According to ABI Research, the Augmented Reality (AR) hardware market size will grow by 64.8% Year-over-Year (YoY) in 2026, reaching US$9.7 billion in value. Rapid market expansion is expected throughout the remainder of the decade, with the AR market size approaching US$38 billion by 2030. This blog examines four key trends shaping the AR market in 1Q 2026 using our latest shipment and revenue forecasts. These trends highlight how AR user preferences are evolving, where market growth is accelerating, and which connectivity technologies are gaining momentum.
Trend #1: Manufacturing, energy & utilities, and healthcare are the top-three AR market drivers in the enterprise space.
Collectively, annual AR smart glasses shipments in these industries will increase from 3. 7 million in 2026 to 14.9 million in 2030. Companies such as Vuzix, RealWear, and ThirdEye Gen are notable innovators for enterprise AR.
AR market impact
As enterprises increasingly adopt AR technologies, technology providers must demonstrate how their solutions solve operational challenges in these industries. Product development and marketing teams should focus on the following:
- Hands-free productivity for faster workflows
- Integration with manufacturing software
- Real-time remote assistance
- Worker safety enhancement
- Patient monitoring
The AR market should also tailor solutions for the media & entertainment and logistics industries, as they are forecast to have high growth rates (61.4% and 69.4% Compound Annual Growth Rates (CAGRs) between 2024 and 2030, respectively). To attract these enterprise customers, use cases such as live sports tracking, location-based experiences, warehouse picking instructions, driver assistance, and inventory management must be supported.
Trend #2: Western AR tech vendors are being challenged by Chinese competitors.
According to ABI Research, Asia-Pacific (with China being the main player) drives the most AR smart glasses globally, with shipments expected to increase from 4.7 million in 2026 to 22.6 million by 2030. This is and will continue to threaten revenue streams for U.S. and Europe-based AR companies with international aspirations.
Key Chinese market accelerators include:
- A massive manufacturing base
- Local technology giants (e.g., Xiaomi and Alibaba)
- Forward-looking startups like Rokid, RayNeo, and XREAL
- A large tech-savvy population
- Vendor expansion into international markets
- Generative Artificial Intelligence (Gen AI) integration with AR products
AR market impact
Asia-Pacific’s growth in AR smart glasses will increase competitive pressure on U.S. tech juggernauts like Meta, Google, and Apple. Notably, Chinese companies benefit from manufacturing scale, strong domestic platforms, and faster integration of Gen AI into AR devices. As a result, global AR vendors will need quicker product development cycles, clearer differentiation, and more affordable options to compete in both regional and international markets.
Trend #3: No-display AR hardware is expected to experience the fastest market growth across smart glasses form factors.
Growing at a CAGR of 84%, no-display AR shipments will outpace both binocular (65% CAGR) and monocular (45%) products by a wide margin. Uptake of display-free AR is driven by users seeking the most comfortable immersive experience possible. In many cases, a user has to wear AR glasses for extended periods of time. By removing a digital overlay, consumers and enterprises can enjoy AI features like video capture and voice translation without added weight and discomfort.
AR market impact
Many AR users are skipping all the bells and whistles. Our data clearly show that the market is shifting toward no-display offerings that provide entertainment and productivity value at a low cost. In 2023, just 3.3% of global shipments of AR smart glasses were screenless. Already, that number is up to 42.8% in 2026, and with a 47.6% share forecast by 2030. Commercial launches, such as Meta Ray-Bans(Gen 2) and Rokid AI Glasses, are key catalysts of this market trend. AR tech providers should continue to focus on minimalist design, improved battery life, and affordability to attract economic buyers.
Trend #4: Cellular-connected AR devices will see a 70X shipment increase by 2030.
ABI Research forecasts cellular-connected AR shipments to grow at a CAGR of 103.2% between 2024 and 2030, increasing from about 123,000 units to 8.6 million units. While Bluetooth® and Wi-Fi are currently ubiquitous across the AR market landscape, mobile connectivity has been rare. For example, just 6.2% of total AR devices shipping in 2026 are expected to integrate cellular connectivity. However, enterprises and telcos show growing interest in cellular-based AR solutions due to distinctive advantages (higher bandwidths, expanded range, enhanced security, etc.). For these reasons, we forecast cellular connectivity to be supported in 12.6% of AR smart glasses sold in 2030.
AR market impact
Cellular connectivity will rebrand AR smart glasses from companion devices to standalone platforms. Vendors that solve chipset size, power consumption, and heat management challenges will unlock new enterprise and consumer use cases. These include remote assistance, field service, and always-connected navigation. Telcos also gain a new device category to monetize through data plans, security services, and edge computing. Over time, cellular-enabled AR will reduce reliance on smartphones and accelerate adoption in professional environments where reliability and coverage matter most.
Dive Deeper
My colleague, Malik Saadi, VP, Strategic Technologies, says that “smart glasses are gearing up to be the most disruptive wearable technology since the smartwatch.” From Google and Meta to Samsung and Apple, all the big tech companies are rapidly preparing for robust adoption by creating cutting-edge platforms, research groups, and developer-friendly tools. ABI Research pinpoints 2026/2027 as the key inflection point for AR market momentum. To successfully tap into new revenue opportunities and fend off competitive threats, vendors need timely insight and data-backed trend analyses. Get started by downloading the following market outlooks: