Augmented reality (AR) is poised to transform enterprises across nearly every industry in the coming years. As the technology matures and becomes more accessible, widespread adoption is on the horizon. 2024 is likely to see major developments that bring enterprise AR hardware into the mainstream.
The Growing Promise of Enterprise AR
Recent research shows that global spending on AR solutions by businesses is forecasted to accelerate rapidly from $5.5 billion in 2024 to $76 billion by 2026. According to IDC, compound annual growth rate for enterprise AR spending will exceed 181% over this period as real-world use cases gain traction.
The proliferation of 5G networks worldwide is helping to fuel AR adoption. With ultra-low latency and exponentially faster speeds, 5G enables complex AR experiences that were previously not possible on LTE networks alone.
While consumer AR applications tend to get more public attention in the media, enterprise use cases demonstrate AR‘s true transformative power across problems like:
- Training and onboarding new hires with hands-free guided instructions.
- Enabling remote field technicians to collaborate with in-house experts.
- Accelerating design workflows by rapid visualization of 3D CAD models.
- Optimizing warehouse inventory management using spatial data overlays.
- Assisting manufacturing plant operations with predictive infrastructure analytics.
According to IDC‘s 2022 survey of enterprise decision makers, around 30% of manufacturers already use AR technology today. Usage penetration rates are above 25% in other sectors like retail, healthcare, logistics and warehousing as well. With many major tech players investing heavily in spatial computing software and solutions, the pieces are falling into place for large-scale business deployment of AR technology in the next two years.
Data Spotlight: Enterprise AR Global Revenue Forecasts
| Year | Revenue | Annual Growth |
|---|---|---|
| 2023 | $5.5 billion | |
| 2024 | $15 billion | +172% |
| 2025 | $29 billion | +93% |
| 2026 | $76 billion | +162% |
Source: IDC Worldwide Augmented and Virtual Reality Spending Guide, June 2022
Key Drivers and Developments in Next-Gen Enterprise AR Hardware
Several crucial factors are influencing hardware development as providers strive to unlock AR technology‘s full potential:
Improved Processing Power in Compact Form Factors
Early enterprise AR devices were often bulky and uncomfortable to wear for extended periods. Current hardware generations feature drastically improved ergonomics, with a focus on balance and weight distribution for comfortable full-shift use. Expect form factors to continue shrinking as manufacturers integrate newer system on a chip (SoC) technology into smart glasses and headsets.
The latest generation of AR SoCs from Qualcomm, MediaTek, and others integrate impressive processing into extremely efficient packages. For example:
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Qualcomm‘s upcoming Snapdragon AR2 Gen 1 platform promises to perform over 8 trillion operations per second (TOPS) using 50% less power than prior generations.
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MediaTek‘s new Pentonic 2000 series offers similar exponential leaps in processing capability – up to 11 TOPS in some variants.
As silicon fabrication matures down to 4nm, 3nm and smaller processes in coming years, there will be virtually no trade-offs required between peak performance, sustained compute, and thermal output. Enterprise AR hardware in 2024 will start taking full advantage as Moore‘s Law pushes forward.
Advancements like enhanced AI acceleration, edge tensor processing units, and new Frame Generation GPUs will enable next-generation experiences previously hindered by pure battery-powered operation.
Transition Toward Self-Contained Functionality
Some higher-end AR headsets still require a connectivity tether to a PC or battery pack to support performance-intensive applications. Completely standalone operation relies on battery power, so balancing compute demands and platform efficiency has been an ongoing challenge.
However, rapid advances in battery chemistry and ultra low-power chip design are making untethered functionality much more viable. For example, the recently announced Lenovo ThinkReality VRX standalone headset runs on the latest Snapdragon hardware, supporting over 4 hours of continuous hands-free operation – a huge leap over past benchmarks.
As more manufacturers adopt cutting-edge battery technologies like solid-state designs and advanced power management techniques, self-contained enterprise AR headsets with adequate runtimes will rapidly become table stakes.
Expanding Fields of View
One consistent pain point across even the highest end AR headsets surrounds limited field of view (FOV) compared to human vision. Humans have close to 180 horizontal degrees of peripheral vision. Most current AR hardware offers narrower FOV – from as low as 35 degrees in some devices to around 100 degrees in top-end models.
Expanding fields of view requires overcoming technical obstacles around projection surface curvature, image distortion correction, and maintaining pixel density across larger internal displays. Right now, no vendor offers the complete package – but steady progress is happening behind the scenes.
Companies like Meta, Sony, BOE and others have showcased prototype near-eye displays pointing to much wider FOVs coming in future AR generations. For example, Meta shared concepts of ‘Mirror Lake‘ AR glasses with 66 degree fields of view per eye – an almost 30% increase.
As novel display production techniques evolve, 120 – 140 degree FOV could become standard in premium enterprise AR hardware by 2026. This level of peripheral view approaches lifelike immersion and aligns with ranges targeted by Meta‘s Project Nazare headset later this decade. The expansion of high-density fields of view will directly translate to improved user performance outcomes and AR adoption.
