Enterprise Augmented Reality market set to eclipse consumer AR within five years

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  • Despite the global popularity of augmented reality apps that are specifically designed for consumers, including AR games like Pokémon GO, new research from Juniper Research suggests the value of the enterprise augmented reality market will eclipse the consumer market within the next five years.

    Juniper’s forecasts suggest the revenues from enterprise AR apps will reach $5.7 billion by 2021, rising tenfold from an estimated $515 million this year.

    The company’s research found that business interest in augmented reality technologies is continuing to grow at a significant rate, fuelled by improvements in field-of-vision and latency on Head Mounted Displays (HMDs). Future releases of these AR units, such as the Microsoft HoloLens, are set to drive AR content revenues in the enterprise sector as businesses begin favouring head mounted displays over smartphones and tablets.

    That said, Juniper believes the bespoke, tailored nature of content in the enterprise AR sector, such as DAQRI’s partnerships with Hyperloop and Siemens, will initially lead to higher app prices. The combination of higher content pricing and the higher cost of dedicated hardware will hamper adoption at first, with only the earliest tech-adopters in the enterprise space willing to implement the technology during the next 2 years.

    Enterprise AR revenues are also forecast to remain on smartphone and tablet devices in the near term, given the prohibitive cost of dedicated AR hardware. However, a heavy enterprise-focus from manufacturers, including Microsoft and Vuzix, within the next few years should see the largest revenue opportunity for AR content developers move from phones and tablets to Head Mounted Displays by 2020.

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