AR market value to surpass $140B: here’s when

Despite the COVID-19 pandemic crippled some markets, it also presented notable opportunities to others

AR market

AR market value to surpass $140B: here’s when. Source:

According to ABI Research, the augmented reality market will surpass $140 billion in total market value in 2025.

The report states that growth patterns around AR hardware and content will back this up over the next five years. Media & Entertainment along with Retail & Marketing are the fastest growing verticals. Meanwhile, Consumer Software & Content and AR Advertising are the fastest growing market segments.

Apple’s AR ecosystem is quite mature nowadays, with AR-focused LIDAR sensors on flagship iOS products and ARKit enabling experiences across content types.

Besides, Google recently acquired smart glasses maker North, and Google still has its Glass for an Enterprise solution and ARCore for content enablement.

At the same time, Facebook announced continuing AR efforts out of their Reality Labs branch, with smart glasses plans for 2021.

Efforts from more traditionally enterprise-focused players continue to grow as well. For instance, PTC, Atheer, Microsoft, Lenovo, Teamviewer, etc are increasing AR investment and focus, often tweaking pricing structures and business models to both meet the short-term demand influx and scale that demand over time. According to data, free trials, as-a-service bundling options, and greater portfolio flexibility have all been spurred by COVID-19 and are likely to remain.

Facebook, Google, and Apple have been building out AR foundations in content creation and mobile device enablement for years, with visions for a ubiquitous AR market by 2025. All this consumer growth benefits the enterprise domain as well, with key AR requirements around the price, ease of use, and overall user value shared among both sides of the market. The latent value of remote enablement AR provides has been expounded, and similar needs in the consumer space will also spur adoption there. These all combine to create significant momentum around AR, rather than the common excitement yet hesitation and immaturity of years before
Eric Abbruzzese, Research Director for ABI Research

We’ve reported that consumer virtual reality content will generate more than $ 7 billion in revenue in 2025. This is 160% more than the $3 billion expected to be raised in 2020. 41% of revenue in 2025 will come from console gamers.


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