AR gamification platforms to record 18% CAGR by 2028

Coin Geek

13-06-2025

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Augmented reality (AR) gamification platforms market capitalization is projected to proliferate before the end of the decade, buoyed by various factors such as advancements in mobile, 5G Internet connectivity, and increasing demand for immersive user experiences.
According to a report by Grand View Research, the industry is tipped to reach a market capitalization of $97.76 billion in 2028. From its present levels of less than $10 billion, the projected market capitalization translates to a compound annual growth rate (CAGR) of 18% over three years.
The report highlights key trends that will power AR gamification platforms to a nearly $100 million market capitalization. Analysts at Grand View Research say technological advancements will be the biggest growth drivers in the industry, highlighting innovations in hardware, software, and cloud-based services.
On the hardware side of things, the report notes that lower production costs are triggering the proliferation of AR devices. Specifically, wearable tech is gaining significant steam, with Meta Glasses (NASDAQ: META) and other Big Tech companies going mainstream in 2025.
The report highlights the rise of cloud-based AR development platforms in 2025, supporting developers in creating seamless gamified experiences. Snap Inc. and Niantic are already gobbling up significant market share in this vertical, providing AR toolkits for brands and individuals to create AR experiences.
Furthermore, advances in software are supporting the integration of AR gamification with wearable tech while cross-platform interoperability begins to gather significant steam. Per the report, the gamified AR market is poised to latch onto the growth of the broader AR/VR industry that is tipped to pull in over $50 billion in 2025 alone.
By volume, the number of active users of gamified AR platforms is tipped to surge to 600 million by the decade's end. By regional distribution, the U.S. and Europe will be the two largest growth regions, but the Asia Pacific market will record the fastest CAGR in the period under review.
Novel use cases will drive industry growth
New use cases will drive adoption metrics for the gamified AR industry. The report predicts that the retail and e-commerce industry will contribute the largest slice to market capitalization via interactive treasure hunts and location-based challenges.
Furthermore, education and corporate training are poised to deploy gamified AR services en masse in the coming years. Currently, metaverse-based education has gained the support of corporations, while VR in education is expected to surge by the end of the decade.
The report mentions use cases in healthcare for patient rehabilitation, AR gamified tourist experiences, and sport and fitness utility. Furthermore, an integration with artificial intelligence (AI) and distributed ledger technology (DLT) is tipped to expand the capabilities of the AR gamified platforms.
Report: UAE workplaces are poised to embrace AI and XR gamification for efficiency gains
Meanwhile, a new report has predicted a changing landscape for workplaces in the United Arab Emirates (UAE) triggered by the rise of emerging technologies.
Abu Dhabi's Department of Government Enablement (DGE) reported that artificial intelligence (AI) and extended reality (XR) technologies will usher workplace changes. The DGE report notes an increasing number of UAE-based companies are leaning on these next-gen technologies to 'gamify' their workplaces. The early attempts at gamification are flashing glimpses of promise for the pioneering firms in the Gulf nation. A survey revealed that incorporating concepts like leaderboards, achievement badges, and staff competition can improve job satisfaction metrics for citizens.
The report notes that the pioneering firms are integrating augmented and virtual reality tools to gamify employee experiences, promoting a healthy competitive atmosphere. Furthermore, XR use cases extend to improving the state of remote work while offering novel and intuitive employee training methods.
There is growing optimism that advancements in XR technologies can render the workplace obsolete, with the report tipping 2040 as a year for the future of work.
Besides XR use cases, UAE workplaces are bracing for innovative changes associated with utilizing AI tools. The DGE report mentions using AI-based interview robots to hire job candidates, save costs, and potentially reduce human bias.
Currently, UAE workplaces are recording a bump in employee productivity levels from AI utility. However, there are lingering fears that companies will reduce employee headcounts as AI models render entire departments redundant.
DGE Director General of Strategic Affairs Ruba Al Hassan disclosed that while AI has its upsides, governments must establish guardrails to ensure the responsible development and use of emerging technology.
'If we can figure out how best to use it, you can capitalize on its full potential, and that means people's full potential will be realized,' said Al Hassan.
Dubai leads the UAE's push for digitization
The Emirate of Dubai is setting the pace for the UAE's ambition to become the regional hub for digitization. Dubai's template for regulating digital assets has become the gold standard for regulatory authorities across the UAE.
Last year, the region laid the blueprint for AI adoption, unfurling plans to construct more data centers and introduce a new AI learning initiative. A new licensing approach and clear regulations are attracting global technology firms to set up shop in Dubai as the emirate eyes a diversification away from oil and tourism.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek's coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI .
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