augmented reality business plan

How to Write a Virtual Reality Business Plan

A VR business plan should lay out a detailed roadmap for the growth of your VR business over the next few years.

How important is it to create a business plan for your VR business plan?

Well, there are many ways to answer this; but the best has to be this one that I read in an article not too long ago…

Creating a business without a business plan is like building a house without a blueprint. The chances of success are limited; the chances of creating something exquisite are remote; and the chances of the entire thing just falling apart are very high.

Some studies suggest that if you have a business plan, your business has a 20% higher chance of success than if you didn’t create a business plan.

And that is why, in this blog, we will go through the process of writing a virtual reality business plan.

Blog overview

First, we will take a look at the traditional format of a VR business plan.

This is the format you’ll be using on almost any professional occasion (such as pitching your business to a bank for a loan).

Second, we will look at the most important uses of your VR business plan.

Third, we will look at some important characteristics of a VR business plan.

We’ll conclude the blog with some useful resources to help you create your virtual reality business plan.

Virtual reality business plan - the traditional format

When people say “business plan”, they’re talking about the traditional format most of the time.

This is an expansive and exhaustive document that should capture every aspect and every detail of your VR business.

Like I mentioned earlier, you can take this as a definitive document when you’re presenting your business to formal lenders or investors .

The traditional business plan format consists of the following parts:

The title page should include only a title and a subtitle .

For example,

Business Plan

Virtuality Healthcare Solutions, LLC.

Virtuality Healthcare Solutions is a Virtual Reality startup catering to the healthcare sector. We aim to create custom-made VR simulations to help surgeons plan and prepare for individual surgeries.

That can be the title page of the business plan a healthcare VR startup . As you can see, it simply states the company’s name (title) , and their main business idea (subtitle) .

I hardly need to explain what this is.

But I need to remind you to include it in your virtual reality business plan. It sounds trivial, which is why some people forget about it.

Neither the title page nor the table of contents reveals a lot about your business.

But it’s crucial to include both to make your business plan presentable and organized .

A dishevelled and disorganized business plan will fail to inspire confidence amongst potential investors and lenders about your organizational capabilities.

Executive summary

The executive summary offers the reader a bird’s eye view of your entire business plan.

It should include what your VR startup is aiming to achieve , and why you think your business strategy will work .

In other words, it should summarize for an investor why they should invest in your business.

Key points to be included in the executive summary are:

Mission statement.
Your product or service.
Your company structure and key employees.
Financial projections.

Oh, and do I really need to tell you that the executive summary needs to be a clear and compelling read ?

Business description

A lot of blogs refer to this section as the “Company description”.

But I do NOT.

Because it’s easy to confuse “Company description” with “Company/Corporate structure”.

Just so we’re clear,

Business description refers to the details of what demand your business wants to meet.
Company structure refers to the organizational structure of your company; that comes later.

Here’s how the logical flow works: once a potential investor has gone through your executive summary, they will want to know more about what goods or services your company provides .

That question is answered by the business description.

The three main aspects that MUST be revealed by your business description are:

What products or services your business aims to create.
Who are your expected customers/clients?
What strengths does your VR business have (talent, supply chains, prime location, etc)?

Market analysis

Having described your business to the reader, the logical next step is to tell them about the market you plan to tap .

For example, returning to the example of a VR healthcare startup, the market analysis would include:

Which healthcare niche you’re planning to cater to?
What’s the size of the market?
What strategies have your competitors adopted? How do you plan on countering them?

Organizational/company structure

This section tells the reader two main things:

What legal structure does your company have? It is a partnership, an LLC, an “S” corporation, etc?
What’s the organizational hierarchy ? How many layers are there in the hierarchy, who fulfils what role, how people are compensated, and so on.

Products you’re planning to create

Include the following points:

What is your product?
How specifically does it help consumers?
Can you differentiate it from competing products?
What is the product lifecycle?
Are you filing for patents or trademarks? Are you engaging in R&D?

Remember, you might know a lot about virtual reality, especially the product you’re planning to create; the reader of your business plan will almost certainly not know as much.

You should keep this section simple and appropriately detailed .

Marketing and growth

This section should reveal to the reader how you plan on acquiring and retaining customers/clients ; and how you plan on growing your business .

Your sales procedure should be clearly laid out: I think you can guess that investors would be interested in that.

This is where cost, earnings, and profit projections come into play.

Your aim is to convince investors that your business is worth investing in, and give them an idea of what kind of returns on investment (ROI) they can expect.

Some specific items you can include here are:

Income statements.
Cash flow statements.
Balance sheets.
Capital expenditure budgets.

Try to include projections for upto five years - I’ll explain why shortly.

If your business is already running, provide documentation to show how you’re doing.

Funding requirements

If you have funding requirements , this is where to indicate them.

Be specific as to:

Whether you’re looking for equity or debt financing .
What terms you expect on the investment.
When and how an investor can exit .
How you’ll use any funds supplied.

Uses of a VR business plan

The most important uses of a VR business plan are:

Organizing and studying your own business idea

The most important use of a business plan is to lay out your own business idea in front of you, placing information in the proper context , and giving you an idea of what lies ahead .

Like they say, if you aren’t convinced by your business idea, how can you expect others to be?

Pitching your business for fundraising

If you’re hoping to raise funds from lenders or investors , whether formal (like a bank), or informal (like your family members), your business plan will be invaluable in pitching your VR business to them.

Helping you attract talent for your VR startup

As a startup, if you’re looking to attract talent , you might end up sharing your business idea (and hence your business plan) with them.

Good talent will be in demand, and as a startup VR business, you have no track record to convince people why they should join you instead of some other firm.

Working in new fields, sound business ideas , shared values - these are some of the attributes that you can use to attract the talent you need.

Characteristics of a good virtual reality business plan

Your virtual reality business plan should be…

Always be precise as to what you’re talking about, and remember to include definite metrics to define your goals and describe your performance .

For example, if you’re setting up a virtual reality escape room , you can include:

Expected footfall.
Expected revenue.
Main revenue source - personal celebrations, corporate events, and so on.

While you’re mentioning all these Key Performance Indicators (KPI’s), remember to be realistic.

Of course you’re not going to intentionally put in misleading information, but as it’s your endeavor, it’s tempting to get carried away and make rosy assumptions.

Returning to the example of a VR escape room, it’s always preferable to mention that you expect a 10% annual growth in footfall by your third year, and then do your best to exceed your own estimate rather than promise investors a 20% growth in footfall, and fail to deliver.

It’s said that a business plan must be a living document .

As you should know by now, a large part of your virtual reality business plan involves “ guesstimates” which may not transpire into reality .

You MUST be able to adapt your business plan to changing circumstances and to incorporate new business models and ideas.

In fact, this is where a lean business plan format can prove useful.

In a lean format, you can follow the same structure, but condense each topic to a couple of sentences...except where you feel details are necessary.

Use the lean format to capture frequent changes in the business environment, and then put effort into creating a full-fledged plan when the changes become permanent.

Medium term

A good business plan talks about the medium term , that is, the next three to five years .

Anything shorter than that and you won’t really give your business a chance to grow; making “guesstimates” for longer periods has generally proven to not be very useful.

Which is why three to five years is the sweet spot for your virtual reality business plan.

Virtual reality business plan resources

Here’s a business plan toolkit provided by the International Finance Corporation.

And here’s a template created by the My Own Business Institute at Santa Clara University.

And now you’re ready to start drafting your virtual reality business plan.

If you’re looking to enter the virtual reality industry through the virtual reality escape room niche, you can check out the premier VR escape room franchise in the USA .

Please leave your thoughts and suggestions in the comments below as we are constantly looking for ways to improve this article. Have a great day!

The business guide to AR and VR: Everything you need to know

Special Feature

Special report: mixed reality in business (free pdf).

This ebook, based on the latest ZDNet / TechRepublic special feature examines how Mixed Reality is empowering new scenarios in training, coaching, remote work, and other enterprise functions.

Overhyped by some, drastically underestimated by others, few emerging technologies have generated the digital ink like virtual reality (VR), augmented reality (AR), and mixed reality (MR).

Must read: VR and AR: The Business Reality

Still lumbering through the novelty phase and roller coaster-like hype cycles, the technologies are only just beginning to show signs of real world usefulness with a new generation of hardware and software applications aimed at the enterprise and at end users like you.

On the line is what could grow to be a $160 billion AR/VR industry as soon as 2023 . Here's what you need to know.

SEE: Mixed reality in business (ZDNet/TechRepublic special feature) | Download the free PDF version (TechRepublic)

What is virtual reality?

Virtual reality is a broad term for a multi-sensory computer-generated experience that allows users to both experience and interact with a simulated environment.

According to the Virtual Reality Society , the technology has thematic roots in the stereoscopic viewers of the 19th century. Decades of research into immersive (albeit non-interactive) cinema gave way, in the 1960s, to early experiments in what were then called "artificial environments," primitive computer-generated worlds users could actually navigate.

Also: Sound is the next frontier for virtual reality

By the 1990s, virtual reality was a mainstay of popular culture thanks to movies like The Lawnmower Man (1992) and early gaming headsets from Sega and Nintendo .

Today, commercially available virtual reality headsets incorporate features such as haptics , motion and location sensing , and high-res 3D graphical displays that come close to real-world visual fidelity. Major players like Google , Microsoft , and Facebook are heavily invested in the technology.

What is augmented reality?

Best VR headsets for 2019 (CNET)

Unlike virtual reality, which seeks to immerse the user in a completely virtual environment, augmented reality enhances the real world using digitally produced perceptual overlays.

The first head-mounted AR display was created at Harvard in 1968 , but it wasn't until 2008 that AR saw its first commercial application in the form of a BMW magazine ad that allowed users to hold a printed page in front of a computer camera to produce an on-screen image.

Since then, augmented reality has been a mainstay of marketers in the form of QR codes that unlock AR content. Early AR applications for smartphones and personal computers targeted consumers by allowing them to do things like try on products . However, the technology's first breakout consumer successes have come in gaming, starting with Pokemon Go .

Though still early in the adoption phase, augmented reality is expected to have a massive impact on daily life through a variety of consumer and enterprise applications, with some predicting AR technologies will be more pervasive and important than the internet .

What about mixed reality?

Mixed reality refers to a kind of augmented reality in which graphical visualizations are projected so as to appear as though they're interacting with the real world. An oft-cited example is Magic Leap's visualization of a 3D whale jumping out of a gymnasium floor, an effect made possible thanks to augmented reality headsets worn by the viewers.

I replaced my boring workouts with Meta Quest's Supernatural app, and can't imagine going back
This Finnish startup's new VR headset rivals Apple's Vision Pro - and business users will love it
Meta's $500 Quest 3 is the mainstream VR headset I've been waiting for, and it delivers
I tried Apple Vision Pro and it's far ahead of where I expected
The best VR headsets right now (and they're not just from Meta)

Also: Ready for takeoff: Airbus's sweeping mixed reality redesign

The hardware

There are many types of hardware used in AR, VR, and MR applications , including haptic suits and niche devices that allow the visually impaired to "see" with their tastebuds .

However, for most consumer and enterprise applications, the hardware for virtual reality typically constitutes a headset, such as the HTC VIVE , Oculus Go , or Sony PlayStationVR .

For AR and MR applications, the hardware may be an AR-enabled headset , a pair of AR glasses , a mobile device like a tablet, or a wearable like a smart watch. All major smartphone manufacturers are anticipating the growth of AR and many have begun equipping their latest models with components to support that growth, such as Snapdragon mobile processors and active depth sensing packages -- essentially mini-LiDAR . Apple and Google have jumped into the AR and MR race with dueling SDKs -- ARKit from Apple and ARCore from Google.

In the future, we'll certainly see streamlined AR glasses, and likely contact lenses further down the line.

Is there a difference between the hardware used by enterprise customers and consumer market users?

There are enterprise-only headsets from the likes of DAQRI , but more and more we're seeing enterprise AR/VR applications running on consumer hardware. The same Microsoft HoloLens is being used by Honeywell to train technicians that's used by gamers to complete crucial missions, for example.

Which will be bigger, AR, or VR?

Augmented reality will have a bigger impact on the market and our daily lives than virtual reality -- and by a long shot. That's the consensus of just about every informed commentator on the subject.

Also: Your next business computer: HoloLens 2 TechRepublic

The reason is that VR environments by nature demand a user's full attention, which make the technology poorly suited to real-life social interaction outside a digital world. AR, on the other hand, has the potential to act as an on-call co-pilot to everyday life, seamlessly integrating into daily real-world interactions. This will become increasingly true with the development of the AR Cloud.

The AR Cloud

Described by some as the world's digital twin, the AR Cloud is essentially a digital copy of the real world that can be accessed by any user at any time.

For example, it won't be long before whatever device I have on me at a given time (a smartphone or wearable, for example) will be equipped to tell me all I need to know about a building just by training a camera at it (GPS is operating as a poor-man's AR Cloud at the moment).

Also: The urgent case for Open AR Cloud

What the internet is for textual information, the AR Cloud will be for the visible world. Whether it will be open source or controlled by a company like Google is a hotly contested issue.

Industries that will be affected by both AR and VR

Construction.

The $10 trillion global construction industry has been operating with much the same technology for the past century. AR and VR are helping to change that with a variety of applications that allow project managers to track progress and builders to work through jobs and spot time and money drains before the foundation is ever poured.

Also: Field service workers rapidly embracing AR/VR to democratize knowledge

The technology is still emerging, but some companies to watch in this arena are: OpenSpace , which gives project managers a Google Street View-like time machine to walk through projects at various stages of completeness; Skycatch , whose drones are being used to create on-site VR simulations of projects; and DAQRI , which makes a smart helmet that's used in AR applications to deliver site-specific information to builders in real-time.

K-12 Education

Must-see offers.

Oculus Quest at Amazon
HTC Vive at Amazon
Sony PlayStation VR at Amazon
Samsung HMD Odyssey+ at Amazon
Google Daydream View at Amazon

Not long ago, futurists predicted that virtual reality would change the face of education. Adoption of VR in education has happened far slower than many hoped, and for the time being it looks like the hype was just that.

Nevertheless, many K-12 programs are finding uses for headsets from Oculus and HTC, as well as cheaper Google Cardboard, such as sending students on virtual field trips , tours of the solar system , and walks through the Jurassic period.

Also: 11 unexpected ways universities are using the Microsoft HoloLens

The hype pendulum has now swung toward augmented reality in education. Text books are being printed on " clickable paper " and students in primary school are creating their own AR experiences with Metaverse . Augmented field trips can easily turn into scavenger hunts , and digital puzzle boxes are challenging students to problem solve their way out of prickly situations, all while sitting in the comfort of the classroom.

From therapies for those with autism to restoring low vision , virtual reality is being used as an effective treatment in a wide variety of healthcare applications.

VR is also becoming an effective teaching tool in healthcare. Students can now watch VR surgeries and dissect VR cadavers , for example.

Enterprise Training

The enterprise VR training market could be worth more than $12.6 billion by 2025 . Pilots have been training on VR simulators for generations, but now workers in many high-risk fields, such as oil and gas and other utilities and heavy industries, are getting the chance to take their licks in the virtual world as opposed to on the job, where the risk of injury or costly mistakes is far higher.

Also:

Why VR training may be the future of sexual harassment prevention in the workplace TechRepublic
Skills gap? Augmented reality can beam in expertise across the enterprise
Use Case: Augmented reality finds early adoption with field service technicians

Augmented reality is also making a splash in enterprise training, particularly in the realm of technical training. Honeywell recently announced a mixed-reality simulation tool to train its industrial employees using Microsoft's HoloLens, and it's easy to envision workers in a wide variety of industries getting visual assistance as they learn the ropes on service calls, for instance.

