New findings from Juniper Research have shown that Augmented Reality (AR) technology, used in the enterprise will drive annual app revenues of $2.4 billion in 2019, up from $247 million in 2014. This translates to a tenfold increase over the forecast period.
The research notes that Enterprise interest in AR has reached new heights, owing to improvements in software, wearable technology and the promise of significant efficiency gains. However, the individual needs of enterprises dictate that AR app costs will remain high for the foreseeable future.
Immature App Ecosystem Hampers Uptake
Despite a high revenue forecast for the sector, the research, Augmented Reality: Consumer, Enterprise & Vehicles 2015-2019, observed that the overall uptake of enterprise AR applications will remain relatively low until the end of the decade. At present, 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.
‘Most enterprise AR apps must be bespoke in order to comply with requirements’ noted research author Steffen Sorrell. ‘That presents challenges – entry costs are increased so a return on investment must be assured.’
HMDs to Become Primary AR Devices
Additionally, the research found that enterprise head-mounted devices (HMDs), such as Vuzix’s M100 and Daqri’s Smart Helmet, will overtake smartphones and tablets as the preferred AR device in terms of app use beyond 2019. Indeed, the hands-free nature of these devices ensures that workers will be able to maximise the benefits of AR technology. Nevertheless, display shortcomings must be ironed out: presently, wide field-of-views and low latencies are lacking.
Other key findings include:
The consumer HMD space will be ignited by at-home entertainment devices, such as Microsoft’s HoloLens.
Telecommunications operators must seize the opportunity of in-vehicle AR, with this market set to expand from 2019 onwards.
The whitepaper, Augmented Reality ~ A Market, Primed, is available to download from the new Juniper Research website together with further details of the full research and interactive dataset.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.