Augmented Reality Report 2025: Key Data and Innovation Insights

The Augmented Reality Report 2025 presents a comprehensive overview of the development of augmented reality (AR) across its global hubs. It explores firmographic, innovation, and investment datasets and identifies emerging trends. Further, it highlights key enablers such as workforce expansion, patent activity, and capital inflow.

Moreover, the report outlines the industry’s growth to shape investor confidence and deepen startup activity. Also, it highlights technological diversification, including WebAR, spatial imaging, and holographic animation.

This report also explores the influence of top investors, leading patent holders, and strategic startup efforts. It offers a detailed look at the integration of immersive technologies into industries ranging from construction and education to manufacturing and e-commerce.

Executive Summary: Augmented Reality Market Outlook 2025

• Industry Growth Overview: The AR market recorded an annual growth rate of 9.23%. It will reach USD 591.7 billion by 2033.
• Manpower & Employment Growth: It includes a global workforce of 1.4 million professionals and has hired about 143 300 employees in the past year.
• Patents & Grants: About 20 609 applicants filed about 67 901 patents. The sector received 5872 grants. Patent filings grew by 22.74% year-over-year (YoY).
• Global Footprint: AR companies cluster around five major country hubs, including the USA, India, the UK, Germany, and Canada. Five key city hubs span London, New York City, Bangalore, San Francisco, and Singapore. These regions represent the highest concentration of talent, intellectual property (IP) activity, and startup density.
• Investment Landscape: The market closed about 20 895 funding rounds, with an average round size of USD 20.3 million. Over 16 600 investors participated and backed more than 5413 companies.
• Top Investors: The top 10 investors contributed more than USD 9.24 billion collectively. Leading firms include Carlyle Group (USD 1.1 billion), Tiger Global (USD 1.1 billion), and Temasek (USD 1 billion), alongside others such as Eldridge, BDT & MSD Partners, and SoftBank Group.
• Startup Ecosystem: Five innovative startups showcase the sector’s global reach and entrepreneurial depth. These include Second Wave Holdings (Instructional Content Software), beXReal (Remote Assistance Platform), FieldAR (BIM-Based Construction Tools), Nova (AI-Driven Product Visualization), and Quaternar (Low-Code AR/VR Integration SDK).

Methodology: How we created this Augmented Reality Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 7 million global companies, 20K+ technologies and trends as well as 150M patents, news articles and market reports. This data includes detailed firmographic insights into approximately 7 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of augmented reality over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

• Total Companies working in the sector
• News Coverage and Annual Growth
• Market Maturity and Patents
• Global Search Volume & Growth
• Funding Activity and Top Countries
• Subtrends within augmented reality

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the augmented reality market.

What Data is used to create this Augmented Reality Market Report?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the augmented reality market stands out in the following categories relative to the 20K+ technologies and trends we track.

These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.

• News Coverage & Publications: More than 12 420 news articles have been published about the AR domain.
• Funding Rounds: The sector closed more than 20 895 funding rounds.
• Manpower: It employed over 1.4 million professionals globally and added more than 143 300 new employees in the last year.
• Patents: The market holds 67 901 patents.
• Grants: It received more than 5872 grants.
• Yearly Global Search Growth: The sector experienced a 16.55% increase in global search interest over the last year.

Explore the Data-driven Augmented Reality Outlook for 2025

This heatmap offers a visual snapshot of the global AR ecosystem. Out of 31 706 total companies, 2165 startups actively focus on AR.

The market recorded a 9.23% growth over the past year. It added 143 300 new jobs, bringing total global manpower to 1.4 million professionals.

On the intellectual property front, the sector received about 5872 grants. The innovation hotspots comprise the USA, India, the UK, Germany, and Canada.

City-level clusters of activity include London, New York City, Bangalore, San Francisco, and Singapore.

Moreover, more than 20 609 applicants filed about 67 901 patents. The patent activity grew at a 22.74% YoY rate. The USA leads as the top issuer with 27 278 patents, followed closely by China with 19 494.

Credit: Sagacious Research

In Q3 2021, global AR/VR patent grants reached 2735. China led with 1213 patents. It was followed by the USA with 780, both consistent with Q2 levels. Most regions saw an uptick, driven by rising Metaverse interest.

A Snapshot of the Global Augmented Reality Market

The AR market continues to demonstrate forward momentum, with an annual growth rate of 9.23% YoY, and includes about 2165 active startups.

