Augmented reality market set for aggressive expansion

TechNavio predicts a promising future for augmented reality

Augmented reality is beginning to take off in numerous industries. Many technology companies are working on wearable augmented reality products, while software developers are working augmented reality into new mobile applications for various platforms. Even the game industry has become enamored with augmented reality. TechNavio, a leading market research firm, has released a new study forecasting the future of the global augmented reality market; and the future certainly looks bright for this interactive technology.

Study forecasts CAGR of 54.3% from 2012 to 2016

TechNavio predicts that the global augmented reality market will grow at a compound annual growth rate of 54.3% from 2012 to 2016. While many of the companies adopting augmented reality are doing so because of the dynamic aspects of the technology, the key factor driving growth is the demand for enhanced consumer experience. Consumers are becoming jaded when it comes to traditional interfaces on their mobile devices and are itching for something much more engaging. Augmented reality has, thus far, proven that it can meet the needs and interests of these consumers.

More partnerships among startups are forming

The TechNavio study also makes note of the growing number of partnerships that are emerging in the augmented reality field. Technology startups are beginning to team up in order to establish a stronger presence in their chosen field, through the use of augmented reality. This is good news for the interactive technology sector, as such partnerships enable smaller companies to compete with their larger counterparts. This increases competition in the market and drives innovation.

Traditional leaders in augmented reality likely to retain their place of dominance in the sector

Despite the growing number of partnerships among startups, the big players in the augmented reality sector are likely to retain their dominance. These include companies like Layar, Metaio, Total Immersion, and even Qualcomm. These companies have produced innovation augmented reality products over the past several years that have come to define what consumers expect when making use of the technology.