Mobile Augmented Reality

Overview

• AR Business Model Evolution
• Industry Leading Forecast Suite
• The Future of Mobile AR

The highly anticipated 3rd edition of this industry-leading report provides an analysis of the still embryonic mobile augmented reality industry, highlighting the key opportunities for growth and examining the increasing specialisation of key players in the market.

The Report Covers:

Finding the Niche. The report assesses how the mobile augmented reality industry has evolved over the past 18 months as players look to specialise and strengthen their business models. The report provides detailed case studies of how key players have developed their business strategies and examines the opportunities available across a number of segments.

Consumer Awareness. Raising consumer awareness is key to the success of the mobile augmented reality industry. This report examines ways that consumers can be educated in what mobile augmented reality can do for them.

Features of the Report:

Expert Industry Opinion – The report features interviews with players from across the value chain, including interviews with CEOs and Founders. Readers will gain specialist insight into the trends, drivers and opportunities in a number of mobile augmented reality segments.

Barriers to Success – Readers will gain valuable insight into the social, legal and technological barriers facing those looking to deploy a mobile augmented reality product. The report analyses the hurdles to revenue generation and provides a comprehensive set of strategic recommendations for players looking to overcome these hurdles.

Expansive Forecasts – Forecasts are split by 6 AR app categories: Location-Based, Social Networking, Games, Lifestyle & Healthcare, Multimedia & Entertainment and Enterprise. These are the most comprehensive forecasts currently available in the market and examine revenue streams from three different business models: download revenues, revenues from purchases post-download and advertising revenues.

Table of Contents

Executive Summary

1. The Evolution of Mobile Augmented Reality

1.1 Introduction 18
1.2 Defining Mobile Augmented Reality 19
Figure 1.1: Defining Augmented Reality 19
1.3 How Does it Work? 19
1.3.1 Requirements for Mobile Augmented Reality 20
1.4 Enabling Technologies 21
1.4.1 QR Codes/AR Markers 21
Figure 1.2: QR Code Example 21
a. Case Study: James May’s Science Stories 21
Figure 1.3: James May’s Science Stories 22
1.4.2 Image Recognition/Markerless Tracking 22
i. Uses of Image Recognition 23
a. Case Study: Total Immersion 23
Figure 1.4: TryLive Eyewear 24
1.5 Key Drivers for Mobile Augmented Reality 24
1.5.1 Increasing AR-Capable Smartphone Adoption 24
1.5.2 The App Store Revolution 26
1.5.3 Rising Mobile Internet Adoption 26
Figure 1.5: 3G/4G Mobile Subscribers (m) Split by 8 Key Regions 2012 – 2017 26
Table 1.2: 3G/4G Mobile Subscribers (m) Split by 8 Key Regions 2012 – 2017 27
1.5.4 Potential of Mobile Distribution 27
1.5.5 The Rise of mCommerce 28
1.6 Mobile Augmented Reality on Tablets 28
1.6.1 Comparing Tablets to Smartphones 28
1.6.2 Augmented Reality Implementations on Tablets 29
Figure 1.6: Vuforia by Qualcomm and Sesame Workshop Prototype Playset 29
1.7 The Future of Mobile Augmented Reality 30

2. Barriers to Deployment

2.1 Introduction 34
Figure 2.1: Barriers to Mobile Augmented Reality Deployment 34
2.2 Consumer Awareness 34
2.3 Meeting Expectations 35
2.4 User Interface 36
2.5 Addressable Market 37
2.6 Offering Value to the Consumer 37
2.7 Legal Barriers to Deployment 38
2.8 Technological Limitations 40
2.9 Proprietary Code Locks Content In 46

3. The Mobile Augmented Reality Opportunity

3.1 Introduction 48
3.2 Monetising Mobile Augmented Reality 49
3.2.1 Traditional App Business Models 49
3.2.2 Evolution of Mobile Augmented Reality Business Models 50
3.3 Key Areas for Mobile Augmented Reality Development 56
3.3.1 Location-Based Augmented Reality 57
3.3.2 Social Networking 59
3.3.3 Games 60
3.3.4 Lifestyle & Healthcare 62
3.3.5 Multimedia & Entertainment 66
3.3.6 Enterprise 67
3.3.7 Comparing AR Genres 68
Figure 3.12: AR App Downloads (173 million) Split by Category 2012 68
Figure 3.13: Average Price per AR Download Split by Category 2012 68

