New Study Projects Mobile AR Revenue to Reach $39.81 Billion by 2027
ARtillery Intelligence publishes its five-year mobile AR outlook.
LOS ANGELES, March 20, 2023: ARtillery Intelligence today released a new report that projects global mobile AR annual revenue to grow from U.S. $15.1 billion in 2022 to U.S. $39.8 billion in 2027, a 21.35 percent compound annual growth rate. Entitled Mobile AR Global Revenue Forecast, 2022-2027, it dives deep into mobile AR revenue totals and subcategories – including consumer and enterprise spending.
Enterprise productivity is the leading revenue category in 2023 ($8.09 billion), followed by commerce enablement ($4.66 billion) and advertising & marketing ($4.03 billion). AR commerce enablement will be the leading mobile AR revenue category by 2027 ($14.02 billion) as brands continue to recognize AR’s ability to demonstrate products in visually-immersive and conversion-boosting ways. AR advertising & marketing will be driven by similar factors.
“Several of these mobile AR revenue categories represent what we call AR as a Service, which are SaaS-like offerings that enable companies to build and deliver AR experiences,” said ARtillery Intelligence Chief Analyst, Mike Boland. “This includes the development of AR-guided enterprise productivity (B2B) or consumer-facing branded experiences (B2B2C). In either case, AR ‘picks & shovels’ represent a considerable opportunity to meet demand for lower-friction AR experience creation and accelerated time-to-market.”
Much of mobile AR’s revenue growth is also driven by the large installed base of AR-enabled smartphones. This total continues to grow as smartphone replacement cycles phase in AR-capable devices. The greatest AR compatibility is estimated for web AR (3.18 billion units), followed by Meta Spark (3.07 billion units) and Apple’s ARkit (1.41 billion units). Other platforms with notable positioning and momentum include Snap, TikTok, and Google Lens (visual search).
“TikTok is the wild card, with rapidly growing global usage but relatively underdeveloped AR,” said Boland. “Its AR creation platform, Effect House, could amplify its AR scale and monetization potential, as creator platforms have done for Snap and Meta. Visual search, led by Google Lens, will also gain ground in later years, driven by utility, frequency, and natural monetization – just like web search.”
Mobile AR Global Revenue Forecast, 2022-2027 is available to ARtillery PRO subscribers, and more can be previewed here. This report follows ARtillery Intelligence’s separate examination of headworn AR and VR spending.
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ARtillery Intelligence chronicles the evolution of spatial computing, otherwise known as AR and VR. Through writings and multimedia, it provides deep and analytical views into the industry’s biggest players, opportunities, and strategies. Products include the AR Insider publication and the ARtillery PRO research subscription. Research includes monthly narrative reports, market-sizing forecasts, consumer survey data, and multimedia, all housed in a robust intelligence vault. Learn more here.
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