AR Glasses Market Revenue to Reach US$883.4 Bn by 2025, Fairfield Market Research Expects Surge in Adoption in Healthcare

November 2021

AR is an innovative technology that is in its infancy stages now. There has been a steady increase in the adoption of AR technology for various applications across multiple end-use industries such as the automotive, healthcare, and entertainment sectors, to name a few. This immersive technology enables the amalgam of virtual and real environments, thus allowing a user to perform various tasks or gain greater insights into a scenario effectively. For example, the use of AR technology in the healthcare sector can be used to not only allow interactive and engaging medical learning experiences but also in creating real-time alerts for surgeons in complex operations.

Prior to its use in surgeries, for instance, surgeons had access to limited information, which could hinder the outcome of the procedure. The global AR glasses market is expected to achieve a valuation of US$883.4 Mn by 2025, from US$143.8 Mn in 2017. In 2020, hospitals around the world adopted AR devices such as HoloLens to trace and aid patients during the pandemic. A study by Fairfield Market Research indicates that these instances of implementing AR technology by various end-use industry is only expected to increase and as such slated to exponentially boost the growth trajectory of the global AR glasses market in the years ahead.

Key Research Insights

  • The global AR glasses market is expected to grow at a CAGR of 17.8%

  • Healthcare is expected to be the fastest growing end-use industry over the forecast period

  • North America to remain a key revenue contributor in the global AR glasses market

  • The enterprise AR glasses segment to account for the majority revenue share

  • Microsoft’s HoloLens 2 costs US$3,500 as of December 2022

Greater Demand for Enhanced Customer Experience to Ameliorate the Global AR Glasses Market

The maintenance of customer relationships is a crucial aspect of any business today. It has been observed that the loyalty of customers may decline, thus compelling them to switch to other products and services due to poor customer engagement. To mitigate this and foster a greater sense of satisfaction, many companies are now looking to implement AR technology to personalize a customer’s journey and create a long-lasting impression, thus facilitating an enriched level of customer satisfaction. For instance, Virgin Holiday’s AR-powered email campaign in 2018 had a 75% and 40% increase in click-through ratio and email rates, respectively. Another study by Infosys suggested brands that offer customized products tend to witness six to ten times higher revenue generation growth. This is a major factor that is expected to continue to have a profound influence on the growth of the global AR glasses market.

North America to Prevail as the Regional Frontrunner in the Global AR Glasses Market

According to a study carried out by Fairfield Market Research, North America is expected to account for the highest revenue share over the forecast period. This can be attributed to the presence of established giants such as Apple, Snap Inc., Google, etc., in this region, a greater adoption of AR technology by various enterprises, and 5G technology implementation. However, the Asia Pacific is slated to index the fastest CAGR over the forecast period. There are many countries in this region that are manufacturing hubs for technology products such as China and India. Moreover, the increasing disposable incomes of consumers here is another element that is expected to further contribute to the growth of the AR glasses market in this region.

Global AR Glasses Market – Key Competitors

Seiko Epson, Everysight, DigiLens, and Solos Wearables, all collectively account for the majority revenue share of the AR glasses market and are extensively detailed under our comprehensive competitive profiling and strategic analysis.