Augmented Reality Navigation Market by HMD, HUD, AR Navigation Software; Real-time Location Data Management, Routing and Navigation, Asset Tracking, Reverse Geocoding; Built-in Mobile Sensors, Visual Positioning System, AR Cloud - Global Forecast to 2029
[195 Pages Report] The augmented reality (AR) navigation market is expected to reach USD 6.33 billion by 2029 from USD 1.17 billion in 2024, at a CAGR of 40.3%.
AR navigation is a unique solution that combines real-time localization and a virtual data overlay on the user's field of view to improve the navigation experience. Its primary objective is to provide directions to users onscreen, overlaid on the real-life environment, accessible through devices like smartphones, tablets, HMDs, HUDs, etc.
The augmented reality navigation market is segmented by offering, type, application, end-use industry, and region. Offerings are further classified into HMD, HUD, AR mapping & localization software, AR navigation apps, AR SDKs, AR cloud, AR HUD software, and AR data visualization software. By type, the market is segmented into indoor and outdoor navigation. The application segment includes real-time location data management, routing & navigation, asset tracking, reverse geocoding, and others. The end-use industries of AR navigation include automotive, consumer, retail & shopping malls, airports & transportation, healthcare, and government, among others. The automotive sector is projected to account for the largest market share from 2024 to 2029, owing to the increasing demand for advanced navigation systems in vehicles. The Asia Pacific region is projected to have the highest growth rate in the forecast period.
Augmented Reality Navigation Market Forecast to 2029
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Impact of AI/Gen AI on Augmented Reality Market
Integration of artificial intelligence with AR navigation provides accurate location tracking, real-time data, and traffic updates. Integrating AI with AR navigation improves accuracy and real-time optimization by processing data from various sources, such as GPS signals, sensors, and others, to deliver accurate navigation instructions that adapt instantly to changing conditions. AI/ Gen AI helps AR navigation to recognize, locate, and track real-world objects, including road signs, vehicles, and pedestrians so that digital overlays are contextually relevant and correctly aligned. AI transforms a user's interaction with the AR navigation system by using intuitive interfaces that respond to voice commands, gestures, and user preferences, thereby optimizing the overall experience of engaging with AR while navigating.
Visual assistance also benefits from AI's ability to integrate real-time data and contextual awareness, providing clear, augmented directions and alerts directly within the user's field of view, which enhances safety and convenience. Together, these AI-driven enhancements are pushing the boundaries of what AR navigation can achieve, making it more reliable, interactive, and user-friendly and driving its widespread adoption in various sectors, particularly in the automotive industry.
Augmented Reality Navigation Market Dynamics
Driver: Integration of AR in automotive systems drives AR navigation market
Integration of augmented reality with automotive systems is rapidly enhancing the driving experience of vehicles. It changes the way vehicles are designed, manufactured, sold, driven, and maintained, providing drivers with convenience, efficiency, and safety. By seamlessly integrating navigation information into the real-world environment, AR navigation provides a more accurate and user-friendly experience.
HUDs (head-up displays) are the most demanded devices for AR applications in automotive systems. Traffic updates, navigation, and driver assistance are projected onto the windshield through a HUD, providing a safer and more informed driving experience.
Smart glasses or headset technology can superimpose navigation prompts, critical vehicle information, and hazard notifications right in front of the user. The use of augmented reality within the automotive ecosystem has also improved mapping, navigating, road safety, parking assistance, etc. Multiple automakers have worked with augmented reality developers to make their customers' driving experiences better. For instance, Volkswagen has collaborated with Microsoft (US) to induct the use of the HoloLens 2 mixed-reality headset into moving vehicles by means of augmented reality glasses.
In April 2024, Mercedes-Benz AG introduced AR navigation into the C465 MBUX model to enhance the driving experience and safety.
Restraint: High dependence on GPS and device sensors for accuracy
Augmented reality navigation heavily relies on device sensors and GPS for accuracy. GPS signals are commonly used in outdoor environments such as for city navigation, tourism, hiking, and outdoor activities. However, GPS signals can be unreliable in certain locations, such as in complex urban areas, tunnels, within buildings (such as hospitals, shopping malls, airports, educational institutions, retail stores, government buildings, and museums), and in remote regions with weak signal reception.
