The market for augmented reality (AR) technology will reach about $100 billion in total worth by 2020, according to a recent market study by ABI Research.
The report, Augmented Reality Applications and Verticals, predicts that AR smart glasses will ship 21 million total units in 2020, with a compound annual growth rate (CAGR) of 78% from 2015 to 2020. Total revenues for the AR market will follow a similar trend, with an estimated CAGR of 73% from 2015 to 2020.
That total includes both dedicated AR hardware sales and dedicated AR content and software revenues. The revenues will be split between a number of major verticals, including education, gaming, healthcare, industrial and retail, among others. The virtual reality (VR) market will see similar growth, but in a much smaller market compared with AR, ABI says.
“We expect revenues to primarily favor the healthcare and industrial verticals, owning approximately 54% of the market, thanks to more progressive technology adoption habits along with strong use case applicability,” Eric Abbruzzese, research analyst at ABI Research, said in a statement.
“On the other hand, mobile devices being used for AR will have a larger user base than dedicated AR devices across all verticals,” Abbruzzese said.
The report finds that industrial and healthcare applications will continue to be the dominant verticals through 2020. More consumer-focused verticals such as gaming and media/entertainment will primarily be found on mobile devices.
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