SYS-CON MEDIA Authors: Roberto Medrano, Dmitriy Stepanov, Gilad Parann-Nissany, Srinivasan Sundara Rajan, Sean Houghton

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Mobile Augmented Reality Revenues to Exceed $1bn Annually by 2015, Juniper Research Finds

Smart Glasses Offer Longer Term Monetisation Opportunities

HAMPSHIRE, UNITED KINGDOM -- (Marketwired) -- 02/04/14 -- A new report from Juniper Research has found that annual revenues from mobile augmented reality (AR) services and applications will reach $1.2 billion by 2015, up from just over $180 million last year.

The report, Mobile Augmented Reality: Smartphones, Tablets and Smart Glasses 2013-2018, found that games (which accounted for more than 40% of AR downloads in 2013) will continue to deliver the largest revenue stream for the foreseeable future. However, it observed that with AR increasingly deployed within mainstream lifestyle, enterprise and general entertainment applications, each of these sectors should achieve annual mobile AR revenues in excess of $1 billion within 5-6 years.

Brand Engagement Boosting Consumer Adoption

According to the report, consumer adoption of AR applications was being increasingly fuelled by the wider engagement of brands and retailers with mobile channels over the past 12-18 months. With mobile now recognised as a primary engagement channel, brands such as Unilever, Nestle and Heinz have identified AR as a key means of enhancing and increasing engagement within campaigns.

It also highlighted the fact that while revenues would primarily be driven via smartphones, there was considerable potential for AR app monetisation through smart wearables: Google Glass will be launched later this year, while Samsung is rumoured to be showcasing its own smart glasses before the end of 2014.

However, the report cautioned that AR stakeholders needed to continue to increase consumer awareness of the technology, while the prospect remained for the introduction of legislation constraining or even prohibiting certain applications of AR on safety, privacy and libel grounds.

Other findings from the report include:

  • AR app user numbers will approach 200 million by 2018.
  • Developers must be aware of device limitations when scoping out AR apps.

The complimentary 'Mobile Augmented Reality ~ The 8th Mass Medium' whitepaper is available to download from the Juniper website together with further details of the full report and the attendant Interactive Forecast Excel, which enables clients to interrogate the assumptions behind Juniper's forecasts and create alternative future outputs.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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