While consumer-focused companies work to develop smart glasses, Microsoft (MSFT) and Vuzix (VUZI) are making great strides with augmented reality headsets for corporate applications. These developments could pave the way for future consumers of AR glasses.
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Vuzix, maker of AR Pure-play headsets, has seen its stock soar in recent months, after a flurry of ads and positive comment from analysts.
Microsoft announced on March 2 an augmented reality platform that combines its HoloLens AR headset with its Azure cloud computing infrastructure for virtual meetings. The platform, called Microsoft Mesh, creates immersive experiences by integrating people, places and content in the physical and digital worlds.
Meanwhile, rumors persist that Apple (AAPL), the Facebook (FB), Alphabet(GOOGL) Google and other competitors are developing smart AR glasses.
Smart glasses called ‘paradigm shift in computing’
Augmented reality glasses are considered the next big computing platform after smartphones. Many of the features of smartphones can shift to screens and equipment worn on the head, analysts say. This includes making and receiving calls and text messages, getting instructions and other applications. More advanced AR smart glasses can superimpose information about people and objects into the user’s field of vision.
ABI Research estimates that the augmented reality market will exceed $ 140 billion by 2025. This includes hardware, software and headset services. The market today is mainly focused on the company. Last year, the augmented reality headset market generated less than $ 10 billion in revenue.
“In companies, this technology will be everywhere in the future,” Vuzix Chief Executive Paul Travers told Investor’s Business Daily. “This paradigm shift in computing is going to impact the world in an incredible way.”
Pandemic Stimulates Business Interest in Augmented Reality
The Covid-19 pandemic has sparked interest in augmented reality headsets for remote assistance and training, Eric Abbruzzese, director of research at ABI Research, told IBD.
“Interest has skyrocketed,” he said.
With built-in cameras, AR headsets allow remote support personnel to see what an on-site worker is seeing. And local employees can get visual guidance from monitors that are lateral or overlapping in their field of view.
The main corporate markets for AR headsets include medical, automotive, manufacturing, architecture, engineering and construction.
The main suppliers of corporate headsets are Microsoft, RealWear and Vuzix, said Abbruzzese.
Changing the test phase for wider deployments
Companies are beginning to move from the testing phase to broader implementations of the technology, he said. Implementations have been slowed down by the fact that the technology needs to be customized for specific sectors and individual companies, said Abbruzzese.
Most companies are using augmented reality headsets with monitors. These smart glasses provide a bright screen that workers can refer to when repairing or maintaining the equipment. It’s like “YouTube videos to fix steroids,” said Matt Margolis, Vuzix’s director of business development and strategic relationships, to IBD.
Next-generation smart glasses will provide transparent displays that overlay layouts and other data in a person’s field of view. Vuzix is planning to launch next generation smart glasses aimed at consumers later this year.
But Apple and other companies also have projects in the smart eyeglass market. They are waiting for improvements in battery and screen technology before entering the market.
Apple Smart glasses can combine device functions
Apple likely sees smart glasses as a way to combine features of the Apple Watch branded smart watch and AirPods wireless headsets into a single product, said Abbruzzese. The device can provide visible telephony and notifications, as well as voice music controls or simple touches or gestures.
“If there is one company that can accelerate the market, it is Apple,” said Abbruzzese.
Until then, enterprise applications will dominate the augmented reality market, he said.
Investor interest was also sparked by the promise of smart glasses.
Microsoft, Vuzix making waves in augmented reality
At its Ignite conference on March 2, Microsoft demonstrated its HoloLens device being used in surgery, industrial training and remote collaboration. Its Mesh service will allow people to meet holographically with co-workers and interact with 3D models and other content.
Half of the Fortune 500 companies bought HoloLens 2 headsets, said Alex Kipman, a Microsoft technology researcher, at Ignite. The headphones, which went on sale a year ago, start at $ 3,500.
HoloLens’ customers include Airbus, Lockheed Martin, Mercedes and Toyota, said Kipman.
Meanwhile, Vuzix shares have skyrocketed since leaving a canopy base at a 5.41 point of purchase on December 15, according to IBD MarketSmith charts. It reached a historical record of 26.08 on 2 March. ARK Invest and State Street have accumulated considerable stakes in Vuzix shares recently.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software and semiconductor stocks.
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