Research gathered from the International Data Corporation (IDC) reveals that the Augmented Reality and Virtual Reality hardware, software and services in Western Europe is said to reach $2.5 billion in 2017, a 131% increase over the $1.1 billion spent in 2016. Manufacturing and Retail will have the biggest market share.

When looking at the total market share of AR VR spend, Consumers represent 56% of the market share with Manufacturing representing the next largest portion of revenue at 19%.

Some of the main points covered in the market report are:

• Manufacturing and retail being the biggest contributors.
• Industrial maintenance, logistics and package delivery will lead the spending in Western Europe.
• Retail showcasing and anatomy diagnostics will be fastest growing industrial use cases over the next couple of years.
• The article also talks about how consumers will help increase this market.

Overall according the IDC the AR and VR spending is forecast to increase by 210% CAGR between 2015 and 2020 making a grand total of $25.7 billion in 2020.

A post on straight.com by Kate Wilson, takes a look at the VR/AR Association in Vancouver and the significance of AR in the marketplace.  In this upbeat piece, AR is introduced to the reader by inviting them to imagine a world where screens have become completely obsolete because individuals can conjure computer displays through contact lenses or glasses.

Dan Burgar, President of the Vancouver chapter of the VR/AR Association, thinks that day may be quite close.  Burgar finds it difficult to think of an industry where the hardware would not generate a huge leap forward.

The article focusses on the practical everyday applications of AR technology, both in everyday life and in industry and nods to building development, where AR gives architects the tools to manipulate their creations in 3D.  Real estate is using it to allow customers to visualize unbuilt spaces, and to view properties without actually having to visit them.  AR’s importance in learning and development in industry is mentioned with the example quoted being in oil and gas extraction where training is conducted via headset, allowing the employee (trainee) to get as close as possible to a real-life experience before entering a dangerous situation.

The article suggests that Vancouver is fast becoming a hub for VR and AR, stating that the state has invested $100 million in venture capital for British Columbian tech companies and recently started offering a tax credit specifically for virtual and augmented reality. This forward-thinking approach inspired Burgar to create a VR/AR Association chapter in the city.

The Vancouver chapter has about 30 members,” he continues, “but there are more than 50 companies here that are dabbling in virtual reality or working on augmented reality development, and that number increases every day. We are continually connecting local businesses with Vancouver developers, and figuring out how to use this technology creatively.

Industries and enterprises are adopting AR solutions to strengthen their competitive advantage and get customers engaged in business activities. As an organization that has faced AR development challenges every day, we at Program-Ace have learned three essential lessons that could be handy for those seeking to create powerful and engaging augmented reality experiences.

1. AR helps tell a product’s story, so make it important for users.

Augmented reality technology enables storytelling. It makes us see everyday objects in a different light by making visible what has been invisible, enabling us to visualize 2D images, and bringing life to inanimate objects. In other words, it has the capacity to humanize the technology. This, in turn, dramatically increases the value and recognition of the product (or any other object of your choice). A good story not only positively influences the presence but also allows users to be closer to the product and engaged in the tech community.

To deliver valuable applications for the business world, Program-Ace conducts extensive marketing research that studies existing products, possible competitors, and consumer behavior in both B2B and B2C markets to discover weaknesses and consider the most profitable potential opportunities. In our development adventures, the Program-Ace team has drawn one important conclusion: AR development is not just about the smooth integration of CG content with the physical environment; it is about allowing consumers to be connected to the virtual realm. Moreover, the app ideation process (the phase in which you create the concept, define the technological feasibility, and understand the time constraints) can also be supported with product usage data and information regarding solutions already available in the market along with their strengths and weaknesses.

2. Gamification can be a successful way to drive user acceptance and productivity.

Augmented reality technology has had a significant influence on the development of various wearables, headsets, and head-mounted devices. And, of course, gamers are among the early adopters of these advanced accessories. For that reason, many people hold the opinion that it is necessary to develop games in order to be noticeable in the market. While that might be true for some industries, such as education and defense, when it comes to retail, government, or banking, you need a serious approach to the business. Still, gamification can be an effective approach for you.