Credit: market.us

It projects to reach USD 591.7 billion by 2033, from an estimated USD 29.6 billion in 2024 with a compound annual growth rate (CAGR) of 39.5%. Another research report suggests that the AR market is projected to grow from USD 43.98 billion in 2024 to USD 635.67 billion by 2033. It will expand at a CAGR of 34.26% between 2025 and 2033.

The combined AR and VR market is forecasted to increase at an annual rate of 13.72% between 2023 and 2027, reaching an estimated USD 52.05 billion by 2027. By 2027, the AR and VR market is anticipated to serve approximately 2,593 million users, with user penetration rising from 28.8% in 2023 to 32.6% by 2027. The average revenue per user (ARPU) is estimated at USD 14.08.

Among its segments, AR software stands out as the largest, with a forecasted market value of around USD 11.58 billion in 2023. The USA will lead in revenue generation, with a projected market volume of USD 8.57 billion in 2023.

The AR hardware market projects global revenue of USD 8.6 billion in 2025, increasing to USD 11.7 billion by 2029 with a CAGR of 8.13%. The USA is projected to generate the largest share, with USD 3.1 billion in revenue in 2025.

The number of users worldwide is forecasted to reach 143.5 million by 2029, with user penetration growing from 1.1% in 2025 to 2.2% by 2029. The ARPU is expected to be USD 117.3.

Credit: Precedence Research

The mobile AR market is anticipated to grow from USD 37.73 billion in 2024 to USD 529.93 billion by 2034, with a CAGR of 30.24%.

Augmented Reality Market Growth across Various Sectors

AR internet of things (IoT) in hospitals is projected to generate an economic value of USD 20-30 billion by 2025, with expectations to grow to USD 40-90 billion by 2030.

Global revenue in the AR advertising market is expected to reach USD 5.8 billion in 2025, with a projected CAGR of 8.35%. This will bring the market to USD 8.0 billion by 2029. The USA is set to lead the market, generating an estimated USD 1.4 billion in revenue in 2025.

AR IoT in vehicles is projected to generate an economic value of USD 2-3 billion by 2025, with growth expected to reach USD 4-7 billion by 2030.

Credit: Markets & Markets

The global AR and VR in education market was valued at USD 3.8 billion in 2023 and is expected to grow to USD 14.2 billion by 2028. It will expand at a CAGR of 29.6% over the forecast period from 2023 to 2028.

Credit: IMARC Group

The global AR gaming market was valued at USD 14.2 billion in 2024 and is projected to reach USD 141.7 billion by 2033, growing at a CAGR of 25.9% between 2025 and 2033. North America currently leads the market and accounts for over 35% of the global share in 2024.

Credit: Market.us Scoop

Further, revenue distribution across industries shows electronics leading with 32.0%, followed by services (12.9%) and manufacturing (10.3%). E-commerce (5.2%), government (4.9%), and social media (4.8%) also contribute notably.

Telecommunications and advertising each hold 4.7%, while robotics (2.2%), gaming (2.0%), and healthcare (1.9%) represent smaller but meaningful shares. The remaining 11.1% comes from various other sectors.

Explore the Funding Landscape of the Augmented Reality Market

According to our Discovery Platform, the AR domain attracts investor confidence, with an average investment value of USD 20.3 million per funding round.

To date, over 20 895 funding rounds have been closed. More than 16 600 investors actively participated in this space, backing over 5413 companies worldwide.

Moreover, company stage data highlights an evolving market with 2317 early-stage startups, with 869 mergers and acquisitions (M&A).

Who is Investing in the Augmented Reality Market?

The top investors in the AR sector collectively invested over USD 9.24 billion.

• Carlyle Group invested USD 1.1 billion across 4 companies.
• Tiger Global backed 15 companies with a total investment of USD 1.1 billion.
• Temasek deployed USD 1 billion across 6 companies.
• Eldridge invested USD 963.8 million in at least a single company.
• BDT & MSD Partners invested USD 956.3 million across 2 companies.
• Vista Credit Partners also invested USD 956.3 million in at least a single AR-focused company.
• DST Global contributed USD 946.3 million to 2 companies.
• 3i Capital made at least a single-company investment of USD 791.6 million.
• SoftBank Group spread its USD 771.5 million investment across 6 companies.
• Goldman Sachs invested USD 699.9 million in 8 companies.

