Augmented Reality Gaming Market Size:
Augmented Reality Gaming Market size is estimated to reach over USD 82.27 Billion by 2032 from a value of USD 17.34 Billion in 2024 and is projected to grow by USD 20.76 Billion in 2025, growing at a CAGR of 24.8% from 2025 to 2032.
Augmented Reality Gaming Market Scope & Overview:
Augmented reality gaming is real-time integration of digital elements into the physical world by blending virtual and physical environments.Also, the augmented reality game is dependent on components such as hardware and software to precisely map and integrate virtual elements into the physical space. Additionally, the advantages include immersive gameplay, real-world integration, increased engagement, and better navigation in games among others which in turn drive the augmented reality gaming market growth. Further, the combination of entertainment and education transforms gaming into a tool for learning is driving the augmented reality gaming market demand.
Augmented Reality Gaming Market Dynamics - (DRO) :
Key Drivers:
Surging Use of Smartphone for Augmented Reality Gaming Fuels Market Growth
The smartphone plays a key role in overlaying digital game elements onto the real world and creating immersive experiences for the user, driving the augmented reality gaming market demand. Further, the increasing smartphone penetration across the globe is paving the way for augmented reality gaming market growth. Furthermore, the rise in collaborative gaming is driving the market adoption.
- For instance, in November 2022, according to Ministry of Information & Broadcasting, number of mobile phone users in India reached over 1.2 billion which include 600 million smart phone users in turn paving the way for augmented reality
Therefore, the increasing smartphone penetration and rise in collaborative gaming is driving the gaming industry, in turn proliferating the growth of the market.
Key Restraints:
Health and Safety Concerns are restraining the Market Growth
The augmented reality significantly has a negative impact on the health including eye strain, neck pain, and headaches among others which is hindering the augmented reality gaming market expansion. Also, younger generation are becoming addicted to AR devices which lead to many accidents as users are unaware of their physical surroundings.
Further, the augmented reality technology has a negative impact on cognitive abilities and social interactions of users. Therefore, the impact on health, cognitive abilities and social interactions are restraining the augmented reality gaming market expansion.
Future Opportunities :
5G Expansion is Expected to Promote Potential Opportunities for Market Growth
The roll out of 5G network globally opens new prospect for AR games due to high-speed internet with low latency capabilities is propelling the augmented reality gaming market opportunities. Additionally, gaming through AR technology does not require high performance hardware driving the market adoption for providing highly immersive gaming experience.
- For instance, According to TRAI, number of 5G subscribers which include phone and dongles are 218.19 Million in 2024 which is paving the way for market progress.
Hence, the increasing penetration of 5G network is anticipated to increase utilization, in turn promoting prospect for augmented reality gaming market opportunities during the forecast period.
Augmented Reality Gaming Market Segmental Analysis :
By Component:
Based on the component, the market is bifurcated into software and hardware.
Trends in the Component:
- The integration of AR headsets with advanced sensors such as GPS, gyroscope and others is fueling the hardware segment which in turn drives the augmented reality gaming market trend.
- The rise in metaverse gaming environment is propelling the software segment which in turn drives the augmented reality gaming market trend.
Software accounted for the largest revenue share in the market in 2024.
- The rising penetration of cloud-based AR games is driving the need for software which in turn fuels the augmented reality gaming market share.
- Further, the AI integration into AR and VR technologies is driving the adoption of software which in turn drives the augmented reality gaming market size.
- For instance, in February 2023, The Glimpse Group, Inc. subsidiary company, Foretell Reality have integrated AI into virtual reality platforms with the help of GPT-3. Also, the platform is designed for multiple industries such as healthcare, education, training, and marketing.
- Thus, as per the market analysis, AI integration into AR and VR technologies is driving the software segment.
Hardware is anticipated to register the fastest CAGR during the forecast period.
- The increasing penetration of mobile phones with LiDAR scanners such as iPhone are making augmented reality more accessible.
- Also, increasing adoption of AR headsets, compatible smartphones, and AR glasses is fueling the hardware segment.
- Further, the increasing investment in 3D gaming consoles and wearables is driving the hardware segment which in turn drives the augmented reality gaming market size.
- Therefore, according to the augmented reality gaming market analysis, the increasing investment in gaming consoles and wearables is anticipated to boost the market during the forecast period.
By Technology:
Based on the technology, the market is segmented into RFID, GPS, mobile tracking, and others.
Trends in the Technology:
- The trend towards adoption of RFID technology at amusement parks, exhibitions and interactive events among others is driving the market progress.
- The trend towards adoption of GPS technology for enabling geofencing and real time data mapping is driving the market progress.
Mobile Tracking accounted for the largest revenue share in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.
- The surging demand for location-based AR games such as Pokémon GO which utilizes real world environment for providing immersive gameplay.
- Further, the widespread availability of smartphones with AR compatibility is driving the mobile tracking technology.
- For instance, in August 2021, Bluedot expanded gamification solution by leveraging location-based gamification solution which is embedded into the mobile apps to enable advanced AR gaming experiences by utilizing mobile location technology.
- Thus, according to the augmented reality gaming market analysis, widespread availability of smartphones with AR compatibility is driving the mobile tracking technology segment.
By Device:
Based on the device, the market is segmented into mobiles, HMDs, and smart glasses.
Trends in the Device:
- The adoption of AI and machine learning to create more adaptive and personalized experiences is driving the adoption of HMDs.
- The rise in multiplayer AR games is driving the adoption of mobile devices.
Mobile accounted for the largest revenue share of 58.48% in the market in 2024.
