Augmented Reality (AR) Market Forecast and Segments, 2014-2020

Augmented
Reality (AR)
Market
Share, Global Trends,
Analysis, Research, Report,
Opportunities,
Segmentation and Forecast,
2014 – 2020
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Report Description
Augmented reality applications and gradually witnessing mainstream adoption and are
witnessing rapid traction among consumers. Augmented reality (AR) generally portrays as a real
time hub and integrated combinations of text, graphics, audio and several other enhancements
to customer screens and showcase real-world objects. With increasing uptake of social media,
Augmented Reality application providers are focusing on developing location-based services for
mobile devices.
Typically consumer use Augmented Reality “hardware” which include smart phone with GPS,
camera, compass, and tilt-sensing technology all integrated under a single platform. This
augmented reality applications is gradually witnessing traction among retailers, as customers are
using this to find locations or products with maps and directions; customers are also using the
same to search in-depth information about certain products. Retailers use this as an opportunity
to contextualize products and send personalized promotional messages to their potential clients
for upselling and cross selling.
Tier 1 retailers continue to experiment with Augmented Reality applications in-store, online and
on mobile devices. Globally the retail space is increasingly becoming overcrowded and
customers are not responding to traditional marketing methods. That’s where augmented is
pitching in. As shoppers are preferring Omni-channel strategy with combination of online,
mobile, and bricks-and-mortar shopping for their convenience, brands and retailers has to think
of new and innovative ways in which they can capture customer attention.

Report Description
Examples of implementations include enabling customers to virtually try clothing online or in a
"virtual dressing room" in the store or how jewellery would appear in certain lights and against
certain skin tones. to enable shoppers to virtually try on their purchases quickly and easily.
In terms of US$ market opportunity for providers, it’s still not more than US$50million in 2014;
however Future Market Insights in its upcoming report indicated, with the phenomenal
adoption of Augmented Reality applications for mobile devices, the retail opportunity is
expected to grow at CAGR of over 35% in next few years.
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240
In terms of application the retail opportunity can be split into, location search, and product
search, accessing product information & receiving relevant promotional message. However FMI
in the upcoming report highlighted that after initial hype of mobile based Augmented Reality
around GPS, there have been development to develop richer and more graphic-intensive
applications which is expected to drive. During forecast period, FMI predicts functionality is
bound to expand its horizon to computer-vision-based location services (such as image and
objection recognition) to deliver the ability to visually identify still and moving objects.

Report Description
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FMI in the upcoming report highlighted that there are several options how vendor can tap this
opportunity. Success of adoption of Augmented Reality among retailers will depend on their
ability to use it as a means of Omni-channel shopping experiences rather than using it as a one
of technology. Key vendors which were analysed in the report are Gold Run; Iryss; Layer; Metaio;
Total Immersion; Zugara.

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