4. Total Market Forecasts for Mobile Augmented Reality

4.1 Introduction 71
4.2 Methodology 71
4.2.1 Download Revenue Methodology 72
Figure 4.1: Download Revenue Methodology 72
4.2.2 Post-download Methodology 72
Figure 4.2: Post-download Revenue Methodology 73
4.2.3 Mobile Augmented Reality Advertising Methodology 73
Figure 4.3: Mobile Augmented Reality Advertising Methodology 74
4.3 The Growth of Device Ownership 74
4.3.1 Global Smartphone Installed Base Forecasts 74
Figure 4.4: Smartphone Installed Base (m) Split by 8 Key Regions 2012 – 2017 75
Table 4.1: Smartphone Installed Base (m) Split by 8 Key Regions 2012 – 2017 75
4.3.2 Global Tablet Installed Base Forecasts 75
Figure 4.5: Tablet Installed Base (m) Split by 8 Key Regions 2012 – 2017 76
Table 4.2: Tablet Installed Base (m) Split by 8 Key Regions 2012 – 2017 76
4.4 Total Market for Mobile Augmented Reality 77
4.4.1 Total Market Forecasts 77
i. Forecasts by Category 77
Figure 4.6: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category 2012 – 2017 77
Table 4.3: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category 2012 – 2017 77
Figure 4.7: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category and Revenue Stream 2017 78
Table 4.4: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category and Revenue Stream 2017 78
ii. Forecasts by Region 79
Figure 4.8: Total Mobile AR Revenues ($m) on Mobile Devices Split by 8 Key Regions  2012 – 2017 79
Table 4.5: Total Mobile AR Revenues ($m) on Mobile Devices Split by 8 Key Regions  2012 – 2017 79
4.4.2 Comparison with Previous Edition 80
Figure 4.9: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category 2011 – 2017, Current Edition and Previous Edition 80
Table 4.6: Total Mobile AR Revenues ($m) on Mobile Devices Split by Category 2011 – 2017, Current Edition and Previous Edition 80

5. Download Revenue Forecasts for Mobile Augmented Reality Apps

5.1 Introduction 81
5.2 Usage of AR Apps on Smartphones and Tablets 81
5.2.1 Downloads of AR Apps to Mobile Devices 81
Figure 5.1: Total Number of AR Apps Downloaded (m) to Mobile Devices Split by Category 2012 – 2017 82
Table 5.1: Total Number of AR Apps Downloaded (m) to Mobile Devices Split by Category 2012 – 2017 82
5.2.2 Usage of AR Apps on Smartphones 82
i. Usage on Smartphones 82
Table 5.2: Percentage of Smartphone Users (%) who Download AR Apps Split by Category 2012 – 2017 83
Table 5.3: Number of Smartphone Users (m) who Download AR Apps Split by Category 2012 – 2017 83
ii. Downloads to Smartphones 84
Table 5.4: Average Number of AR Apps Downloaded to Smartphones Split by Category 2012 – 2017 84
Figure 5.2: Total Number of AR Apps Downloaded (m) to Smartphones Split by Category 2012 – 2017 85
Table 5.5: Total Number of AR Apps Downloaded (m) to Smartphones Split by Category 2012 – 2017 85
5.2.3 Usage of AR Apps on Tablets 86
i. Usage on Tablets 86
Table 5.6: Percentage of Tablet Users (%) who Download AR Apps Split by Category  2012 – 2017 86
Table 5.7: Number of Tablet Users (m) who Download AR Apps Split by Category  2012 – 2017 87
ii. Downloads to Tablets 87
Table 5.8: Average Number of AR Apps Downloaded to Tablets Split by Category  2012 – 2017 87
Figure 5.3: Total Number of AR Apps Downloaded (m) to Tablets Split by Category  2012 – 2017 88
Table 5.9: Total Number of AR Apps Downloaded (m) to Tablets Split by Category  2012 – 2017 88
5.3 Pricing and Paid for Downloads 89
5.3.1 Paid For Downloads on Smartphones 89
i. Percentage of Paid For Downloads on Smartphones 89
Table 5.10: Percentage of AR App Downloads (%) Which Are Paid For on Smartphones  Split by Category 2012 – 2017 89
Figure 5.4: Number of AR App Downloads (m) Which Are Paid For on Smartphones  Split by Category 2012 – 2017 90
Table 5.11: Number of AR App Downloads (m) Which Are Paid For on Smartphones  Split by Category 2012 – 2017 90
5.3.2 Paid For Downloads on Tablets 91
Table 5.12: Percentage of AR App Downloads (%) Which Are Paid For on Tablets Split by Category 2012 – 2017 91
Figure 5.5: Number of AR App Downloads (m) Which Are Paid For on Tablets Split  by Category 2012 – 2017 91
Table 5.13: Number of AR App Downloads (m) Which Are Paid For on Tablets Split  by Category 2012 – 2017 92
5.4 Total Paid For Download Revenues 92
5.4.1 Total Paid For Download Revenues 92
i. Revenues Split by Genre 92
Figure 5.6: Total AR Download Revenues ($m) on Mobile Devices Split by Category  2012 – 2017 93
Table 5.14: Total AR Download Revenues ($m) on Mobile Devices Split by Category  2012 – 2017 93
ii. Revenues Split by Region 93

