Augmented Reality Spending Exploding 11X To $36.4B in 2023, Greenlight Says 09-22

Apple just released ARKit and Google just released ARCore in the last few months. But revenue for augmented reality devices and content will hit a massive $36.4 billion in 2023, according to Greenlight Insight's newest report.

That's 11 times higher than the estimated $3.4 billion in revenue in 2019.

Greenlight Insights

Estimated augmented reality revenue from devices and content

Current devices in the space include Microsoft's Hololense, Google's second version of the Google Glass, and the Meta 2. Apple's new iPhone X and high-end Android-powered devices are the thin edge of the wedge driving augmented reality experiences into the consumer consciousness.

We're about to see a lot more devices, however:

According to the report, the total number of augmented reality (AR) head-mounted displays will grow from two million in 2019 to 30 million in 2023. That means, of course, that the tipping point is still a ways off ... several years, in fact.

“We are expecting a faster adoption of AR headsets than what we have seen with virtual reality headsets," Clifton Dawson, CEO of Greenlight Insights, said in a statement. "But optimism should be tempered as the AR ecosystem must address substantial problems on numerous base levels.”
Head-mounted AR revenues should reach $12.9 billion in sales by the end of 2020, the report says. Device revenue is most of that: $7.1 billion, with content revenue taking the rest.

And device revenue should grow fast: the report estimates a compound annual growth rate of 98% from 2019 to 2023.

Early devices are going to hit industrial and professional workplaces first, with prices for head-mounted displays in the $1000-3000 range currently. Those prices will come down, of course, and phone-driven systems with lower quality can be priced as low as $100.

Key markets the report identifies include healthcare, industrial design, manufacturing, education, and training. As device penetration grows, so will demand for content and software.

"In the five years to 2023, consumer and commercial spending on AR content and software is forecasted to grow at an average annual rate of 78% to $15.4 billion," the report says.

By 2023, Greenlight says that 53% of spending will be consumer spending. The key driver will be no surprise to technology industry veterans: gaming.

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