Caterpillar and BP are two major companies embracing AR to train and guide technicians in the field .

Real Estate

The real estate industry, which relies so heavily on customers visualizing themselves in a new environment, seems particularly excited about the prospects of AR/VR technology.

It's now possible to take a virtual tour of high-end properties in many parts of the country thanks to companies like Matterport . Sotheby's now has an AR home staging app , which allows users to put the virtual furniture of their choice in properties they may be interested in.

Special feature

Vr and ar: the business reality.

Virtual Reality and Augmented Reality are going to be useful for far more than just gaming. We explore the ways the technology will be used for training, marketing, product design, and much more.

Industries that will be most affected by AR

Head-Up Displays ( HUDs ) were one of the first deployments of AR in the marketplace. HUDs now adorn models from BMW , Volvo , Chevy , Lexus , and many others. There's also a thriving aftermarket offering HUDs that interface with a car's OBD-II port to display vital information like speed and gas mileage without requiring drivers to take their eyes off the road.

Also: Augmented reality is coming to your car CNET Roadshow

Expect to start seeing these in economy cars, not just luxury models. If you prefer two wheels, you'll be happy to know the concept has even made its way into motorcycle helmets .

Headsets still haven't taken off in a compelling way, which means smartphones will be the AR vehicle of choice for the next few years.

That's good news for smartphone manufacturers, which have seen life cycles for their products rise from 18 months to three years. As AR penetration grows, it's kicking off a new arms race among suppliers to create better-equipped phones and inject new life into an industry that's starting to plateau.

Grocery Shopping

You're about to be using your phone a lot more to buy food. A company called Dent Reality has been working on an app that allows customers to see real-time information about products in grocery stores. It uses computer vision and in-store tracking to help customers find food that fits their dietary needs.

It's likely more of these apps are on the horizon. For manufacturers, that means new promotional opportunities and perhaps a new twist on the old game of big brands paying for shelf position .

Advertising

One of AR's biggest deployments has been in advertising. In April 2018, Facebook began letting developers build AR apps that contain location-triggered elements. Google has made a similar move .

Also: Data visualization via VR and AR: How we'll interact with tomorrow's data

There are lots of potential applications, but you can be sure the first and most prolific will involve marketing to users in the real world. (Facebook tested the concept in promotions for the movie Ready Player One.)

It may not be long before every restaurant and shop we walk by triggers a floating billboard or a sale offer.

Online Shopping

The Achilles' heel of online retail has always been the inability to try things on. But what if you could virtually try on clothes before you buy?

That's the promise of apps that act as virtual fitting rooms , allowing shoppers to try on clothing virtually before they buy it. The technology may soon solve a vexing problem with online shopping: How to ensure a good fit when you only have model photos to go on.

Market Outlook

According to IDC, AR and VR products and services will be worth $20.4 billion in 2019 , which marks a roughly 90% increase over 2017. Broadly speaking, the enterprise market for AR and VR will be worth roughly $56 billion by 2022, while the consumer market could be worth $53 billion.

For the technologies to fulfill that lofty promise, developers will have to push AR and VR out of the novelty phase and past the hype. There's enough action right now across a variety of industries to suggest we're well on our way.

11 upcoming AR trends that will redefine technology

Meta opens its Quest OS to third-party headsets, including from Asus and Lenovo

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5 Best Augmented Reality Use Cases

Augmented reality (AR) ― a technology that can superimpose digital assets into real-world environments ― is set to transform how business is conducted. It will affect everything from selling and marketing products to helping companies better train their staff.

We’ll explain more about augmented reality, share how companies are using it today and look at what the future holds for this exciting technology.

What is augmented reality?

AR is the use of technology to add artificial, digital qualities to real-life objects. Anytime you use software or a device to add new sights, sounds or sensory stimuli to something you see, that’s AR.

The Pokemon Go game is a famous example of AR in pop culture. Players try to find Pokemons in the wild using their smartphones. When they find one, the character appears on a smartphone screen overlaid in the nearby environment like this:

Finding a Pokemon in the AR+ mode of Pokemon Go. Source: Tumisu

Another AR example you may be familiar with is shopping for eyeglasses online. Many opticians, such as Vision Express in the United Kingdom and EyeBuyDirect in the United States, offer a selection of glasses for you to choose from on their websites. When you want to “try them on,” the site asks permission to use your webcam. If you grant it, the glasses are superimposed on your face so you can see what they look like on you.

Additionally, some app-based image filters are AR-based. One infamous ― and viral ― example of this AR usage occurred when attorney Rod Ponton participated in a Zoom hearing for the 394th Judicial District Court in Texas. He forgot to turn off his webcam filter, so other attendees interacted with a talking white kitten instead of his image.

Smart helmets for the construction industry use AR to increase safety and productivity by warning workers about dangerous conditions and sending alerts when necessary.

How does augmented reality work?

Augmented reality may seem futuristic, but its underpinning technology is relatively familiar and straightforward. AR combines computer vision, mapping, localization and depth-tracking technology to allow a platform to obtain, analyze and send data. This data underlies your augmented sensory experience.

Depth tracking is among the most intriguing augmented reality features. Through depth tracking technology, an AR platform can tell how near or close you are to an object. Without this feature, AR use cases like industrial field services and 3D online shopping wouldn’t work.

However, mapping might be the most critical AR feature. It’s the technology that allows you to do things like lay AR glasses over your face on opticians’ websites.

How businesses are using augmented reality

AR is already changing the face of online advertising and marketing and multiple use cases currently abound. Here are five top ways businesses employ AR today.

AR helps retailers provide a way for customers to try products before they buy. Any smartphone or tablet can become an AR platform that creates unique shopping environments for customers ― whether in-store or online. Here are a few examples of retail AR usage:

Sephora: Sephora has an app that lets customers see how their makeup products will look.
Wayfair: Wayfair uses AR via iOS devices to show customers how furniture will look in their homes.
Bentley: Luxury British auto manufacturer Bentley has an AR visualizer app that allows you to explore the interior and exterior of its new luxury SUV model ― and even take it for a test drive. You can build a custom version of the vehicle in the app and book an appointment with your local dealer.
Hotels and spas: Luxury hotels and spas allow prospective guests to check out their facilities and amenities using AR. For example, you can walk around The Hotel Adlon Kempinski in Berlin, check out the menu and inspect the rooms to see that it meets your expectations. Travel industry experts expect significant growth in the sector’s use of AR in the coming years.

Businesses use AR in their mobile device marketing strategies to create a fun experience for prospects, compelling them to learn more about your products and interact with your business.

2. Industrial field services

Help Lightning provides AR-enabled remote support to clients worldwide. Before using Help Lightning’s offering, one client, BUNN, had found providing field services to its customers prohibitively costly. However, it now turns a profit on these activities.

BUNN now uses AR to provide field technicians with real-time support on the job, including live video assistance, access to a comprehensive knowledge base and customer service history. Field technicians can video stream from a site and enter into three-way communication with other field technicians and engineers. Customer satisfaction has increased and engineers can now work on more daily jobs.

The use of AR in the field can improve safety, reduce confusion and take the pressure off engineers who can’t possibly be experts in all technologies and infrastructures. AR can empower a mobile workforce, linking workers to experts around the globe.

3. Design and modeling

Businesses often use AR for 3D modeling during the design process for items like homes and cars. AR can facilitate early-stage product creation and development, giving designers a precise view of product form and function. AR-powered product packaging is also growing in popularity, impressing customers with videos, 3D models, audio and linked text.

AR app company Augment uses an end-to-end AR solution for Watermark 1980 ― a leading supplier of inflight products for the airline industry.

Using Augment’s technology, Watermark 1980’s designers visualize product mockups at scale using tablets for their airline clients. Instead of creating costly prototypes, designers use AR to compare proposed new and existing products side-by-side. This model allows decision-makers to understand the impact of the proposed new products.

The future of user experience design likely involves artificial intelligence, augmented reality and virtual reality.

4. Training and education

AR-based training initiatives provide an immersive, multisensory experience that’s often more effective than traditional lectures, flashcards and textbooks. The result is a greater depth of training, quicker mastery and an improved transfer of learning .

For example, AR is gaining momentum in medical education. At Case Western Reserve University, health education students can take a 3D holographic anatomy program. The program allows a Microsoft HoloLens wearer to see virtual cadavers and take a deeper dive into the human body. This technology saves dozens of hours compared to the traditional cadaver lab. Case Western envisions AR applications across a wide range of educational fields of study.

Additionally, companies like Walmart and Chipotle use AR to train employees. This technology helps them invest in employee training without the risk of costly real-world mistakes.

5. Repair and maintenance

In 2015, Hyundai became the first mainstream automaker to launch an AR owner’s manual. Using a smartphone or tablet, consumers get how-to information for repairs, maintenance and vehicle features. The app contains how-to videos, 3D overlay images that appear when users scan various areas of their vehicle (like the engine bay) and dozens of informational guides. Other manufacturers have followed suit, most notably Kia.

AR enables inexperienced people to identify problems and perform repairs by following step-by-step instructions using AR overlays, improving customer satisfaction by reducing downtime and associated costs.

What’s the difference between augmented reality and virtual reality (VR)?

Augmented reality improves, enhances or expands real life by inserting virtual objects into the user’s real-world environment. In contrast, VR creates an entirely virtual world that users interact with using devices that isolate them from the real world. VR grabs headlines but researchers say AR will become a bigger market over time.

Manufacturers also use VR tech in various ways, including better inventory management and prototype design. VR is also highly effective in helping manufacturers plan factory layouts.

The future of augmented reality in business

AR is projected to be an economic driver for the tech industry. Research shows that in 2023, the global augmented reality industry was valued at $56.3 billion. Forecasters project it could reach nearly $1.2 trillion by 2032.

But which vertical markets will embrace this new technology? Industry expert Eric Abbruzzese, a research analyst at ABI Research, says revenues will be split between several significant verticals ― education, gaming, healthcare, industrial and retail, to name a few.

“We expect revenues to primarily favor the healthcare and industrial verticals, owning approximately 54 percent of the market, thanks to more progressive technology adoption habits along with strong use case applicability,” Abbruzzese noted.

Max Freedman contributed to this article. Source interviews were conducted for a previous version of this article.

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How To Create a Business Plan for Interactive AR Games: Checklist

By alex ryzhkov, resources on interactive augmented reality games.

Financial Model
Business Plan
Value Proposition
One-Page Business Plan
SWOT Analysis
Business Model
Marketing Plan

Welcome to our blog post on how to write a business plan for interactive augmented reality games! The interactive gaming industry is experiencing explosive growth, with a forecasted market size of $209.2 billion by 2025. This presents a unique opportunity for entrepreneurs like us to tap into this lucrative market and create immersive entertainment experiences for players worldwide.

Before diving into the nine essential steps to create a successful business plan for interactive augmented reality games, it is crucial to understand the industry's potential and the ever-increasing demand for interactive entertainment. Augmented reality gaming combines cutting-edge technology with captivating experiences, allowing players to interact with virtual worlds through their smartphones or dedicated AR devices.

Step one of the business plan focuses on identifying your target market and understanding customer needs. By conducting thorough market research and analyzing the competition in step two, you can gain valuable insights into consumer preferences and identify gaps in the market that your games can fulfill.

Once you have a clear understanding of your target audience, step three involves defining your unique value proposition and business model. What sets your games apart from the competition? What will be your monetization strategy? Addressing these questions will help you stand out in the crowded gaming market.

Of course, launching an interactive augmented reality game company requires resources and capital. In step four, determine the financial requirements for your venture and explore funding options that align with your business goals and growth plans.

No business can thrive without an effective marketing and sales strategy, which is the focus of step five. Develop a plan to reach your target audience, build brand awareness, and attract loyal customers. This may include influencer partnerships, collaborations with local businesses, and engaging marketing campaigns.

Organizational structure and management are critical for smooth operations, and step six outlines how to outline these aspects in your business plan. Clearly define roles and responsibilities, ensuring your team is equipped to deliver high-quality games that meet customer expectations.

Strategic partnerships and collaborations can give your business a competitive edge. In step seven, identify potential partners who can help expand your reach, leverage their brand equity, or provide valuable resources or expertise.

Every business faces risks, and in step eight, you'll analyze potential risks specific to your interactive augmented reality game company. Develop a risk management plan to mitigate these risks and ensure the long-term success of your venture.

Lastly, creating a financial forecast and projections in step nine will set the foundation for your business's growth and profitability. Build a comprehensive financial plan that includes revenue streams, expenses, and projections for future growth.

By following these nine steps and crafting a solid business plan for your interactive augmented reality game company, you'll be well on your way to capturing a wide audience and fulfilling the demand for immersive entertainment experiences. Get ready to step into the future of gaming!

Identify Target Market And Customer Needs.

When developing a business plan for interactive augmented reality games, it is crucial to clearly identify your target market and understand their needs. This step forms the foundation of your entire business strategy and will guide your decisions moving forward.

Start by conducting thorough research to gain a deep understanding of the demographics and psychographics of your potential customers. This information will help you create detailed buyer personas that represent your target audience. Consider factors such as age, gender, location, interests, and purchasing behaviors.

Next, define the specific needs and desires of your target market. What problems or challenges are they facing that your augmented reality games can solve? Are they looking for immersive storytelling experiences, social interaction with friends, or competitive gaming opportunities? Understanding these needs will enable you to tailor your games and marketing efforts to meet and exceed customer expectations.

Tips for Identifying Target Market and Customer Needs:

Conduct surveys, interviews, and focus groups with your target audience to gather insights directly from them.
Monitor social media platforms and online communities to observe discussions and trends related to augmented reality games.
Analyze competitor offerings and customer reviews to identify gaps in the market and areas for improvement.
Consider collaborating with industry experts, influencers, or consultants who specialize in augmented reality gaming to gain further insights.

By identifying your target market and understanding their needs, you can tailor your business strategy and game development to provide a compelling and valuable experience for your customers. This deep understanding will allow you to create games that resonate with your target audience and establish a competitive advantage in the interactive augmented reality gaming industry.

Conduct Market Research And Analyze Competition.

Conducting thorough market research and analyzing the competition is essential for the success of any business, especially in the fast-paced and rapidly evolving world of interactive augmented reality gaming. Understanding the market landscape and the competitive landscape will give you valuable insights into customer preferences, industry trends, and potential opportunities for differentiation.

When conducting market research, start by identifying your target market and their needs. This will help you tailor your game offerings to meet their specific preferences and expectations. Use surveys, focus groups, and online forums to gather feedback and opinions from potential customers. Analyze their responses to gain a deeper understanding of what they are looking for in an interactive augmented reality game.

Market research will also require you to analyze industry trends and consumer behavior . Stay up-to-date with the latest advancements in augmented reality technology, as well as the overall gaming market. This information will help you identify potential opportunities and areas for differentiation.

Once you have a clear understanding of the market, it's time to analyze the competition. Identify your direct and indirect competitors and analyze their strengths and weaknesses. Look at their game offerings, pricing strategies, target markets, and marketing tactics. Determine how you can differentiate yourself from the competition and provide a unique value proposition to your target audience.

When analyzing the competition, here are some important factors to consider:

Game Features and Immersion:

Pricing and monetization:, marketing and promotion:, critical success factors:.

By conducting thorough market research and analyzing the competition, you will be equipped with the knowledge and insights needed to develop a unique and compelling interactive augmented reality game company. Use this information to refine your game offerings, target the right audience, and position your business for success in this exciting industry.

