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Revenues Coming into Focus for AR Development Solution Vendors, According to New Report by VDC Research
AR Engines, Tools, and SDKs in combination with refined wearables will push AR application development into lucrative IoT, industrial, and enterprise market segments.
NATICK, MA | June 6, 2017 - Findings from VDC’s new market report shed light on a key portion of the overall Augmented Reality (AR) opportunity by exploring the market for the software tools and frameworks used by AR developers to create AR applications. The study, entitled The Global Market for Augmented Reality Development Solutions, quantifies and qualifies the market opportunity, outlining vendor strategy, key technology considerations, and end user trends.
Figure 1 presents an overview of major vendors and technology platforms in the AR development solutions market. VDC’s report focuses only on the vendors and products in the two upper layers of the software development stack, such as Blippar, Catchoom, EON Reality, Google, Microsoft, PTC, and Unity (highlighted in yellow). The figure does not detail an exhaustive list of vendors, and is primarily intended to highlight where different major vendors and products play across the AR technology stack.
VDC defines an AR development solution to be a set of reusable tools, resources, and APIs that developers can use to write and deploy AR applications. AR development solutions can include lower-level assets such as physics engines and animation frameworks (Unity, Unreal), higher-level assets such as APIs for image recognition and sound synchronization (Catchoom, Kudan, Vuforia, etc.), and SDKs combined with general purpose IDEs (Android Studio, Visual Studio, etc.) for development on legacy platforms. In many cases, AR applications are built using multiple tools, frameworks, SDKs, and AR cloud service APIs.
Growth in the overall AR market, which includes hardware and application sales, will be largely determined by the quality of content created for AR systems, which will in turn rely on the ease of use and quality of AR development solutions. Major technology vendors, such as Facebook, Google, Microsoft, and PTC, are making substantial investments into AR tooling, which will boost revenues for current vendors as the technology gains mainstream acceptance and adoption. The ubiquity of smartphones and tablets, which can be used to run simple AR games and applications, will serve as a solid infrastructure for AR applications, but will be steadily replaced by wearable, head-mounted displays in the lucrative industrial/enterprise portion of the market.
“Industrial/enterprise market revenues will overtake and surpass consumer market revenues by 2021 as wearable AR technology improves,” said Roy Murdock, Analyst in the IoT & Embedded Technology division at VDC Research. “This market has been developing for quite some time with relatively little financial success, but it is now poised for strong growth. Quality content will require the use of quality development tools, and the AR market is no exception.”
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About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.