As new augmented reality (AR) and virtual reality (VR) devices flood the market, ABI Research predicts enterprises will need to prepare for a “tidal wave” of new enterprise applications, with the market shifting its focus to the corporate and gaming verticals.

AR usage in the enterprise is on the rise, with smart glasses for gaming expected to grow by 82% through 2021. VR will see similar crossover into enterprise, ABI said, with an 88% compound annual growth rate (CAGR) through the same period.

The promising use cases for AR in the enterprise remain the primary drivers for the technology, said Eric Abbruzzese, senior analyst for ABI Research. “Simplistic AR mobile gaming is setting the stage for more advanced AR gaming experiences,” he said.

“Similarly, the primarily gaming-centric VR market is seeing uptake in corporate and enterprise usage in applications such as simulation, training, and visualized content creation.” A combination of new hardware announcements and expanded content selection in both AR and VR are driving this shift in use case focus, the firm said.

“These new combinations of hardware and software leads to a much more fluid relationship between AR and VR,” said Sam Rosen, managing director and vice president at ABI Research. “The individual importance of AR for enterprise, and VR for consumers, cannot be understated. But with the potential for disruption on display, the limitations for these markets are far less constrictive than once thought.”

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