Define Unique Value Proposition And Business Model

Defining your unique value proposition and business model is crucial in setting your interactive augmented reality game company apart from competitors. It involves identifying the key features and benefits that make your games stand out and determining how your business will generate revenue.

When defining your unique value proposition, consider what sets your games apart from others in the market. Are you offering a more immersive experience through advanced AR technology? Do you provide a wide range of game themes that cater to diverse interests? Highlight these unique selling points to differentiate your company.

Your business model should outline how you will generate revenue and sustain profitability. Consider incorporating in-app purchases and virtual currency systems to enhance player engagement and drive revenue. Offering additional content, such as exclusive characters or levels, can also provide a monetization opportunity. Ensure that your business model aligns with your target audience's preferences and purchasing behaviors.

Conduct market research to understand what features and experiences your target audience values the most.
Consider bundling game packages or offering subscription options to provide a value-added proposition to your customers.
Regularly analyze and update your business model to adapt to changing market trends and technological advancements.

Clearly defining your unique value proposition and business model is essential for attracting investors, stakeholders, and ultimately, your target audience. It establishes your company's competitive advantage and ensures a clear path to success in the interactive augmented reality game industry.

Determine The Resources And Capital Required.

When starting a business in the interactive augmented reality game industry, it is crucial to have a clear understanding of the resources and capital required to bring your business idea to life. This step is essential for budgeting purposes and ensuring that you have adequate financial backing to support your venture.

Here are some important considerations when determining the resources and capital required:

Technology and Equipment: Interactive augmented reality games rely heavily on technology and equipment. You will need to invest in software development tools, hardware devices such as smartphones or AR headsets, and possibly servers or cloud services to support online multiplayer functionality.
Talent and Expertise: Building captivating and immersive games requires a skilled team of developers, designers, and artists. Determine the number and skill sets of the personnel you will need, and assess whether you will hire full-time employees or outsource certain tasks.
Office Space and Utilities: Depending on the scale of your operations, you may require office space to accommodate your team and facilitate collaboration. Consider the costs associated with rent, utilities, and other office expenses.
Marketing and Promotion: To ensure your games reach a wide audience, you will need to allocate a budget for marketing and promotion. This may include the creation of promotional materials, advertising campaigns, public relations efforts, and participation in industry events.
Legal and Licensing: Developing interactive augmented reality games may involve legal considerations, including intellectual property rights and licensing agreements. Consult with legal experts to understand the costs associated with protecting your intellectual property and obtaining the necessary licenses.
Contingency Fund: It is wise to allocate a contingency fund to account for unforeseen expenses or potential setbacks. This ensures that you have a safety net in case of unexpected challenges that may require additional resources or capital.
Consult with industry experts or mentors to gain insights into the typical resources and capital required for starting an interactive augmented reality game company.
Consider seeking funding options such as loans, venture capital, or crowdfunding to secure the necessary capital for your business.
Create a detailed budget that accounts for all the resources and capital required, including both one-time costs and ongoing expenses.
Regularly reassess your resource and capital requirements as your business grows and evolves, to ensure you stay on track and make any necessary adjustments.

Develop A Marketing And Sales Strategy.

Once you have identified your target market and customer needs, it's essential to develop a comprehensive marketing and sales strategy to effectively promote your interactive augmented reality games. The goal is to raise awareness, generate interest, and ultimately drive sales. Here are some key steps to consider:

Define your target audience: Clearly identify the demographic and psychographic characteristics of your target market. Understand their preferences, behaviors, and pain points to tailor your marketing messages accordingly.
Establish your brand identity: Create a strong and memorable brand that reflects the unique value proposition of your interactive AR games. Develop a compelling brand story and visual identity that will resonate with your target audience.
Create a multi-channel marketing plan: Utilize a mix of online and offline marketing channels to reach your target audience effectively. Consider digital advertising, social media marketing, influencer partnerships, content marketing, email marketing, and traditional advertising methods.
Leverage social media: Build a strong presence on popular social media platforms where your target audience is active. Engage with users, create valuable content, and leverage social media advertising to reach a wider audience.
Collaborate with influencers: Identify influencers in the gaming and entertainment industry who align with your brand and target audience. Collaborate with them to create sponsored content, reviews, or showcases of your interactive AR games.
Host events and promotional activities: Organize launch events, gaming tournaments, or special promotions to generate buzz and attract attention to your games. Consider partnering with local businesses or hosting demonstrations at trade shows and conferences.
Clearly communicate the unique features and benefits of your interactive AR games in your marketing materials and campaigns.
Offer limited-time promotions, discounts, or exclusive in-game rewards to incentivize early adoption and drive sales.
Continuously monitor and analyze the performance of your marketing efforts to refine your strategies and optimize your return on investment.
Establish partnerships with app stores and gaming platforms to increase the visibility and distribution of your interactive AR games.

Outline The Organization And Management Structure.

When outlining the organization and management structure of your interactive augmented reality game company, it is important to consider the specific roles and responsibilities that will contribute to the overall success of your business. Start by identifying key positions that are essential for the smooth operation of your company, such as a CEO or Managing Director, Chief Technology Officer (CTO) or Head of Development, Chief Marketing Officer (CMO) or Head of Marketing, and Chief Financial Officer (CFO) or Head of Finance.

Clearly define the responsibilities associated with each role. The CEO or Managing Director will oversee the entire company strategy, vision, and day-to-day operations. The CTO or Head of Development will be responsible for leading the technical development of the games and ensuring the use of cutting-edge technology. The CMO or Head of Marketing will handle the marketing and promotion of the games to attract and retain customers, while the CFO or Head of Finance will oversee the financial aspects of the company, including budgeting, financial forecasting, and managing revenue streams.

Consider forming a core team that will support the key positions and contribute to the success of your business. This team could include game developers, designers, artists, project managers, and customer support representatives, among others. Each member of the team should have clearly defined roles and responsibilities within their respective departments to maximize efficiency and productivity.

Communicate and document the reporting structure within your organization. This will ensure clarity and transparency in decision-making processes and enable smooth communication between different departments. Having a clear reporting structure will also help streamline operations and promote a cohesive working environment.

Tips for outlining the organization and management structure:

Consider hiring experienced professionals in the gaming and technology industry to fill key positions.
Regularly review and update the organization and management structure as your company grows and evolves.
Encourage collaboration and teamwork among different departments to foster innovation and creativity.
Document job descriptions and create an employee handbook to ensure consistency and clarity.

By outlining a clear organization and management structure, you will establish a solid foundation for your interactive augmented reality game company. This will enable effective decision-making, efficient operations, and cohesive teamwork, ultimately contributing to your business's success.

Identify Potential Strategic Partnerships And Collaborations.

Strategic partnerships and collaborations play a crucial role in the success of any business, particularly in the interactive augmented reality game industry. By partnering with like-minded companies and individuals, you can leverage their expertise, resources, and customer base to enhance your market presence and drive growth. Here are some important considerations when identifying potential strategic partnerships and collaborations:

Aligning values and goals: When exploring potential partnerships, it is crucial to ensure alignment between your company's values and goals and those of the potential partner. This alignment ensures a shared commitment to success and paves the way for a fruitful collaboration.
Complementary expertise and resources: Look for partners who bring complementary expertise and resources to the table. For example, partnering with a technology company that specializes in AR hardware or software development can significantly enhance the quality and functionality of your games.
Expanding market reach: Seek partnerships that allow you to tap into new markets and reach a wider audience. Consider collaborating with established players in the tech or entertainment industry who already have a strong presence and customer base.
Cross-promotion opportunities: Look for partners who can mutually benefit from cross-promotion. By promoting each other's products or services, you can leverage each other's customer base and expand your reach.
Collaboration on content development: Consider collaborating with popular franchises or brands to create unique and compelling game themes. These collaborations not only provide a recognized and trusted brand for players but also attract a larger audience.

Tips for identifying potential strategic partnerships and collaborations:

Research industry events and conferences where you can meet potential partners.
Utilize social media platforms and professional networks to search for compatible companies and individuals.
Develop a clear value proposition that outlines the benefits of partnering with your company.
Approach potential partners with a targeted and personalized pitch, demonstrating how the collaboration can be mutually beneficial.
Take the time to establish trust and build a strong rapport with potential partners before finalizing any agreements.

Analyze Potential Risks And Develop A Risk Management Plan.

As with any business venture, there are risks involved in starting and running an interactive augmented reality game company. It is crucial to identify and analyze these potential risks in order to develop a comprehensive risk management plan that will mitigate their impact on the business.

One of the key risks to consider is the rapid advancement of technology. Tip: Stay updated with the latest advancements in augmented reality technology to ensure your games remain cutting-edge and relevant in the market. It is essential to constantly monitor industry trends and adapt your games to incorporate new features or technologies that enhance the user experience. Failure to do so may result in losing a competitive edge and losing customers to more innovative competitors.

Another risk to be aware of is data security and privacy concerns. As your interactive augmented reality games collect and store user data, it is crucial to prioritize data protection and confidentiality. Tip: Invest in robust cybersecurity measures and ensure compliance with data protection regulations to safeguard user information. Implementing strict protocols for data handling and regularly assessing vulnerabilities will help maintain user trust and prevent potential breaches that could damage your reputation and business credibility.

Tip: Thoroughly evaluate potential legal and intellectual property issues as part of your risk management plan. As your games may incorporate elements from existing franchises or brands, it is necessary to secure necessary licenses and permissions. Failure to do so can result in legal disputes and infringement claims, which can harm your business financially and legally. Consulting with legal experts and obtaining proper clearances is essential to minimize legal risks.

Financial risks are another important consideration. Tip: Develop a financial contingency plan and allocate sufficient funds to handle unforeseen circumstances such as budget overruns, economic downturns, or unexpected expenses. Conducting thorough financial projections and regularly reviewing and adjusting your financial plan will help ensure the sustainability of your business operations.

Tip: Establish effective communication and contingency plans to address potential disruptions in partnerships or collaborations. Building strong relationships and clearly defining roles and responsibilities with partners or collaborators is essential to minimize risks associated with any unexpected changes or conflicts.

Identify potential risks in product development, marketing, operations, and finance.
Rank risks based on potential impact and likelihood of occurrence.
Develop a risk mitigation plan for each identified risk.
Assign responsibilities and timelines for implementing risk management strategies.
Regularly review and update the risk management plan to address changing circumstances.

By conducting a thorough analysis of potential risks and developing a robust risk management plan, your interactive augmented reality game company will be better prepared to navigate challenges and ensure the long-term success and sustainability of your business.

Create A Financial Forecast And Projections

Creating a financial forecast and projections is a crucial step in developing a business plan for interactive augmented reality games. It allows you to estimate and plan the financial aspects of your business, including revenue generation, expenses, and profitability.

To begin, identify the key revenue streams for your interactive augmented reality game company. This could include in-app purchases, virtual currency sales, advertising partnerships, or licensing agreements. Consider the pricing model for your games and determine the projected number of players and their potential spending habits.

Tip 1: Conduct market research to understand the purchasing behavior and preferences of your target audience. This will help you make more accurate revenue projections.

Next, outline your operating expenses such as game development costs, marketing expenses, employee salaries, and overhead costs. Be thorough and realistic in estimating these expenses, considering factors like software licenses, hardware requirements, server costs, and ongoing updates and maintenance.

Tip 2: Seek advice from experts or industry professionals to ensure your expense estimates are accurate and in line with industry standards.

Once you have identified the revenue streams and estimated expenses, create a financial forecast that includes a projected income statement, balance sheet, and cash flow statement. These projections will provide insights into your company's financial health and help you assess its profitability and potential for growth.

Tip 3: Consider using financial software or consulting with a financial advisor to assist in creating accurate financial projections. They can provide valuable insights and help you identify potential financial risks or opportunities.

When creating financial projections, it is important to be realistic and conservative. Aim for achievable goals and avoid overly optimistic assumptions. Consider potential scenarios or contingency plans if your revenue falls short or expenses exceed expectations.

Tip 4: Regularly review and update your financial projections as your business evolves and adapts to the dynamic nature of the interactive augmented reality game industry.

In conclusion, creating a financial forecast and projections provides a quantitative analysis of your business's potential revenue, expenses, and profitability. It helps you make informed decisions, secure funding, and adapt your strategies to ensure sustained growth in the competitive world of interactive augmented reality games.

Developing a business plan for interactive augmented reality games involves a thorough understanding of the target market, competition, unique value proposition, and resources required. By conducting market research, analyzing potential risks, and creating financial forecasts, entrepreneurs can effectively plan and execute their business ideas.

Additionally, outlining a marketing and sales strategy, organizing the management structure, and identifying strategic partnerships are crucial steps in building a successful AR game company. By prioritizing high-quality graphics, user-friendly interfaces, and real-time multiplayer capabilities, businesses can offer immersive experiences and capture a wide audience.

Furthermore, incorporating in-app purchases and virtual currency systems can generate revenue and enhance player engagement. Effective marketing campaigns, influencer partnerships, and collaborations with local businesses can help establish a prominent presence in the tech and entertainment industry, fostering brand loyalty and driving sustained growth.

In conclusion, writing a business plan for interactive augmented reality games requires careful consideration of various factors, from market research to financial projections. By following the checklist provided and implementing a comprehensive strategy, entrepreneurs can position their AR game company for success in the dynamic and rapidly evolving entertainment industry.

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Why Every Organization Needs an Augmented Reality Strategy

Michael E. Porter
James E. Heppelmann

While the physical world is three-dimensional, most data is trapped on two-dimensional pages and screens. This gulf between the real and digital worlds prevents us from fully exploiting the volumes of information now available to us. Augmented reality, a set of technologies that superimposes digital data and images on physical objects and environments, is closing this gap. By putting information directly into the context in which we’ll apply it, AR increases our ability to absorb and act on it.

AR will become the new interface between humans and machines, say Michael E. Porter of Harvard and James E. Heppelmann, the CEO of the industrial software maker PTC. Many people are familiar with AR entertainment applications, such as Snapchat filters, but AR is being applied in far more consequential ways in business. Pioneering organizations are already implementing it in product development, manufacturing, logistics, marketing, service, and training—and are seeing major gains in quality and productivity.

AR improves how users visualize information, receive and follow instructions, and interact with products. AccuVein, for instance, uses AR technology that converts the heat signature of a patient’s veins into an image superimposed on the skin, making them much easier to locate. Boeing uses AR to show trainees how to assemble an aircraft wing—and has cut the time it takes them to do that task by 35%. At GE, factory workers have achieved a similar gain in efficiency by using voice commands in AR experiences to perform complex wiring.

AR will have a wide impact on how companies compete. This article walks readers through the questions firms need to ask when integrating it into their strategies and operations. The article also includes HBR’s first embedded AR experiences, which readers can launch by downloading a new HBR app on their mobile devices and then pointing them at targeted images in the magazine’s pages.

How Does Augmented Reality Work?

A step-by-step explanation of how interactive three-dimensional experiences come to life

Augmented Reality in the Real World

Data on who’s investing the most, the explosive growth of headsets, and the most popular uses of AR

One Company’s Experience with AR

A conversation with Guido Jouret, the chief digital officer of the industrial giant ABB

The Battle of the Smart Glasses

Money is pouring into development, and whoever wins the race may earn the title of world’s most valuable company.

The complete Spotlight package is available in a single reprint.

AR will become the new interface between humans and machines.

There is a fundamental disconnect between the wealth of digital data available to us and the physical world in which we apply it. While reality is three-dimensional, the rich data we now have to inform our decisions and actions remains trapped on two-dimensional pages and screens. This gulf between the real and digital worlds limits our ability to take advantage of the torrent of information and insights produced by billions of smart, connected products (SCPs) worldwide.