GPS signals depend on satellites for accurate location, which can limit their effectiveness in complex indoor environments. In addition, to track movement in real-time and provide precise information, GPS signals rely on various device sensors, including accelerometers and gyroscopes.
Heavy reliance on these sensors can limit the usefulness of AR navigation in confined spaces and complicated environments. Furthermore, the dependence on external signals and devices for accuracy makes AR navigation susceptible to interruptions and inaccuracies, which can impact user reliability and limit the system's effectiveness in certain environments.
Opportunity: Integration of 5G technology with AR navigation
Integration of 5G with AR offers enhanced performance, precision, and user experience for AR navigation. 5G offers faster data speeds and low latency, indicating that AR navigation systems will be able to process and deliver information in real time with greater accuracy and responsiveness. The high bandwidth of 5G provides advanced visuals and interactive features, such as real-time updates on road conditions, live traffic information, and dynamic route adjustments.
In the role of network infrastructure, with the advent of 5G technology, AR navigation can benefit from visual positioning systems (VPS) and sensor fusion to enhance accuracy and lessen reliance on GPS alone. This can be useful in indoor navigation and in areas where GPS signals are weak or obstructed.
5G connectivity will improve the performance of connected car systems, enabling more efficient communication between infrastructure and vehicles. Overall, the integration of 5G into augmented reality navigation systems elevates the technology's capabilities, making navigation more efficient, dependable, and user-friendly.
In 2022, Telstra (Australia), Google LLC (US), and Accenture (Ireland) collaborated to develop a 5G-powered augmented reality (AR) navigation experience at Melbourne's Marvel Stadium and Australian Football League to enhance the wayfinding experience by incorporating digital information into the physical world.
Challenge: Limited user acceptance and familiarity with AR navigation
One of the main challenges in the AR navigation market is that many users are still unfamiliar with the technology, making it harder for them to accept. Even though AR navigation brings exciting features like immersive guidance and real-time data overlays, adoption has been slow for several reasons. Many people are still not familiar with augmented reality, and some may be hesitant to use it for navigation because they find it more complicated than traditional systems. Users are still not widely familiar with augmented reality and may be hesitant to adopt it for navigation. They may perceive it as complex compared to traditional navigation systems. AR is new, and users lack an understanding of its features, capabilities, benefits, and how to use it effectively. Overcoming skepticism and educating users about how augmented reality can enhance their navigation experience is crucial.
Moreover, due to privacy and security concerns, users are still hesitant to share personal data or use systems whose operations remain vague and not fully understandable. To overcome these challenges, the augmented reality navigation industry should emphasize user training, enhancing customer experience, making technology easy to understand, and developing strong data protection measures.
Augmented Reality Navigation Market Ecosystem
Google LLC (US), Apple Inc. (US), Microsoft (US), WayRay AG (Switzerland), and Neusoft Corporation (China) are the prominent players in the augmented reality navigation market. The top five key players held 80% to 90% of the augmented reality (AR) navigation market in 2023. This market share is derived based on the annual reports, financial results, investor presentations, and company developments.
Retail & shopping malls segment expected to grow at the highest CAGR during the forecast period from 2024 to 2029
The use of AR navigation technology is gaining more traction throughout the world in multiple shopping malls and retail centers to enhance shoppers' experiences. The physical places???? use augmented reality-enabled devices, such as smartphones and specialized AR headsets (i.e., smart glasses and HMDs), to provide interactive and informative experiences to customers.
Advanced navigation features are being integrated into these malls. These systems create detailed 2D and 3D maps of the mall environment, enabling users to track everything around them using GPS, a digital compass system, and even a visual positioning system. It will be very easy to find stores and amenities; visitors will be further assisted by real-time updates on store location, promotions, and events.
