Revenue from enterprise augmented reality (AR) apps will reach $5.7 billion by 2021, increasing tenfold from around $515 million in 2016, according to Juniper Research.

However, consumer app revenues from AR will remain below that of the enterprise sector, despite the popularity of games like Pokemon Go, due to apps having “limited revenue opportunity and…short shelf-life akin to the current wider app ecosystem”.

The study found that enterprise interest in AR technologies has continued to grow, thanks to improvements in field of vision and latency on head mounted displays (HMDs).

Future releases of HMDs, such as Microsoft HoloLens, will drive AR content revenue in the enterprise sector, as businesses opt for HMDs over smartphones and tablets, the study predicted.

But the bespoke nature of content in this sector will lead to higher app prices which will initially hamper adoption. In fact, only the earliest tech adopters in the enterprise space will implement the technology over the next two years.

Consumer challenge
The ubiquity of the smartphone may give an immediate audience and distribution channel, but developers should focus on continued innovation in order to keep users engaged, the report advised.

According to research author Sam Barker, “the nostalgia of Pokemon has worn off for most users and there are reports about a drop in app usage”.

And the high cost of HMDs and consumer hesitancy around public usage will deter consumers from purchasing AR glasses in the short term.

Reports show that while game Pokemon Go is experiencing a downward trend as far as daily active users, downloads, and engagement metrics are concerned, it has left gamers wanting similar apps that enable interaction with characters in real life situations.