The key is a digital twin.

Michael E. Porter is the Bishop William Lawrence University Professor at Harvard Business School. He has served as an adviser to governments and campaigns around the world on the advancement of social policy and economic policy, including Mitt Romney’s presidential campaign. His latest paper is The Role of Business in Society . He is an academic adviser to the Leadership Now Project.
James E. Heppelmann is the president and CEO of PTC, a leading maker of industrial software.

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Augmented Reality Examples: Use Augmented Reality Marketing in Your Business

At its best, digital marketing offers consumers an unforgettable experience — one that improves brand recognition and forms a connection between the company and the customer. How can you stand out from the crowd as a digital marketer? By paying close attention to emerging trends in technology that can help your business succeed.

Augmented reality (AR) has recently gained traction with digital marketers to merge the physical world with an immersive, accessible digital experience. The result? Content that creates meaningful experiences between the brand and consumer.

Top brands and companies continue to create new and effective augmented reality uses, and this trend isn’t going away anytime soon.

Interested in helping customers experience your brand in an innovative, immersive way? Think about enrolling in a digital marketing bootcamp, which can help you formulate a digital marketing strategy (including AR) using the competitive research, brand building, and customer engagement skills you’ll learn.

Let’s take a closer look at augmented reality, including its potential benefits for your digital marketing strategy.

What Is Augmented Reality?

Augmented reality layers computer-generated components onto your physical surroundings. In simple terms, augmented reality is a digitally enhanced version of the physical world. The augmented reality is achieved through sound, superimposed computer-generated images, and other sensory elements. Consumers access these experiences through augmented reality software by using a compatible mobile device.

Augmented reality is highly interactive, meaning that once a user opens their mobile device, they’re in the driver’s seat of their augmented reality experience. This may mean walking in a physical space to interact with populated content, or responding to options or commands within the augmented reality experience.

Benefits of Augmented Reality in Marketing

Augmented reality is a powerful marketing tool used by many top brands. According to Fortune Business Insights, the AR market is projected to reach $97.76 billion by 2028 .

An image that showcases how rapidly the augmented reality market is supposed to grow through 2028.

Here’s a comprehensive list of AR benefits that may be compelling for those interested in becoming a digital marketer . Below, we dive deeper into some ways that AR can help enhance your marketing initiatives.

Drive more sales

Help customers make decisions, create a buzz around your brand.

Seeing and testing a product through augmented reality helps reduce product uncertainty while increasing buyer confidence and sales. For example, sporting goods stores often use AR to help customers test golf clubs before buying, and the software can even provide tips on how to improve their swing.

Decision fatigue can be a barrier to making a purchase for many consumers, especially when their purchase decision hinges solely on reading countless written reviews. Augmented reality experiences can help shoppers determine the best color and fit for the item they’re purchasing by showing them how it would look on a body type similar to theirs. For example, consumers can use AR to try on different pairs of sunglasses or see how a sofa would fit within their home. While it’s all digital, it really does demonstrate a product’s physical allure so a buyer will feel confident in purchasing the item.

One example of this execution is Glasses USA , an online eyewear retailer. Because the brand lacks physical locations to try on products, they’ve developed a platform that allows visitors to see which frames look best on their face.

Augmented reality can also be a valuable tool for venues looking to sell tickets. Choosing seats for a sports event, concert, or play can be difficult, especially if you’ve never been to the venue before. Through AR, people can see the view from their potential seats and decide which option is best from an enjoyment and price perspective.

Augmented reality can also generate excitement and brand buzz that results in added social media exposure for your business. For example, Uber created an AR experience in the Zurich train station where passersby could interact with elephants, kangaroos, and tigers . The surprise and delight was palpable as people interacted and documented the experience on social media.

Pokémon GO is another example of effectively using AR to connect a global audience and encourage users to share information. If users are excited to interact with your AR and share their experience across their social media platforms, it helps your brand gain traction and visibility with other potential consumers.

Interested in learning more about developing a digital marketing strategy that benefits your business? Sign up for a digital marketing bootcamp to take your company to the next level.

Augmented Reality Examples

Now that you know what augmented reality is and how AR can benefit your digital marketing efforts, let’s look at some compelling augmented reality examples executed by real companies. You can also check out our blog to learn more about other digital marketing skills you need to succeed .

An image displaying some of the major corporations currently using augmented reality.

What happens when a legacy beauty brand teams up with an e-commerce giant? A one-of-a-kind augmented reality experience. L’Oréal’s ModiFace experience paved the way for future augmented reality retail experiences by allowing users not only to preview makeup shades on photos and videos of themselves, but also cultivate a complete look using products available for purchase. Instead of trying on individual lipsticks, eyeshadows, foundations, and more, the app took the guesswork out of which shades would best compliment a user’s skin tone by leveraging the latest in augmented reality technology.

Imagine not only being able to preview what a pair of shoes might look like on your feet, but also how they’d appear as you’re walking or running. Adidas made this possible through augmented reality with its iOS app. When the pandemic put a halt to in-store shopping in many places across the U.S., consumers came to rely on this technology to inform their purchasing decisions.

Gucci was one of the first luxury brands to allow shoppers to try on a pair of sneakers using AR . This approach proved to be a powerful digital marketing tactic that gave consumers a trial run of the shoe before deciding whether or not to buy the product, which ultimately ended up increasing customer satisfaction and decreasing the number of returns.

With so much of our style and appearance portrayed online today, Gucci recently launched the first-ever, digital-only pair of sneakers that shoppers can purchase for between $9 to $12. Once purchased, the owner can take pictures or videos of themselves in their new kicks and share them via social media (the shoes “appear” via filter). Or, they can use the Gucci app to unlock an in-game, downloadable version of their shoes for their Roblox avatar to wear.

Sephora is another powerful example of successfully implementing AR into an effective marketing strategy. Sephora’s in-store experience has always provided shoppers with the option to test each product before buying, going as far as allowing shoppers to take home a small test sample of anything they have in stock before buying a larger product. Online, Sephora’s “Virtual Artist” tool allows shoppers to test out shades of lipstick, blush, foundation, eyeshadow, and more without ever having to leave the comfort of their couch. Users can even share photos of themselves sporting a few different shades of certain products with their social media followers. Not only does this help drive purchase decisions by soliciting comments from followers, but it also gives the brand more visibility as users share the experience organically with others.

There are plenty of examples of how retailers have brought the experience of shopping in-store to consumers at home through augmented reality. Allowing shoppers to digitally peruse store offerings can be an effective augmented reality marketing tactic, but Burberry decided to use this marketing technique to bring shoppers back into their stores in a recent execution. The brand launched an in-store AR experience to help announce the launch of the line’s new Olympia bag at Harrods in London. The augmented reality experience allowed customers to watch statues come to life and walk around the store with them. Customers could capture the experience via photos and videos, which were then shareable on social media.

Augmented reality can also use entertainment to shift consumer perceptions about a particular brand. Take Acura, for example. They recently created an AR racing game that allows smartphone users to test drive their various models , but with a twist. By pitting competitors against one another in several racing scenarios, this augmented reality experience gamifies the Acura test drive experience while attracting social media buzz.

Acura’s goal in employing AR was twofold: first, to give people an exciting experience with their vehicles while many dealerships were in lockdown; and, second, to take this opportunity to reverse the perception that “Acuras are Soccer Mom cars,” not high-performing automobiles like BMWs.

Pepsi is a brand known for its experiential marketing stunts, so it’s no surprise to hear they were the company behind one of London’s most talked-about augmented reality experiences. In this execution, people standing within a bus shelter saw images of unbelievable things taking place through the glass in front of them . The digital marketers behind this experience pulled out all the stops. These individuals saw everything from a giant robot shooting lasers down the street to tentacles rising from the sidewalk and capturing commuters within its grasp. The experience was meant to ladder up to the “unbelievable” nature of Pepsi Max.

Leveraging augmented reality to help drive purchase consideration for furniture is a no-brainer. IKEA has recently taken things a step further with the all-new IKEA Studio app . By using the latest sensory technology in iPhones (LiDAR sensors), the app allows users to see how a piece of IKEA furniture will look in their space. Consumers can also redesign their entire space using IKEA decor and furnishings, from chairs and tables to rugs and even wall colors.

This London-based concept store decided to deliver an augmented reality experience to heal London fashionistas’ heartbreak when London’s fashion week was canceled due to the pandemic. The brand created a virtual boutique that could be accessed through QR codes displayed throughout the city. While shoppers couldn’t make a purchase from this experience, it allowed them to view the latest trends and information featured to drive awareness for MACHINE-A’s emerging designers. This augmented reality tactic successfully drove awareness and engagement for the brand and is a prime example of how brands can create memorable experiences with potential consumers to boost brand favorability and recognition.

Perhaps the most vivid, powerful augmented reality example is Niantic’s Pokémon GO . The concept is simple: allow users to catch Pokémon by superimposing images of the creatures within the real world. However, the real genius of the experience is GPS integration — the game detects your location and populates Pokémon for you to catch based on where you live. As a result, some rare Pokémon can only be caught in certain parts of the world. This structure led to Pokémon GO forums and communities to track rare Pokémon, and encouraged trades between users to catch them all. To say this augmented reality game has been a huge success is a vast understatement.

*The included logos for corporations using augmented reality today are trademarks of each respective entity and are included here for informational purposes only.

Augmented Reality Industry Examples

Here are a few examples of how different business models can utilize AR marketing to improve their bottom line.

Restaurants

The next time you find yourself out to eat, take notice of how many patrons have pulled up Yelp on their phones to preview each menu item. As the saying goes, you eat with your eyes first — which is where augmented reality can shine. Giving diners the option of an augmented reality menu can speed up their decision-making on what to order, improve customer satisfaction, and decrease the number of complaints. One example is Menu.AR , which offers customers the option to see their dish in augmented reality before ordering it via app.

Imagine a museum experience that lives exclusively through augmented reality. Museums can use AR technology to bring exhibits to life. People can walk through a Vincent Van Gogh painting while listening to music, or watch one of Rodin’s sculptures come to life. This not only deepens museum patrons’ experiences of exhibits, but also inspires a love of art in many who have previously found it dull and unengaging.

A known innovator in the digital marketing space, Amazon used augmented reality to help launch the company’s first brick-and-mortar hair salon, Amazon Salon . The augmented reality app allows in-store shoppers to point at a product and learn more about it, supplying customers with pertinent information through educational videos and promotional content. The augmented reality experience also allows customers to experiment with new hair colors before making a commitment.

When deciding where to go and what to do on vacation, being able to experience a destination before you’re physically there is a powerful purchase motivator. On a large scale, tourism boards can use augmented reality for marketing the destination to potential visitors. On a smaller scale, local travel vendors can give visitors a preview of what it’s like to ride a wave runner or set out on a morning fishing excursion with their team. Thinking about a trip to the Grand Canyon? There’s an AR experience that can help you make your decision.

So, you’ve created an augmented reality experience but don’t know where to market it. Using QR codes to reach a local target audience through print advertising is a tactic that benefits both advertisers and publishers. Digital marketers can reach local readers and publishers can deliver an innovative experience to their subscribers. Leveraging the Beyond the Page app , W Magazine offered readers exclusive access to behind the scenes interview footage.

You’re familiar with how augmented reality can help drive purchase consideration — but this can be taken a step further through experiences delivered via brand packaging. Innovative companies — like Treasury Wine Estates, the vineyard behind 19 Crimes wines — have found ways to surprise and delight customers by hiding an augmented reality experience within their label.

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With the right digital marketing strategy, your brand can use augmented reality to help drive purchases, increase purchase satisfaction, improve brand awareness, decrease returns, and even shift brand perception.

However, knowing how and when to leverage digital marketing tactics like augmented reality is important to succeeding with your target audience. Enroll in Columbia Engineering Digital Marketing Boot Camp to learn essential brand strategy techniques so you can build innovative AR campaigns driving media buzz, sales, and profits.

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Augmented Reality In Business

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Did You Know

According to, approximately 1.07 billion ar device users existed by the end of 2022, and by the end of 2023 the numbers are predicted to go up to 1.4 billion. this gradually progressing train will only move further along so it would be smart to hop on as soon as possible..

– a report by Statista

What Is Augmented Reality?

Difference between augmented reality and virtual reality, examples of how augmented reality is making a difference in businesses.

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Implementing augmented reality for your business [step-by-step process], 1. start with small pilot projects, 2. build a potent team, 3. educate and train, 4. strategize a business plan, 5. communications plan, choosing the right augmented reality technology partner.

Background Check: Run a thorough background check on your potential partners’ experience. It may seem like an easy way out to pick a partner with a low quote price while ignoring their lack of experience but that is a risky decision. Picking a quality partner that has verified expertise in delivering profitable products/services will give you a good product with higher usability.
Effective Collaboration And Key Communication: Effective collaboration is most significant for any partnership to work. Ensure the technology partner communicates effectively about advanced technical topics so that even non-tech partners can perceive the issues. Pre-emptive measures or corrective actions in project plans in solving complex problems should also be advised.
Technological Advancements: It is of utmost importance to look for a partner who attends conferences globally and publishes whitepapers to incorporate their learning. This helps them synchronize with the world concerning progressing technologies and processes.
Referrals: Testimonials are critical and can be helpful. You must be careful to look behind everything showcased or advertised. Inquire about a list of clients you can contact and skim through their portfolios to fully understand company expertise.
Future Scope: Last but not least, consider a partner who offers assistance over one resolution and one platform, allowing customers to pay heed to both – technology and business. The ideal partner should be solution-focused rather than product-based in their approach and should understand the importance of aftercare.

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A Guide to Using Augmented Reality for Ecommerce and Retail Here are the things you should know about breaking into AR for ecommerce.

By David Ripert • Dec 1, 2021

Opinions expressed by Entrepreneur contributors are their own.

Because of the Covid-19 pandemic, many consumers see brick-and-mortar retail through a different lens. Augmented reality has quickly become a core element of marketing and retail strategies, as nine out of ten brands prepare to cater to the 3.5 billion users that are projected by 2022.

One of the key benefits of AR is increased user engagement. By allowing users to interact with the ad itself, a successful AR experience can keep users engaged in a way that traditional media can't. Including AR elements in marketing campaigns can have a myriad of benefits, like stronger memory retention of products or services, longer average dwell times and more chances of the ad being shared with family and friends.

When thinking about what augmented reality platform to choose, it's important to consider what the goal of your AR strategy is. Do you want to reach more followers? Create an effect that is physically activated at a particular place and time? Sell more by allowing users to virtually try on your products? Whether you choose to pursue an AR campaign through Google, Facebook, Instagram, Snapchat, TikTok, a mobile app or the web, businesses need to efficiently discover consumer patterns to be more agile in the wake of shifting market dynamics.

First and foremost, let's define reality

Most people don't understand the distinction between augmented reality (AR) and virtual reality (VR). First off, both AR and VR offer new, yet very different ways to immerse people in a digital experience and enhance their vision with the help of technology. Each definition below will ultimately help you understand the differences between AR, VR and 3D:

Augmented reality (AR) - merges the real world and the virtual world, and most of the time only requires a smartphone camera or laptop.

Virtual reality (VR) - completely replaces what people see and experience, plus VR requires some sort of headset to be immersed into the virtual world.

3D marketing - adds a 3-dimensional, interactive layer to a regular 2D advertisement, providing advertisers the ability to promote their products using a 3D object which allows customers to engage with it.