Augmented reality navigation features have added a new dimension to the shopping experience by overlaying digital arrows and signs onto the real-world environment, enabling visitors to navigate even the most complex layouts of malls without stress, hence improving customer satisfaction. In this way, such smooth integration of these technologies facilitates navigation and improves visitor flow within malls, reduces congestion in the key areas, and ensures all customers confidently and with ease find their way.
Airports & transportation end-use industry held second-largest market share in 2023
Airports and transportation hubs are increasingly utilizing AR navigation technology to improve the travel experience for passengers. By using AR-enabled smartphones and headsets such as smart glasses and heads-up displays, users can easily navigate to shops, places, and locations with real-time visual information, making it easier to move around in complex environments. Augmented reality (AR) navigation also enables travelers to access important details like flight information, boarding gate locations, and directions. The use of AR navigation enhances travel convenience, reduces travel-related stress, and improves passenger satisfaction. Many companies offer specific AR navigation solutions tailored for airports and transportation. For example, Navigine provides an airport navigation system for wayfinding, enhancing operational efficiency and saving time by guiding users to locations such as boarding gates and check-in points. Additionally, the UK-based Gatwick Airport introduced an AR navigation app in 2017 to direct passengers to the correct gate, baggage carousels, and check-in counters with real-time updates on flight status, delays, and optional time management.
Augmented Reality Navigation Market by Region
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Asia Pacific market expected to grow fastest and hold largest market share during forecast period
The AR navigation market in the Asia Pacific region is expected to experience the highest growth rate and hold the largest market share during the forecast period. This region includes countries such as China, Japan, India, South Korea, and others. China is projected to have the largest market share in 2023 and is expected to maintain this position in the forecast period as well.
The increasing demand for automobiles equipped with advanced systems and technologies is driving the growth of the augmented reality navigation market in the Asia Pacific region. Rapid urbanization in countries like India and China, along with complex transportation networks, is creating a high demand for advanced navigation systems and solutions.
The retail and shopping malls segment is anticipated to hold the second-largest share of the Asia Pacific AR navigation market from 2024 to 2029. This is attributed to rapid urbanization, infrastructure development, and technological advancements in countries such as China, Japan, India, and South Korea. AR navigation enhances the shopping experience by offering personalized promotions and in-store location guidance, leading to improved user engagement, streamlined navigation, and an enhanced shopping experience.
Key Market Players
The major players in augmented reality navigation companies with a significant global presence include Google LLC (US), Apple Inc. (US), Microsoft (US), WayRay AG (Switzerland), Neusoft Corporation (China), FURUNO ELECTRIC CO., LTD. (Japan), ARway Corp. (Canada), Wiser Marine Technologies Ltd. (Canada), Mapbox (US), Treedis (Israel), ViewAR GmbH (Austria), Artisense GmbH (Kudan Germany GmbH.) (Germany), IndoorAtlas (Finland), Hyper (London), SITUM TECHNOLOGIES (Spain), Insider Navigation Inc (Austria), Wemap SAS (France), Resonai Inc. (Israel), Oriient New Media Ltd (Israel), Navigine (US), 22Miles (US), Sygic (Slovakia), Veo (Poland), HERE (Netherlands), and Esri (US).
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Report Metric |
Details |
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Market size available for years |
2020–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD Million/Billion), Volume (Million Units) |
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Segments covered |
By offering, type, application, end-user industry, and region |
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Geographies covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
Major players in augmented reality navigation market: |
Augmented Reality Navigation Highlights
The study segments the augmented reality navigation market based on offering, type, application, end-users, and region.
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Segment |
Subsegment |
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By Offering |
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By Type |
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By Application |
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By End-users |
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By Region |
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Recent Developments
- In May 2024, ARway Corp. (US) acquired Map Dynamics (US) in an all-stock deal, which includes USD 1.2 million in revenue and USD 250,000 in EBITDA. This acquisition accelerated ARway Corp's product development and introduced new revenue opportunities through indoor mapping solutions and interactive navigation maps, broadening the company's augmented reality navigation and experience platform.
- In May 2024, ARway Corp. (US) established partnerships with Ershad Technologies and IOTrackers in Saudi Arabia, as well as Walkk in Oman. Ershad Technologies will implement ARway Corp's technology in a Riyadh library, while Walkk presented ARway's indoor navigation app at Comex 2024 in Oman. These partnerships aimed to enhance ARway.ai's market presence and create new business opportunities.
