (AR) in Travel and Tourism Market similarly gains from such measures as Disney introducing a separate department to manage the deployment of AR across all of its theme parks. Moreover, sites such as the Alamo have incorporated AR experiences into augmented history as the country demonstrates interest in using AR for travel purposes. Europe is the market leader in the Augmented Reality (AR) in Travel and Tourism Market and is leading the charge aggressively with around 25% of the overall market share as of 2023. France, Germany, and the United Kingdom are leading the charge, adopting AR on cultural monuments, museums, and city walks to increase tourist engagement.

• Europe

AR market growth boosted by innovation projects and consistent European investment

Initiatives such as the RECORD project promote responsible digital innovation, sharing AR experiences to out-of-the-way destinations and rural areas, thereby stimulating local economies. Europe's AR tourism industry is anticipated to increase consistently at a compound annual growth rate (CAGR) of 16% through investment in technology and the drive to improve tourists' experience.

• Asia

AR market growth led by Asia's strong adoption and rapid expansion

Asia is one of the top contributors to the growth of Augmented Reality (AR) in Travel and Tourism Market and holds about 30% of global world market share in 2023. Japan, China, and India are among the strongest adopters of AR technology for enhancing tourists' experience at culture sites, theme parks, and city places of interest. Unbelievingly, the Asia Pacific region was the fastest-growing geography in this market with a forecast compound annual growth rate (CAGR) of 19% during the forecast period. Industry leaders are spearheading the growth of Augmented Reality (AR) in Travel and Tourism Market share with enormous investments in future-proof technologies and strategic partnerships

KEY INDUSTRY PLAYERS

AR market growth driven by collaborations mainstreaming immersive tourism experiences globally

Tourism boards and travel companies are also joining hands with technology players to make use of AR on city walks, museums, and heritage sites. Industry players such as these are formulating the market by mainstreaming AR experiences and making it democratically available to all and simple to consume. Their continuous innovations and large-scale deployments are formulating industry benchmarks, driving global uptake, and reshaping the engagement of travelers with destinations.

List Of Top Augmented Reality (Ar) In Travel And Tourism Companies

• Moyosa Media (Netherlands)
• PTC (U.S)
• Zoan (Finland)
• SAOLA Studio (France)
• Glome (Finland)

KEY INDUSTRY DEVELOPMENT

February 2025: Granada-based software firm AR Vision has been producing immersive tourism experiences through augmented and virtual reality technologies. Their top product, CultuAR, enables tourists to have access to cultural and heritage information via their smartphones, with recreations of buildings from history and previous landscapes. To date, in early 2025, AR Vision has partnered with more than 200 municipalities and organizations in Spain, such as the Gran Senda de Málaga, a 650 km trekking path. The firm has spent €4.5 million in proprietary technology and intends to move into Latin America and form strategic partnerships in Europe.

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.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.