According to IDC, the digital reality market, which includes augmented reality (AR) and virtual reality (VR), will reach $162 billion by 2020. And, for a variety of reasons, I believe AR will be the market winner.
For starters, augmented reality does not necessitate the user wearing a large, cumbersome headset. Nobody wants to wear that for hours; it's uncomfortable to wear for long periods of time and requires removal to do anything else. That will not work with the amount of time people now spend multitasking.
Right now, the only option is to enter a "virtual reality booth." While it appears appealing, people are unlikely to have such large areas set aside in their homes. The second reason VR will not be as popular is that selling to individual consumers is the only way for anything new in the gaming industry to gain traction nowadays.
Next, for the time being, virtual reality is mostly used for gaming. And the majority of the general public does not enjoy gaming, especially when wearing a large headset. I am aware that VR gaming headsets are popular. They will have a place, and they will be a part of the larger picture of digital reality. However, I believe that AR will eventually become the dominant force in this market.
So, what exactly is augmented reality? To put it simply, it is anything projected on a screen or display that is not physically present. The yellow line that marks the next first down during football games is a well-known example. It has been around since 1968, though it does not look like it used to (thankfully).
There was also Google Glass, Google's own augmented reality "headset" in the form of glasses. The product was eagerly anticipated by the tech industry but not by the general public. Its initial release in 2014 was a flop, and it was canceled the following year. This was primarily due to the device's $1,500 price tag as well as concerns that Google was secretly recording people. But, as technology advances, we may find ourselves using it multiple times per day.
Augmented reality and virtual shopping
At the moment, the majority of AR is done through smartphone apps, which is convenient because our phones are always in our hands. Amazon, for example, has an app called Amazon AR that allows customers to see its products in real life.
One of the main reasons people don't want to buy home goods online is that they want to be able to see the product in person. Until now, this required going to the store and then imagining how the product would look at home.
The AR technology in this app allows you to see a virtual version of the product in real life, eliminating the need to go to the store to select something. Shopping online is also faster and easier for browsing; you have hundreds of products in front of you, and you can now see how they would look in your home.
Ikea Place, a similar app, is available. One of the most time-consuming aspects of purchasing furniture is having to measure all of the dimensions and then estimating whether or not the piece of furniture you want will fit. However, you can use the app to see how any "actual size" piece of Ikea furniture would look in your home.
There Are Hundreds of Different Applications for Augmented Reality
Manufacturing companies are also seeing the benefits of augmented reality. Ford and Volvo, for example, are incorporating augmented reality into their vehicle design processes. Instead of building a physical clay model of each car, they can now visualize it with augmented reality.
This technology has the potential to save a significant amount of time and money that would otherwise be spent on fixing mistakes and guessing how to create or improve an automobile's functionality. Once fully integrated, this product will eliminate the entire prototype phase of automobile design, allowing manufacturers to release new models more frequently.
We can already see a glimpse of what is to come with AR, as hundreds of different applications are being discovered and developed. Sticking with automotive applications, AR-Media is developing an app that allows you to track maintenance and perform repairs on cars. The app is called I-Mechanic, and it shows people how to perform routine maintenance on their cars, which could save them a lot of money.
Volkswagen was a pioneer in this technology when it developed an app for use with its XL1 model. While the technology was sound, only 200 of the cars were ever sold to the general public, so no one could really use the app. I-Mechanic will be available for use with a variety of car models, continuing the work begun by Volkswagen.
Finally, believe it or not, a technology is being developed to turn your windshield into an augmented reality station: While a "smart windshield" may be a distraction for drivers, the real potential lies in self-driving or assisted-driving cars. The driver could use the windshield to get directions or information on nearby points of interest.
Augmented reality investment
Augmented reality has taken the tech market by storm in recent years, and it's only getting started. There are hundreds more apps and features in existence or in development for all of the apps and features I've described here.
There are also opportunities to invest in this technology
Companies such as Snap Inc. (NYSE: SNAP) and Apple Inc. (Nasdaq: AAPL) are developing augmented reality platforms that are used on a daily basis by individuals and businesses alike. I believe the augmented reality market will grow exponentially, with significant integration of the technology into our daily lives.