Opportunities For Augmented Reality: 2013-2022

Report # SMP-AR-0213
Published February 25, 2013

This new report from SmarTech Markets Publishing provides a comprehensive and granular ten-year forecast for revenue generation – from hardware, software and advertising services — in the expanding Augmented Reality (AR) market.  It also assesses the latest business models being put forward by leading edge AR firms and analyzes existing AR applications to understand their success and their flaws.

In addition to forecasts and market analysis, this report contains strategic profiles of twenty-eight leading AR firms with SmarTech’s take on where they are headed and there likelihood for future success.

Giants such Apple, Google, HP and Microsoft see AR as both a way to boost their traditional businesses and as a gateway into new markets.  At the same time innovative AR start-ups are attracting funding for both platforms and AR-driven applications aimed at specific industry sectors such as retail, education or computer gaming.  But AR opportunities are not in any way limited to software packages.  AR will also drive demand for new types of hardware such as gesture control and especially head mounted displays.

Given the strong and immediate opportunity potential for AR, SmarTech has created this report as a key strategic input for all senior executives planning AR product/market policies for their firms.  This report will also be essential reading for investors who are looking to take equity positions in AR firms.  By reading this report:

Software firms will gain insight from our assessments of the past successes and failures of AR firms as well as our projections of how these companies will seek to evolve their business models over the next few years.  Our roadmaps for the major AR platforms will also serve as an important input for product planning at all firms involved in the
Companies in the Display Industry will better understand the opportunities that AR will present to them in the form of transparent displays, head-mounted displays and active contact lenses
R&D organizations developing novel sensors, input technology and other component level products will be able to quantify the addressable markets for their AR-related technology and how these markets will develop over the next decade

Advertising agencies and retailers will be able to quantify the advertising potential of AR promotional activity and see what has worked in the AR advertising space to date
Investors will gain a better understanding of how AR ventures are being financed and what the expected returns are likely to be

PAGE COUNT FOR THIS REPORT: 149

Chapter 1:  Guidance: Strategies for Successful Revenue Generation in the AR Market       

1.1 Background to this Report

1.2 Augmented Reality:  State of the Art, Beliefs About the Future

1.2.1 SmarTech’s Thoughts on the Definition of Augmented Reality

1.2.2 Mobility is What Has Made Augmented Reality Real!

1.2.3 AR Today:  Joys and Frustrations

1.3 Four Reasons to Treat Augmented Reality as a Serious Business Opportunity

1.4 Augmented Reality and Market Reality:  Is AR the Next Bubble?

1.4.1 Shadenfreude:  Desperately Seeking an AR Bubble?

1.5 A Niche-Oriented Scenario for AR’s Future?

1.6 Augmented Reality Productization and Product Categorization

1.6.1 AR Software:  Platforms and Applications

1.6.2 AR Hardware:  Inputs, Outputs and CPUs

1.6.3 AR, Advertising and Services

1.7 Forecasting Methodology Used in This Report

1.7.1 Coverage of Forecasts

1.7.2 Data Sources

1.7.3 Economic Assumptions

1.8 Investment Patterns in the AR Sector

1.9 Summary of Key Points in Part 1


Chapter 2: Addressable Markets for Augmented Reality Technology    

2.1 The Five Core Markets for Augmented Reality

2.2 Retail and Promotional Activities for Augmented Reality

2.2.1 The Business Case for AR in Retail: Providing Additional Information and Opportunities to Customers – IBM and IKEA

2.2.2 The Business Case for AR in Advertising and Media: More Visible Advertising, but the “Wow Factor” Could Disappear Quickly