Integrating Edge-Based Artificial Intelligence
On-device artificial intelligence and machine learning model inferencing has become integral in the broader ambient computing industry. Following this trend, future enterprise AR platforms will integrate more edge-based neural processing:
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Multimodal Operation – Using local neural networks instead of cloud offload, AR devices can deliver smoother hands-free control schemes involving eye gaze, subtle head movements, voice commands and spatial gestures. Many manual controls stand to become obsolete.
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Responsive Experiences – Executing AI workloads like computer vision analysis or workflow optimization logic on the edge rather than sending video offsite enables smart glasses to understand user intent and respond intelligently in real time. For example, step-by-step instructions could adjust automatically based on environmental factors and human behavior predictions rather than simple pre-programming.
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Secure Data Visualization – Backend systems can feed live data from various sources into edge-based microservices that output personalized 2D/3D visual overlays including dashboards, notifications, annotations and more tailored to each user‘s immediate contextual needs. This makes AR an extension of an organization‘s dynamic knowledge network while keeping source data transmission secure and compliant.
Inference-focused silicon specialized for computer vision, natural language processing, physics simulation and other key workloads will likely become standardized in enterprise-class hardware. This allows distributed artificial intelligence to power immersive interfaces symbiotically with centralized resources. Democratized access to insights is the next frontier.
Leading Contenders in Next-Generation Enterprise AR Hardware
The enterprise AR ecosystem has expanded significantly from just a handful of players a few years ago. More technology developers now vie to meet the connectivity, computing, analytics and systems integration demands of business customers.
Here we analyze hardware and platform capabilities from current front runners that aim to lead AR innovation through the next wave of maturity:
Microsoft HoloLens – The Pioneer in Enterprise AR
Microsoft has invested billions into spatial computing R&D including over $10 billion for the U.S. military‘s IVAS program based on HoloLens technology. Their devices and Azure backend services remain the benchmark for self-contained, ruggedized AR headsets purpose-built for regulated industries.
Standard IT-friendly connectivity options, advanced multimodal interfaces, AR management tools, plus robust developer resources and training for custom applications provide a turnkey AR platform already embraced by major customers like the US Army, Toyota, Phillips and more.
Shipments & Availability – Microsoft does not release exact HoloLens sales data. However, recent estimates suggest over 150,000 units have cumulatively shipped to enterprise customers. HoloLens 3 should launch in late 2023/early 2024 with expected upgrades across the board plus dedicated AI silicon.
Enterprise Strategy – Beyond pioneering in-house hardware, Microsoft partners extensively with chipmakers like Qualcomm to co-engineer reference designs for next generation Snapdragon AR platforms. They are also expanding Azure capabilities to provide robust backend analytics and services accessible to any AR device or software vendor – not just HoloLens customers.
This model has helped them secure early dominance in enterprise AR infrastructure. Microsoft blankets the full hardware stack to capture share – from their own premium headsets down to collaborating on embedded AR features in affordable off-the-shelf equipment.
Lenovo ThinkReality – Modular Enterprise AR Solutions
Partnerships between Lenovo and Motorola have yielded impressive enterprise AR headsets like the ThinkReality A3 smart glasses released in late 2019. The ThinkReality VRX model announced at CES 2022 represents their most advanced product – an adaptable industrial AR reference design ready for custom deployment.
Rather than competing solely on standalone headset specs, Lenovo‘s modular, building block approach supports add-on capabilities via attached compute packs, connectivity modules and more. Enterprise customers can start with core functionality like onboard SLAM mapping engines, spatial anchors and positioning, then stack additional assets like wireless connectivity, extended battery reserves or environmental sensors as needed.
This versatility creates opportunities to enhance productivity beyond fixed proprietary systems. It provides a bridge for companies already invested in supporting backend infrastructure to adopt AR without massive upfront costs.
Shipments & Availability – Lenovo has publicly stated they have shipped over 100,000 ThinkReality smart glasses. Variants like the A6 are already available, while the higher performance VRX ships later in 2024. Pricing will range between $1000 to $2000 for core packages before custom add-ons.
Enterprise Strategy – Lenovo positions their ThinkReality sub-brand as the fastest path to scalable enterprise AR adoption. The VRX platform establishes an ecosystem for the entire value chain of AR to build upon rather than just end-users. This helps accelerate the overall maturity of immersive hardware and software solutions tailored for industry.
RealWear – Ruggedized Voice-First Wearables
Whereas some AR headsets target white collar information workers, RealWear intentionally focuses on mobilizing underserved blue collar workers in fields like manufacturing, utilities and field services. Their head-mounted wearable displays feature hot-swappable batteries, industrial grade materials and IP65 certification for water/dust ingress protection – purpose-built for harsh conditions.