Figure 5.7: Total AR Download Revenues ($m) on Mobile Devices Split by 8 Key Regions 2012 – 2017 94
Table 5.15: Total AR Download Revenues ($m) on Mobile Devices Split by 8 Key Regions 2012 – 2017 94
5.4.2 Paid For Download Revenues on Smartphones 94
i. Average Pricing for AR Apps on Smartphones 94
Table 5.16: Average Pricing for AR Apps ($) on Smartphones Split by Category  2012 – 2017 95
ii. Download Revenues on Smartphones 95
Figure 5.8: Total AR Download Revenues ($m) on Smartphone Split by Category  2012 – 2017 95
Table 5.17: Total AR Download Revenues ($m) on Smartphone Split by Category 2012 – 2017 96
5.4.3 Paid For Download Revenues on Tablets 96
i. Average Pricing for AR Apps on Tablets 96
Table 5.18: Average Pricing for AR Apps ($) on Tablets Split by Category 2012 – 2017 96
ii. Download Revenues on Tablets 97
Figure 5.9: Total AR Download Revenues ($m) on Tablet Split by Category 2012 – 2017 97
Table 5.19: Total AR Download Revenues ($m) on Tablet Split by Category 2012 – 2017 97

6. Forecasts for Post-Download Revenues from Mobile Augmented Reality Apps

6.1 Introduction 99
6.2 Apps Selling Post-download Items 99
6.2.1 Post-Download Items on Smartphones 99
Table 6.1: Percentage of AR Apps (%) Which Sell Post-Download Items on Smartphones Split by Category 2012 – 2017 100
Figure 6.1: Number of AR Apps (m) Which Sell Post-Download Items on Smartphones Split by Category 2012 – 2017 100
Table 6.2: Number of AR Apps (m) Which Sell Post-Download Items on Smartphones Split by Category 2012 – 2017 101
Table 6.3: Average Number of Post-Download Items Sold Per App Per Annum Split By Category 2012 – 2017 101
Figure 6.2: Total Post-Download Items (m) Purchased on Smartphones Split by Category 2012 – 2017 102
Table 6.4: Total Post-Download Items (m) Purchased on Smartphones Split by Category 2012 – 2017 102
6.2.2 Post-Download Items on Tablets 102
Table 6.5: Percentage of AR Apps (%) Which Sell Post-Download Items on Tablets Split by Category 2012 – 2017 103
Figure 6.3: Number of AR Apps (m) Which Sell Post-Download Items on Tablets Split by Category 2012 – 2017 103
Table 6.6: Number of AR Apps (m) Which Sell Post-Download Items on Tablets Split by Category 2012 – 2017 104
Table 6.7: Average Number of Post-Download Items Sold Per App Per Annum Split By Category 2012 – 2017 104
Figure 6.4: Total Post-Download Items (m) Purchased on Tablets Split by Category  2012 – 2017 105
Table 6.8: Total Post-Download Items (m) Purchased on Tablets Split by Category  2012 – 2017 105
6.3 Post-Download Revenues 105
6.3.1 Total Post-Download Revenues 105
i. Revenues Split by Genre 105
Figure 6.5: Total Post-Download Revenues ($m) on Mobile Devices Split by Category  2012 – 2017 106
Table 6.9: Total Post-Download Revenues ($m) on Mobile Devices Split by Category  2012 – 2017 106
ii. Revenues Split by Region 106
Figure 6.6: Total Post-Download Revenues ($m) on Mobile Devices Split by 8 Key Regions 2012 – 2017 107
Table 6.10: Total Post-Download Revenues ($m) on Mobile Devices Split by 8 Key Regions 2012 – 2017 107
6.3.2 Post-Download Revenues on Smartphones 107
i. Average Pricing on Smartphones 107
Table 6.11: Average Price per Post-Download Item ($) on Smartphones Split by Category 2012 – 2017 108
ii. Post-Download Revenues on Smartphones 108
Figure 6.7: Total Post-Download Revenues ($m) on Smartphones Split by Category  2012 – 2017 108
Table 6.12: Total Post-Download Revenues ($m) on Smartphones Split by Category  2012 – 2017 109
6.3.3 Post-Download Revenues on Tablets 109
i. Average Pricing on Tablets 109
Table 6.13: Average Price per Post-Download Item ($) on Tablets Split by Category  2012 – 2017 110
ii. Post-Download Revenues on Tablets 110
Figure 6.8: Total Post-Download Revenues ($m) on Tablets Split by Category 2012 – 2017 110
Table 6.14: Total Post-Download Revenues ($m) on Tablets Split by Category 2012 – 2017 111