2.2.3 The Business Case for AR in Retail: Enhanced Web Shopping

2.2.4 Ten-Year Forecast of AR-Related Retail and Advertising Revenues

2.3 Education, Instruction Manuals and Information Services

2.3.1 The Business Case for AR in Information Services

2.3.2 The Business Case for AR-Enhanced Instruction Manuals

2.3.3 The Business Case for AR-Enhanced Text Books

2.3.4 Looking Inside Without Going Inside:  An Opportunity for AR?

2.3.5 Ten-Year Forecast of AR-Based Education and Instruction

2.4 Entertainment and Gaming

2.4.1 The Business Case for AR in the Sports Industry

2.4.2 Business Cases for AR Games on Mobile Platforms

2.4.3 AR Enhancements to Game Consoles:  Microsoft,  Nintendo and Sony

2.4.4 Ten-Year Forecast of AR-Based Entertainment and Gaming

2.5 Navigation, Travel and Location-Based Services

2.5.1 The Business Case for AR-Based Driving Enhancements

2.5.2 The Business Case for Tourism and Business Travel AR Apps

2.5.3 Ten-Year Forecast of Navigation, Travel and Location-Based Services

2.6 AR-Based Communications and Collaboration

2.6.1 The Business Case for AR-Based Collaboration Services and Products

2.6.2 The Business Case for AR-Enhanced Social Networking

2.6.3 AR and Military Communications

2.6.4 Ten-Year Forecast of AR-Based Communications and Collaboration

2.7 Other Applications for AR

2.7.1 Architecture and Design

2.7.2 Police and Firefighter Applications

2.7.3 Medicine and Healthcare

2.8 Summary of Ten-Year AR Market Forecasts

2.8.1 Summary by Applications

2.8.2 Summary by Type of Product

2.9 Summary of Key Points in Part 2


Chapter 3:  A Business Assessment of Current and Future Augmented Reality Products      

3.1 AR Software:  A Classification

3.1.1 Mobile Operating Systems

3.1.2 AR Browsers and Development Platforms

3.1.3 Ten-Year Forecast of AR Software

3.2 Assessment of AR-Related Opportunities for the Software Industry

3.2.1 Strategic Choice of End-User Markets for AR Software Firms

3.2.2 Ways that AR Firms Can Distinguish Themselves in the Marketplace:  The Technical and Business Requirements for Next-Generation AR.

