Mobile augmented reality to see $732 million market by 2014

The latest Juniper Research report finds that the market for mobile augmented reality (AR) services is expected to reach $732 million by 2014, with revenues derived from a combination of paid-for app downloads, subscription-based services and advertising.

The “Mobile Augmented Reality: Forecasts, Applications and Opportunity Appraisal 2009-2014” report found that annual revenues from AR are unlikely to exceed even $2 million during 2010 because such a small percentage of smartphones will be AR-enabled at the end of this year. However, the report predicts a sharp rise in AR-enablement of smartphones in the medium term, because more people are adopting Android handsets and iPhones and more leading vendors are deploying AR enablers such as digital compasses and accelerometers.

Although initial service adoption will be driven by AR location-based search, Juniper Research expects the first substantial revenues to be derived from AR-enabled games, bolstered by revenues from mobile enterprise solutions 2012-13 and onward. Meanwhile, AR advertising charms will grow for brands and retailers as the potential user base burgeons, with AR ad networks able to charge higher CPC and CPM rates because of location relevance.