Home Technology Multiplayer AR Gaming Headset and Handset Market Size & Share by 2033

Multiplayer AR Gaming Headset and Handset Market Size, Share & Trends Analysis Report By Product (Standalone AR System, Tethered AR System, Smart-Phone Enabled AR System), By Applications (PC Gaming, Console Gaming) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Report Code: SRTE1369DR
Last Updated : Jan 20, 2025
Author : Aritra Banerjee
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Multiplayer AR Gaming Headset and Handset Market Size

The global multiplayer AR gaming headset and handset market size was valued at USD 4.87 billion in 2024 and is expected to grow USD 5.4 billion in 2025 to reach USD 12.33 billion by 2033, growing at a CAGR of 10.87% during the forecast period (2025-2033).

Augmented reality (AR) gaming is the real-time integration of the audio and visual content of a game with the gamer’s environment. AR games connect the real world of the gamer with the virtual world of the game. AR works in four stages. In the first stage, some part of the environment is captured by AR solution with cameras mounted on devices such as tablets and smartphones.

In the next stage, the captured environment is scanned to locate the point to overlay the information. In the third stage, the AR solution requests the predefined content to overlay the captured environment with the additional information. In the last stage, the AR solution builds a combined image of virtual data in the background of the real world.

The AR gaming market is expected to grow in the upcoming years, as the AR systems are cheaper and the availability of AR headsets and handsets is increasing. The growing demand for AR games is forcing developers to improve game techniques. With the help of device manufacturers and technology providers, AR gaming is providing innovative solutions, which is driving the demand for AR gaming headsets and handsets. 

Source: Straits Research

Latest Market Trend

Integration of 5G and cloud gaming in AR systems

The deployment of 5G networks is transforming the multiplayer AR gaming experience by enabling faster data transfer rates, reduced latency, and enhanced connectivity. These advancements facilitate high-quality, lag-free gameplay, which is critical for seamless multiplayer interactions.

The integration of 5G with cloud game platforms allows AR games to offload processing tasks to powerful servers, ensuring smooth performance even on lightweight devices. This convergence of 5G and cloud gaming expands the reach of AR games by making them accessible to more users and devices.

Therefore, platforms like Nvidia GeForce Now and Xbox Cloud Gaming are leveraging this technology to optimize AR gaming experiences.

  • For instance, Nvidia’s GeForce Now and Microsoft’s Xbox Cloud Gaming platforms are optimizing AR games for real-time multiplayer scenarios, leveraging 5G networks for seamless gameplay.

Multiplayer AR Gaming Headset and Handset Market Growth Factors

Increasing demand for immersive and interactive gaming

The increasing popularity of immersive multiplayer games has significantly boosted the demand for AR game headsets and handsets. These devices offer players realistic and engaging experiences by blending virtual and real-world environments. AR technology allows gamers to interact with their surroundings and other players in real-time, creating highly interactive and dynamic gameplay.

This interactivity has enhanced the appeal of multiplayer games, especially for social and competitive gaming. Developers are leveraging AR to create captivating experiences, as seen in popular titles like Pokémon GO and Harry Potter: Wizards Unite, which seamlessly merge physical locations with virtual gameplay.

  • For instance, as per a 2022 report by the Entertainment Software Association (ESA), 80% of gamers in the U.S. expressed interest in games that use AR technology for enhanced interactivity.

Advancements in AR hardware and content

Advancements in AR hardware are driving the adoption of AR gaming headsets and handsets by improving their performance, usability, and visual appeal. High-resolution displays, powerful processors, and ergonomic designs are making these devices more comfortable and immersive. Such improvements ensure smooth gameplay with lifelike graphics and responsive controls.

Moreover, game developers are increasingly focusing on creating multiplayer AR content, providing users with a wider range of engaging experiences. Companies like Niantic and Magic Leap are collaborating with hardware manufacturers to optimize games for advanced AR systems, further fueling consumer interest in AR game devices and driving market growth.

  • For instance, Niantic’s AR-based multiplayer games like Pokémon GO and Ingress continue to expand their player bases, driving demand for compatible AR devices.Pokémon Go made $0.77 billion in revenue in 2022, a steep decline after two years of $1 billion returns.

Market Restraint

High costs of AR gaming hardware

The high cost of AR gaming headsets and handsets is a significant barrier, especially in price-sensitive markets. Advanced devices, such as standalone AR systems and tethered headsets, often come with hefty price tags, limiting access for casual gamers. As technology improves, features and performance increase, but so do manufacturing costs, which are passed onto consumers.

This has a particularly limiting effect in developing regions where affordability is a major concern. To overcome this, manufacturers could focus on reducing production costs through economies of scale or exploring alternative materials and components. This approach could help lower prices, making AR game devices more accessible to a broader audience and boosting adoption rates globally.