Top Augmented Reality Innovations & Trends

The AR market is evolving rapidly. Based on firmographic data, the following are the top three trends currently defining the AR landscape:

• WebAR includes about 346 companies actively working in the space. The domain’s annual growth rate of 20.84% reflects strong momentum as WebAR enables immersive experiences directly through web browsers. Together, the firms employ 11 800 professionals, with 1600 new roles added in the past year alone.
• AR Holography and Object Animation focuses on visual fidelity and interaction. With an annual growth rate of 9.76%, this domain advances in how objects are rendered, animated, and displayed within spatial environments. This domain includes 122 companies employing 5400 people, with 391 new hires in the past year.
• Spatial Imaging currently represents 59 companies and a workforce of 2800, including 200 new hires in the last year. With a 10.40% annual growth rate, this segment emphasizes the capture and reconstruction of physical spaces in 3D. It enables applications in areas like navigation, simulation, and contextual computing.

5 Top Examples from 2100+ Innovative Augmented Reality Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Second Wave Holdings develops Instructional Content Software

Australian startup Second Wave Holdings builds the InstructXR platform that shows step-by-step 3D instructions to make complex tasks easier. It aligns each virtual part with its real-world version to allow factory workers or technicians to assemble, repair, or take apart products while tracking progress in real time.

It breaks down workflows into smaller steps, adds context-aware notes, and identifies parts automatically for better guidance. Manufacturing engineers, teachers, automotive technicians, and electronics experts use it to make assembly, maintenance, and training more efficient. It allows for reducing mistakes and rework, shortens training time, and lets users view every angle of a product in AR for better understanding.

beXReal offers a Remote Assistance Platform

Spanish startup beXReal makes beXFlow, an AR remote assistance platform that streams annotated live video to field operators with off-site experts for immediate problem resolution.

The platform projects real-time data overlays, gesture and voice-controlled instructions, and contextual documents onto AR glasses, phones, or computers. This enables hands-free inspections and repairs even in hazardous environments.

Moreover, it captures remote photographs, records every session, and synchronizes with enterprise resource planning (ERP) tools. Also, it encrypts data and issues blockchain-backed certificates to protect information.

FieldAR makes a Building Information Modeling App

US-based startup FieldAR offers an AR mobile application that overlays building information models (BIM) on construction sites through iOS and Android devices.

It links field and office in real time by synchronizing markups and model updates via cloud-connected plugins. This enables construction workers to verify installations, locate equipment, and capture site notes within the coordinated BIM.

The application also offers dimension snapping, task assignment, offline model viewing, and automatic session sync of projects from custom homes to hospitals.

Nova provides AI Product Visualization

Dutch startup Nova makes a platform that converts a single image or 3D model into commerce-ready packshots. The uploaded reference photos are converted into rendered transparent product images at any required angle.

Further, it embeds real-time AR visualization for spatial evaluation and organizes every file in a cloud content management system (CMS) for direct distribution across e-commerce channels.

This platform applies generative AI to create brand-matched background scenes, provides unlimited angle generation, and maintains an encrypted asset library that eliminates separate photoshoots.

Quaternar builds AR Integration Software Kit

Czech startup Quaternar offers a low-code software development kit (SDK) and application programming interface (API) that transforms AR output into existing professional 3D applications.

It renders every frame remotely on the host workstation and streams the image directly to AR glasses. At the same time, a control layer links inputs to spatial gestures or mobile touchscreens, so developers do not need to rewrite their software in new engines.

Additionally, the library supports local multi-user sessions, optical marker tracking, and automatic creation of depth maps and environments. This enables interacting with the scene and sending updates back to the desktop application.

It also streams polygonal, dynamic, and volumetric data to support geospatial, engineering, medical, automotive, and defense workflows. This reduces integration costs by removing the need for code rewrites and off-device data transfers.

Gain Comprehensive Insights into Augmented Reality Trends, Startups, and Technologies

The Augmented Reality Report 2025 showcases a sector on the rise with increasing investment, growing manpower, and a high rate of technological innovation. AR applications have become more accessible and sophisticated.

The strong patent activity, targeted government grants, and expanding interest from both institutional investors and emerging startups support the sector’s growth. From web-based interfaces to spatial computing breakthroughs, AR’s integration into real-world use cases shows the change toward immersive, data-driven environments.

Get in touch to explore 2100+ startups and scaleups, as well as all market trends impacting augmented reality companies.