Given that augmented reality is a relatively new technology, choosing the AR platform that best fits an organization's specific needs can be a daunting task for most. It's important to remember that every augmented reality platform comes with a variety of different benefits, features and use cases. Therefore, each platform has its own way of activating AR content for the end-user.

Top misconceptions around AR

One of the most common misconceptions about AR campaigns is that it is not an effective tool for driving the same results as more traditional campaigns. This is partly because it is still unclear how companies can measure the success of their AR campaign through tools such as analytics. However, even though AR campaigns have been proven to be more profitable when compared with traditional methods of advertising, some brands are still not willing to take the plunge.

Depending on the scope of your project, AR development and execution could cost anywhere from $2,000 to several million dollars. How much you spend on deploying an AR campaign mainly depends on who you choose as your agency partner: a large digital agency or a creative platform. Once you decide on an overall budget for AR, it's critical for you or your agency partner to accurately measure the overall impact of your campaign.

Since AR campaigns function differently from conventional ads, traditional metrics often fail to capture an accurate picture of the benefits of AR. However, that doesn't mean that brands have no way of tracking dwell time, engagement rate or the number of times users click on their AR experiences. With augmented reality analytics, companies can gain valuable insights into how their AR campaigns are performing to determine if it's worth the spend.

Related: How Can We Use Augmented Reality For Growth

What's achievable today with AR

When people hear about AR, they likely think of Snapchat, yet there are three types of AR platforms available today: social media apps, browser-based AR (WebAR) and native mobile apps. Each of these comes with its own set of benefits and is best suited for different types of AR campaigns based on your needs.

The majority of AR campaigns are still run on social media, on platforms such as Snapchat, Instagram and Facebook, allowing these campaigns to reach the right target audiences on these shareable platforms. In fact, social media AR is so big that it is projected $2.4 billion will be spent on social lens advertising by 2022, generating $15 billion in returns.

It's important to remember that AR is not just about advertising. Social media platforms are fantastic tools for organic reach and sharing and can result in more followers, better engagement and higher brand recognition. This is because social AR effects are very shareable; if users find the effect fun, they will undoubtedly share it, making this a very powerful tool to maximize brands' reach. Additionally, social platforms allow you to promote your content, meaning that you can put ad spend behind your filters and maximize your reach even further. This can be targeted to very specific audiences, making them very powerful tools for reaching the right people.

Instagram is also particularly powerful if the goal is to increase your following and expand overall reach.

Related: How Augmented Reality Will Shape the Future of Ecommerce

AR across industries

AR, through its unique ability to increase engagement among users, has been proven to increase conversion rates across multiple industries. When you create your AR campaign, you should be looking for clear, demonstrable measures of success.

Bottom line: Machine learning, AR and VR are the future of retail and ecommerce, especially for brands and organizations wanting to tap into new audiences and markets. AR technologies are rapidly changing our everyday decisions and ultimately, reaping the benefits of AR should be achievable and most importantly, simple and affordable for every brand.

Related: How to Build Brand Loyalty Through Augmented Reality

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Augmented Reality for Business – Exploring the Benefits, Use Cases & Real Examples

Augmented Reality Benefits for Businesses

Elevated customer engagement, optimized workflows, training excellence, real-time data insights, boosted sales, visualized product experience, competitive advantage, role of augmented reality in business: use cases and real-life examples, 1. ar in healthcare, 2. ar in retail and ecommerce, 3. ar in education and training, 4. ar in travel & tourism, 5. ar in entertainment, 6. ar in manufacturing and supply chain, 7. ar in social media, 8. ar in real estate, 9. ar in military, how to integrate augmented reality into your business, conduct market research, determine use cases, hire an ar app development expert, analyze technology requirements, create integration strategy, pick ar platforms, create user-friendly experiences, test and iterate, monitor and analyze, craft innovative ar solutions with appinventiv.

It’s true that augmented reality (AR) is still entwined with games like Pokemon Go and fun activities like using Snapchat filters. However, the potential benefits of augmented reality for businesses are not just confined to this domain. As an advanced technology, AR has entered different business verticals and given a transformative look. It has proven to be a perfect weapon to taste success in the present competitive market.

A ripple effect is that the global AR market size , which was valued at $62.75 billion in 2023, is anticipated to reach $1,109.71 billion by 2030, growing at a CAGR of 50.7% during the forecast period 2023-2030.

However, if you are still clueless about augmented reality benefits for a business, this blog will be a good read for you. Here, we will discuss how AR is used in businesses of different industry verticals, the various benefits it offers. Let’s get started.

unlock the potential of AR for your business with our experts

When asked how augmented reality helps businesses, a myriad of benefits emerges. As enterprises leverage the transformative power of AR, they gain a competitive edge and successfully meet the evolving expectations of their audience. Let’s have a look at some of the top advantages of augmented reality in businesses.

Benefits of Augmented Reality for Business

By creating immersive and customized experiences, AR raises the bar for customer engagement. Customers can actively participate in brand storylines through interactive augmented reality applications, resulting in a stronger connection with your brand. Customers value and recall the distinctive and unforgettable encounters made possible by AR technology, which builds greater brand loyalty in addition to captivating audiences.

AR goes beyond streamlining operational processes; it enhances efficiency, minimizes errors, and contributes to overall workflow optimization. By providing real-time data overlays and interactive guidance, AR aids employees in complex tasks, reducing the likelihood of errors and improving task completion times. This enhances productivity and creates a more seamless and error-free work environment, showcasing how AR is instrumental in modernizing the various aspects of business operational workflows.

AR is a great tool for promoting training excellence because it offers employees realistic, hands-on scenarios that boost their ability to learn new skills and retain what they have learned. Since AR simulations are immersive, learners can apply their theoretical knowledge to real-world scenarios, strengthening learning objectives. This shows how augmented reality for business can be a transformative tool in achieving training excellence and equipping workers for real-world challenges.

[Also Read: VR training – How is Virtual Reality Helping Organizations Train Employees? ]

AR analytics provide organizations with useful real-time insights to make well-informed decisions. Businesses can quickly see user behaviors, preferences, and engagement patterns by utilizing AR-generated data, which enables them to make flexible changes to their marketing plans or product offerings. In addition to improving decision-making, this dynamic feedback loop allows companies to adjust quickly to shifting market conditions.

Augmented reality increases customer satisfaction, builds trust, and converts these positive experiences into tangible results, yielding higher conversion rates and augmented sales figures. By offering customers interactive and personalized product experiences, businesses harness the power of AR to create memorable brand interactions, encouraging a lasting impact that directly influences purchasing decisions, thereby boosting sales.

AR revolutionizes the user experience by offering visually immersive product trials. Before purchasing, shoppers can virtually try things in real-world settings with augmented reality applications. This dynamic and engaging interaction heightens the impression of product awareness while lowering the uncertainty of online purchases.

As users visualize items in their own environment, their confidence in their buying decisions is bolstered, fostering a more informed and satisfying shopping journey.

Adopting augmented reality for business offers companies a stable competitive edge in the ever-changing market environment and puts them at the forefront of innovation. By integrating AR into their operations, companies are committed to delivering cutting-edge experiences and staying ahead of industry trends. This proactive strategy creates a forward-thinking company image and draws in tech-savvy clients, paving the way for long-term success in a constantly changing market.

Augmented Reality revolutionizes businesses by integrating digital elements into the real world. AR elevates customer experiences with virtual try-ons in retail and streamlined assembling processes in manufacturing. By mimicking real-world situations, AR significantly improves employee training and helps the healthcare sector with medical training and surgery planning.

Furthermore, the education sector uses AR-enabled apps to create immersive learning environments, while real estate embraces AR for interactive property viewings. In marketing campaigns, companies use augmented reality to attract clients with interactive information.

As we further detail the use cases of AR for businesses below, you will witness how this advanced technology is actually enhancing consumer engagement and spurring innovation across industries.

Use Cases and Real-Life Examples of Augmented Reality in Business

The role of AR in medical and healthcare app development is remarkable. The technology offers new opportunities and benefits to healthcare professionals, medical students, and others to get a better experience. Unlocking revolutionary changes, augmented reality in digital business is reshaping the industry through innovative solutions and immersive experiences.

Augmented Diagnosis

Patients often overlook some minor symptoms or fail to describe them to doctors. Because of this, healthcare professionals cannot diagnose and provide the right services to them. But, with the integration of AR into healthcare , both patients and doctors can better understand the symptoms and diagnose them effectively, resulting in better outcomes.

The globally recognized healthcare company Johnson & Johnson uses augmented reality for medical diagnoses. They utilize AR to improve diagnostic procedure accuracy, which helps medical practitioners recognize and comprehend patient symptoms more efficiently. This technology integration advances healthcare solutions in line with Johnson & Johnson’s mission to improve patient outcomes.

Augmented Surgery

Earlier, it was quite strenuous for surgeons and other healthcare professionals to make a complicated surgery successful with limited information gathered a few days before the surgery.

However, the advent of mixed and augmented reality in the surgery process has proven to be a game changer. Now, surgeons can access life-saving patient information in real-time, study the information precisely, and overlay the patient’s anatomy over the body to perform surgery accurately. They can visualize every body part and, this way, ensure that no other organ gets affected adversely during surgery, ensuring a higher success rate and a shorter recovery time.

Medtronic, a leading medical technology company, incorporates AR in surgical procedures. Their advances in AR minimize risks and enable precise treatments by giving surgeons access to real-time patient information during processes. Medtronic successfully integrates cutting-edge technology for medical improvements, as evidenced by its usage of augmented reality to ensure higher surgical success rates and quicker recovery periods.

Augmented Training and Practice

Another remarkable use case of AR in healthcare is that it makes training sessions more systematic. It makes medical students encounter real-life medical situations and asks them to act rather than going with random training in a dissection lab. This not only helps to test the knowledge and wits of the students but also how they handle stress and other emotions while treating patients.

Prominent pharmaceutical giant Pfizer uses augmented reality in medical education. Pfizer uses AR applications to improve medical professionals’ training by offering immersive experiences that mimic real-world medical scenarios. With this method, medical students can test their knowledge, gain practical experience, and handle the emotional aspects of patient care.

Also Read: How AR VR Apps Are Gamifying Exercise And Workout

Virtual try-on experiences are one well-known use case of AR in retail and AR in eCommerce . With augmented reality applications, customers can virtually put on clothes, accessories, and even makeup to see how they will look. This function lessens the need for actual fitting rooms and aids in making informed purchasing selections.

AR can also be used to navigate within stores. With AR-enabled apps, customers can scan goods for more product information, find products inside a store, and receive tailored recommendations. Adopting augmented reality for business results in a more engaging and effective purchasing experience, which raises customer satisfaction and loyalty.

In education, augmented reality enriches learning experiences by blending digital content with the physical world. Students can interact with 3D models, historical simulations, and immersive content through AR applications, similar to interactive textbooks or educational apps.

For instance, apps like Google Expeditions use AR to take students on virtual field trips to historical sites or natural phenomena. By improving understanding and memory, this interactive and visual method makes difficult concepts more approachable. In the classroom, AR encourages engagement and creates a dynamic, individualized learning environment that enthralls pupils and helps them comprehend academic subjects more deeply.

Another finest use case of AR in the education domain is the Human Anatomy Atlas . This mobile app shows more than 10,000 anatomical 3D models of the human body and delivers associated information in different languages, along with options like rotating and interacting with organs individually.

3D interactive visual content to learn about the human body

AR revolutionizes travel and tourism by offering immersive content and real-time information. Through screen overlays, travelers using AR-capable devices or mobile apps can obtain information about historical places, landmarks, and other points of interest. AR-guided directions make navigation simple and improve discovery.

For example, an AR app can offer historical insights when pointed at a monument, making the journey informative and engaging. Through the seamless mixing of the digital and physical worlds, this technology enhances travel experiences and helps visitors develop deeper connections with the places they visit.

The “Culture Trip” app is an excellent example of augmented reality in the travel and tourism industry. This platform combines AR elements to provide users with an immersive travel experience. The app allows visitors to access augmented reality guides, which will improve their knowledge of the area’s historical places, cultural attractions, and landmarks.

This demonstrates the immense power of augmented reality for businesses to completely change how people interact with and learn about their surroundings while also improving their travel experience and providing intelligent information in real-time.

Entertainment is also one of the industries that is improving with the advent of Augmented Reality (AR). Technology has touched the industry’s subdomains in numerous ways, be it music, live events, or movies. For instance, Apple’s latest Apple Vision Pro is specifically designed to revolutionize user experiences with immersive augmented reality features.

AR in the Music Industry

AR-powered earbuds and other equipment add an augmented layer on top of the real audio to enhance users’ listening experience. And that, too, is personalized according to the background noise and other filters.

AR in Movies

In TV shows and movies, augmented reality enhances storytelling by seamlessly incorporating unrealistic elements like dinosaurs and enabling performers with physical disabilities to showcase effortless movements. It brings forth captivating visual effects and transforms the cinematic experience.

Besides, it enables users to see real-time subtitles on the TV show they are watching. Some of the movies that have embraced AR technology are Iron Man, Minority Report, Avatar, and Terminator.

AR in Media

Augmented reality also plays a pivotal role in the media industry. The technology enables media experts to enhance the effectiveness of multimedia, games, videos, and presentations to build a better impression. It encourages them to share their content highly interactively and enjoy better outcomes.

The manufacturing industry’s remarkable growth has been driven mostly by integrating AR into mobile apps. For example, it drastically cuts down on the amount of time needed to maintain industrial operations. Finding certain items or equipment frequently takes up significant time in production and supply chain management . AR overcomes this difficulty by adding virtual labels, delivering 3D visuals, and providing navigational information by improving efficiency and streamlining procedures.

Furthermore, by enabling real-time package tracking from warehouse to doorstep, AR-powered mobile parcel delivery applications improve client experiences. These apps also provide useful product details like weight, size, and cost. This all-encompassing strategy raises customer satisfaction, which prompts a happier and more enthusiastic response from the clientele.

Volkswagen, a major player in the automobile sector, has integrated augmented reality into its manufacturing procedures. The organization employs AR apps to guide assembly line personnel on tasks like quality control inspections and difficult engine installations. Workers receive real-time instructions and visuals by superimposing digital information onto their physical surroundings, guaranteeing correctness and efficiency in their tasks.

Lastly, AR also redefines how people engage with social media. AR allows users to enhance their updates with catchy filters and view posts on the device screen, as seen in apps like the TweetReality app . On the other hand, it offers brands an opportunity to deliver an immersive experience to their target user base in the form of AR stories, 360-degree videos, AR-focused ads, and AR games.

Various social networking platforms like Snapchat, Facebook, and TikTok empower users to add AR features to their content and share with their app fellows. In fact, Snapchat launched a Lens Studio app back in 2018 to let users create their own AR filters.

AR is reshaping the real estate industry, introducing an innovative approach to property viewing. Prospective buyers can experience virtual property overlays using AR apps on smartphones or AR glasses, highlighting minute information like room layouts, furniture arrangement, and possible upgrades. With the help of this immersive technology, customers can remotely explore properties and see them in an interactive, personalized way.

Leading platforms like Zillow use AR to display simulated furniture in empty rooms, enabling potential buyers to see a space’s full potential. This innovative application of AR improves decision-making and expedites the property discovery process, representing a major improvement in the consumer experience within the real estate sector.

You may like reading: Benefits, Use Cases, and Examples of AI in Real Estate

Another example of augmented reality for businesses is in the military sector. In fact, this industry is one of the foremost industries being disrupted by AR technology. When looking ahead to the use of AR in the military field, the technology helps soldiers prepare for battles. It aids in the disposal of bombs and other explosive elements and enhances their skills at using different weapons, without risking their lives. It adds labels to the real-world scenario and provides better navigation services to them – even in the dark. In addition, the technology also makes it possible to reap the perks of remote maintenance.