Market Opportunity

Integration of AR in esports and competitive gaming

The rise of eSports presents a unique opportunity for the AR gaming market as tournaments increasingly incorporate AR-enabled headsets and handsets. These devices enhance player performance and audience engagement by providing interactive and immersive experiences. AR technology allows players to interact with virtual elements in real-time, adding a new dimension to competitive gaming.

For audiences, AR delivers dynamic visuals and overlays that enrich the viewing experience. Events like the Augmented Reality League (ARL) showcase the potential of AR in competitive gaming, driving demand for AR game devices and encouraging developers to create content tailored for eSports and professional gamers.

  • For instance, the Augmented Reality League (ARL), launched in 2023, exclusively uses AR game devices for competitive multiplayer tournaments, creating a growing demand for AR headsets and handsets.
Study Period 2021-2033 CAGR 10.87%
Historical Period 2021-2023 Forecast Period 2025-2033
Base Year 2024 Base Year Market Size USD 4.87 billion
Forecast Year 2033 Forecast Year Market Size USD 12.33 billion
Largest Market North America Fastest Growing Market Asia Pacific
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Regional Insights

North America: Dominant region with a significant market share

North America holds the largest market share in the global multiplayer AR gaming headset and handset market, driven by its well-established gaming industry and a population with high disposable incomes. The region boasts a robust ecosystem of gaming enthusiasts and early adopters of cutting-edge technologies.

North America is home to major market players like Meta, Microsoft, and Niantic, which are actively investing in AR research and development to create innovative gaming solutions. Strong government and private sector investments in AR technology have further accelerated market growth. Moreover, the region's thriving eSports industry and high penetration of advanced game devices also contribute significantly to its dominance.

  • For instance, the U.S. gaming market accounted for over $92 billion in 2023, with AR gaming representing a significant and growing portion of this revenue.

Asia Pacific: Rapidly growing region

Asia-Pacific is the fastest-growing region in the global market, thanks to its massive and enthusiastic gaming population. The region is characterized by rapid advancements in AR technology and the extensive rollout of 5G networks, which are enabling seamless multiplayer gaming experiences. Leading countries such as China, South Korea, and Japan are at the forefront of AR adoption, with companies like Tencent, NetEase, and Sony driving the market with significant investments in AR game content and hardware.

Moreover, the rise of mobile and smartphone-enabled gaming, coupled with the increasing affordability of AR devices, has made AR gaming more accessible, fueling the region’s exponential growth trajectory.

  • For instance, China’s gaming market reached $45 billion in 2023, with AR gaming becoming a key driver of growth as companies like Tencent and NetEase invest heavily in AR content.

Countries Insights

  • United States: The U.S. led the global eSports market, generating significant revenue. This reflects the country’s strong demand for advanced gaming devices and a rapidly growing eSports scene, making it a key player in the global AR gaming market. The U.S. continues to drive innovation and adoption of AR technologies, reinforcing its dominance in the gaming industry.
  • China: China followed closely with eSports revenues of around $445 million in 2023, highlighting its vast gaming market and the rapid adoption of AR technology. With a large consumer base and increasing interest in immersive gaming, China is a significant player in shaping the future of AR gaming.
  • Japan: Japan ranked third globally in video game revenues in 2022, supported by a robust gaming culture and technological advancements. The country is expected to see 71.3 million AR gaming users by 2029, demonstrating the growing demand for AR devices in the Japanese market and its role in the global AR gaming landscape.
  • South Korea: South Korea, a major eSports hub, has produced top-tier competitive players, showcasing the country’s embrace of games and eSports. With a highly engaged gaming community, South Korea’s potential for AR integration in gaming is immense, making it a key region for AR gaming development and adoption.
  • Germany: Germany was among the top five countries by game revenues in 2022, reflecting a strong demand for gaming devices, including AR technologies. European AR/VR spending is expected to reach $8.4 billion by 2027, underlining Germany’s prominent position in the growing AR gaming market and its role in the global landscape.
  • United Kingdom: The UK ranked among the top ten countries by game revenues in 2022, indicating a significant market for gaming, with increasing investments in AR technology. The UK’s gaming scene continues to expand, making it a key player in the development and adoption of AR game solutions across Europe.
  • India: India’s smartphone user base is expected to exceed 1 billion by 2023, creating a substantial market for mobile AR gaming applications. With its rapidly growing tech ecosystem and expanding consumer base, India presents a promising opportunity for AR gaming developers looking to tap into the mobile game segment.
  • Brazil: Brazil was among the top ten countries by game revenues in 2022, reflecting the emerging gaming market and rising interest in AR technology. As Latin America’s key player, Brazil is well-positioned to further expand its AR gaming market, driven by a growing user base and increasing engagement in the gaming sector.
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Segmentation Analysis

By Product

Standalone AR systems captured the largest market revenue share due to their ability to function independently without the need for external devices. This self-contained functionality, along with significant advancements in portable AR technology, appeals to gamers looking for convenience, mobility, and an immersive experience. Standalone AR headsets offer users a seamless experience, whether at home or on the go.

