Augmented and mixed reality: what is it, and where is it going?

Augmented Reality (AR) and Mixed Reality (MR) are two technologies which have become more prominent in the past ten years. AR is the use of computer technology to superimpose digital objects and data on top of a real-world environment. MR is similar to AR, but the digital objects interact spatially with the real-world objects, rather than being superimposed as “floating images” on top of the real-world objects. AR and MR are also closely related to VR. There is a cross-over in application and technology, as some VR headsets simulate the real space and then add in extra artificial content for the user in VR. But for this article, AR and MR products are considered those which allow the user in some way to directly see the real-world around them. The main target sectors of AR and MR appear to be in industry and enterprise markets. With high costs of individual products, there appears to be less penetration into a consumer space.

AR and MR products are being used in a variety of settings. One way they are being used is to solve a problem called “the skills gap” This describes the large portion of the skilled workforce who are expected to retire in the next ten years, leading to a loss of the knowledge and skills from this workforce. This knowledge needs to be passed on to new, unskilled, employees. Some companies propose that AR/VR technology can fill this skills gap and pass on this knowledge. This was one of the key areas discussed at some events IDTechEx analysts attended in 2019, in researching for this report.

AR use in manufacturing and remote assistance has also grown in the past 10 years, leading to some AR companies targeting primarily enterprise spaces over a consumer space. Although there have been fewer direct need or problem cases which AR can solve for a consumer market, smartphone AR can provide an excellent starting point for technology-driven generations to create, develop, and use an XR enabled smartphone for entertainment, marketing and advertising purposes. One example of smartphone AR mentioned in the report is IKEA place. This is an application where a user can put a piece of IKEA furniture in their room to compare against their current furniture. It allows users a window into how AR can be used to supplement their environment and can be used in day to day activities such as purchasing and visualising products bought from an internet marketplace.

The report compares both augmented and mixed reality products and splits them into three categories: PC AR/MR, Standalone AR/MR and Smartphone/mobile AR/MR. PC products which need a physical PC attachment, standalone products which do not require a PC, and smartphone products – those which use a smartphone’s capabilities to implement the immersive experience. Standalone AR/MR have had more distinct product types in the past decade, and this influences the decisions made when forecasting the future decade to come.