RealWear‘s voice-first paradigm allows complex hands-free control even in extremely noisy production environments. Beyond touchpads or hand gestures that may be impractical on fast-moving shop floors, workers can query data handsfree using natural language – critical for safety.
Features like noise-cancelling mics, programmable buttons and optional camera modules provide the flexibility for a range of custom interfaces. RealWear joins partners like TeamViewer to enable multi-user live video collaboration spaces accessed handsfree as well.
Shipments & Availability – RealWear has shipped over 50,000 units of their HMT wearables to date. Their latest HMT-1Z1 model starts under $2000 per unit, with bulk discounts available.
Enterprise Strategy – Rather than chasing the next major headset hardware milestone, RealWear focuses squarely on driving frontline worker productivity for major partners like Teradata, Honeywell and Accenture. This verticalized approach courts major multinational deals across targeted industry sectors, allowing profitable customer-driven iteration within clear domains.
Magic Leap – Pushing Optical and Display Boundaries
After launching one of the most hyped and best-funded AR startups postraising nearly $3 billion, Magic Leap has endured growing pains but continues aggressively driving major hardware innovations. Their upcoming Magic Leap 2 glasses due in late 2023 focus on intersecting multiple technical constraints from perception algorithms and sensors through novel photonics systems and display technology.
Magic Leap Chief Product Officer Michael Amkreutz notes they are developing dynamic depth-of-field dimming to enhance perceived focus and contrast, integrating eye tracking to enable vergence-accommodation conflict (VAC) correction, and more to enhance physiological comfort.
Expect concepts from Magic Leap‘s R&D to influence the broader enterprise AR landscape – they patent hundreds of inventions annually and stand ever on the bleeding edge. Amkreutz hinted at radically wider fields of view in future Magic Leap versions as well.
Even more tantalizingly, their partnership with startup Dimensional Photonics promises to unlock the holy grail of compact light-field holography. This technology can accurately model real-world depth, occlusion and parallax in AR imagery – far beyond what lidar sensors or neural networks can emulate. It remains extremely challenging to commercialize, but may change everything once viable.
Shipments & Availability – Given past hype cycles and inflated expectations, Magic Leap no longer gives direct shipment data. However, they have delivered several thousand units to early customers and developers. The Magic Leap 2 will target wider availability in late 2023 likely under $2500.
Enterprise Strategy – Magic Leap‘s enterprise go-to-market focuses on healthcare, manufacturing and defense/aerospace sectors needing complex AR capabilities. The AR cloud platform backing their devices delivers cross-functional digital twinning, precision visualization and training experiences surpassing most available alternatives today in technological sophistication.
Key Considerations for Enterprise AR Technology Decisions
With increasing choices on the next-generation AR market, selecting optimal solutions balancing cost, capabilities and real-world usability for a specific business needs careful evaluation across several key factors:
Environment Factors – Consider physical contexts where AR apps need to function – harsh industrial spaces with vibration/heat/moisture differ enormously from sterile healthcare sites for example. Waterproofing or chemical resistance may matter infinitely more than pure processing power for some field work applications vs office-bound use cases.
User Experience – AR interfaces live or die by learnability and intuition. Bulky complex controllers may test well but frustrate users during complex real-time tasks. Intuitive multimodal controls using some combination of headpose, subtle hand gestures and voice should be table stakes going forward as AI assistance hides complexity.
IT Friendliness – Mission-critical enterprise AR rollouts need centralized oversight and access controls. Choosing hardware/software that integrates smoothly with legacy identity, authentication and device management platforms is crucial for supportability at scale. Siloed solutions often fail compliance requirements.
Analytics Integration – Much of AR‘s enterprise magic involves seamless data visualization fed by existing business intelligence, ERP or MES systems. Quantifying ROI requires understanding legacy software workflows – so choose solutions allowing clean data, analytics and session insight piping.
Multivendor Support – The best AR platforms provide great core functionality while interfacing easily with supplementary hardware, software and cloud services. Locked-in webcams, app stores or toolchains often create headaches. Prioritize interoperability for flexibility.
Return on Investment – Even as AR headset costs drop, focus on measurable productivity outcomes versus a fixed budget. Developing internal apps and tools also incurs costs – model total cost of ownership against reasonable timeframes to demonstrate value.
The AR solutions highlighted here represent the current vanguard – but more specialization across verticals will follow. Still, 2024 stands poised as a breakout year on the precipice of escaping niche applications into wider maturity.
While consumer VR/AR gamers help subsidize critical hardware R&D, massive enterprise adoption will determine the ultimate trajectory of ambient computing interfaces. The global augmented reality market could top $450 billion by 2028 with business use cases representing over 70% of spending within the category.
Are you still struggling to build a business case for AR technology despite the tantalizing advances just over the horizon? As an expert in data strategy, analytics model development, and quantifying emerging technology ROI, I welcome any questions on preparing your organization for the coming revolution:
