The number of consumer mixed reality (MR) app installs across smartphones, tablets and smart glasses will jump seven billion in the next five years, Juniper Research has predicted, rising from three billion in 2019 to 10 billion by 2024.
➨ Social media and games are the key app categories that will drive adoption
➨ In-app purchases will drive 75% of the value of the consumer MR market
➨ Advertising spend will reach $11 billion by 2024, up from $2 billion in 2019
The market intelligence firm’s new research, Consumer Mixed Reality: Emerging Opportunities, Vendor Strategies & Market Forecasts 2019-2024, identified social media and games as the key app categories that will drive adoption. They will account for more than half of the global MR market value by 2024.
In-app purchases will drive 75% of the value of the consumer MR market, according to Juniper Research, but it will suffer from the high app abandonment rates currently experienced in the wider ecosystem.
To reverse this trend, Juniper Research urged MR app developers to continually update offerings over the lifecycle of the app to ensure that the user proposition is maintained.
Research author Sam Barker continued: “Despite temptations to continually grow the app user base, app developers must have a primary focus on retaining existing users. Successful mixed reality app developers, Niantic and Snap, have continued to leverage their significant user bases by ensuring that app content is consistently refreshed, therefore benefiting from continued user spend.”
Advertising spend will be significant in the consumer MR app market, with Juniper Research expecting it to reach $11 billion by 2024, up from $2 billion in 2019.
Advertising over MR content will only become appealing to high spending advertisers if processes mirror those in the wider market, according to Juniper Research, although over-exposing users to adverts risks significant disengagement.
The research follows last month’s prediction that the global value of the mobile MR market will exceed $43 billion by 2024, rising from $8 billion in 2019.