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Augmented Reality Market to Grow at 65% CAGR Through 2021, Reports Technavio

Mar 22, 2017
Augmented Reality Market to Grow at 65% CAGR Through 2021, Reports Technavio
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Augmented Reality Market to Grow at 65% CAGR Through 2021, Reports Technavio

This research report titled ‘Global Augmented Reality Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This report also includes an up to date analysis and forecasts for various market segments and all geographical regions.

Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.

The market research analysis categorizes the global AR market into three major product segments. They are:

  • Smart glasses
  • Mobile devices
  • Head-mounted displays (HMDs)
  • Global AR market by mobile devices

The global AR market by mobile devices is expected to grow at a CAGR of close to 78% by 2021. In 2017, several large companies such as Facebook, Apple, and Google are expected to launch augmented reality apps that will enable improved interaction with the real world.

The awareness and interest in augmented reality technology are increasing among users, which will result in the development of phones with integrated dual cameras at the back along with depth sensing cameras. This may not generate revenue immediately, however, with the development of new content, consumer-specific AR apps will start generating revenue.

“The adoption of mobile AR in enterprises will increase significantly due to the ease of use and convenience offered by mobile devices. DHL, a leading logistics company, has shown immense interest in using mobile AR for logistics. The company is expected to slowly develop apps for warehousing, optimizing transportation, and last-mile delivery,” says Chetan Mohan, a lead analyst at Technavio for human machine interface research.

The use of AR technology is also increasing in sectors such as healthcare, retail, travel, service and maintenance, and advertising. Constant innovations in AR technology will continue to drive the market till 2035.

Global AR market by smart glasses

The global AR market by smart glasses is expected to grow at a CAGR of more than 69% by 2021. The ASP of smart glasses is expected to remain the same throughout the forecast period. This is because these devices are mostly used by consumers in the enterprise sector. They are not price conscious and want the best quality devices. Smart glass manufacturers will integrate advanced processors and sensors in their products. Manufacturers will also try to integrate high-level optical systems to give more clarity to end-users.

Global AR market by HMDs

The global AR market by HMDs is expected to grow at a CAGR of over 35% by 2021. HMDs are widely used by enterprises in the healthcare and engineering sectors along with the government in the defense and aviation sector. The present market offerings are expensive but are also more sophisticated in terms of functionality. They are custom-made to suit certain applications for these niche segments. Moreover, as the product is in the development stage, awareness is poor, and it is not user-friendly. With mass production not expected until the end of the forecast period, the market will experience slow growth for this segment.

“However, advanced HMDs, embedded with AR technology, will witness a high adoption rate during the forecast period due to the increase in defense spending on advanced weaponry,” says Chetan.

Some of the top vendors highlighted by Technavio’s hardware and semiconductor market research analysts in this report are:

  • Apple
  • Qualcomm
  • Rockwell Collins
  • Sensics
  • Technical Illusions

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How Augmented Reality Will Shape the Future of Ecommerce

Mar 22, 2017
How Augmented Reality Will Shape the Future of Ecommerce
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With investments pouring in, retailers should consider how AR might be used for more than games. In fact, AR could up-end and upgrade the shopping experience as we know it.

Last year, 2016, will undoubtedly go down as one of the most pivotal years in the history of virtual reality (VR). Major VR platforms, from the likes of Google, Facebook and Sony, were either promised or actually released, giving this new technology added credibility from these corporate heavyweights.

Related: What Pokémon Go Can Teach You About Creating Buzz

What’s more, devices that utilize virtual reality — and its cousin, augmented reality — have evolved from the dreams of tech enthusiasts to something your uncle can purchase from his local brick-and-mortar retailer.

Consumer demand, high-quality devices and market conditions have all aligned to make VR and AR the next major advancements in the tech world.

Investors, meanwhile, have also offered enthusiastic support for these technologies, pouring in $1.7 billion over the past 12 months. Look no further than the runaway success of Pokémon GO as an indication of how eager consumers are to embrace AR.

Ecommerce companies should be taking feverish notes: A recent demonstration of AR technology by Florida-based startup Magic Leap showed one way retailers might integrate AR technology into an e-commerce environment: The demonstration showed how a user could superimpose virtual models of lamps and other room décor atop a real-world dresser, with the digital objects shown to scale, to help the user determine how those items might look within the space.

So, the message here is that, far from just being a feature for games, AR may well up-end and upgrade the shopping experience as we know it. The cost of entry is still relatively low, and the potential benefits are outrageously high.

Meet them where they are.
About two decades ago, Walmart failed to recognize the potential of the internet. As a result, Amazon was able to claim a significant portion of the big box chain’s retail audience. The VR and AR boom might not be quite as transformational as the dawn of ecommerce, but retailers still can’t afford to ignore this potential shift in technology and consumer demand.

The biggest hurdle customers so often face is determining whether a certain product is right for them. AR offers shoppers the confidence that may motivate purchasing decisions. Retailers, then, should be looking for ways to integrate AR into their stores. That will allow customers to view the in-depth information available online — including reviews, related products and price — while simultaneously looking at the actual physical product via a smartphone.

Related: 6 Technology Trends That Will Impact Fashion Industry

More importantly, AR in particular can provide users with an in-store shopping experience, regardless of their location. Devices can superimpose 3D objects in various spaces, giving customers a chance to interact with digital renderings from the comfort of their own homes. IKEA and Converse, respectively, already allow users to envision pieces of furniture in their homes or shoes on their feet in real time using smartphone apps.

As more consumers opt for an authentic and enhanced digital shopping experience, retailers of all stripes will have to alter where and how they sell products.

Turn the “augmented” into reality.
It’s not enough to simply use AR in a trivial manner. Retailers must make it a significant component of marketing, sales and IT efforts to ensure it resonates with shoppers.