3.2.3 A Note on Likely Changes in Business Models for Monetizing AR Software

3.3 AR Displays and Glasses

3.3.1 Apple, Transparent Displays and Dual Displays

3.3.2 Wearable Displays and AR:  Google Glass, Vuzix and the Others

3.3.3 A Note on AR, Retinal Displays and Contact Lenses

3.3.4 Spatial Augmented Reality

3.3.5 Ten-Year Forecast of AR Displays

3.4 A Note on the Use of Gesture Control and Other Advanced Input Technologies with AR

3.4.1 Gesture Control in AR

3.5 AR Chips

3.6 Summary of Key Points in Part 3


Chapter 4:  Thirty-One Firms to Watch in the AR Space       

4.1 Who to Watch?

4.1.1 Movers and Shakers and AR Environment Makers

4.2 Apple

4.2.1 The Future of AR on the Apple Computing Platform

4.2.2 What Apple Could Do for AR

4.2.3 Apple, AR and Head-Mounted Displays

4.2.4 SmarTech’s View of Apple-Based Augmented Reality

4.3 ARM Holdings

4.3.1 ARM and AR

4.3.2 SmarTech’s View on ARM-Based Augmented Reality

4.4 Cisco

4.5 CrowdOptic

4.5.1 Arrangement with xTV

4.5.2 News Gathering Applications

4.5.3 SmarTech’s View on CrowdOptic

4.6 Ditto

4.6.1 SmarTech’s View of Ditto

4.7 Flutter

4.7.1 SmarTech’s View of Flutter

4.8 GeoVector

4.8.1 SmarTech’s View of GeoVector

4.9 GoldRun 96

4.9.1 SmarTech’s View of GoldRun

4.10 Google

4.10.1 Project Glass:  Introducing the World to AR Specs

4.10.2 Ingress

4.10.3 SmarTech’s View on the Future of Google in AR

4.11 Gravity Jack

4.11.1 browsAR

4.11.2 SmarTech’s View of Gravity Jack

4.12 HP, Aurasma and the Autonomy Corporation

4.12.1 The Autonomy Corporation

4.12.2 Aurasma

4.12.3 SmarTech’s View of HP in the AR Business

4.13 IBM

4.13.1 Augmented Collaboration in Mixed Environments (ACME)

4.13.2 SEER

4.13.3 Virtual Agent (VIRA)

4.13.4 Mobile Augmented Reality for Retail (MAR) and Other IBM AR Shopping Applications

4.13.5 SmarTech’s View on IBM in AR

4.14 Intel

4.14.1 Intel on AR and Perceptual Computing

4.14.2 SmarTech’s View on Intel in AR

4.15 iOnRoad

4.15.1 SmarTech’s View of iOnRoad

4.16 Layar

4.16.1 The Layar Software Suite

4.16.2 Layar Marketing and Financial Relationships

4.16.3 SmarTech’s View of Layar

4.17 Metaio

4.17.1 Metaio Product Suite:  junaio, Creator and SDK

4.17.2 Metaio and Audi

4.17.3 SmarTech’s View of Metaio

4.18 Microsoft

4.18.1 Three AR Applications for Microsoft:  HMDs, Bing and Xbox

4.18.2 Other AR Projects at Microsoft

4.18.3 SmarTech’s View on the Future of Microsoft in AR

4.19 Nokia

4.19.1 Nokia City Lens

4.19.2 Nokia and Other AR Apps

4.19.3 SmarTech’s View on the Future of Nokia in AR

4.20 Occipital

4.20.1 360Panorama and 360Verse

4.20.2 SmarTech’s View of Occipital

4.21 Ogmento

4.21.1 Ogmento Games

4.21.2 SmarTech’s View of Ogmento

4.22 Qualcomm and Blippar

4.22.1 Vuforia

4.22.2 Negative View on AR Glasses

4.22.3 Funding of Blippar

4.22.4 SmarTech’s View on the Future of Qualcomm in AR

4.23 ST-Ericsson

4.23.1 ST-Ericsson in AR

4.23.2 SmarTech’s View of ST-Ericson in AR

4.24 Telibrahma

4.24.1 SmarTech’s View of Telibrahma

4.25  Texas Instruments

4.25.1 TI’s AR Activities

4.25.2 Automobile AR Development

4.25.3 SmarTech’s View of TI in the AR Space

4.26 Total Immersion

4.26.1 Total Immersion AR Solutions

4.26.2 SmarTech’s View of Total Immersion

4.27 Tonchidot

4.27.1 SmarTech’s View of Tonchidot

4.28 TourWrist

4.28.1 SmarTech’s View of TourWrist

4.29 Wallit

4.29.1 SmarTech’s View of Wallit

4.30 Wikitude

4.30.1 SmarTech’s View of Wikitude

4.31 Yelp:  A Note

4.32 Zugara

4.32.1 SmarTech’s View of Zugara

About SmarTech Markets Publishing


About the Analyst

Acronyms and Abbreviations Used In this Report


List of Exhibits

Exhibit 1-1:  Augmented Reality Today:  Joys, Frustrations and Likely Evolution

Exhibit 1-2:  Potential Giants of Augmented Reality

Exhibit 1-3:  Five Scenarios for the Future of Commercial Augmented Reality

Exhibit 1-4:  The Three Key Types of AR Software

Exhibit 1-5:  Selected Recent VC Investments in AR

Exhibit 2-1:  The Five Core Markets for Augmented Reality

Exhibit 2-2:  Ten-Year Forecasts of AR-Related Retail and Promotional Activities ($ Millions)

Exhibit 2-3:  Ten-Year Forecasts of AR-Based Education, Information and Books

Exhibit 2-4:  Ten-Year Forecasts of AR-Based Entertainment and Games

Exhibit 2-5:  Ten-Year Forecasts of Navigation, Travel and Location-Based Services

Exhibit 2-6:  Ten-Year Forecasts of AR-Based Communications and Collaboration ($ Millions)

Exhibit 2-7:  Selected Police and Firefighter Applications for AR

Exhibit 2-8:  Ten-Year Summary of AR Markets:  By Application Type  ($ Millions)

Exhibit 2-9:  Ten-Year Summary of AR Markets:  by Product ($ Millions)

Exhibit 3-1:  Comparison of Strategic Positions of Major Operating Systems With Regard to Mobile AR

Exhibit 3-2:  Ten-Year Forecast of AR Software by Functionality ($ Millions)

Exhibit 3-3:  Comparison of Strategic Positions of Major Operating Systems With Regard to Mobile AR

Exhibit 3-4:  Ten-Year Forecast of AR Displays and Output Devices

Exhibit 3-5:  Selected Examples of Gesture Control in AR

Exhibit 3-6:  Selected Chip Companies Active in the AR Business


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