This column is authored by Allan Leonetti, Manager, Zion Market Research
Augmented reality (AR) technology is one of the emerging technologies in the field of displays that would make a mark in the near future. Augmented reality technology is used in various fields such as aerospace & defense, commercial, retails and e-commerce. The gaming sector would be more engaging & interactive with the help of augmented reality technology.
Emerging trends such as escalating convergence between wearable devices, AR, and GPS are anticipated to drive demand of augmented reality market. High penetration of smartphones and tablets is the major factor in prompting this market adoption. User Interface (UI) limitations may curtail the growth of this market. It also shows technical inefficiency in determining various physical obstructions due to lack of information in view management.
AR market is segmented on the basis of the component, display, application, and region. Components involved in this technology are hardware (display, semiconductors, sensor) and software. The hardware components are estimated to grow robust CAGR over the forecast period. Companies such as Sony and Microsoft launched their augmented reality based devices in 2016, which is expected to intensify market competition over the forecast period. Further, several companies are working on enhancing the quality of sensors and processors which are used in AR devices. For instance, Google has collaborated with the chip manufacturers to build camera processors and components for Android smartphones.
According to the latest study by Zion Market Research, global augmented reality market was valued at around USD 3.33 Billion in 2015 and is expected to reach approximately USD 133.78 Billion in 2021, growing at a CAGR of slightly above 85.2% between 2016 and 2021.
On the basis of application, the augmented reality (AR) market is segmented into aerospace and defense, commercial, industrial, retails and e-commerce. The commercial applications such as e-learning, tourism, and e-commerce are predicted to exhibit substantial growth due to the penetration of smartphones, and tablet. Furthermore, by display type, head mounted display (HMD), head-up display (HUD), handheld display and the spatial display is the major segments of the industry. In the naval space, HMDs are used in difficult terrain and also for low visibility areas for improving navigational and visual capabilities. By HMD soldiers can access strategic information including thermal imaging data while viewing the real environment, which has the force to increase demand of augmented reality (AR) market.
With the largest share, Asia Pacific emerged as dominating the regional market for augmented reality (AR) in 2015 owing to high technology adoption rate. Mobile AR market in China is driven by the high production by its smartphone industry.
Some of the key players in the augmented reality (AR) are Immersion, Magic Leap, Daqri LLC, Apple, Blippar, Sony, Wikitude, Microsoft, PTC, Google, Infinity Augmented Reality, CyberGlove Systems Inc., ODG, Eon Reality, Inc., and Samsung Electronics, among others.