Mobile AR market to hit £153.62bn by 2026
The mobile augmented reality (AR) sector is expected to reach a market worth of £153.62bn, at an accelerating CARG of 46.46%.
According to data and insight firm Technavio, the increasing dependence of apps and proliferation of AR apps will be one of the key drivers in driving the market growth. This dependence is due to the large-scale adoption of smartphones on a global scale.
At the same time, it predicts the mobile app industry to accelerate similarly to the growth the AR market is rumored to see, with banking, retail and traveling apps to incline the quickest.
The high growth prospects of AR technology for mobile devices are attracting many players from various industries, and Technavio gestured that almost 35% of the growth will originate from the Asia-Pacific region (APAC).
Additionally, the US is the leading country in North America, followed by Canada. With the US AR sector still in its infancy, consumers are open to trying new technology, the report found, and the high purchasing power and presence of many vendors in this region have made the US a favorable destination for smart glasses.
Yet the market’s growth may face challenges. More mobile devices need to be equipped with enhanced features to support AR technology, since most that possess “basic” features such as sensors and cameras will not be able to provide for AR. For instance, a depth-sensing 3D camera is one feature that the data platform said can enhance user experience, however it is not common in all mobile devices.
Technavio says that this technology has been developed but it will take some time before being launched on a large-scale, and although this feature has recently been added to some smartphones, it is still in the process of gaining popularity among users.
The fragmentation of the market also means that competitors will have to focus on differentiating their product offerings to gain a strong foothold in the market, and vendors will need to be careful to leverage the existing growth prospects in the fast-growing segments, whilst ensuring they maintain their position in the slow growing segments.
Different regions will also need to focus on employing specific AR technology. For instance, in 2020 the US was the most affected country by the pandemic and the focus will now be recovering from the crisis by driving funding in AR that is directly related to travel and tourism.
Technavio also said that consumer preferences will steer the adoption of AR technology – the shift to online shopping has created a bigger appetite for mobile AR.
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