Military working dogs with augmented reality

One of the finest examples of augmented reality in the military is the partnership between Microsoft’s HoloLens and the United States Army . The army uses HoloLens AR headsets to simulate combat scenarios and give soldiers realistic training scenarios where they can rehearse movements. This use of augmented reality highlights the revolutionary potential of AR in military operations by reducing dangers associated with live exercises while simultaneously improving training efficacy.

The use of augmented reality in the business world has left a remarkable impression on every sector, making it difficult for businesses with traditional processes to survive in the market. Thus, entrepreneurs must invest in enterprise augmented reality app development to propel their businesses forward in this dynamic landscape.

But is it that easy?

Since the technology is still evolving, you are likely baffled about when and how to embrace augmented reality business opportunities. So, considering the same, let’s look into how to prepare your augmented reality business plan and enjoy ample benefits.

Step into the future and implement augmented reality for business success

Businesses using augmented reality follow a proper roadmap, ensuring a systematic and effective integration. This strategic approach ensures that augmented reality solutions smoothly connect with company objectives and contribute to long-term success. It includes thorough planning, precise implementation techniques, and continuous evaluation.

How to Integrate Augmented Reality Into Your Business

Rather than going with the hype, it is required that you dive deeper into your business market and understand the potential of technology. You must invest your effort into the augmented reality market and competitive analysis to see what AR can be used for, its future, and how the technology has helped them build a different image in the marketplace.

Analyze the possible use cases of augmented reality in the industry. Determine places where augmented reality might provide value and address particular problems, from customer interactions to business operations.

Once the problem and the outcomes possible with the inclusion of AR in business are evaluated, the next thing to do is to select the right AR VR development company. A company like Appinventiv, which has years of experience in creating augmented reality apps for business, will help you get acquainted with how the technology can mitigate your current challenges.

Evaluate the technology needed for AR integration, considering hardware, software, and potential partnerships. Ensure compatibility with existing systems and infrastructure.

Write a thorough plan explaining how augmented reality will support your company’s objectives. Consider factors like budget, schedule, and scalability to guarantee a successful implementation.

Decide which AR platforms or technologies best fit your needs as a business. Select platforms that support your goals, whether using pre-existing apps or creating bespoke ones.

In augmented reality applications, the user experience should be prioritized. Provide user-friendly interfaces and captivating content to guarantee a seamless user journey.

Put augmented reality apps through extensive testing in real-world settings. To improve performance and fix any problems, get input and make iterations to the functionality and design.

Tracking systems should be implemented to monitor AR usage and gather information. Examine performance indicators concerning established goals and adapt based on facts when needed.

Appinventiv is a trustworthy partner to help your business enter the augmented reality space. Our proficiency in developing AR applications guarantees that your business stands out and captivates your audience, resulting in more sales. Embrace the innovation and enter the “digitally augmented” business world without hesitation with our efficient AR app development services .

Get in touch with our experts today. Together, we can uncover countless opportunities and improve your company’s operations with augmented reality’s game-changing advantages, opening the door to success and innovation in the future.

Q. How to build an augmented reality business?

A. Here are the basic steps to build an augmented reality business:

Begin by identifying precise goals and analyzing relevant use cases of AR in the business.
Determine the technological needs
Create a thorough plan that complies with the company’s objectives
Choose appropriate augmented reality platforms and create intuitive experiences
Conduct testing and interaction process
Invest in employee training and foster adoption
Monitor and analyze AR usage with data-driven adjustments
Gradually scale implementation based on feedback

Q. How is augmented reality used in businesses?

A. The use of augmented reality in business showcases its versatile applications, revolutionizing business operations across sectors. Whether enhancing brand awareness, presenting compelling product demonstrations, elevating customer experiences, or streamlining operational workflows, AR is a versatile tool for addressing a range of business goals.

This technology is not limited to a single use; rather, it is a flexible and dynamic resource that promotes efficiency and innovation across various industries. The adoption of augmented reality for business demonstrates a calculated strategy for making the most of augmented reality’s potential to raise brand awareness, engage consumers, and streamline internal operations. It ultimately supports the expansion and prosperity of contemporary companies.

Q. What are the benefits of AR in business?

A. There are myriad augmented reality advantages for businesses. Here are some of them:

Enhanced Customer Engagement
Streamlined Workflows
Innovative Marketing Solutions
Immersive Training Experiences
Efficient Maintenance Support
Interactive Learning Platforms
Improved Product Demonstrations
Increased Brand Awareness

Q. What is the future of augmented reality for enterprises?

A. The future of augmented reality for enterprises holds the promise of transformative advancements . Augmented reality is poised to further revolutionize training by integrating even more immersive simulations and streamlining workflows with increasingly sophisticated real-time overlays.

As enterprises embrace augmented reality, the technology is expected to play an increasingly integral role in elevating customer engagement, boosting brand awareness, and facilitating collaborative decision-making.

Q. What is the cost of implementing augmented reality in business?

A. The cost of implementing AR in business can range between $30,000 and $300,000 or more depending on the AR application’s complexity, the deployment scale, the specific features, and other considerable factors. Connect with the top AR development company to get a more precise estimate of cost and timeline.

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Augmented reality for business: Cheat sheet

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From the high-tech, information-laden sight of The Terminator to Ironman’s augmented view of the world from inside his suit, digital information overlaid on the real world is a long-established trope in the world of science fiction. We don’t need to wait for movies or video games to give us an augmented view of reality anymore–modern computing hardware is more than capable of replicating the high-tech worlds of fiction.

Augmented reality (AR) can be used with devices as simple as a camera-enabled smartphone or with advanced hardware like Microsoft HoloLens . AR is likely to change the way we interact with computers in the near future, and in many ways it already has. Find out how, and why, augmented reality matters to modern businesses.

SEE: Augmented reality for business: Cheat sheet (free PDF) (TechRepublic)

What is augmented reality?

Like the heads-up displays seen everywhere in science fiction, augmented reality is any technology that allows its users to see digital information projected onto the real world. That’s where AR differentiates itself from virtual reality (VR): AR doesn’t block out the real world or replace it with a completely digital one–it lets the real world show through, only with digital objects or information on top of it.

There are plenty of well-known examples of AR in the real world. Games like Pokemon Go project digital critters onto the world around them; Google Maps has added AR features that show directions on the real world ; and other smartphone apps have made novel use of AR through embedded cameras.

Advanced hardware, like Microsoft HoloLens or Google Glass, make AR far more practical than smartphone apps: They provide immersive, hands-free AR that can be used for a variety of business, commercial, and educational uses.

Augmented reality is still new, and many of its uses have yet to be discovered. Right now the sky’s the limit for AR: There are countless ways in which digital information overlaid on the real world could be practical and lucrative.

Additional resources

Augmented reality: An enterprise business imperative (ZDNet)
Forecasting the future of augmented reality (TechRepublic)
Emerging technology: What tech pros need to know (TechRepublic Premium)
AR and VR mean business: Everything you need to know (ZDNet)
Infographic: The history of AR and VR, and what the future holds (TechRepublic)
2019: The year AR finally goes from ‘unsexy’ to cool? (ZDNet)

How can businesses use augmented reality?

The AR market is predicted to be worth $60.55 billion USD by 2023 , and it’s likely to be led by some of the biggest names in tech: Google, Samsung, HTC, and Microsoft.

Companies that want to stay on the cutting edge should, at the very least, consider where augmented reality could fit in their organizations. It’s not going away anytime soon, and if the predictions are correct, it’s only going to be more important as time goes on.

There are two main areas that businesses should think about when deciding if AR is for them: Its potential for internal use to help workers and its commercial applicability for consumers.

A warehousing company, for example, may not have much need for a smartphone app, but a heads-up display for forklift operators or other warehouse workers could eliminate time spent looking for stock and reduce accident risks.

If that same warehouse is stocked full of home furnishings and decor, the leaders at that company may want to think about a second application for AR: Smartphone apps that allow customers to see what their purchase would look like at home before they buy it. Furniture company IKEA has already lept on that AR applications: Its IKEA Place app has been very popular.

SEE: All of TechRepublic’s cheat sheets and smart person’s guides

Here are some other ways that companies might use augmented reality.

Remote support: AR apps that allow technicians and users to communicate with experts in real time have been on the rise. In some cases these apps allow tech support to highlight objects in the user’s field of view so they can assist in repair without ever having to leave their seats. AR headsets connect to Internet of Things (IoT) sensors and other diagnostic information to help technicians assess repair needs more quickly and reduce downtime. The HoloLens even comes with a built-in remote assist app.

Training and education: The educational applications of AR are well known, and they can be experienced by users with hardware as simple as a smartphone . There are also advanced AR education apps for augmented reality headsets like the HoloLens that can go further in-depth and provide an even better educational experience. Seeing 3D representations of objects, zooming in and getting an exploded view, and seeing complex machines working from the inside are all ways in which AR can be used in the educational realm. AR can also be used for virtual collaboration, making it easier for students and teachers working separately to solve problems together.

SEE: 5 top use cases for AR/VR in business, and how you can get started (TechRepublic)

3D modeling: Whether building a house or designing a new car, AR can be used to aid in the modeling and design process . Apps exist that can import and display CAD files in real space, see 3D models of houses, and more.

Training: New employees often need time to learn how systems work, but they don’t necessarily need to do it in the real world. AR training apps are already being used by companies like Walmart, Verizon, Honeywell , and Chipotle. By giving employees access to virtual training, they’re allowed to make mistakes in a virtual environment without real-world consequences.

Keeping customers in a store: AR apps can help keep customers around. Businesses have been finding ways to make money off of AR since Pokemon Go came out in 2016: People may not be at your store to shop, but games can keep them hanging around, which could lead to a sale. Cosmetics company Sephora has been at the cutting edge of customer-focused AR as well: It has a mobile app for virtually trying on makeup and in-store AR kiosks that keep people shopping.

This is hardly an exhaustive list of the business uses for AR, and as time goes on those uses will probably evolve into realms we haven’t thought of yet. Regardless of the type of business you’re in, there’s probably an AR use case–it’s just up to you and your development team to figure out what that is.

New technologies like virtual, augmented and mixed reality are helping brands bring their products to consumers (TechRepublic)
Mixed reality in business report: Despite potential uses, enterprise implementation lags (TechRepublic Premium)
Skills gap? Augmented reality can beam in expertise across the enterprise (ZDNet)
Augmented reality gaining more traction than virtual reality in the enterprise (TechRepublic)
Augmented reality, virtual reality, and mixed reality do bring value to industry (ZDNet)
AR hits brink as 86% of industrial enterprises will launch projects in the next year (TechRepublic)

What technology is needed to use augmented reality?

It might seem daunting to start using AR in your organization. The most business-practical applications of augmented reality seem to require some extensive hardware, and internal use apps would require a lot of development before being usable.

That doesn’t mean AR is out of reach for the average business, nor does it mean that expensive hardware like the HoloLens is required for making it a business tool.

Using augmented reality is as simple as having a camera-enabled smartphone, and many AR apps for mobile devices have business applications or could be used in a business role.

Take for example the built-in iOS app Measure . It uses a device’s camera and spatial awareness to determine the size of objects, measure rooms, and act as a level. This can have a lot of business uses for professionals who need to measure spaces (e.g., IT pros setting up a new server rack).

Simple apps like Measure are just a taste of practical uses for augmented reality. Other AR apps that could be used by businesses and their employees include Google Translate, which will auto-translate text captured by a device’s camera; Google Lens, which displays information about any object the camera sees; Google’s Just a Line , which allows users to draw in 3D space and lets others view the drawings in real-time (great for supporting computer users); and more.

With the right team and the right goals, even small businesses could use AR apps–and we haven’t even touched on the external uses of AR for things like customer engagement, product trials, and other user-centered AR powered by smartphones.

Yes, if you want to use augmented reality to its fullest potential as an internal tool, you’ll need advanced hardware that can be operated hands-free and is designed for business AR uses. That doesn’t mean small businesses or those who don’t need HoloLens-style AR are out of the loop: It’s all about finding the right tools that can work to fulfill your business needs on your budget.

How to move AR projects from pilots to enterprise adoption (TechRepublic)
Apple eyes sensor-packed augmented reality headset (ZDNet)
Lenovo launches AR/ VR headset for the enterprise (ZDNet)
Forrester identifies top 5 VR and AR vendors, Oculus doesn’t make the cut (TechRepublic)

What are the most popular augmented reality platforms?

When thinking about AR platforms, it’s important to distinguish between AR development kits and programming languages most often used for developing AR software.

AR development kits include software such as Apple’s ARKit, Reality Composer, and RealityKit ; Google’s ARCore , and other dev kits designed specifically for AR on consumer-grade hardware that most users are likely to have, like a smartphone.

Other AR tools, like Microsoft’s HoloLens , rely less on self-contained development kits and more on general Windows development skills. Hardware like the HoloLens has a lot more functionality, and as such developing apps for it is more complicated. Microsoft calls its HoloLens AR “mixed reality,” and developing for it uses the same SDK programmers use for other Windows software projects.

SEE: Microsoft HoloLens 2: An insider’s guide (free PDF) (TechRepublic)

Regardless of the type of AR you plan to develop, there is one thing for sure: You need skilled programmers. Even self-contained kits like ARKit and ARCore require programming with popular languages.

The list of the most popular AR programming languages doesn’t look that different from a list of those used for non-AR projects. C#, C/C++, Java, JavaScript, Python , Visual development tools, and Swift are the seven most popular for AR development, so if you’re planning a big AR project be sure to have programmers skilled in these languages on staff.

SEE: How to use Google Lens and Wescover to discover the creators of art and design (free PDF) (TechRepublic)

RealityKit and Reality Composer, AR tools from Apple: A cheat sheet (TechRepublic)
The biggest challenges that augmented reality developers face (TechRepublic)
Demand for augmented and virtual reality expected to soar this year (ZDNet)
Augmented reality invades the conference room (ZDNet)

How can my business start using augmented reality?

If you’ve identified a way in which AR can benefit your company, you completed an important step.

The next hurdle to jump is to figure out what the best approach is: Should you go with hardware like the HoloLens or Google Glass, or is it better to stick with a more affordable option like smartphone-powered AR?

Once you know what kind of AR hardware you’ll need, you have to pick a platform. If you’re going with mobile devices, there’s a choice between Apple and Google, so choose which is most likely to appeal to customers or employees.

SEE: Top 5 reasons AR and VR are for business (TechRepublic)

For those investing in AR hardware, there are several products to choose from: The Microsoft HoloLens, Google Glass , and Magic Leap among them. Before deciding which AR headset to invest in, be sure to weigh the costs, features, development kits, and other features to determine which is best for your needs.

You’ll also need skilled developers who can build your AR apps, whether it’s for smartphones or headsets. Picking which platform and/or hardware to go with can be determined in large part by the skills of the people on your developer team, so be sure to consult them when considering an AR project.

Remember: With AR, the sky’s the limit. There are countless uses for this new and exciting technology, and what you choose to do with it could be the big breakthrough your business needs to take things to the next level.

11 upcoming AR trends that will redefine technology (ZDNet)
Mixed Reality 2019: Why the year ahead will be huge for enterprise AR/VR (ZDNet)
Quick glossary: Augmented reality (TechRepublic Premium)
Augmented reality is coming to your car (CNET Roadshow)
Augmented reality for iPhone (Download.com)
Tom Merritt’s Top 5 series (TechRepublic on Flipboard)

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Most companies have yet to embrace, let alone unleash, AR. The challenge is understanding how AR can benefit the business in a way that current technology can’t match.
Many applications are possible, but the most compelling uses fall under ten AR scenarios. Each creates value in a unique way, and none are industry specific.
By exploring these scenarios, companies can zero in on where AR matters most for their business, finding the right fit—and a new path to competitive advantage.

