AR Waveguide Market Growth and Forecast by 2031

AR Waveguide Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Geometric Waveguide, Holographic Waveguide, and Diffractive Waveguide), Application (Consumer Electronics, Industrial, Military, and Others), and Geography

  • Report Code : TIPRE00016956
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 144
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The AR waveguide market size was valued at US$ 562.53 million in 2023 and is expected to reach US$ 1,006.36 million by 2031; it is estimated to record a CAGR of 7.5% from 2023 to 2031.

The report includes growth prospects in light of current AR waveguide market trends and driving factors influencing the market growth. A few of the market trends include technological advancement and growing demand for AR wearables.

AR Waveguide Market Analysis

The global AR waveguide market is experiencing significant growth in terms of revenues pertaining to increasing demand for augmented reality (AR) applications across various industries. AR waveguides provide a seamless and immersive AR experience, enhancing user engagement and interaction with digital content in the real world. In the gaming & entertainment industry, AR waveguides offer new and stimulating ways for users to engage with content. By overlaying digital elements in the real world, AR games provide highly effective visuals, graphics, and sound, creating an immersive experience for participants.

AR Waveguide Market Overview

The AR waveguide market refers to a cutting-edge technology that has the potential to revolutionize the experience of using augmented reality (AR) in various business sectors. It refers to a transparent optical element that guides and projects virtual images onto the real world, enhancing the user's visual perception and providing a seamless AR experience. AR waveguide has immense potential to transform numerous industries, including manufacturing, retail, healthcare, and education. One of the key advantages of this technology is its ability to overlay digital information onto the physical environment, offering users real-time data and contextual information that can significantly enhance their decision-making process. Furthermore, AR waveguide incorporates a transparent display system that enables the overlay of computer-generated visuals onto the physical environment. By leveraging the principle of total internal reflection, the waveguide efficiently guides light to create a virtual image that appears right in front of the viewer's eyes.

AR Waveguide Market Drivers and Opportunities

Increasing Demand for AR Wearables to Favor Market Growth

The demand for AR wearables such as smart glasses and headsets is growing worldwide. AR wearables equipped with waveguide technology offer users a hands-free and immersive AR experience, making them a widely used product in various industries, including consumer electronics, industrial, and military. AR-based solutions provide an immersive experience, which is a key feature supporting the adoption of such solutions among technology and e-commerce enterprises.

AR glasses, in particular, play a pivotal role in enabling well-informed purchasing decisions, contributing to the sales of eyeglasses and sunglasses. For instance, Lenskart Solutions Pvt Ltd. has integrated augmented reality (AR) technology into its smartphone application, allowing users to virtually try on eyeglasses, sunglasses, and other products before making a purchase. Similarly, LG Corporation incorporates AR functionality on its electronics website, enabling customers to visualize the way a specific TV set can be placed at their homes using mobile devices, aiding customers in their decision-making process. Thus, the increasing demand for AR wearables drives the AR waveguide market.

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AR Waveguide Market: Strategic Insights

AR Waveguide Market

  • CAGR (2023 - 2031)
  • Market Size 2023
    US$ 562.53 Million
  • Market Size 2031
    US$ 1,006.36 Million

Market Dynamics

  • Increasing Demand for AR-based Devices, Rising Applications of AR Across Various Industries, Increasing Demand for AR Wearables
  • Growing Demand for AR-based Devices in Gaming Industry
  • Advancements in Optical Waveguide Technology
  • Enhancements in AR Device Design

Key Players

  • Crystal Optech
  • DigiLens Inc.
  • Dispelix
  • Goertek
  • Lumus

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

  • Geometric Waveguide
  • Holographic Waveguide
  • Diffractive Waveguide
  • Consumer Electronics
  • Industrial
  • Military
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Advancements in Optical Waveguide Technology

A few advancements in optical waveguide technology include diffractive waveguides and holographic waveguides. These technologies play a critical role in the deployment of AR devices across various sectors, including automotive, healthcare, aerospace & defense, education, and retail. Diffractive waveguides are considered the most utilized AR combiner technology and are used in popular devices such as Microsoft HoloLens, Magic Leap One, and Vuzix M4000. These waveguides use a diffractive optical element (DOE) to inject light into the waveguide, distribute it to a large exit pupil, and extract it to the eye. They offer ergonomic design and high-quality projected images, contributing to the immersive AR experience. For instance, in June 2023, Apple announced the Vision Pro, an augmented reality (AR) headset, at its annual Worldwide Developers Conference (WWDC). The headset features a high-resolution display with more than 23 million pixels, surpassing the quality of a 4K TV. It is powered by Apple's M2 chip, which is also found in their MacBook laptops, and a new chip called R1, specifically designed for the headset. The R1 chip processes the vast amount of data involved, including input from 12 cameras and sensors that face the user's eyes. This design aims to reduce lag and minimize motion sickness. The Vision Pro can be used all day when plugged in, but the battery life is limited to two hours when used wirelessly.

AR Waveguide Market Report Segmentation Analysis

Key segments that contributed to the derivation of the AR waveguide market analysis are type, application, and geography.

