New Study Projects Mobile AR Revenue to Reach $21.5 Billion by 2028

ARtillery Intelligence publishes its five-year mobile AR outlook.

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LOS ANGELES, April 11, 2024: ARtillery Intelligence today released a new report that projects global mobile AR annual revenue to grow from U.S. $10.5 billion in 2023 to U.S. $21.5 billion in 2028, a 15.4 percent compound annual growth rate. Entitled Mobile AR Global Revenue Forecast, 2023-2028, it dives deep into mobile AR revenue totals and subcategories – including consumer and enterprise spending.

Marketing & Commerce enablement is the leading revenue category ($4.71 billion last year), followed by enterprise productivity & guidance ($4.54 billion) and consumer spending ($1.01 billion). Marketing & commerce enablement will maintain this spending share lead through 2028 as brands increasingly recognize AR’s ability to demonstrate products in visually-immersive and conversion-boosting ways.

“When looking at mobile AR traction, consumer adoption leads the way… but consumers themselves aren’t paying for experiences en masse,” said ARtillery Intelligence Chief Analyst, Mike Boland. “This makes most consumer AR experiences brand-sponsored rather than consumer-purchased. The result is that B2B2C spending – including platforms that enable creation and amplification of immersive brand marketing – represents the biggest market opportunity in mobile AR.”

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 (3.21 billion units), followed by Meta Spark (2.91 billion units) and Google’s ARCore (1.66 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 earlier-stage AR development,” said Boland. “Its Effect House AR creation platform could amplify its scale and monetization potential, as creator platforms have done for Snap and Meta, but its geopolitical headwinds raise uncertainty. 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: 2023-2028

Report Availability

Mobile AR Global Revenue Forecast, 2023-2028 is available to ARtillery PRO subscribers, and more can be previewed here. This report follows ARtillery Intelligence’s separate examinations of headworn AR and VR spending.

About ARtillery Intelligence

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.