AR Glasses Market

AR Glasses Market Outlook

Global AR glasses market is expected to be worth US$883.4 Mn by 2025 from US$143.8 Mn in 2017, registering a CAGR of 17.8% during the forecast period 2021-2025.

Market Analysis in Brief

Augmented reality (AR) glasses are computerized eyewear that supports augmented reality technology. Google Glass, Rokid Glasses, Focal by North, and Vuzix Blade are examples of glasses that use augmented reality, allowing users to see the real world overlaid with a layer of digital content. Rising need of enterprises for ease of operation and improving operational efficiency drives the AR glasses market globally. The outbreak of COVID-19 is the key factor triggering the growth of the AR glasses market. COVID-19 is affecting business around the world resulting in demand for advanced & digital technologies with a well-built network. AR glasses have been deployed by enterprises across manufacturing, healthcare, government, logistics, and among others for hand-free and remote operation during the COVID-19 pandemic.

Key Report Findings

• By the end of 2025, the global AR glasses market is expected to reach beyond US$883 Mn
• Market revenue growth is estimated at an approximately 17.8% CAGR through 2025
• The AR glasses market will explore significant opportunities as an increasing number of large enterprises augment their investments in AR glasses
• Snap Inc. has invested US$500 Mn to acquire WaveOptics, a supplier of AR displays
• Google Inc dominates the enterprise AR glasses market, whereas Seiko Epson spearheads the consumer AR glasses space

Growth Influencers

COVID-19 Impact: Negative for Consumer AR Glasses, and Favorable for Enterprise AR Glasses

The COVID-19 pandemic has boosted the adoption of AR glasses among enterprises. Several law enforcement agencies are using AR glasses to identify people with high body temperature in public places, while some manufacturing and healthcare companies are using the devices to collaborate with remote experts. AR glasses will continue to play a role in business post-pandemic, but the technology’s high cost is a significant barrier to large-scale adoption. This may remain a longstanding growth challenge for the global AR glasses market. For instance, Netherlands' National Police Unit is actively using Vuzix Blade AR Glasses to conduct an investigation. Vuzix Blade Glasses are being used by police officers to provide hands-free route information for unfamiliar areas as well as additional information such as notifications of crimes, suspect pursuit, and troublesome locations.

During the COVID-19 pandemic, demand for consumer AR glasses is declined slightly owing to a decrease in consumer spending as pandemic causes global recession. Also, many sports have been canceled during the pandemic, which results in to decrease in demand for AR glasses since they are sued for sports applications.

Overview of Key Segments

Enterprise AR Glasses Dominate

The enterprise AR glasses dominate the worldwide AR glasses market, accounting for more than 90% share in 2020. Consumer adoption of products from the likes of North, Snap, and Realmax Inc. remains limited. This is mainly because many prospective customers are unconvinced that the current generation of AR glasses offers anything which they cannot already get from their smartphones. Also, AR glasses are perceived by many as a threat to privacy.

Despite these issues, competition in the market is set to intensify over the next three years. Apple and Facebook will launch AR glasses, while Google will make a second attempt in the space following its recent acquisition of North. These vendors must focus on developing a service ecosystem around their products, pay attention to data privacy issues, and offer compelling use cases. Apple, for example, has applied for a patent on a vision correction optical system, which aims to eliminate the need for prescription lenses on smart glasses. It is also working on a mechanism to virtually control devices, such as smart TVs, through AR glasses.

Manufacturing Industry to Lead, Healthcare Industry Emerges Lucrative

AR glasses are being deployed in industries ranging from logistics and manufacturing to oil and gas. The manufacturing industry is the highest revenue contributor to the global AR glasses market, generating US$42.7 Mn in 2017 globally. Healthcare is a potentially lucrative market for AR glasses vendors. AR glasses are used by healthcare professionals for providing training to practitioners and surgeons, educating medical professionals and students, and supporting telehealth services.

Google Glass, for example, is used by surgeons to attend training sessions and, during procedures, to access relevant surgical information in their line of sight, while Vuzix’s M400 AR glasses are being used for telehealth services. Augmedix offers Google Glass Enterprise Edition-based tools for doctors to collect, update, and refer patients’ medical data in real-time, while NuEyes’ Pro 2 smart glasses help people with partial visual impairment to perform regular tasks like commuting. Vuzix, Iristick, and ThirdEye are catering to several medical and healthcare institutions worldwide with their AR glasses.

