Augmented Reality market to reach $732m by 2014

New report from Juniper Research predicts market for AR applications and services to grow rapidly in next five years

Tags: Augmented realityE-commerceJuniper ResearchUnited Kingdom
  • E-Mail
Augmented Reality market to reach $732m by 2014 Augmented Reality applications display additional information about physical objects.
By  Mark Sutton Published  November 30, 2009

Juniper Research is predicting that the market for Augmented Reality (AR) services will reach $732 million by 2014.

Augmented Reality applications, which use location and imaging functions on advanced handsets to provide mobile services are still only a tiny market, unlikely to reach $2 million in 2010, but as more devices are capable of using AR, and more applications become available, then their popularity will grow.

According to Juniper's Mobile Augmented Reality Report, initially most AR application revenue will come from location-based search, although AR-enabled games will be first to create serious revenues, followed by mobile enterprise solutions from 2012 onwards.

AR applications will likely focus on AR apps for location-based search, games, lifestyle and healthcare, education and reference; multimedia and entertainment; social networking, and enterprise, with revenues generated by initial fees like paid for downloads, incremental fees including subscriptions and advertising.

At present most mobile devices do not have all the necessary features for AR, such as camera, GPS, digital compass, tilt sensors and broadband connectivity, but with the launch of more and more handsets that include such functions, AR is expected to become more common.

AR applications generally rely on using GPS location to know where the user is, and the compass to know the direction they are facing. The camera on the phone can then used to identify objects such as buildings or landmarks that have been geo-tagged with metadata, either through image recognition or through 2D barcodes on the object. The camera viewfinder or screen then displays the additional data, and may also provide links to other services or functions relevant to the object.

The report does raise concerns over the technology and its use however. Dr Windsor Holden, author of the report commented "The problem is that the embryonic nature of the technology means that we have no legal or regulatory framework in place which specifically covers augmented reality. For example, can a house-owner legitimately demand that a geotag of his or her property be removed? Would that third party require prior permission before creating a tag?"

A whitepaper on the report is available here.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code