Revenues for Augmented Reality (AR) are predicted to grow by 90% to 2024, predicts a new report by Grand View Research. AR software will also grow rapidly with a compound annual growth rate (CAGR) of 55%.
The report also predicts that the total size of AR will be $100.24 billion by 2024. Asia-Pacific is the largest market for AR technology states the report. In particular Chinese consumers are adopting AR technology faster than other countries in the Asia region. In 2024 the size of the AR market in Asia-Pacific is predicted to be $44.3 billion.
The report sees the applications for AR going beyond gaming. Potential uses of AR technology detailed by the report include interactive advertising and shopping. This includes the ability to integrate the world of online and offline shopping. AR also offers consumers the ability to navigate using virtual maps or to receives coupons and offers in real time.
Investment in AR technology is also increasing rapidly. According to Harvard Business Review in 2015 AR and Virtual Reality (VR) startups raised $658 million in financing. By 2024 it is estimated that financing for retail AR alone will reach $30 billion.
Finally, the report points to the interest by Snapchat in developing AR Hardware similar to Google Glass. In 2014 Snapchat purchased AR glasses frame designer Vergence Labs for $15 million. It has been also hiring additional AR developer talent. AR would fit well with existing Snapchat features which allow users to add drawings and objects to their selfies.
Overall the report paints a positive picture of a rapidly growing market for AR, with a wide range of potential applications likely to be developed for the technology.