Augmented reality-based devices to replace smartphones in future

• Upcoming metaverse platforms will integrate AR-related technologies, helping to bring AR to the fore.
• AR market will be a $152b industry by 2030, a whopping 22-fold growth, compared to $7b in 2020.
• The high cost of headsets and smart glasses will be a barrier to widespread adoption in the short term but by 2030, enterprises will account for the largest share of the AR market by revenue.

Augmented reality (AR) devices are certain to pose a threat and replace smartphones one day but that is still some years away from reality.

Imagine wearing a pair of glasses with the computing power of a smartphone. It is activated by your voice and recognises what you see, where you are, and the context in which you are operating. Such a device can replace the smartphone as the primary connected device users carry around.

There is no doubt that augmented reality (AR) has become a popular tool for entertainment – whether it is helping gamers see their favourite Pokémon wandering around their local neighbourhood or having a good laugh seeing yourself sporting dog ears using facial recognition software.

However, according to research firm GlobalData, AR is expected to take the reins and go from these humble beginnings to one day replacing smartphones.

Rupantar Guha, Associate Project Manager for the Thematic Team at GlobalData, said that smartphones are currently used to support AR applications in both the consumer and enterprise markets.

“However, first-mover advantage in AR is such a valuable prize that every large technology company is investing significantly in this theme. AR market will be a $152 billion industry by 2030, a whopping 22-fold growth,” he said.

The AR market was worth $7 billion in 2020 and will expand at an impressive compound annual growth rate (CAGR) of 36 per cent over the next ten years.

Critical component

With the metaverse mega theme looming and the tech’s part to play in the future of work, he said that AR will be one of the most disruptive technologies of “our time”.

A survey conducted by the research firm in the second quarter showed that augmented reality (AR) became the most disruptive emerging technology by overtaking artificial intelligence.

“AR is evolving into a utility in specific consumer and enterprise applications. On the consumer front, AR is primarily used in social media, gaming and e-commerce. While Pokémon Go and Snapchat Lenses have helped popularise AR as a tool for entertainment, e-commerce is using it as a utility,” Guha said.

It will be a critical component of the “metaverse” – the next mega-theme that big tech has in its sights; he said and added that the upcoming metaverse platforms will integrate AR-related technologies, helping to bring AR to the fore.

“Covid-19 has fueled enterprise adoption of AR across sectors such as healthcare, law enforcement, and manufacturing – mainly for remote collaboration. Businesses will continue to adopt AR in the coming years, but the high cost of headsets and smart glasses will be a barrier to widespread adoption in the short term,” he said.

However, by 2030, he said that enterprises will account for the largest share of the AR market by revenue.

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