May 9, 2017
Augmented reality (AR) merges the physical and digital realms. While it came to prominence in gaming, it has major implications for training, design, collaboration, and media and entertainment. AR-enabled smartglasses help warehouse workers fulfill orders with greater precision, airline manufacturers assemble planes, and electrical workers make repairs. In the enterprise, AR can offer just-in-time information for workers in maintenance, marketing, customer support, and many other functions. The market is growing: the PwC/CB Insights MoneyTree™ Report, which tracks AR together with VR, recorded $1.5 billion in venture capital investment in 71 deals in 2016.
Who is investing the most? Aerospace and defense, as well as software and internet/information technology companies are early to the game; consumer banks, airlines, engineering and construction companies, retailers, and wholesale and distribution firms will be investing in AR in three years.
What are AR investors focusing on? Digital culture development is a top initiative today; customer experience will be an additional goal for the next three years. AR will increasingly be used to put the huge volume of IoT-collected data into context.
What value do AR investors expect? Although the number of relevant respondents is small, early returns are expected to take the form of revenue growth.