- In April 2024, ARway Corp. (US) collaborated with AVR Labs (Dubai), a UAE-based company specializing in XR technologies, to integrate ARway Corp.'s no-code, no-beacon spatial computing solution with AVR Labs' generative AI 3D/AR avatars. AVR Labs will become a key partner in the Gulf Region, expanding ARway Corp.'s distribution network and enhancing AR navigation through advanced AI-driven interactive avatars.
- In February 2024, Apple Inc. (US) launched Apple Vision Pro, an AR head-mounted display that helps to work, collaborate, connect, relive memories, enjoy entertainment, and navigate. It is controlled by the user's eyes, hands, and voice.
- In September 2022, Google LLC (US) acquired Phair (US) to enhance its capabilities in the automotive sector and provide an enhanced in-car experience for drivers and automakers. Phair combined a mobility AR engine and a spatial AI engine to bring intelligence to automotive navigation.
Frequently Asked Questions (FAQs):
What will the size of the global augmented reality navigation market be in 2024 and 2029, and at what CAGR is the market expected to grow?
The augmented reality navigation market is projected to grow from USD 1.17 billion in 2024 to USD 6.33 billion by 2029, at a CAGR of 40.3%.
Who are the winners in the global augmented reality navigation market?
Companies such as Google LLC (US), Apple Inc. (US), Microsoft (US), WayRay AG (Switzerland), and Neusoft Corporation (China) are the winners in the global augmented reality navigation market.
Which region is likely to capture the largest market share?
The Asia Pacific region is projected to hold the largest share of the augmented reality navigation market from 2024 to 2029.
What are the major forces driving the augmented reality navigation market at present, and what factors will create opportunities for market players?
The incorporation of artificial intelligence algorithms for accurate location tracking and real-time data updates is the major driver for the market. The integration of 5G technology with AR navigation is likely to present opportunities for market players.
What are the major strategies adopted by market players?
Key players have adopted product launches, acquisitions, contracts, and collaborations to strengthen their position in the augmented reality navigation market.
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The research report includes four major activities, estimating the size of the augmented reality navigation market. Secondary research has been done to gather important information about the market and peer markets. To validate the findings, assumptions, and sizing through primary research with industry experts across the supply chain is the next step. Both bottom-up and top-down approaches have been used to estimate the market size. After this, the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments
Secondary Research
For estimating the revenues of the augmented reality navigation providing companies around the world, the secondary data were collected from paid and free online sources. Sample sources for secondary research include government body publications, companies’ annual reports, financial statements and trade/professional association publications. This data contributes to establish the market size that in turn was verified during the primary research.
Secondary research approach is used to obtain key insights about the supply chain of the industry to identify key players and to prevail trends with regards to different instruments, sampling methods, applications, and geographical area. Also, the market and the technology trends were monitored during the study.
Primary Research
In the primary research phase, a variety of industry experts were interviewed to gather qualitative and quantitative insights about the market across four key regions: North America, Europe, Asia Pacific and RoW (the Middle East, Africa, and South America). These experts included CEOs, vice presidents, marketing directors, technology and innovation directors, subject-matter experts (SMEs), consultants and other key executives from leading companies and organizations in the augmented reality navigation market.
Market engineering process entailed calculations for breakdowns, market statistics, forecasting, size estimations, and data triangulation. Extensive primary research was conducted to collect, verify, and validate critical numerical data. This primary research results in identifying segmentation types, industry trends, competitive landscapes, key players, and market dynamics such as drivers, restraints, opportunities, and challenges. Additionally, it sought to understand the key strategies adopted by market players.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down and bottom-up approaches were extensively employed in the market engineering process. Various data triangulation methods were utilized to forecast and estimate the market segments and subsegments covered in the report. Multiple qualitative and quantitative analyses were conducted during the market engineering process to extract key insights throughout the report.
