The augmented and mixed reality market is tipped to soar in value to US$14.1 billion (€12.1 billion) by the end of 2021, despite contracting in size this year.
Futuresource Consulting estimates that the value of the overall consumer mobile AR/MR market reached US$1.7 billion in 2016, driven by applications like Snapchat and Pokémon Go.
The latter’s rapid short-term success and subsequent loss of momentum has “overinflated” the market, which will dip to US$1.4 billion this year. However, this won’t harm its long-term potential, according to the research.
“The longer-term outlook is for a startling 77% compound annual growth rate (CAGR) between 2017-2021, with mobile AR/MR soaring to US$14.1 billion market valuation by the end of 2021,” according to the report.
While Futuresource concedes that AR/MR technologies are still a long-way from being “an everyday feature of consumers’ lives”, it predicts social media networks will play a major part in their growth.
“Although the mobile AR/MR proposition is very much in its infancy today, the end-game is clear for Facebook, Apple, Google, SnapChat, Microsoft et al,” said Futuresource Consulting market analyst, Michael Boreham.
“AR/MR is considered to be the next major computing platform, offering a revolutionary technological leap that has the potential to evolve and enhance our digital interaction across industries such as communication, utilities, entertainment and e-commerce.
“In reality, it may be the best part of a decade before the emergence of a killer AR/MR app appears. However, as technology develops and affordable devices come to market, AR/MR will be pushed into the mainstream for everyday use, especially for entertainment and utility tasks.”