New findings from Juniper Research show that augmented reality (AR) technology used in the enterprise market will generate annual app revenues of $2.4 billion in 2019, up from $247 million in 2014 – a tenfold increase over the forecast period – and operators must seize the opportunity of in-vehicle AR, with this market set to expand from 2019 onwards.
The rise in revenue is because enterprise interest in AR has reached “new heights”, owing to improvements in software, wearable technology and the promise of significant efficiency gains, says the study.
It looked at smartphones, tablets, head-mounted devices and consumer vehicles and found that head-mounted devices help workers maximise the benefits of AR technology and will overtake smartphones and tablets as the preferred AR device in terms of app use beyond 2019, although they do have certain shortcomings such as lack of wide field-of-views and low latencies.
What’s more, the individual needs of enterprises means AR app costs will remain high for the foreseeable future and overall uptake of enterprise AR applications will remain relatively low until the end of the decade
According to author Steffen Sorrell, “Most enterprise AR apps must be bespoke in order to comply with requirements. That presents challenges – entry costs are increased so a return on investment must be assured.”
“Currently, the enterprise AR app ecosystem has not fostered any standards with regards to development across devices, giving rise to a level of risk with regards to security and integration,” the study notes.
As for the consumer head-mounted devices space, it will be “ignited by at-home entertainment devices” such as Microsoft’s HoloLens, said the study.
According to a report last month, the proliferation of smartphones and tablets with fast processing capabilities, as well as sensors and soon 3D cameras, will provide an ideal medium for people to experience AR.
The installed base of actively used mobile AR apps will rise from 135 million in 2014 to 2.2 billion by 2019, creating a market of $1.6 billion for AR apps by the latter date, the report said.