Secondary research helped identify key players in the augmented reality navigation market. Their revenues were determined through a combination of primary and secondary research, analyzed both geographically and by market segment, using financial statements and annual reports. Insights were further enriched through interviews with CEOs, VPs, directors, and marketing executives.
The market shares were estimated using this combined research approach. The data was then consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in the report.
Market Size Estimation Methodology-Bottom-Up Approach
The bottom-up approach was employed to arrive at the overall size of the augmented reality navigation market from the calculations based on the revenues of the key players and their shares in the market. Key players in augmented reality navigation market, including Google LLC (US), Apple Inc. (US), Microsoft (US), WayRay AG (Switzerland), and Neusoft Corporation (China) were studied. The market size estimations were carried out considering the market size of their augmented reality navigation offerings.
Market Size Estimation Methodology-Top-down Approach
In the top-down approach, the overall market size was utilized to forecast the size of individual markets, using percentage splits derived from both secondary and primary research. The most relevant parent market size was employed to calculate specific market segments.
The revenue shares calculated earlier in the bottom-up approach were verified by identifying and estimating the market share of each company. This study determined and confirmed the overall parent market size and individual market sizes through data triangulation and validation with primary sources.
Data Triangulation
After determining the overall market size through the estimation process, the total market was divided into various segments and subsegments. To finalize the market engineering process and obtain precise statistics for all segments and subsegments, data triangulation was employed. This involved analyzing various factors and trends from both the demand and supply sides. Additionally, the market was validated using both top-down and bottom-up approaches.
Market Definition
Augmented reality navigation is an innovative solution that incorporates real-time positioning with virtual data overlay onto the physical world for an improved navigation experience. The prominent goal of augmented reality navigation technology is to enhance the user’s navigation experience by overlaying digital information such as directional arrows, points of interest and real-time data to user onscreen through a device’s camera view. Augmented reality navigation software, HUD and HMDs are the major offerings of augmented reality navigation market. Augmented reality navigation depends on sensors, cameras, and algorithms to track the movement of the user and provide real-time navigation guidance. Augmented reality navigation operates in both indoor and outdoor areas. This technology helps to navigate in complex locations such as retail stores & shopping malls, airports, healthcare, museums & cultural institutions and many others. Real-time location data management, routing & navigation, asset tracking, reverse geocoding, emergency & safety, interactive training & simulation are the key applications of augmented reality navigation.
Key Stakeholders
- Raw material suppliers
- Original equipment manufacturers (OEMs)
- Augmented reality device manufacturer
- Software and technology providers
- Standardization and testing firms
- Government bodies such as regulatory authorities and policymakers
- Research organizations
- Technology investors
The main objectives of this study are as follows:
- To define, describe, and forecast the augmented reality navigation market by offering, type, application, end-users, and region in terms of value.
- To define, analyze, and forecast the augmented reality navigation market by device in terms of volume.
- To forecast the market for various segments with respect to 4 main regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW), in terms of value.
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges that influence the growth of the market.
- To provide a detailed overview of the augmented reality navigation value chain, along with industry trends, technology trends, use cases, regulatory landscape, and Porter’s five forces.
- To strategically analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the total market.
- To analyze market ecosystem; trends/disruptions impacting customer’s business; technology analysis; pricing analysis; key stakeholders & buying criteria; case study analysis; trade analysis; patent analysis; key conferences & events, 2024–2025; regulations related to the augmented reality navigation market; and investment and funding scenario.
- To analyze the opportunities in the market for stakeholders by identifying high-growth segments and detailing the competitive landscape for market players.
- To strategically profile key players and comprehensively analyze their market rankings, core competencies, company valuation and financial metrics, and product/brand comparison, along with detailing the competitive landscape for the market leaders.
- To analyze the competitive developments such as product launches, partnerships, collaborations and acquisitions, and research and development (R&D) carried out by market players
- To map the competitive intelligence based on company profiles, key player strategies, and game-changing developments, such as product developments, collaborations, and acquisitions
- To benchmark players within the market using the proprietary competitive leadership mapping framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Country-wise Information for Asia Pacific
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Augmented Reality Navigation Market