US AR Users
Most surveys are a bit biased in our view as many of those willing to spend the time on surveys are doing so because they have already formed opinions on the subject andthere foire do not represent the public in general. However when we see such surveys we feel a bit obligated to present the data to investors, who then can formulate their own level of credibility, especially for some of the more narrow consumer device polls. One such survey we have come across is focused on AR or Augmented Reality, a type of system that allows the user to overlay digital oimages of objects on a live visual image. This isususally accomplished while wearing AR glases that allow the external visual image to pass through while tiny projectors and focusing optics project the digital image on the user’s eye where they combine with the actual visual image.
Rather than go through the history of AR products, we p[resent a few slices of the survey data, which profiles US consumer AR users. We note that AR applications are typically commecial ranther than consumer, at least so far, as the usefulness of AR in the commercial space is high, particularly in the design and maintenance segments, where seeing an image of a device in front of you while you are looking at one that needs to be repaired can be a godsend. Consumer applications however are a bit more limited, with directional information and product details some of the more common applications. As retailers become more familiar with AR/VR, there are more instances where consumers can look at an object, say a piece of furniture, in a store or on-line, and place it into an image of their living room or bedroom to see how it would appear. Similarly AR systems do the same foir clothing, giving the user a way to try on clothes visually.
AR systems are still evolving and are getting lighter and more natural looking, almost the same as regular glasses, so as the quality and style of AR glasses improves, we expect the consumer usage will also increase. That said, there is a big difference between what AR glasses ‘should’ look like for consumers vs. those used commercially, with the consumer challemges more difficult to achieve, so we expect slower AR growth on the consumer side until packaging challenges are solved, although they have progressed substantially over the last two years..
The survey data samsles shown below point to a number of peculiarities among US consumer AR users, most surprising are the mobile usage patterns (daily, weekly, monthly, a few times/yr, and once), all of which have declined on a linear trend line basis, which we attribute to the release of various Ar devices by Microsoft (MSFT), Google (GOOG) and Facebook (FB) over the last few years, which have not been as consumer oriented as hoped. More obvious however is the US user age profile data that shows 82% of US consumer AR users are under the age of 45, but less obvious is that50% of consumer AR users are in families having income of $50,000 or less, and only 17% of those in the $100,000+ income bracket have used consumer AR. The breakdown by gender was also a bit surprising as 46% of consumer AR users were women, higher than we might have expected.
All in, while we still see the survey data as leaning toward those that already formed opinions about the technology, we do note that we do expect that to lessen over time as more consumers become aare of the progress being made in consumer AR. The willingness of younger consumers to try AR leads us to believe that overall usage will begin to increase over the next few years, especially as the Metaverse hype continues, even though that tends to be a fully immersive experience that requires VR rather than AR. Consumer applications for logistics, such as prescription AR glasses that you could wear while driving that acted as a HUD (head’s up display) would have the ability to become viable consumer products for drivers that do not have such functions built into the vehicle as long as they are light and do not restrict peripheral vision, while those oriented toward sports applications, particularly running, could become almost as ubiquitous as common sport’s bands in the future. So while consumer user usage frequency is still light, there is still hope for consumer AR, especially given that while the commercial AR segment is willing to pay higher premiums for more specific devices and applications, the potential consumer market for AR is large and open to new entrants that can solve those issues that commercial developers are less focused on.
Rather than go through the history of AR products, we p[resent a few slices of the survey data, which profiles US consumer AR users. We note that AR applications are typically commecial ranther than consumer, at least so far, as the usefulness of AR in the commercial space is high, particularly in the design and maintenance segments, where seeing an image of a device in front of you while you are looking at one that needs to be repaired can be a godsend. Consumer applications however are a bit more limited, with directional information and product details some of the more common applications. As retailers become more familiar with AR/VR, there are more instances where consumers can look at an object, say a piece of furniture, in a store or on-line, and place it into an image of their living room or bedroom to see how it would appear. Similarly AR systems do the same foir clothing, giving the user a way to try on clothes visually.
AR systems are still evolving and are getting lighter and more natural looking, almost the same as regular glasses, so as the quality and style of AR glasses improves, we expect the consumer usage will also increase. That said, there is a big difference between what AR glasses ‘should’ look like for consumers vs. those used commercially, with the consumer challemges more difficult to achieve, so we expect slower AR growth on the consumer side until packaging challenges are solved, although they have progressed substantially over the last two years..
The survey data samsles shown below point to a number of peculiarities among US consumer AR users, most surprising are the mobile usage patterns (daily, weekly, monthly, a few times/yr, and once), all of which have declined on a linear trend line basis, which we attribute to the release of various Ar devices by Microsoft (MSFT), Google (GOOG) and Facebook (FB) over the last few years, which have not been as consumer oriented as hoped. More obvious however is the US user age profile data that shows 82% of US consumer AR users are under the age of 45, but less obvious is that50% of consumer AR users are in families having income of $50,000 or less, and only 17% of those in the $100,000+ income bracket have used consumer AR. The breakdown by gender was also a bit surprising as 46% of consumer AR users were women, higher than we might have expected.
All in, while we still see the survey data as leaning toward those that already formed opinions about the technology, we do note that we do expect that to lessen over time as more consumers become aare of the progress being made in consumer AR. The willingness of younger consumers to try AR leads us to believe that overall usage will begin to increase over the next few years, especially as the Metaverse hype continues, even though that tends to be a fully immersive experience that requires VR rather than AR. Consumer applications for logistics, such as prescription AR glasses that you could wear while driving that acted as a HUD (head’s up display) would have the ability to become viable consumer products for drivers that do not have such functions built into the vehicle as long as they are light and do not restrict peripheral vision, while those oriented toward sports applications, particularly running, could become almost as ubiquitous as common sport’s bands in the future. So while consumer user usage frequency is still light, there is still hope for consumer AR, especially given that while the commercial AR segment is willing to pay higher premiums for more specific devices and applications, the potential consumer market for AR is large and open to new entrants that can solve those issues that commercial developers are less focused on.
- Rokid Air Pro - Source: Rokid
NReal Air - Source: NReal
Mobile AR Usage Rates - US - Source: ARtiller Intellengence, Thrive Analytics
- AR User Profile - Age - US - Source: ARtillery Intelligence, Thrive Analytics
AR User Profile - Household Income - US - Source: SCMR LLC, ARtillery Intelligence, Thrive Analytics
AR User Gender - US - Source: SCMR LLC, ARtillery Intelligence, Thrive Analytics
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