Table of Contents
Executive Summary
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- The market
- UK AR app market worth nearly £40 million in H1 2019
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- Figure 1: UK consumer spend, by AR app categories, combined iOS and Google Play, H1, H2 2018 and H1 2019
- Smartphone and tablet ownership can drive take-up of AR content
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- Figure 2: Personal ownership of technology, August 2019
- Companies and brands
- Snapchat raises $1 billion to further its AR capabilities and drive retail proposition
- Google’s search facility showing potential for retail opportunities
- Facebook lays out its mixed reality vision of the future
- Instagram looks to grow its ecommerce capabilities through AR
- Apple’s Developers Conference indicates scope of firm’s ambitions in AR
- Microsoft soft launches HoloLens 2 squarely aimed at corporate and commercial customers
- The consumer
- Nearly four in 10 smartphone or tablet owners have tried AR
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- Figure 3: Current use of AR activities, August 2019
- Tangible utility is key to successful future AR experiences
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- Figure 4: Future uses of AR activities, August 2019
- The phone is the dominant medium, but tablet owners also use a wide variety of features
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- Figure 5: Current device usage to access AR activities, August 2019
- Consumers can see the potential in AR technology
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- Figure 6: Attitudes towards AR activities, August 2019
- Current AR users keen on the concept of rewards and engaging features
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- Figure 7: Attitudes towards AR activities, August 2019
- VR edges out AR for future interest
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- Figure 8: Use of VR headset, August 2019
- What we think
Issues and Insights
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- AR’s impact has already been felt in enterprise solutions, providing a platform for consumer innovations and engagement
- The facts
- The implications
- Targeting early adopters and removing barriers to use
- The facts
- The implications
- AR which can deliver functional utility to meet consumers’ needs and priorities will stand out
- The facts
- The implications
The Market – What You Need to Know
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- UK AR app market worth nearly £40 million in H1 2019
- Smartphone and tablet ownership can drive take-up of AR content
- UK government provides funding for immersive technology development
Market Size and Background
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- UK AR app market worth nearly £40 million in H1 2019
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- Figure 9: UK consumer spend, by AR app categories, combined iOS and Google Play, H1, H2 2018 and H1 2019
Market Drivers
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- UK government provides funding for immersive technology development
- Smartphone and tablet ownership can drive take-up of AR content
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- Figure 10: Personal ownership of technology, August 2019
- Tech giants continue to lay the groundwork for market expansion
- Snapchat raises $1 billion to further its AR capabilities and drive retail proposition
- Google’s search facility showing potential for retail opportunities
- Instagram looks to grow its ecommerce capabilities through AR
- Apple’s Developers Conference indicates scope of firm’s ambitions in AR
- Facebook lays out its mixed reality vision of the future
- Microsoft soft launches HoloLens 2 squarely aimed at corporate and commercial customers
- AR in education and healthcare could pave the way for more advanced consumer applications
- AR being used to enhance education and learning
- Adoption of AR in the healthcare system helping drive efficiencies
- AR aids treatment for young people with depression and anxiety disorders
- Helping people to take a more active role in their healthcare management
Launch Activity and Innovation
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- Nike gets fit with AR
- Puma brings AR to shoes and stores
- Smart displays can be the navigation tools of the future
- Retail and financial services exploring AR applications
- Home furnishings and DIY retailers follow IKEA’s lead
- Car retail pre- and post-sale can be enhanced through AR applications
- The driving experience can be safer with AR applications
- Technical assistance for car maintenance
- Using AR for holiday planning
- AR tour guides
- Providing localised information and services
- Engaging consumers through immersive packaging
- A practical and innovative tool for food choices
- The arts sector can enhance visitor experience through AR
The Consumer – What You Need to Know
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- Nearly four in 10 smartphone or tablet owners have tried AR
- Tangible utility is key to successful future AR experiences
- The phone is the dominant medium, but tablet owners also use a wide variety of features
- Consumers can see the potential in AR technology
- Current AR users keen on the concept of rewards and engaging features
- VR edges out AR for future interest
- Preference for VR across all age groups suggests AR has work to do
Current AR Use and Future Interest
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- Nearly four in 10 smartphone or tablet owners have tried AR
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- Figure 11: AR activities ever done, August 2019
- Young males fit the stereotype
- Social media can help unlock wider AR use
- Use of AR is heavily linked with age
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- Figure 12: AR activity overall, by age, August 2019
- Tangible utility is key to successful future AR experiences
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- Figure 13: Future AR activities, August 2019
- Higher-income households hold the key for future use of AR
- Families a flourishing segment for AR
- Non-users could be open to AR if it displays practical utility
Device Usage for AR Activities
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- The phone is the dominant medium, but tablet owners also use a wide variety of features
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- Figure 14: Devices used for AR activities, August 2019
- Wearable technology could be what really unlocks AR’s potential
- Smart mirrors and interfaces can also be a driver for AR use
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- Figure 15: AR activities ever done, by devices used to access AR content August 2019
Attitudes towards AR
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- Consumers can see the potential in AR technology
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- Figure 16: Attitudes towards AR activities, August 2019
- Inhibitors to AR use need to be overcome for companies to unlock potential
Interaction with AR Advertisements
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- Current AR users keen on the concept of rewards and engaging features
- Knowing what consumers value and meeting an unmet need needs to be AR’s priorities
- Social media can be a key advertising medium
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- Figure 17: Attitudes towards AR advertising, August 2019
AR versus VR
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- VR edges out AR for future interest
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- Figure 18: Use of VR headset, August 2019
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- Figure 19: Interest in future use of VR vs AR, August 2019
- Preference for VR across all age groups suggests AR has work to do
- Wearables and smart screens could bring AR to the masses
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- Figure 20: Interest in future use of VR vs AR, by age and gender, August 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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