Published on the 28/09/2016 | Written by Newsdesk
Pokemon Go has all but disappeared, but billions await for business AR…
It might seem like the stuff of idle pastime, but business applications is where the real money is to be made in the field of augmented reality. That’s according to new study from Juniper Research which has found that consumer app revenues will remain below those of the enterprise sector through to 2021.
It is a massive growth industry, too: Juniper forecasts that revenues from enterprise AR apps will reach $5.7 billion by 2021, rising tenfold from an estimated $515 million in 2016.
While the concept of augmented intelligence is perhaps an easier one to get to grips with for enterprise applications, Juniper’s study nevertheless found that enterprise interest in AR technologies continues to grow. It said this interest is fuelled by improvements in field of vision and latency on HMDs (Head Mounted Displays).
It singled out Microsoft’s HoloLens as an example and said HMDs are set to drive AR content revenues in the enterprise sector as businesses opt for HMDs over smartphones and tablets.
According to the study, Augmented Reality: Developer & Vendor Strategies 2016-2021, the bespoke nature of content in the enterprise AR sector will lead to higher app prices. The combination of higher content pricing and hardware will initially hamper adoption and only the earliest tech-adopters in the enterprise space will implement the technology over the next 2 years.
The report finds that enterprise AR revenues are set to remain on smartphone and tablet devices for the foreseeable future. However, enterprise focus from manufacturers such Microsoft and Vuzix will see the largest revenue opportunity for content developers on HMDs from 2020.
Whilst the ubiquity of the smartphone will give an immediate audience and distribution channel, the report advises developers to focus on continued innovation in order to keep users engaged.
In a statement, research author Sam Barker noted: “The nostalgia [did he mean novelty?] of Pokémon has worn off for most users and there are reports about a drop in app usage. This means that the majority of consumer applications will only have limited revenue opportunity and are likely to have a short shelf-life akin to the current wider app ecosystem.”
Additionally, the high cost of HMDs and consumer hesitancy around public usage will deter consumers from purchasing AR glasses in the short-term.
A whitepaper, Augmented Reality ~ Not Just Fun and Games, is available from the Juniper website together with the full research.
