The market for mobile augmented-reality (AR) services is expected to see a great increase during the following few years, according to a recent report from Juniper Research. The research firm notes that the services are to reach $732 million by 2014, as the revenues will be generated by paid-for application downloads, subscription-based services and advertising.

Juniper Research's Mobile Augmented Reality report shows that the annual revenues generated by augmented reality are expected to grow over $2 million in 2010, based on the fact that there will be only a small number of smartphones available with support for the technology. Even so, the rise will be significantly higher later, mainly due to the fact that Android handsets and iPhones will see a larger adoption on the market, and that AR enablers like digital compasses and accelerometers will see an even larger deployment.

AR location-based search is expected to be a source for the initial adoption of the service, yet Juniper Research forecasts that AR-enabled games will be those to deliver the first substantial revenue boosts. Starting with 2012-13, revenues from mobile enterprise solutions will be added to the equation, the research firm notes.

The AR advertising is yet another aspect that should attract a wide range of brands and retailers, as it will have the potential to increase their customer base. According to the report from Juniper Research, the AR ad networks are expected to be “able to charge higher CPC and CPM rates because of location relevance.” 350 million handsets are expected to include AR capabilities by 2014.

Even so, the report also notes that AR geotagging is another source of opportunities, yet that service providers should also consider the implications of the service. Dr Windsor Holden commented that, “The problem is that the embryonic nature of the technology means that we have no legal or regulatory framework in place which specifically covers augmented reality. For example, can a house-owner legitimately demand that a geotag of his or her property be removed? Would that third party require prior permission before creating a tag?”