  • For example, Meta’s Quest Pro, a leading standalone AR headset, integrates powerful processors and intuitive controls, making it highly popular among users and a top choice in the AR gaming market.

By Applications

The PC gaming application segment led the market in 2024, and its dominance is expected to continue during the forecast period. PC game offers superior processing power, enabling sophisticated AR game experiences with high-quality graphics and smooth gameplay. The integration of AR technology with PCs enhances gaming performance and immerses users in dynamic, real-time virtual environments.

  • For example, Valve's Steam platform offers various AR multiplayer games, and its compatibility with high-performance gaming PCs allows gamers to enjoy top-tier AR experiences, making it a favored choice among AR game enthusiasts.

Market Size By Product

Market Size By Product
Standalone AR System Tethered AR System Smart-Phone Enabled AR System

Company Market Share

Key market players are investing heavily in global advanced multiplayer AR gaming headset and handset technologies, aiming to enhance product features and deliver superior game experiences. In addition to technological advancements, companies are pursuing strategies such as collaborations, acquisitions, and partnerships with game developers, tech firms, and content creators to strengthen their product offerings and expand their market presence.

Niantic, Inc.: An Emerging Player in the Global Multiplayer AR Gaming Headset and Handset Market

Niantic, Inc. is an emerging market player in AR gaming, renowned for its innovative multiplayer AR games such as Pokémon GO and Ingress. The company is focused on creating deeply immersive game experiences by leveraging its AR platform, which seamlessly blends real-world environments with virtual gameplay. Niantic continues to push the boundaries of AR technology, integrating advanced location-based features and social connectivity to enhance player engagement.

Recent Developments:

  • In July 2024, Niantic announced a partnership with Qualcomm to develop next-generation AR game headsets, combining cutting-edge hardware and software for enhanced multiplayer experiences.

List of key players in Multiplayer AR Gaming Headset and Handset Market

  1. Niantic, Inc.
  2. Meta Platforms, Inc.
  3. Sony Corporation
  4. Microsoft Corporation
  5. Magic Leap, Inc.
  6. HTC Corporation
  7. Qualcomm Incorporated
  8. Valve Corporation
  9. Lenovo Group Limited
  10. Samsung Electronics Co., Ltd.
  11. Vuzix Corporation
  12. Snap Inc.
  13. Tencent Holdings Limited
  14. Google LLC
  15. Apple Inc.
Multiplayer AR Gaming Headset and Handset Market Share of Key Players

Recent Developments

  • October 2024 – Microsoft made a significant move by announcing the integration of its AR game devices with the Xbox Cloud Gaming platform. This integration enables seamless multiplayer gameplay, allowing players to enjoy immersive AR experiences across different devices without the need for extensive hardware.

Analyst Opinion

As per our analyst, the global multiplayer AR gaming headset and handset market is set to experience substantial growth, fueled by advancements in AR technology, the growing adoption of standalone AR systems, and the integration of 5G and cloud gaming capabilities.

Leading players like Meta, Niantic, and Microsoft are capitalizing on innovations in both hardware and software to create more immersive and interactive game experiences, making AR gaming increasingly accessible and appealing. While the high costs of AR hardware remain a challenge, emerging markets in the Asia Pacific region, particularly India and Brazil, offer significant growth opportunities.

Moreover, the integration of AR into eSports and competitive gaming highlights its expanding potential, positioning the market for robust growth throughout the forecast period. With these trends in place, the AR gaming industry is poised for exciting developments in the years ahead.


Multiplayer AR Gaming Headset and Handset Market Segmentations

By Product (2021-2033)

  • Standalone AR System
  • Tethered AR System
  • Smart-Phone Enabled AR System

By Applications (2021-2033)

  • PC Gaming
  • Console Gaming

Frequently Asked Questions (FAQs)

How much was the global market worth in 2024?
The global multiplayer AR gaming headset and handset market size was valued at USD 4.87 billion in 2024.
The PC gaming application segment led the market in 2024, and its dominance is expected to continue during the forecast period.
The increasing popularity of immersive multiplayer games has significantly boosted the demand for AR game headsets and handsets.
North America holds the largest market share in the global multiplayer AR gaming headset and handset market, driven by its well-established gaming industry and a population with high disposable incomes.
Top 10 players present globally are Niantic, Inc., Meta Platforms, Inc., Sony Corporation, Microsoft Corporation, Magic Leap, Inc., HTC Corporation, Qualcomm Incorporated, Valve Corporation, Lenovo Group Limited and Samsung Electronics Co., Ltd..


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