Provided by BIS Research
Augmented Reality (AR) alters one’s perception of the real-time environment, in contrast to virtual reality, which replaces the real-time environment with a simulated environment. AR took the world by storm at the time of its inception. As a result of its popularity, mixed reality was developed. Mixed Reality (MR) is the integration of a virtual world into the real world where physical and digital objects coexist and allow interaction in real time. This immersive technology encompasses both augmented as well as virtual reality.
Extensive growth for the augmented and mixed reality market
Major focus and factors of growth in this industry is the expansion towards the smartphone and tablet market and especially a shift towards advanced and compact devices which can display MR contents without being tethered to an external computer. Increased investments from leading industry players as well as the vast presence of Original Equipment Manufacturers are equally influencing the growth of the AR and MR market globally.
Although the demand for headsets is increasing at a fast pace, privacy and technical issues such as limited battery life and image latency among others, are some of the major concerns slowing down growth. In order to counter these shortcomings, companies are seeking to develop advanced hardware solutions and next-generation technologies such as depth sensing and Simultaneous Localization and Mapping (SLAM). According to the latest report, titled ‘Global Augmented Reality and Mixed Reality Market-Analysis and Forecast (2018-2025)’, the augmented reality and mixed reality market is expected to transform all the present major industry verticals with a growth rate, while growing at a CAGR of 65.1% and 72.0% respectively, during the forecast period 2018 to 2025.
Head-Mounted Displays generated higher revenue
Main device types used for augmented reality include Head-Mounted Displays (HMDs) and Head-Up Displays (HUDs), whereas only head-mounted displays are used for mixed reality. In terms of revenue, HMDs generated higher revenue than HUDs in 2017, with a sales revenue of $2.13 billion. The market is estimated to grow at a tremendous rate during the forecast period, owing to the widespread adoption of HMDs in application areas such as industrial, healthcare, automotive, aerospace and defense, as opposed to the use of HUDs limited to the automotive and aerospace sector. The development of HMDs in the form of smart glasses has enabled companies to provide AR solutions in a way which allows easier incorporation into the consumers’ day-to-day lives.
HUD displays require a computer interface between displays, projected data, and end user. While HUDs were originally developed for the defense industry, AR technologies allowed to expand use e.g. into the aviation industry and for navigation and control purposes.
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