The 2016 global augmented reality market forecast revealed a value of $2.9 billion industry-based revenue. Today, the market’s Compound Annual Growth Rate (CAGR) will increase by 55.71 percent and will reach an income of $61.39 billion by 2023.
The recent forecast showed that AR users would reach 1 billion by 2020. The global virtual reality market is expected to reach $21.5 billion by 2020, and the growth of the VR market owes it’s success to the increase of VR users, which will reach 130 million within the forecast period. The revenue of AR and VR combined will reach $150 billion by 2020.
Augmented and Virtual Reality are terms that are often intertwined with one another. Although the two are similar, AR and VR are different technologies.
Augmented Reality adds to the reality that users are already engaged. It allows users to interact in a real-world environment with its elements being augmented by a computer-generated perceptual information.
The technology in AR layers the computer-generated enhancements on top of an existing reality to let the users have a more meaningful experience. AR is incorporated in multiple sensory modalities, namely auditory, visual, somatosensory, olfactory, and haptics.
Meanwhile, Virtual Reality aims to replace reality. It is an interactive computer-generated simulation of a real-life environment or event. VR incorporates different types of sensory feedback like auditory, haptic, and visual.
But, the most common sensory feedback that is used in VR is visual and auditory sensory feedbacks. In short, VR replaces reality by offering users digital recreation of real-life settings, and AR conveys virtual elements as an overlay to the real world.
Tech giants are trying to keep up with the AR and VR trend. Facebook is the first key player in the tech industry that kickstarted the AR and VR trend when it bought Oculus, a VR headset, in 2014.
Since then, other big brands in the industry have joined in the AR/VR bandwagon. Samsung also linked with Oculus shortly after Facebook bought it and granted them access to the software platform of Oculus.
Samsung then developed its GearVR. The software of Hololens runs via Windows 10. Apple has designed its ARKit, and earlier this June released a new version called ARKit 2.
Apple’s iOS 12 has the ARKit 2, which is a platform that allows developers to make Augmented Reality apps more dynamic by incorporating shared experiences, object detection, image tracking, and persistent AR experiences that are in specific locations.
Designed to make AR available anywhere in iOS, which includes Apple apps like Mail, Safari, Messages, Files, and News, it was programmed to deliver powerful graphics and animation features.
With the increase of popularity in the AR/VR industry, at the same time, the overall revenue forecast, it is safe to say that more companies are looking into developing new technologies to target its global market demand.