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Augmented and Virtual Reality

/ article, finding the business value in augmented reality.

By Guy Gilliland , Edwardo Sackey , Christy Liu , Rony Abovitz , and Shichen Lian

Key Takeaways

Vision Pro—Apple’s wearable spatial computing device—has sparked new discussion around augmented reality (AR). The conversation is overdue. For many companies, AR is largely an unknown; they see it as a technology for gamers or enthusiasts. But for businesses that deploy it wisely, AR is a game changer. By checking many boxes—dramatically different and better customer experiences, greater efficiency and productivity, and new revenue streams—AR can transform the competitive landscape.

By bringing information from our digital world into our physical space, AR unleashes the value of context and enables more informed—and more precise—decision making. A remote expert, thousands of miles from an equipment failure, can steer a technician through a complicated repair. A consumer who is buying a chair online can see if it will fit under the kitchen table before making the purchase. The list goes on.

But there’s the rub. To seize the potential, business leaders need to zero in on where—of all its possible applications—AR really makes a difference. In which scenarios does AR let users interact in ways that aren’t possible with current technology to get faster or better results, or both? The challenge is that without experiencing AR in action—without getting a clear picture of how it can benefit their business—many companies struggle to find the right applications and justify investing.

Our work with early AR adopters, as well as discussions with executives, practitioners, and experts in the AR space, reveal a broad spectrum of applications. But we also found that the most compelling uses fall under ten distinct scenarios. By exploring these, companies can more easily identify how, and where, AR matters most for their business.

Ten Paths to Value

Virtual reality immerses users in a computer-generated environment; AR keeps them right where they are, in the real world. But AR does enhance the view. It superimposes a layer of digital information (such as sensor readings, repair instructions, or the locations of invisible hazards) on the physical environment. Since users typically see this information by wearing goggles or glasses (as opposed to accessing a phone or tablet), their hands are free to work and interact as usual.

These capabilities fuel the ten AR scenarios presented in the slideshow. While each scenario creates value in a unique way, none are industry specific. Health care , manufacturing , operations , and retail may be the most obvious candidates for AR, but just about any kind of business can put the technology to work.

For many first movers, the appeal of AR is straightforward: it supports—and enhances—mission-critical operations. Some of these organizations rely on complex processes and equipment that demand a high level of technical know-how, and the cost of downtime is high. Others depend on training programs that, traditionally, have been expensive and asset-intensive, tying up equipment and staff.

But no matter the needs or business model, early adopters tend to share a key trait: they’ve committed to a broader digital transformation . By anchoring information from the digital world in the physical world, AR is a natural enabler of that transformation—and a crucial one as businesses develop a metaverse strategy . As such, AR’s appeal becomes nearly universal.

Indeed, a closer look at three of the more prominent scenarios demonstrates the power and reach of AR.

Complex Repairs with Guidance from Remote Experts

Troubleshooting sophisticated equipment often requires specialized know-how that’s not available onsite. AR reduces delays by bringing remote experts onto the scene—effectively, if not literally. An onsite technician dons AR goggles, which let a remote expert see what the technician sees. The expert can then walk the technician through the repair and even sketch digital cues (such as arrows showing which way to turn a valve) in the person’s field of view. By seeing equipment in its actual operating environment, experts can better understand—and factor in—any interdependencies that may be at play, fostering more effective and efficient solutions.

AR-enabled repair is particularly well suited for critical equipment (such as power generators in a hospital) as well as equipment (such as automobiles) at various locations. Porsche has shortened its service resolution time by up to 40% since deploying AR to link technicians at its dealerships with experts at the company’s headquarters.

But it doesn’t have to be a technician who dons the goggles. HP has introduced an AR-based support solution, HP xRServices, that enables industrial printer customers to connect with HP experts, who guide the customers through troubleshooting and problem solving. This lets HP deploy a highly skilled support staff more effectively, resulting in fewer onsite service calls, faster diagnoses, and minimal downtime for customers.

Immersive, Interactive Training

Whether onboarding new hires or upskilling an existing workforce, businesses can leverage 3D visuals and spatial audio to provide a more immersive training experience. Employees learn while doing, receiving immediate feedback in highly realistic and interactive simulations. This kind of training is especially useful in preparing for emergency-response situations or in learning how to handle complicated or sensitive customer service situations. And since it is often self-guided, AR training can free up experts to focus on other high-priority tasks.

Immersive training can also be a boon to companies that operate or sell complex products. Consider Atlas Copco, which makes specialized industrial equipment, such as vacuum pumps that are used in MRI machines and spacecraft. The company employs AR to project at-scale 3D visualizations of its products during training sessions, enabling technicians to more easily—and more effectively—get up to speed on all the parts and learn how to service the equipment.

At Toyota, AR has expanded the reach of the automaker’s training staff. Instead of providing one-on-one guidance, trainers can now work with several people at the same time. For companies that frequently modify key processes (as happens with the launch of each new car design), more efficient training means faster—and more seamless—transitions.

A company doesn’t need to be an industrial giant to reap the benefits of next-generation training. Many AR solutions incorporate low-code or no-code technology , which lets businesses of all stripes develop customized AR-guided learning solutions. Another benefit: by expanding and enhancing training, companies can more easily develop talent, sparking higher employee satisfaction and retention rates.

Enhanced and Dramatically Different Customer Experiences

By using AR, organizations can provide more interactive and personalized experiences, deepening their relationship with those they serve. Retailers can bring key elements of online shopping to their physical stores, for example, by using AR to display reviews about products on the shelves. And they can extend their shelves by using AR to show product variations that don’t fit or will be in stock shortly. A sports team, meanwhile, can enhance its television broadcasts by projecting 3D replays on demand or by overlaying statistics at different levels of detail, depending on the type of fan.

The applications—and the possibilities—are wide ranging. Wayfair, the online home store, developed an AR-based interior design and planning application that lets customers position full-scale 3D models of furniture in their home, so they can see how different products fit in a room. Fans of the Los Angeles Rams can catch a virtual football thrown by a player on the team—or at least, the player’s holographic representation.

Or consider an innovative use of AR at the Cleveland Museum of Art. As part of its Revealing Krisha: Journey to Cambodia’s Sacred Mountain exhibition, the museum created a life-size 3D model of the cave temple where a 1,500-year-old stone sculpture— Krishna Lifting Mount Govardhan —appears to have stood. Visitors who wore headsets while walking through the exhibit hall experienced the sculpture in its original environment. In effect, the museum put the visitor at the scene.

Getting Started with AR

Companies that create value through AR understand the possibilities, but crucially, they recognize where they’ll see the best return on investment. The following practices can help leaders view AR through a precision lens—and zero in on the right use cases.

Know the pain points. AR can help a company tackle, even solve, many operational challenges. So before deploying the technology, it’s important to know the pain points and how AR solutions may help. Start by mapping key workflows and identifying high-cost and high-risk activities. For each of these, think about outcomes that would create value, such as less costly or less asset-intensive training or more efficient use of factory equipment. Then consider how AR could drive those outcomes.
Weigh the alternatives. AR may not be the only or best option. Could a technology other than AR—one that is already used or one that could be deployed faster and at less cost—also tackle the pain point? Just be sure that the alternative will truly suffice. This means understanding any social, safety, or industry constraints that may hinder a more traditional approach but that may not apply to AR.
Understand the total cost of ownership. An AR investment isn’t just about buying hardware. A company should consider the costs—in terms of time as well as money—related to software licensing and customization, connectivity, and employee training. By weighing these costs against the expected benefits, leaders can make the business case for AR. They can also prioritize initiatives, ensuring that they start with those that matter most for the business or provide quick wins that build momentum.
Develop the right success metrics. After piloting AR, track the results. That means identifying concrete (and ideally quantitative) success criteria for goals such as less downtime for equipment, shorter waiting time for customers, or lower costs for employee training. Relevant KPIs aren’t always obvious: many AR use cases have secondary benefits, such as improving employee retention. The idea is to consider all the benefits that were identified when developing the business case and think about how to measure them once AR is in action.
Have a plan for change management. AR brings rewards, but also changes: employees will work in new ways and with new tools. It’s important to ease the transition and minimize disruption to the business. We recommend a gradual approach to AR. Instead of wide-scale deployment out of the gate, pilot one use case with a small group of employees, then expand it to another group. Invest resources in training—upfront—but expect some growing pains. It’s common to see decreased efficiency, for example, in the early phase of a rollout. Create dedicated support teams to provide guidance and best practices. Remember to continually—even zealously—track the KPIs. And when the numbers look good, get the word out. Demonstrating the success of AR is the best way to create buy-in from employees and management alike. It helps leaders fuel (and fund) the journey—and do even more with AR technology.

AR is all about enhancing one’s field of view. But with so many ways to put AR to work, it’s vital to understand where—and how—the technology creates value. Companies that see the best fit may well see something more: differentiation, growth, and competitive advantage.

Managing Director & Senior Partner

Managing Director & Partner

Senior Advisor

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For information or permission to reprint, please contact BCG at [email protected] . To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com . Follow Boston Consulting Group on Facebook and X (formerly Twitter) .

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Guide to Using Augmented Reality in Business with Examples

Now, augmented reality in business is an influential instrument marketing specialists and business owners use to attract customers and grow their popularity on the market. Every business area has tried augmented reality and somehow integrated it into their strategy, from retail to recruitment. Let’s find out how to use augmented reality in business and browse through some notable examples when AR helped particular companies with their objectives and goals.

What Is Augmented Reality?

Augmented reality in business is a technology that enhances real life with the added virtual elements that people can see using their smartphones or special equipment. Augmented reality finds countless applications in the business world, ranging from marketing and manufacturing to training and logistics. With such a range of applications, AR has an untapped potential that almost any business endeavor can apply and benefit from.

Difference Between Augmented Reality and Virtual Reality

Many people heard about virtual reality more and can think of virtual and augmented realities as one element. However, these technologies have one main difference that distinguishes one from another. Virtual reality allows people to place themselves in virtual settings using their smartphones or virtual reality glasses. In contrast, augmented reality enhances real-life with technologically created elements. Thus, it allows using technology to place virtual images in a person’s house settings.

Augmented Reality Market Share

In 2022, the augmented reality market will show an extraordinary 48.6% compound annual growth rate, according to a recent report by Fortune Business Insights . The same report forecasts that by 2028, the market will reach USD 97.76 billion. This success on the market is probably due to the fast adaption of the 5G technology, which opens many opportunities for augmented reality businesses.

How Is Augmented Reality Used in Business?

Businesses from different industries started to introduce augmented reality to their customers long ago because every industry found that they could customize this technology for their exact needs.

Every retail company’s goal is to convince more customers to choose their product among the others. They found that using AR technology can lead to more purchases and then leading to more profit. For example, only the feature of product preview allows placing the 3D models of the products in the users’ actual surroundings to feel them and make a more conscious purchase decision.

Manufacturing

The manufacturing industry started to look into the human-machine interaction long ago. The factories depend on the humans working inside them and controlling all processes, but many things can be delegated to the computers. These manual processes, like advanced AR training for the staff , quality assurance, and data analytics, give people more space for productivity.

Even though many processes in the logistics sector require human attention, AR technology allows making some things easier for workers. For example, transportation of products was made easier with the QR-codes showing information about the items that were picked up and the AR glasses that allow identifying products for delivery.

A report shows that the warehousing operations are taking up 20% of logistics workers’ time in their positions. The AR allowed reducing this time by providing workers with technology like augmented reality smart glasses to see the best routes through the warehouses and identify items meant to be picked.

Employee Training and Education

Augmented reality business made the HR industry easier with AR training. The employees can undergo advanced training when stepping into the new role or upskilling with the technology. Just imagine how more accessible education can be when you can read about the situations you will encounter at work and experience them.

Recruitment

Like with employee training, recruitment personnel can use AR to interview potential candidates and have a more detailed look into their skills and potential. For instance, recruiters can develop AR games to assess candidates’ skills and immerse them in real work simulations.

Remote Technical Expertise

The industry is still developing the best ways to use AR and has excellent potential in this area is remote technical expertise. The companies combine live video streaming with AR technology to make important events remotely. The most useful this type of AR business is customer support.

Design, Modelling, and Creating MVP

AR takes the modeling to another level because, with the technology, designers can see the 3D models of their creations. When the designs are taken off the screens and into the natural world surroundings, it allows us to see their every possible fault and needed improvement.

What Are the Advantages of Using Augmented Reality in Business?

71% of consumers say that they will shop more often from the brands that are using augmented reality. As a result, the AR business’s popularity is growing at unimaginable speed, and the reason for that is the numerous advantages for the companies.

Enhancing human decision-making

Machines can help us manage processes and create new products, but only people and their decisions are responsible for results. The technology can ease manual processes and handle data calculations that require a big team of people to finish. AR enhances human work, making it more efficient and productive.

Interaction-driven customer experience

An excellent customer experience is what every brand desires to achieve. The companies want their customers to be excited by using the product and experience the best that product has to offer. The AR allows taking this process to the next level giving the customers a chance to feel the product more closely and build better relationships with the brand.

Cost optimization and time-saving

Time is the most valuable asset we have. Every aspect of the work depends on how much time the company has and how efficiently it uses it. AR helps in all the product production stages and allows businesses to work faster and earn more money. In addition, investment in AR technology helps to save money in the long run.

Competitive advantage

Nowadays, the market has to offer millions of products that customers can choose from. You can hardly find a product that doesn’t have an analog that might be less expensive or have a more potent marketing strategy. The AR is still new for the customers, and it fascinates them and makes them want to try the product that brings them joyful emotions.

Increase sales

40% of consumers confirm that they would pay more for the company’s augmented reality product. It means that businesses can increase their gain by investing in AR-enhanced solutions. There are so many ways to use marketing with augmented reality that companies can easily choose one that suits them best.

Communication efficiency between employees and departments

AR can break barriers between teams working in different countries but on the same product. With the augmented reality business applications, employees can collaborate on the same project from other locations without losing their productivity level and gaining the result.

Big data for analysis

AR in business is suitable both for gathering data and analyzing it. All business owners know that data is an invaluable asset for company growth. The more information they have about customers, the market, and their competitors, the faster they can advance their product for the target audience.

Best Examples of AR in Business

Many companies explored augmented reality business opportunities and found their best use in every niche. Therefore, we gathered the best examples for every industry.

Brand Wannaby has shown a great example of understanding its audience that leans toward online shopping. For some customers, the inability to try the items on might be a blocker to proceeding with a purchase. The company decided to innovate its approach by developing and releasing an AR application called Wannaby Kicks that allows customers to try the shoes at home using the smartphone.

Fashion and Beauty

Fashion and beauty are two industries where AR technologies can change company-customer relations once and for all. Take the watch company WatchBox as a great example of integrating fresh AR solutions. The company has decided to develop a platform that will make customers closer to the product and allow them to try their chosen item on in the comfort of their homes.

Real Estate

https://youtu.be/Jc1ScD8jQxE What could be better than controlling everything that is going on in your flat when you travel using the phone? The landlords often feel they lose sight of their property when they are away from the location. The AR decided to solve it with the development of the digital twins. For example, Vera by ReasonAI accelerates commercial property sales by streamlining the property staging and personalizing interior models in real-time. With Vera’s help, real estate agents can transform buildings into AR counterparts and provide accurate 3D visualizations for all interested parties.