Growth Opportunities Across Regions

North America to Lead, Asia Pacific Exhibit the Fastest Growth

North America has accounted for 38.5% revenue share in the AR glasses market in 2020. This is due to the increasing adoption of AR glasses by enterprises for improving operational efficiency and the presence of technology giants such as Google, ThirdEye, Apple, Vuzix, Snap Inc., and others across the region. In addition, the rising popularity of using wearable devices across industries for ease of operation further boosts the demand for AR glasses in North America. Trends for AR glasses in North America are to develop AR glasses integrated with emerging technologies such as conversational platforms, edge computing, and cybersecurity.

The US Unbeatable, China Significant

The US is the highest revenue contributing AR glasses market. Over the next three to four years, 5G support will become an increasingly common feature in AR glasses. Vendors across the U.S. are starting to experiment with available 5G networks to bring new solutions to the market. For example, Qualcomm has partnered with 15 telecom operators, including China Mobile, NTT DoCoMo, KT, SK Telecom, Verizon, and Vodafone, to bring the 5G-powered XR2 mixed reality (MR) platform to AR glasses makers within the next four years. 

Asia Pacific’s AR glasses market is expected to grow at the fastest pace over the forecast period. China is the dominant country for AR glasses as it is a manufacturing hub for technology products. India is expected to create new opportunities for consumer AR glasses manufacturers due to the rising spending of the consumer on wearable devices.

AR Glasses Market: Competitive Landscape

The enterprise AR glasses market is dominated by established vendors. The top four vendors, i.e., Google, Seiko Epson, Rokid, and Vuzix have accounted for more than 75% market share in 2020. Google is the dominant player in the enterprise type. In 2020, the company accounted for more than 50% market share in terms of revenues. Seiko Epson was in the second position followed by ThirdEye in revenue terms.

Vuzix is an emerging brand in the AR glasses market, offering AR hardware and software products to enterprises and consumers. Backed by Intel (which has a 30% stake in the company), Vuzix holds over 130 patents for smart glasses. It also works in partnership with companies like Verizon, ProGloves, and TensorMark to develop new solutions for its devices. Vuzix has been a consistent promoter of the use of AR glasses in enterprises. It supported DHL’s Vision Picking program from 2015 until it was replaced by Google Glass in 2019, and it develops Toshiba’s business-focused AR smart.

In 2019, Vuzix introduced a variant of the Blade smart glasses, certified as personal protective equipment in both the US, and EU. It also offers a consumer version of its Blade devices, which feature high-street navigation, games, and video streaming services.

The consumer AR glasses market is dominated by Seiko Epson, Everysight, DigiLens, and Solos Wearables. The Consumer AR glasses industry is at a nascent stage but it is expected to grow rapidly over the coming years as big technology companies such as Apple, Facebook, Reliance Jio are announced to enter the consumer market in the next two or three years. In addition, big companies are focusing on expanding their presence through the acquisition of smaller companies that offer augmented reality components such as display, and lenses. 

The Global AR Glasses Market is Segmented as Below:

By Type Coverage

• Enterprise
• Consumer

By Industry Coverage

• Government
• Healthcare
• Aerospace and Defence
• Manufacturing
• Others

By Geographical Coverage

• North America
  • U.S.
  • Canada
  • Rest of North America
• Europe
  • UK
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Rest of Middle East & Africa

Leading Companies

• Google LLC
• Vuzix Corporation
• Epson
• Rokid Inc.
• Jorjin Technologies Inc.
• ThirdEye Gen, Inc.
• Solos Wearables
• Everysight Ltd.
• DigiLens Inc.
• Iristic

Inside This Report You Will Find:

1. Executive Summary
2. Market Overview
3. Shipment Analysis, 2016 - 2025
4. Price Trend Analysis, 2016 - 2025
5. Global AR Glasses Market Outlook, 2017 - 2025
6. North America AR Glasses Market Outlook, 2017 - 2025
7. Europe AR Glasses Market Outlook, 2017 - 2025
8. Asia Pacific AR Glasses Market Outlook, 2017 - 2025
9. Latin America AR Glasses Market Outlook, 2017 - 2025
10. Middle East & Africa AR Glasses Market Outlook, 2017 - 2025
11. Competitive Landscape
12. Appendix

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