Enterprise AR app revenues could reach $5.7 billion by 2021

A mixed reality concept image demonstrating the Microsoft Hololens. Image: Microsoft

Mobile developers should expect the demand for enterprise augmented reality (AR) applications to grow significantly over the next few years, according to a new study conducted by Juniper Research.

The online and digital market research firm's "Augmented Reality: Developer & Vendor Strategies 2016-2021" study indicated enterprise AR app revenues will hit $5.7 billion by 2021, up from an estimated $515 million this year.

In addition, the study revealed head-mounted displays (HMDs) like the Microsoft HoloLens could drive AR content revenues in the enterprise segment.

The ongoing push for AR may lead many enterprises to choose HMDs over smartphones and tablets as well, according to the study. On the other hand, it may be some time before the majority of consumers embrace HMDs.

The study pointed out the high costs of HMDs and consumer hesitancy around public usage may lead many consumers to shy away from HMDs in the near future.

Meanwhile, Pokémon Go remains a leading AR app for consumers and highlights the potential value of AR for mobile developers and consumers. Despite the global popularity of Pokémon Go, the study indicated many consumers may be losing interest in the mobile title.

Still, mobile developers can learn from Pokémon Go's success and likely will need to focus on "continued innovation" with AR to keep end users engaged – something that could slow the consumer AR segment's growth in the short-term.

"The nostalgia of Pokémon (Go) has worn off for most users and there are reports about a drop in app usage. This means that the majority of consumer applications will only have limited revenue opportunity and are likely to have a short shelf-life akin to the current wider app ecosystem," study author Sam Barker said in a prepared statement.

For more:
- download the report (reg. req.)

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