  • Based on type, the market is segmented into geometric waveguide, holographic waveguide, and diffractive waveguide. The geometric waveguide segment held the largest market share in 2023.
  • A geometric waveguide is an optical component that directs light from a display source, such as a microdisplay, to the viewer's eyes while also allowing them to see the outside environment. It is a critical component of AR glasses, enabling them to overlay digital information onto the user's field of view without impeding their vision of the physical environment. The geometric optical waveguide is designed and manufactured using traditional geometrical optics concepts and processes without the involvement of micro or nanoscale structures. As a result, the image quality, including color and contrast, can be improved dramatically. Geometric waveguides play an important role in the development of tiny and lightweight AR eyewear due to their huge application.
  • Based on end user, the board management software market is segmented into consumer electronics, industrial, military, and others. The consumer electronics segment held the largest market share in 2023.

AR Waveguide Market Share Analysis by Geography

The geographic scope of the AR waveguide market report is mainly segmented into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

  • The Europe AR waveguide market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. Europe is known for its robust technology and high-quality manufacturing that has significantly bolstered the use of AR devices. Various councils across Europe have granted contracts to mass-manufacture high-quality AR waveguides. For example, in June 2023, Morphotonics received a European Innovation Council (EIC) Accelerator Grant. The EIC Accelerator supports small and medium enterprises to develop and scale up innovations. Moreover, various prominent AR waveguide manufacturers are present in Europe; these players include Waveoptics, Lumus, LetinAR, Holoptics, Optinvent, and Goertek.
  • In Europe, various conferences were held where chief product officers explained the benefits of AR and its adoption. The conference AWE EU 2022 featured presentations on waveguide technology, which focused on highlighting industry interest in Europe. The Chief product officer of Dispelix briefed about the Dispelix DPX Selva product line and the way diffractive waveguide technology is integrated to launch solutions leveraging AR single-layer and full-color lightweight waveguide, along with discussed LED and LBS AR waveguide solutions and their benefits. Thus, such initiatives in the region propel the growth of the AR waveguide market.

AR Waveguide Market News and Recent Developments

The AR waveguide market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the AR waveguide market:

  • In 2022, Lochn Optics made a breakthrough in holographic waveguide automation exposure and full-color display technology. (Source: Azeus Convene, Press Release, 2022)
  • In 2022, Lochn Optics released an LBS diffractive waveguide AR module. Lochn Optics has developed a custom-designed diffractive waveguide and process suitable for this technology with full support from STMicroelectronics since mid-2021. (Source: Azeus Convene, Press Release, 2022)
  • In 2024, LetinAR Inc. launched its "PinTILT" lens, which brings AR optics to the next level and successful commercialization cases with its global customers, including Jorjin, Nimo, and others. This technology was designed primarily to address common flaws present in current products, such as heavy and expensive hardware and insufficient features that impede the creation of true eyeglass-shaped designs and render wearability and usability subpar at best. (Source: Azeus Convene, Press Release, 2024)
  • In 2024, NIL Technology (NILT), a leader in advanced optical solutions, announced metaEye, an ultracompact metalens-based camera with applications for eye-tracking, smart locks, biometrics, SLAM, and ubiquitous sensing across a range of applications, including gaming, presence detection, and smart appliances. This revolutionary metalens camera uses a patent-pending lens architecture only possible with metalenses to deliver an ultra-compact form factor, good performance, and environmental robustness. (Source: Azeus Convene, Press Release, 2024)

AR Waveguide Market Report Coverage and Deliverables

The “AR Waveguide Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

  • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
  • Market dynamics such as drivers, restraints, and key opportunities
  • Key future trends
  • Detailed PEST and SWOT analysis
  • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
  • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
  • Detailed company profiles

AR Waveguide Market Report Scope

Report Attribute Details
Market size in 2023 US$ 562.53 Million
Market Size by 2031 US$ 1,006.36 Million
Global CAGR (2023 - 2031) 7.5%
Historical Data 2021-2022
Forecast period 2024 - 2031
Segments Covered By Type
  • Geometric Waveguide
  • Holographic Waveguide
  • Diffractive Waveguide
By Application
  • Consumer Electronics
  • Industrial
  • Military
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Crystal Optech
  • DigiLens Inc.
  • Dispelix
  • Goertek
  • Lumus
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    This text is related
    to segments covered.

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions

    Which are the key players holding the major market share of the AR waveguide market?

    The key players holding majority shares in the AR waveguide market include Crystal Optech, DigiLens Inc., Dispelix, Goertek, and Lumus.

    What will be the market size for the AR waveguide market by 2031?

    The AR waveguide market is expected to reach US$ 1,006.36 million by 2031.

    What is the estimated market size for the AR waveguide market in 2023?

    The AR waveguide market was valued at US$ 562.53 million in 2023; it is expected to record a CAGR of 7.5% during 2023–2031.

    What is the future trend of the AR waveguide market?

    Growing demand for AR-based devices in the gaming industry is the future trend of the AR waveguide market.

    What are the driving factors impacting the AR waveguide market?

    Factors such as increasing demand for AR-based devices and rising applications of AR across various industries are driving the AR waveguide market.

    The List of Companies - AR Waveguide Market 

    1. Zhejiang Crystal-Optech Co., Ltd.
    2. DigiLens Inc.
    3. Dispelix
    4. Goertek Inc 
    5. LetinAR Inc. 
    6. Lumus
    7. NIL Technology
    8. Optinvent
    9. Shenzhen Longjing Optoelectronics
    10. WaveOptics, Ltd.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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