Even though it originated in the gaming world, gamification has proved to be an extremely effective tool for user acquisition, virality, and customer conversion. At Program-Ace, we have long realized that companies should focus on what the gaming experience can bring to the AR application, instead of creating games. When you deliver proofs of concept to your clients using basic and advanced gamification features, such as multi-layered storytelling, competition, rewards, lifelike avatars, etc., you can drive user engagement and increase productivity.

3. Platform-specific apps are an endangered species.

Contrary to the conventional wisdom that, in the near future, one winning platform will become an AR market monopolist, we do not see any indication of this yet. Instead, the market is full of various products designed for different user needs and demands, and it is highly unlikely that in the next five years, the diversity of platforms will disappear. Accordingly, our experience has taught us to build platform-agnostic applications choosing a cross-platform approach that has worked well for our customers for more than 20 years now, helping them to pursue market supremacy while being platform independent and relevant to user requirements.

Multi-platform (or cross-platform) AR development, especially creating one application that can be deployed to any platform, is preliminarily customized to respect the features of a particular platform or device. However, in some cases, these approaches are ineffective, especially when the target audience is used to native apps. In this situation, our team eventually creates experiences aimed at a specific type of device. For instance, one of our mini games, Archy the Rabbit, was initially designed cross-platform for iOS and Android. With the introduction of HoloLens, we have ported it to this platform by changing the game UI, adding new features, and programming the app to recognize gestures, voices, and gazes. A combination of the Unity game engine and HoloToolKit helped our team to develop important app functionality such as spatial sound, voice recognition, and spatial mapping with minimal effort and improved human-computer interaction (HCI).

Shaping the future

As the next phase of computing, augmented reality offers an opportunity to shape the future of HCI and technology itself. In order to be creative and deliver compelling AR experiences, we have begun to focus on the principles above. These lessons have enabled us to design applications that maximize the value of the technology. By remembering these AR development lessons, you can crystallize your thinking and focus your efforts on developing successful and engaging AR applications.

Anastasiia Bobeshko is the Chief Editor at Program-Ace.

In a press release (PRNewswire) this week, the University of California Berkeley announced Immerex will build a new lab for Berkeley’s, accelerating work in AR/VR.

The article states that this new lab can provide space for students to develop projects using state-of-the-art equipment. This funding, according to the article will also help fellowships support students and renovate a classroom designated for AR/VR education in Berkeley’s professional Master of Engineering (M.Eng.) program.

“Thanks to Immerex, we will be able to host advanced student projects and offer new innovative curriculum in virtual reality,” said S. Shankar Sastry, Dean of the College of Engineering, as well as Co-Director of the Center for Augmented Cognition. He expects that the new lab will make a positive impact in strengthening Berkeley’s leading role in Silicon Valley and globally on the innovation of disruptive technologies that connect information, people and society.

Kirin Lee, CEO of Immerex, stated that Immerex is thrilled to partner with UC Berkeley and support the future of VR research at the world’s leading AR/VR lab.  Lee is quoted as saying, “While Immerex is solving many of the VR limitations our industry sees today, we understand it is partnerships like this that will continue to push the industry forward to new and exciting places, and we are happy to collectively work towards the same goal of seamlessly merging the virtual world with the real world.”

Augmented Reality is going to be one of the themes discussed at Techweek in New Zealand which has more than 100 events throughout the country.  Sessions will include the Future of Farming, starting your own business, VR, AR, game development, women technology and many more. One main focus from this event is the diverse elements within the tech sector.

Farming 2020 is set to showcase the Agricultural Industry’s digital future and New Zealand’s role in the Agtech environment.

