Of all of the points along the spectrum of immersive computing (AR, VR, MR, etc.), the greatest revenue will come from mobile AR over the next 4 years. This is according to Digi-Capital’s latest projections.
Specifically mobile AR revenue will outweigh smartglasses revenue by almost 5x in 2018. It will also be 1.3x premium VR revenues and 1.5x mobile VR revenues. This aligns with our analysis and projection of mobile AR’s addressable market, the biggest factor driving its revenue.
Drilling down one level, what will be the revenue sources within the above formats. Near term, it will be fairly mixed between eCommerce, hardware, ad spend, games, apps, and enterprise. Moving towards 2021, ad spend and eCommerce will take bigger chunks of the revenue pie.
These revenue sources will apply differently to VR and AR formats. For example, geo-targeted advertising will be a natural fit in AR, but not as much in premium VR which will be all about hardware and content (games, apps, etc.) sales. The key in all these areas will be native thinking.
More to come on these areas of revenue growth. We’ll be watching them closely, and extracting insights for what’s working… and not working.
Disclosure: ARtillry has no financial stake in the companies mentioned in this post, nor received payment for its production. Disclosure and ethics policy can be seen here.