NEW YORK, Sept. 15, 2016 /PRNewswire/ -- Augmented reality (AR), the same technology that powers the Pokémon Go phenomenon, is forecasted to reach $100.24 billion, by 2024, according to an article published by Reportlinker Inisght.
New technologies, including the Internet of Things and wearable devices, are contributing to the market's growth. AR works by using a tablet or smartphone to add virtual elements to reality.
By 2024, AR software is forecasted to grow at a compound annual growth rate (CAGR) of 55%, but hardware will continue to dominate the market, growing at CAGR of 90%. The two segments expected to have the most growth are head-mounted displays and automotive, each growing at a CAGR of 70%.
Asia-Pacific is the largest AR market with China adopting technology as a faster rate than the rest of the region. By 2024, Asia-Pacific is forecasted to reach at least $44.3 billion.
AR is used not only for entertainment. Marketers and retailers are finding uses for this emerging technology, but, like with all new technologies, they must find a way to use AR that produces quality and avoids gimmicks.
Some of the potential uses of AR for marketers includes interactive ads, increasing brand awareness, bridging the gap between online and offline shopping, virtual store maps and offering customers discounts and coupons.
Retailers would have the option of in-store our out-of-store applications. The simulated world of AR would allow customers to test products in their home before making a purchase.
In 2015, AR and virtual reality start-ups raised $658 million in financing, according to Harvard Business Review. By 2020, it's estimated $30 billion will be invested in retail AR applications.
Meanwhile, social media site Snapchat is interested in producing AR hardware that would be similar to Microsoft's HaloLens or Google Glass.
Snapchat already offers rudimentary AR, allowing its 150 million users to add drawings and objects to selfies. Headgear, however, would allow objects to be placed in a user's field of vision without using a cell phone.
In 2014, Snapchat purchased Vergence Labs for $15 million. Recently, it began hiring experts from the AR departments of technology companies.
According to Financial Times, the Snapchat headset prototype already is in production and would be more fashionable than competitors'.
Prior to being purchased by Snapchat, Vergence Labs produced a headset that could store 32GB of video.
Key Statistics – Global Augmented Reality Market
- Over the period 2014-2019, the augmented reality market is forecasted to grow at a CAGR of 88.5%. (source: Technavio)
- During the period 2016-2020, the automotive augmented reality market is forecasted to grow at a CAGR of 17.9%. (source: Technavio)
- In 2016, the military augmented reality market is expected to reach $1.3 billion. (source: Visiongain)
- From 2016 to 2020, the healthcare virtual & augmented reality hardware market is forecasted to grow at a CAGR of 29.2%. This segment will be 43.7% of the VR/AR market. (source: Spearhead Acuity)
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