Herd improvement, software, pasture mapping and a variety of other data mining tools are being integrated into in farm practices to maximise productivity and profitability. Other key segments on display include blockchain – the building block technology behind the next wave of digital currency and could disrupt global commerce itself.

Virtual and Augmented Reality are two of the fastest growing trends within the tech sector today, and one of the main events within Techweek will be the AR/VR Garage gaming weekend. John McDermott runs the IoT Auckland meet-up group, and has worked with Rob Hanks, founder of AR development company Curiat and Jessica Manins, who represents the NZ VR/AR Association, to develop the Future Realities stream – a programme of events introducing New Zealand to AR/VR and IoT technologies, applications and businesses.

Katie Mulligan of UI Labs has posted a blog entry that offers the organization’s perspective on the recent Global AR Requirements Workshop convened by DMDII and the AREA: –

Sometimes in the Wild West of rapidly evolving technology, we’re stronger working together than alone.  A recent workshop proved that’s the mindset of Lockheed Martin, Caterpillar, and Procter and Gamble, which teamed up to lead a discussion of augmented reality (AR) functional requirements in hopes of moving this new technology forward and training the workforce of the future.

AR has essential applications for today’s manufacturing landscape, filling the gaps in expertise emerging as an older generation retires.

“Young people aren’t going to school to be mechanics,” said Lonny Johnson, an AR subject matter expert formerly with Caterpillar who helped facilitate the workshop. “We need to give them tools to help them learn quicker and easier.”

Unlike its cousin, virtual reality, AR is used when a machine or tool is present—to project work instructions onto an assembly line or to highlight steps to fix a machine under repair, for example. The technology’s uses run the gamut, but AR providers have struggled to understand the needs of industry, slowing wide-scale adoption by manufacturers.

To help form a consensus about the necessary functional requirements for AR, Lockheed, Caterpillar, and P&G hosted the Augmented Reality Workshop on March 1-2 in conjunction with UI LABS and the Augmented Realty for Enterprise Alliance (AREA), a global membership organization focused on reducing barriers and accelerating adoption of AR technologies.

“The AR Workshop was a truly groundbreaking event as it was the first time that enterprises, AR providers, and non-commercial organizations worked together and drafted a set of global AR requirements,” said Mark Sage, Executive Director of AREA. “These requirements will be used to help develop the AR ecosystem, and AREA is looking forward to communicating and driving future changes.”

The three corporate leaders worked collaboratively in advance to develop functional requirements; they then solicited feedback from DMDII members and other attendees during the workshop, held at the UI LABS Innovation Center on Chicago’s Goose Island. The effort originated as a Partner Innovation Project, or PIP, in which DMDII partners come together to engage in R&D outside of the traditional project call process and fund their project without government dollars.

Representatives from the three industry hosts led the discussion, addressing aspects across both software and hardware, including wearable technology, Skype, voice controls, and remote support. The moderators took feedback from an audience of nearly 100 participants from more than 50 organizations—including industry, AR providers, universities, and government agencies—who shared their needs and hopes for the future of AR, and described challenges they face using the technology today.

The output of the discussion—which will form the basis for a forthcoming report—will help educate enterprises and AR providers, serve as a tool to aid product planning, and give AR service providers insight into what enterprises want.

As with any new technology, one of the greatest challenges surrounding augmented reality is persuading users—in this case, manufacturers—to adopt it. If an individual has a bad experience, “it will die on the vine,” said Johnson. But as people discover its usefulness and it begins to infiltrate the workplace, we’ll likely see wider adoption.

“One success builds on another success, which builds on another. It’s all about culture,” he added.

Ensuring the technology is ready for widespread use requires cooperation. Lockheed, Caterpillar, P&G, and the other organizations at the workshop recognize the value of face-to-face collaboration, and the importance of working through these issues together in the name of innovation.

In an article by Augmented Reality News, AREA Member Bosch Automotive Service has created a new interface known as the Common Augmented Reality Platform (CAP). This interface allows automakers to write, edit and publish AR content on iOS, Android and Windows.

