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Mobile Augmented Reality: The Service Provider Opportunity

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SOURCE Reportlinker

NEW YORK, Feb. 11, 2014 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Mobile Augmented Reality: The Service Provider Opportunity
http://www.reportlinker.com/p02011361/Mobile-Augmented-Reality-The-Service-Provider-Opportunity.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Internet_Business

This analysis takes aim at the growing interest in MAR as a transformative technology for mobile computing and user engagement. In particular, it will examine the growth potential for the AR marketplace, and the need for MAR to be cloud-based; and define the opportunity for service providers, particularly wireless carriers, to take a lead role in providing cloud-based MAR services. This insight paper should be of particular interest to telecom service providers as it presents them with an overview of the MAR opportunity before them.

Introduction

Augmented Reality (AR) is about attraction! It is the engagement of an individual with a digital world via a software application that is augmented with data based on a person's geographic position and interests. "AR allows the user to see the real world with virtual objects superimposed upon or composited with the real world. AR supplements reality, rather than completely replacing it." The AR application aims to attract a viewer's attention in a personalized way that adds value for the viewer. For AR service providers, telecom carriers or technology firms, the attraction is about providing users an alluring AR experience that leads to AR services revenue growth.

Smartphone and tablet users are constantly seeking a more tailored and fascinating experience from their devices and applications. AR applications for such mobile devices offer service providers and their marketers a new means to engage with a tech savvy and mobile consumer. While augmented reality has garnered much media attention, the technology and applications are still primarily in a second stage of development. AR applications are emerging in the marketplace, but the true expansion of the services to a wider consumer audience is still to come.

Mobile devices are a restrictive factor to greater consumer adoption of Mobile AR applications (MARs). The processing and storage requirements needed by MARs are difficult to optimize on mobile devices. We see this restraint currently through mobile device access to data-heavy video Internet uses, such as streaming video. While 4G networks are helping to improve overall delivery of content, the mobile devices themselves often lack the processing and storage horsepower that the applications need for the optimized AR experience. The solution to this problem is to employ off-device computing capabilities-specifically, cloud-based resources in the form of development platforms, web servers and storage-while simultaneously optimizing the local capabilities of the device for a cloud-based experience.

This analysis takes aim at the growing interest in MAR as a transformative technology for mobile computing and user engagement. In particular, it will examine the growth potential for the AR marketplace, and the need for MAR to be cloud-based; and define the opportunity for service providers, particularly wireless carriers, to take a lead role in providing cloud-based MAR services. This insight paper should be of particular interest to telecom service providers as it presents them with an overview of the MAR opportunity before them.

Your Mobile Reality has been Augmented!

Top of the AR news of late has been Google Glass. Much analysis and discussion has also focused on AR in use with heads-up displays (HUDs) for military, industrial, public safety and some commercial applications. The real focus and opportunity for MAR, though, rests in handheld devices: smartphones, tablets, and potentially wearable computers such as smart watches.
As a starting point, it is necessary to understand the architecture of the AR environment, or virtual bubble. Within this bubble, a mobile device user's geographic location and other telemetry are transmitted to a service provider, in exchange for AR content. It is within this bubble that the user engages with the augmented reality world, and the service provider's control over the bubble is essential to ensure a consistent and engaging AR experience for the user.

Current AR applications are marker-based, meaning they use the device's location data and camera to act as an image recognition sensor to overlay virtual data onto the device. Moving forward, mobile devices will need to be "GIality"-based, meaning integrating geospatial data (magnetometer, location, gyro meter, and accelerometer) with a camera and AR application, to advance the user experience in the bubble, including three-dimensional (3D) models in the view.

Imagine the ability to have a personal virtual shopping assistant. For instance, a retailer's AR app may provide customized product offerings and coupons via mobile device as you stroll down a street and past a retailer's storefront. Tissot, the watchmaker, has enabled a virtual demonstration capacity to show how various timepieces look on your wrist; and numerous other retailers, such as Nike, provide AR applications to visualize how new footwear or clothing would look on you.

Mobile devices with complementary AR applications set the stage for a great market evolution-widespread consumer adoption of MARs. As long as developers roll out MAR applications that have a direct link to consumer lifestyles (e.g., entertainment, shopping) adoption will grow. The key drivers of this evolution, and some obstacles to success, are evident and quickly being tackled.

Early Adopters Will Set the Pace of AR

As with many new technologies, it is often the tech-savvy consumers-and, likely, young consumers-that drive early adoption. This eager and curious group is vital to the success of a new product or service. When asked if they would be likely to use a device such as Google Glass, approximately percent of respondents in the - to -year-old age group reported they would be interested. For those years and older, more than percent of them indicated they would not use such a technology.3 So, the early adopters will be the initial bellwether for future success, and true market acceptance will depend on applications that "wow" this technology-inquisitive group.

AR application developers are beginning to roll out applications to attract this - to -year-old age group. Retailer IKEA and automaker Audi have both rolled out MARs recently. IKEA-a favorite shopping location for college-bound students looking for sleek, cool furnishings-has introduced its mobile catalog shopping application to extend user brand engagement. The IKEA application uses "3-D models, image galleries, videos and new features including augmented reality, which allow users to virtually place and view IKEA furniture in their own homes, and explore a room in º/ º degrees (both vertical and horizontal) using the device sensors."

Key Success Requirements for Mobile Augmented Reality

• GIality AR
• Alluring Applications
• Early Adoption
• Large Mobile Device Universe
• Synchronous Data
• Monetization Strategy
• Privacy Protection

Table of Contents

1 | MOBILE AUGMENTED REALITY: THE SERVICE PROVIDER OPPORTUNITY

CH 4-1
1. Introduction
2. Your Mobile Reality has been Augmented!
3. Mobile Augmented Reality Needs the Cloud
4. The Service Provider Opportunity
5. Frost & Sullivan - The Last Word
6. About Frost & Sullivan

To order this report: Mobile Augmented Reality: The Service Provider Opportunity
http://www.reportlinker.com/p02011361/Mobile-Augmented-Reality-The-Service-Provider-Opportunity.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Internet_Business

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