Augmented Reality (AR), along with virtual reality (VR) and mixed reality (MR), forms part of what are broadly known as immersive technologies. Immersive technology attempts to emulate a physical world through the means of a digital or simulated world, thereby creating a sense of ‘immersion’. AR can help brands and companies to create engaging content, promote services and products, inform, educate, assist and entertain. Consumers can use the technology to enhance different facets of their everyday lives, from what to wear in the morning, how to navigate to where they are going to and what they might wish to buy when they get there.

Currently, use of AR technology is relatively low and skewed towards a younger demographic. There are, however, a few popular incarnations of the technology which have gained traction. Examples include the use of social media filters on apps such as Snapchat and mobile games such as Pokémon GO. AR’s reach can be furthered with the right content that can deliver utility, ease of use and a tangible benefit to users in a seamless manner.

Proponents will have to overcome consumer apathy and a sense that the technology is more of a gimmick than a game-changing interface for their everyday lives. As major technology companies invest in software and hardware solutions, such as next-generation wearable technology, we expect to see an increased use of AR activities as barriers are broken down to experience and interact with content. Consumers’ routes to discovery via social channels and through interacting with companies and service providers can generate monetisation opportunities for brands, if they can deliver a lightbulb moment of utility and value.

For the purposes of this Report, Mintel has used the following definitions:

AR is a technology that integrates digital information such as images, text and sound and overlays them onto a real-world view, to create an enhanced visual experience which is a blend of digital and real-world features. Typically AR can be facilitated through a camera lens such as those on a smartphone or tablet, but other applications, such as smart mirrors, windscreens and wearables including smart glasses also exist as a means to facilitate access to AR content.

Some data in this Report is supplied by App Annie. App Annie is a mobile data and analytics platform which is committed to delivering a complete mobile performance offering, with more than 1,100 enterprise clients and 1 million registered users across the globe, and spanning all industries. It is headquartered in San Francisco with 12 offices worldwide. For more information from App Annie please email contact@appannie.com or visit its website https://www.appannie.com.