Interior Design

https://youtu.be/4lMFxJ4PDXY Paint company Dulux found an intelligent way of increasing sales and gaining more customers with augmented reality. What does their target audience consider the most when purchasing paint for the house? Of course, how the color will look like on the walls. Dulux developed a Visualizer app for the customers to use their smartphones and apply paint colors on the walls of their homes using augmented reality.

Construction

https://youtu.be/DzFctc7bkCM Working in the construction industry requires attention to detail and great expertise. Yet, even with all these, you still cannot know that the final product won’t have mistakes. So the GAMMA App developers thought of a way to see the possible errors in construction before finishing the project. The project benefits included rework prevention, tracking the construction process, and improving the construction plans in the early stages.

The augmented reality for businesses worldwide found its place in every industry, and automotive companies are no exception. For example, Toyota developed an AR application to allow customers to try customizing and choosing their dream car model without the necessity of going to the salon. Moreover, Toyota also released a custom AR solution to simulate the driving environment, contributing to their comprehensive program on providing a safe driving environment.

The healthcare industry has long benefited from the proper application of AR technologies. Dedicated apps and web solutions are released to simplify the work for nurses, doctors, patients, and drug producers. AR also benefits healthcare education, and the HoloAnatomy app proves that. The application developers found a way to combine AR with 3D modeling. As a result, users of HoloAnatomy wearing special AR glasses can see the most detailed visualization of the human body.

Entertainment

https://youtu.be/VgRt6GGRroQ The main goal of the entertainment industry is, in fact, to entertain. So the companies are constantly thinking of new ways to do it. For instance, in 2017, the famous music festival set in California, Coachella, decided to surprise the participants with AR-enhanced welcome boxes. So every person who bought a ticket could use the smartphone on the welcome package to see the 3D model of the future festival’s setting.

https://youtu.be/-FLJu9vxj1Q Everybody heard about Pokémon Go, of course, but did you know that there are more AR games the industry has to offer? For instance, the fans of the Walking Dead can try playing the Walking Dead: Our World. Using their smartphones, the players can see the zombies roaming around their surroundings and catch them.

We tell the facts when we say that AR can be applied to any industry. Even the history lessons can be more fun with AR applications. For instance, Experience Real History (ERH) combines fun and education by developing a boarding game with cards enhanced with AR. Players can use their smartphone camera to make images on the card come to life.

Travel and Tourism

https://youtu.be/52BbZHUtdnk When you come to a new city, you can be confused about where to go. Where is the nearest attraction? What food place should I pick to try the local dishes? The World Around Me app solves these problems by allowing tourists to use smartphone cameras and locate the surrounding areas.

https://youtu.be/AgRdutPZNug The technology made navigation so much easier already that we didn’t even know it could use any more improvement. However, it did improve with AR. For instance, the product ARCity uses augmented reality to make navigation between places even more to the point. Not to mention that even Google Live View of Google Maps apply AR technologies to show an accurate direction to a specific location.

Food and Beverage Industry

https://youtu.be/YnJ0m-uzJbI The favorite way to use AR for food and beverage companies is to develop augmented reality activation. For instance, the WE/AR Studio has created a custom AR experience for Budweiser that boosted the company’s exposure to social media. Users of this dedicated AR experience could activate the label using their smartphone cameras, capture AR-enriched content, and share it on social media with their audiences.

Dating Industry

You might not believe it, but AR trends greatly influence the dating industry. For example, the first augmented reality application recently appeared on the market. Flirtar is just as good as its competitors, but AR makes it better. Among all the app’s cool features, users can scan the surrounding area and find other users from online to offline in a minute.

How to Implement AR in Your Business Step-By-Step

Creating the augmented reality solution for business isn’t easy, but it can be easier if you research and see what steps you should take.

Step 1. Research and preparation

The first step is the most important, though it is often overlooked. However, research turns on everything else. After researching the process, market, and customers’ needs, you can see what product to offer. In addition, you need to plan the whole development process, including the specialists needed, required tools, and time to complete the project.

Step 2. Development

After you have a team of specialists and the development process plan, you are good to start. The team of experts you hire will know what to do, so your responsibility as a product owner is to manage the process.

Step 3. Analyzing the results

The work on the project doesn’t stop after the launch. A significant part of the product is analyzing how it works. Did you succeed? What can you improve? Many companies want to add augmented reality solutions to their strategy, seeing how popular and effective AR technology is. If you plan to make AR one of your core instruments, creating a house team of experts is best to develop and support the solutions. However, if you just want to try whether AR will be a good solution for your audience, you can hire a company with expertise in the technology. We/AR Studio will help you through all of the stages of development of AR products — from understanding what solution you need to developing and analyzing its success. Contact our team at [email protected] to pick just the right solution for your business endeavor.

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What is Augmented Reality in Business | Use of AR in Business

The AR experience is becoming very much part of everybody’s daily lives, almost like daily activities. With so many people appreciating the use of AR in their daily lives, it becomes necessary for companies to integrate Augmented Reality in Business.

Let us look at a few interesting statistics:

Gunner Kennels, a leading manufacturer of dog crates, increased its conversion rate by 40% by adding a 3D/AR experience to its product views.
According to Gartner’s estimation, more than 100 million shoppers used AR for shopping online and in-store in 2020.
IDC estimated that in 2022 global spending on AR/VR will reach $13.8 billion, and grow to $50.9 billion by 2026.

What is Augmented Reality in business?

Augmented reality is transforming how businesses work. The cool concepts of AR, which once felt like fiction, are making their way into everyday businesses. Companies across the globe are adopting them in transforming how things work in their organization.

Every department and every employee is benefiting from the immersive technology, using AR applications to turn boring jobs into fascinating experiences, from learning & training to HR operations to advertising & marketing and much more.

How can AR change business operations?

Most modern-day smartphones are ARKit and ARCore compatible (technology required to access mobile AR experience). Also, most web browsers support WebAR , which means users can view AR experiences without having to download and install additional software. Hence, businesses are leveraging this to their advantage by integrating AR experience in most of their projects, from marketing campaigns to operations and other activities.

Here are a few prominent ways, augmented reality is changing business operations across the globe:

1. Recruitment

Companies are beginning to use AR to enhance how they hire. For instance, you can design an AR game to assess candidates’ skills. Or, imagine if you could conduct an immersive online video interview with not just face and upper body parts but the full body avatar to gauge candidates well for their body language and confidence. Another great way recruitment teams use augmented reality is during the onboarding of remote employees. You can recreate your office space in AR to give new joiners an immersive office tour on their smartphones, tablets, and laptops.

2. Employee training and education

Traditional methods of employee training and education included referring to documentation, videos, eBooks, etc., and participating in real-world classroom education and training with real devices and equipment. While it was time-consuming, it incurred huge training costs and involved safety concerns. For instance, today augmented reality is used to train US Air Force pilots, healthcare professionals, and engineering workers to reduce heavy equipment costs, time, and risks involved in physical training.

Walmart uses AR to provide hands-on training to its employees. The AR experience is built to visually display all possible circumstances and ways to react and respond to them. Companies like Porsche and Boeing use AR to train their mechanics about various components, assembly, and installation processes.

3. Logistics and warehousing

AR is changing how logistics and warehousing work by solving problems that led to human error, inconsistency, inaccurate inventory management, and incorrect order picking.

With AR for pick-by-vision technology, companies equip their workers with AR glasses to view product information before picking them for delivery. Previously, QR codes could be scanned to check if the products picked were the right ones.

4. Marketing

Augmented reality is changing how marketing works. It is transforming the idea of showrooms and product demonstrations. Augmented reality in the marketing mix allows customers to see how a product will look in a real setting, thus influencing their decision. While it is enhancing customer experience, they are much more confident about their purchase decision.

The architectural paint brand Dulux, for instance, uses AR to show its customers how around 1200 different colors look on their walls. So, when you look at your house walls through a phone or a tablet, you can change the wall color using an AR application. You will not have uncertainty about your choices for wall colors. It helped Dulux significantly reduce its sales cycle.

5. Developing MVP

Before building the minimal viable product (MVP), companies spend a lot of money designing the product and making a prototype to show to their clients. Based on the client feedback, many iterations of the same prototype are made which can make the cost go manifold. With AR companies can reduce the number of iterations to minimize their cost. An immersive product experience before making a physical prototype can address most of the issues in the product. You can work on the feedback even before starting with the prototype model.

How is augmented reality used in Businesses?

The use of AR in business is an evolving phenomenon. According to a survey, 40% of consumers are ready to pay more for a product if they can view the product in AR. Thus, brands across sectors emphasize using AR to improve customer experience and boost sales.

The retail sector is widely adopting AR technology to improve customer experience. By integrating AR into their marketing mix, retailers allow their customers to walk through their smart stores and take a close look at their products. An immersive experience of the store and product try-on helps people engage. They can make more confident decisions, thus boosting sales and reducing the number of people returning the product after purchase.

Also, the retailers integrate AR into their business operations to simplify problems and improve logistics and warehousing. The workers can locate and track the best path to transport goods and make use of AR technology in picking and delivering the right products, thus avoiding unpleasant situations like wrong order delivery, return, and replacement.

Manufacturing

The manufacturing industry can benefit significantly by replacing physical product designs and prototype models with AR alternatives. The limitless possibilities of augmented reality enable the creation of product designs and interaction. For instance, a car manufacturer will save tons of cash spent in designing a car model and its functionality as a prototype before going with the decision to produce one fully functional for testing cars and then on a large scale for selling in the market.

Similarly, other engineering product manufacturers can explore the designs and functions of new and innovative products before designing a physical model.

Fashion and beauty

A large number of fashion and beauty brands make use of AR in allowing their customers from the opposite world to try their products before buying.

Product trials in the traditional setting required people to visit stores. In the absence of brand presence offline, either they end up selling only a few items or face situations like a lot of return and replacement requests. However, using AR technology, most brands implement 3D product trials for garments and accessories. Also, people can try cosmetic products to see how it looks on them.

Real Estate

The real estate sector is adopting AR technology to let prospects walk through the property. It helps them make better decisions.

Many times, traveling becomes hectic or is not possible due to time shortages and long distances. However, using AR people from distant worlds can travel down and have an immersive experience of the property they wish to buy.

The healthcare sector was among some of the early adopters of augmented reality technology, primarily for training purposes. Today, the healthcare sector is highly encouraging its use to simplify learning and day-to-day activities in hospitals for a closer view and experience during diagnosis and treatment.

Today, automobile companies use AR for recreating virtual showrooms and vehicle models. Lately, businesses are encouraging creating experiences on a one-to-one scale to ensure that the showroom, car, and other vehicles look and feel as big and shiny as in real to people sitting in the distant world.

The user can use their mobile device, tablets, and laptops to view the vehicles in the same size and appearance as in the real environment. Also, many automobile companies are providing users with an immersive vehicle experience with a virtual test drive.

Entertainment

The entertainment industry is always looking to enhance the experience they deliver to its audience. And augmented reality seems to make jobs in the entertainment sector much easier.

In the past years, effectively explaining complex topics and technical ideas felt challenging. However, with AR technology, the education sector has simplified illustrating concepts to AR demos, and immersive applications of technical ideas that otherwise would require creating physical models and building real functionalities. It is both an effective and least costly option for educators to put their ideas, explanations, and demonstrations across.

In the past few years, the tourism industry has been banking heavily on the use of augmented reality to enhance the traveling experience. Marketers in the tourism sector use AR experiences to influence travelers’ perception of a place, thus encouraging more trip bookings.

Advantages of using Augmented Reality in business

Tech giants, big companies, and innovative startups are already benefiting from the countless advantages of augmented reality, some of which include:

Contribute to better decision-making

Businesses can use augmented reality to generate visual insights on some of the most complex processes to help decision-makers make effective decisions rapidly.

It helps avoid complex analyses in making decisions, thus saving a lot of time and improving operations.

Enable interaction-driven customer experience

Today, rather than products or services, people tend to buy experiences. Like a video experience is always better than viewing images, an immersive AR experience is better than a video. For instance, product demonstration using AR is interactive and appeals way more than video demonstration.

Optimize cost and save time

Time is one of the most important aspects for businesses, the reason why we tend to meet deadlines. When using AR in most businesses, companies can save a lot of time by doing away with time-consuming physical processes. Also, it can replace most materialistic practices to save on huge costs.

Provide competitive advantage

Although the use of Augmented Reality in business is picking up rapidly, still there is a long way to go. Even today, you can be some of the early adopters to have a greater edge over your competitors.

So, even if there are many businesses selling similar products/services, you can stand out by incorporating AR in your marketing campaigns.

Boost sales

The ultimate goal of any business is to boost sales numbers. Augmented reality is an effective technology to help marketing and sales reps take advantage of it to increase sales numbers. When customers have an immersive experience of a product, it develops positive feelings in them about the product. They are more confident in making decisions.

The future looks bright for businesses with AR technology. As the demand for an interactive product experience among online users is picking up, more industries are diving in to adopt AR and VR solutions for a variety of applications, such as training, marketing, and entertainment.

How can PlugXR help integrate AR into your business?

With plugXR, you can create immersive AR applications in minutes. So far, more than 40000+ creators and businesses across the globe have used PlugXR to integrate augmented reality in their business applications, from creating comprehensive training to marketing campaigns and many more to improve efficiency, enhance customer experience, and boost sales.

What makes PlugXR Platform the best option:

Easy-to-use interface and clear communication
Powerful features with exciting possibilities
Hasslefree no-code experience building
Effective customer support

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How to Write a Virtual Reality Business Plan

Blog overview

Virtual reality business plan - the traditional format

Table of contents

Executive summary

Business description

Market analysis

Organizational/company structure

Products you’re planning to create

Marketing and growth

Funding requirements

Uses of a VR business plan

Organizing and studying your own business idea

Pitching your business for fundraising

Helping you attract talent for your VR startup

Characteristics of a good virtual reality business plan

Medium term

Virtual reality business plan resources

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The business guide to AR and VR: Everything you need to know

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What is virtual reality?

What is augmented reality?

What about mixed reality?

The hardware

Is there a difference between the hardware used by enterprise customers and consumer market users?

Which will be bigger, AR, or VR?

The AR Cloud

Industries that will be affected by both AR and VR

K-12 Education

Enterprise Training

Real Estate

Special feature

Industries that will be most affected by AR

Grocery Shopping

Advertising

Online Shopping

Market Outlook

11 upcoming AR trends that will redefine technology

Meta opens its Quest OS to third-party headsets, including from Asus and Lenovo

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Human Resources

Marketing and Sales

Business Basics

5 Best Augmented Reality Use Cases

Table of Contents

What is augmented reality?

How does augmented reality work?

How businesses are using augmented reality

2. Industrial field services

3. Design and modeling

4. Training and education

5. Repair and maintenance

What’s the difference between augmented reality and virtual reality (VR)?

The future of augmented reality in business

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How To Create a Business Plan for Interactive AR Games: Checklist

Identify Target Market And Customer Needs.

Tips for Identifying Target Market and Customer Needs:

Conduct Market Research And Analyze Competition.

Game Features and Immersion:

Define Unique Value Proposition And Business Model

Determine The Resources And Capital Required.

Develop A Marketing And Sales Strategy.

Outline The Organization And Management Structure.

Tips for outlining the organization and management structure:

Identify Potential Strategic Partnerships And Collaborations.

Tips for identifying potential strategic partnerships and collaborations:

Analyze Potential Risks And Develop A Risk Management Plan.

Create A Financial Forecast And Projections

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