7. Advertising Forecasts for Mobile Augmented Reality Apps

7.1 Introduction 113
7.2 Mobile Augmented Reality Clickthroughs 113
7.2.1 Clickthroughs on Smartphones 113
Table 7.1: Average Number of Sponsored Clickthroughs per Free AR Download per Annum on Smartphones Split by Category 2012 – 2017 114
Figure 7.1: Total Number of Sponsored AR Clickthroughs (m) on Smartphones Split by Category 2012 – 2017 114
Table 7.2: Total Number of Sponsored AR Clickthroughs (m) on Smartphones Split by Category 2012 – 2017 115
7.2.2 Clickthroughs on Tablets 115
Table 7.3: Average Number of Sponsored Clickthroughs per Free AR Download per Annum on Tablets Split by Category 2012 – 2017 115
Figure 7.2: Total Number of Sponsored AR Clickthroughs (m) on Tablets Split by Category 2012 – 2017 116
Table 7.4: Total Number of Sponsored AR Clickthroughs (m) on Tablets Split by Category 2012 – 2017 116
7.3 Spend on Mobile Augmented Reality Advertising 117
7.3.1 Total Mobile Advertising Spend 117
i. Advertising Spend Split by Genre 117
Figure 7.3: Total AR Advertising Spend ($m) on Mobile Devices Split by Category  2012 – 2017 117
Table 7.5: Total AR Advertising Spend ($m) on Mobile Devices Split by Category  2012 – 2017 117
ii. Advertising Spend Split by Region 118
Figure 7.4: Total AR Advertising Spend ($m) on Mobile Devices Split by 8 Key Regions  2012 – 2017 118
Table 7.6: Total AR Advertising Spend ($m) on Mobile Devices Split by 8 Key Regions  2012 – 2017 118
7.3.2 Spend on Smartphones 118
Table 7.7: Average CPC ($) for AR Apps on Smartphones Split by Category 2012 – 2017 119
Figure 7.5: Total AR Advertising Spend ($m) on Smartphones Split by Category 2012 – 2017 119
Table 7.8: Total AR Advertising Spend ($m) on Smartphones Split by Category 2012 – 2017 120
7.3.3 Spend on Tablets 120
Table 7.9: Average CPC ($) for AR Apps on Tablets Split by Category 2012 – 2017 120
Figure 7.6: Total AR Advertising Spend ($m) on Tablets Split by Category 2012 – 2017 121
Table 7.10: Total AR Advertising Spend ($m) on Tablets Split by Category 2012 – 2017 121

Companies Referenced

Interviewed
ICN; Blippar; Layar; metaio; Mobilistar; Qualcomm; String; Total Immersion; Wikitude

Mentioned
Acrossair; Amazon; Anheuser-Busch; Apple; Argos; Atol; Audi; Aurasma; Blippar; Boeing; Cadbury; Denso-Wave; Diageo; Digicave; Dominos; eBay; Engine Creative; Facebook; GetJar; Google; Heinz; Hotel.com; Johnson & Johnson; Koozyt; Linda; Lonely Planet; Lowe's Canada; Mattel; Maybelline; Metro Herald; Microsoft; Nestle; Nike; Nokia; Ocado; Pixel Punch; Qualcomm; RIM; Samsung; Scanbuy; Science Museum; Sesame Workshop; SkyScanner; Sony Pictures Entertainment; Starbucks; Taco Bell; Tesco; The Phone House; The Trainline.com; Tonchidot; Twitter; Unilever; USPTO; Virgin Media

Case Studies
Blippar; Google Street View; juniao by metaio; Layar; Moon Pig Video Cards; Nearest Tube; Ogmento; Qualcomm; Sekai Camera; Star Chart; Top Gear; Total Immersion; Wikitude; WowWee

Extra Info

‡ 8 key regions includes:

North America, Latin America, Western Europe, Central & Eastern Europe, Far East & China, Indian Subcontinent, Rest of Asia Pacific and Africa & Middle East.