To do this, retailers have to do more than blindly throw darts at the AR wall; they need to consider the needs of customers and the goals of their companies. Here are some of those considerations:

Offer a useful experience. It’s easy to treat AR technology as a novelty or toy, but the platform allows you to deliver incredible value to undecided shoppers. While some organizations feel pressured to create their own unique take on AR, they might find it makes sense to invest in smaller companies to do the work for them.

For example, a Sephora app employs ModiFace technology to allow users to take a “selfie” and then apply a variety of cosmetic products to their faces. Instead of spending hours debating the merits of eyeliner options in-store, Sephora customers can narrow their choices from home and streamline the shopping process.

Add novelty to retail. Between physical and online marketplaces, intense competition is being waged within most verticals. Incorporating AR is an immediate way for retailers to stand out from the pack.

Eyewear retailer Warby Parker, for instance, differentiated itself from competitors by allowing shoppers to try items on before a purchase. Virtual shopping offers the same novelty, without any of the costs associated with shipping products to clients. The technology hasn’t been perfected, but the possibility of creating an avatar and having it try on digital clothing via something such as Wolfprint 3D is not far off. In fact, a 2015 study by Walker Sands showed that 35 percent of consumers surveyed said they would shop more online if they could interact with products virtually.

Allow users to customize. Retailers such as Nordstrom have distinguished themselves from competitors by offering a fully personalized shopping experience, guided by a knowledgeable curator who knows an individual shopper’s style, sizes and preferences. As a result, Nordstrom became famous for its customer service.

AR has the potential to deliver these personalized services to the masses. Users are hungry for this sort of digital customization, whether it be an app that allows them to test out different color combinations or a friendly AI offering clothing suggestions based on purchase history.

Related: Virtual Reality: Changing Shopping Experiences

Those retailers that reap the biggest benefits of AR and VR will be the ones willing to invest resources early, and fully commit to the technology. Shoppers are anxious for the breakthrough that will finally remove uncertainty from the buying process. And AR has the potential to do just that, but only if retailers work to bring the technology into the real world.

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Chinas Baidu opens augmented reality lab to boost waning profits

Mar 22, 2017
Chinas Baidu opens augmented reality lab to boost waning profits
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Chinese search engine Baidu Inc on Monday launched an augmented reality (AR) lab in Beijing as part of a $200 million effort to revitalize the company’s shrinking profits with cutting edge technology.

The lab, which currently employs 55 people, will initially aim to drive revenue through AR marketing, though will later explore healthcare and education.

“AR marketing is taking off,” Andrew Ng, the chief scientist overseeing Baidu’s artificial intelligence (AI), augmented reality and deep learning projects, told Reuters.

“There are few content formats where the content is evergreen – AR will be like that,” he said.

Popularised in 2016 by Nintendo Co Ltd’s Pokemon Go game, augmented reality involves rendering virtual images over real life settings viewed on a smartphone, headset or other device. In marketing, the software can be used to animate a product or a branded space.

Baidu’s AR launch comes as the company gears up to report full-year earnings next month. It has forecast a revenue drop of around 4.6 percent as it grapples with the aftermath of new government curbs on medical advertising. Those curbs have slashed into the profits of its core search business and saw ad customers drop 16 percent in the quarter ended in September.

The company injected $200 million into its AI and AR unit in September in an effort to kick start new growth, followed by the announcement of a $3 billion investment fund announced in October focusing on mid-to-late stage startups.

The company in a statement said it is currently working with AR in China with Yum! Brands Inc’s KFC, BMW and L’Oreal SA’s Lancome among other brands, and has demonstrated a small range of high-end applications.

Baidu began working on the technology two years ago, and is working on integrating it with AI to produce visuals capable of interacting with real-time surroundings, unlike current popular AR games.

“It’s working quite well now, but it’s clear that it could be better,” said Ng. “I’m quite optimistic.”

AR technology is still going through a regulatory teething phase in China. While Pokemon Go is yet to launch there, location-based AR concepts have sprung up, drawing the ire of regulators who have refused to license some services over security concerns.

According to Ng, Baidu is yet to run into the same issues.

“I feel like the abilities for AR have risen up in China faster than the Western world may be aware,” said Ng.

(Reporting by Cate Cadell; Editing by Christopher Cushing)

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The next Iphone camera could recognize face and objects using AR

Mar 22, 2017
The next Iphone camera could recognize face and objects using AR
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Apple’s big 10-year anniversary iPhone could have augmented reality built right into the native iOS Camera app, according to a report by Business Insider. If true, Apple would be taking on Google in the AR department; that company released its first phone with a depth-sensing camera, the Lenovo Phab 2 Pro, this past June.

Apple could follow in Google’s Tango AR footsteps with a depth-sensing camera of its own.

Apple CEO Tim Cook sees a big future for AR, the same technology that plopped the monsters of Pokemon Go on the real-life street in front of you. Apple has acquired AR app start-ups like Flyby Media and Metaio, so we’ve had an idea that we’d see Apple take a swing at AR, but it hasn’t been clear exactly how.

With AR in the camera app, the iPhone could recognize people or objects when you point the camera in their direction. Apple already does something a little like this with iOS 10’s facial-recognition software, using it to sort photos based on who’s in them. Apple could also incorporate filters right into the camera app, similar to what’s found in Snapchat.

Reports surfaced this week that Apple is considering its own glasses wearable, and bringing AR to iPhone cameras could be that first step, along the lines of Google Glass and Snapchat Spectacles. The the report suggests that Apple glasses wouldn’t come until 2018 at the earliest.

Apple did not immediately respond to CNET’s request for comment.

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