- The adoption of smartphones and wearable devices for AR gaming offers convenience and accessibility to users, which in turn drives the market evolution.
- Further, the increased mobile penetration across the globe is paving the way for market progress.
- For instance, according to ITU, the mobile phone ownership across the globe reached 78% in 2023 in which CIS and Europe have 93% which is paving the way for mobile phone adoption across the globe.
- Thus, as per the market analysis, increased mobile penetration is paving the way for market development.
HMDs is anticipated to register the fastest CAGR during the forecast period.
- The HMDs offer improved ergonomics, better display resolution and computer integration in turn driving the adoption of HMDs.
- Additionally, the advantages of HMDs include enhanced immersion and engagement, improved interactivity and gameplay, and others which in turn fuel the augmented reality gaming market share.
- Further, the rising demand for immersive experiences in gaming is driving the adoption of HMDs.
- Therefore, as per the market analysis, the rising demand for immersive experiences are anticipated to boost the HMDs segment during the forecast period.
By Game Type:
Based on the game type, the market is segmented into racing games, adventure games, fighting games, shooting games, mystery thriller games, puzzle games, science fiction games, and others.
Trends in the Game Type:
- The trend toward integration of AR with wearable fighting gears is driving the market progress.
- The trend towards adoption of AR games to educate and train forensic students is driving the market evolution.
Adventure Games accounted for the largest revenue share in the year 2024.
- The advancements in AR hardware and software have improved the graphics and performance of adventure games.
- Further, the surging demand for location based AR games is driving the adoption of adventure games.
- Thus, as per the market analysis, surging demand for location based AR games is boosting the adoption of adventure games.
Shooting Games is anticipated to register the fastest CAGR during the forecast period.
- The shooting games are compatible with AR tech smartphones which include LiDAR, gyroscope, and other sensors for providing immersive experience.
- Further, AR shooting games are increasingly being integrated into the esports which is paving the way for the development of shooting games.
- For instance, in June 2021, 7Seas launched augmented reality (AR)-based shooting game. Also, the game features an exclusive, dynamic, moving platform.
- Therefore, the integration of esports and shooting games are anticipated to boost the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 4.66 Billion in 2024. Moreover, it is projected to grow by USD 5.60 Billion in 2025 and reach over USD 22.85 Billion by 2032. Out of this, China accounted for the maximum revenue share of 36.17%. The market is mainly driven by growing gaming culture and rising need for AR action-adventure games. Furthermore, factors including increasing mobile gaming penetration and advent of 5G technology are projected to drive the market progress in Asia Pacific region during the forecast period.
- For instance, in December 2020, Reliance Jio invested USD 22 million in Krikey, marking a significant evolution of augmented reality gaming industry as well as enter into Indian market.
North America is estimated to reach over USD 24.72 Billion by 2032 from a value of USD 5.28 Billion in 2024 and is projected to grow by USD 6.31 Billion in 2025. The North American region's growing mobile gaming offer lucrative growth prospects for the market. Additionally, the increasing need for immersive experiences across various industries to create unparalleled experiences is driving the market progress.
- For instance, in May 2022, Pepsi collaborated with Pizza Hut and KFC to launch an augmented reality game called as Score with Pogba as a marketing campaign to create unparalleled experiences for fans.
The regional evaluation depicts that the rising interest in the gamified AR content is driving the market in Europe. Additionally, the key factor driving the market is increasing investment in smart cities and digital entertainment is propelling the market adoption in the Middle East and African region. Further, the increasing internet and mobile penetration is paving the way for the progress of market in Latin America region.
Top Key Players and Market Share Insights:
The global augmented reality gaming market is highly competitive with major players providing augmented reality gaming to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the augmented reality gaming industry. Key players in the augmented reality gaming market include-
Augmented Reality Gaming Market Ecosystem:
Recent Industry Developments :
Product Launch:
- In October 2023, ARway.ai launched augmented reality games. The launch aims to position ARway.ai as a leading innovator in AR technology as well as indoor spatial mapping.
Collaborations and Partnerships:
- In April 2025, Immersive Gamebox (IGB) partnered with Warner Bros to launched all-new AR game called Batman. Additionally, the game features advanced technologies such as 3D motion tracking, projection mapping, and others.
Augmented Reality Gaming Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 82.27 Billion |
| CAGR (2025-2032) | 24.8% |
| By Component |
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| By Technology |
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| By Device |
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| By Game Type |
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| By Region |
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| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
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Key Questions Answered in the Report
How big is the augmented reality gaming market? +
The augmented reality gaming market size is estimated to reach over USD 82.27 billion by 2032 from a value of USD 17.34 billion in 2024 and is projected to grow by USD 20.76 billion in 2025, growing at a CAGR of 24.8% from 2025 to 2032.
What specific segmentation details are covered in the augmented reality gaming report? +
The augmented reality gaming report includes specific segmentation details for component, technology, device, game type, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the augmented reality gaming market, the HMDs is the fastest-growing segment during the forecast period due to improved ergonomics, better display resolution and computer integration.
Who are the major players in the augmented reality gaming market? +
The key participants in the augmented reality gaming market are Augmented Pixels (USA), Aurasma (UK), Blippar (England), Catchoom (Spain), Infinity Augmented Reality (Israel), Metaio (Germany), Qualcomm (USA), Total Immersion (France), VividWorks (Finland), Wikitude (Austria), Zappar (UK) and others.
What are the key trends in the augmented reality gaming market? +
The augmented reality gaming market is being shaped by several key trends including trend towards integration of AR headsets with advanced sensors such as GPS, gyroscope and other as well as adoption of AR games to educate and train forensic students and others are the key trends driving the market.