Rob Butz, Director of Business Development for technical information services segment at Bosch has said, “CAP is a production ready platform that provides the tools to enable a technical author, not a programmer, to develop and manage AR content efficiently. It also provides for an effective management and delivery of large and variable data sets, and includes a highly-optimized GUI and runtime client for delivery to the end user.”

He also says “As with any new technology, the introduction of AR will take some time to gain full acceptance. There are also more improvements yet to come in the tracking technologies and the hardware.”

Augmented Reality is introducing improvements for the auto industry. Visualizing the complex internals of modern vehicles can help technicians diagnose repairs more quickly and efficiently. AR can help in maintenance, the auto industry including operators’ manuals and product information for customers, and sales and marketing collateral for dealerships.

Mark Sage, Executive Director of the AREA, was interviewed on the Connected Innovation website.  Don’t forget that you can join in the Free Webinar this Thursday March 16 2017, at which Mark Sage alongside Michael Azoff, Principal Analyst at Ovum. You can register for the event here.

Some of Mark’s key thoughts from the interview are shared below:

“Totally immersive technology is a pretty lonely space, and the use cases for business can be more limited. Most businesses work in the real work and I’m very interested in how augmented content and contextual data can be used to improve business performance and create efficiencies.”

“Having come from the mobile space, AR still uses tablets and devices to augment the space, it ties into my history and it ticks the boxes of future technology. The AR industry is still in its infancy but already I’m seeing solutions that are creating real business benefit and change, it’s a really exciting space!”

“It is enabling people to do much greater, wider things. From a personal perspective it’s amazing to consider the opportunities for the future. Being able to enhance any experience with additional augmented information will enrich our lives and help us make better and more informed decisions. From an enterprise industry perspective, it’s interesting how the new technology is allowing us to do things we’ve only dreamed of in business.”

AREA was created for innovative companies who wanted to invest in AR technologies. A pool of thought leadership content and resource has been created including case studies, use cases, technology white papers, innovative AR companies’ real life experiences. AREA are also developing return on investment analysis, requirements and leading edge research. People interested in exploring augmented reality needed a space to come together and learn, to co-innovate, and to build partnerships, AREA serves as that space.  Key to their proposition is the free and open exchange of best practices – enabling companies to make better decisions about investing in AR and the benefits it provides.

You can read the full interview here.

The focus of Day 2 was Software Requirements which was brilliantly managed by Roland Joseph from Proctor and Gamble.  The day started with a real buzz of anticipation. The evening networking and demo event created new partnerships and friendships, and conversations continued over breakfast. As each requirement was explained, there were detailed questions, insights and clarification both from the audience and the Requirements Team.

With over 22 sections and many “sub requirements” within each, there were a lot of requirements to review, however, the great interaction and insight provided meant the time flew and very soon all the requirements had been covered.

The final part of the day was a “next steps” section where Mark Sage, Executive Director of The AREA, thanked the team for their work before outlining his thoughts on the next steps and asking for feedback from the audience.

The proposed next steps include:

1. Creating an AREA Requirements Committee to own, manage and update the Enterprise benchmark requirements
2. Committing to communicate the requirements to the wider AR ecosystem
3. Creating ways for the wider ecosystem to provide feedback
4. Creating processes and tools to ensure feedback is reviewed and that the Committee update them
5. Creating further analysis and benchmarking activities

In summary, the event was a great success, as proven by the amazing feedback we received from the closing survey:

• 100% of respondents said they would recommend the event to others
• Anonymous feedback comments included:

• “You’ll have double the attendees next time because people will realize that they should have been at this meeting”
• “A Homerun”
•  “Event was the first of its kind and it was impressive”.
• “Wow! What a great event!”

If you are interested in joining the AREA, please contact mark@thearea.org and keep an eye on theAREA.org for future updates