The latest forecast by ABI Research suggests an immense increase in developer spend in the augmented reality (AR) arena over the next five years.
According to ABI, developer investment in AR applications will total $670 million this year, with the annual amount expected to exceed $2.5 billion in 2018.
The technology is driven largely by retail and marketing applications, which account for 68% of developer spend in 2013, while product enhancement and standalone apps contribute 22% and 10%, respectively, of the total.
ABI Research says the future advantages of AR are not merely limited to retail and marketing. It believes AR will become a significant enabler for the Internet of everything and big data analytics - an area where AR and data visualisations will have a close connection to wearable tech.
Practice director at ABI, Dan Shey, says, in a world where a countless number of physical objects and structures will be connected by sensors, AR can serve as a visualisation medium that will make the sensor data situational, bridged to the real-world surroundings.
"The consumer aspect is, unsurprisingly, making most of the headlines here, but we'd expect smart eyewear to initially make more waves in transforming the enterprise. Google Glass, like the smart-glass pioneer Vuzix, will find various use cases in verticals such as engineering, logistics and healthcare," he adds.
Different view
A report by Juniper Research found that brands and retailers have increased interest to deploy AR capabilities within their apps and marketing materials. It predicts that AR applications will generate close to $300 million in revenues globally in 2013.
It also predicts that more than 2.5 billion AR apps would be downloaded to smartphones and tablets per annum by 2017, with games accounting for the largest share of downloads. Juniper also found that many retailers perceive AR as a key means of increasing engagement with consumers, by providing additional product information or through branded virtual games and activities.
According to Juniper, the lack of consumer awareness of AR remained a key hurdle that needed to be overcome. It also argued that technological limitations of AR enablers, such as smartphone cameras, GPS and markerless tracking, in many cases, failed to live up to consumer expectations of the technology.
Local augmentation
Mike Sharman, owner of digital communications agency Retroviral, says, locally, marketers and brands have only begun to scratch the surface when it comes to AR. "There are some incredible companies with the necessary skills, such as Seamonster, so there isn't a lack of creativity, but rather a willingness from brands to invest in the technology."
He adds that early expectations for production and execution of digital, was that it is cheaper than traditional advertising channels and a reason to invest. "Elaborate AR campaigns can still be executed cheaper than premium TV production, but there is a hesitance to invest in tech that is not yet mainstream in SA. As smartphone penetration increases, so too will the market for AR solutions."
Sharman says solutions as simple as providing consumers with brand logo overlays on a Google Street View skin can be used by consumers to scan their environments for services such as coffee shops, pubs and petrol stations, for example.
"This tech can be incorporated into GPS products to bring commuters closer to the products and services they are looking for and closes the loop on the marketing to acquisition phase," he adds.
The most high-profile device in consumer AR is Google's Glass device, which is currently with the developers for fine-tuning and is expected to be available for purchase next year.
Sharman says the success of Google Glass depends on how it is perceived. "If wearing it becomes akin to Bluetooth headsets, it will be dead in the water."
He adds that his major concern for Glass' success rate hinges on whether it will be accepted from a legal point of view. "Think of all the places where photography is sensitive - playgrounds, government departments, airports - to name a few. Insurance companies may not honour claims for accidents if Google Glass was being worn, too, so it is a fine line between the success or failure of one of the most talked-about gadgets since the iPhone."While he does not want to disclose any details, Sharman says Retroviral is currently working on an AR idea it pitched to a client.
Share