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1 Introduction
This chapter consists of general introduction, current scenario and history of augmented reality. It also
identifies the major keywords used in the report.
1.1 General Introduction
AugmentedRealityisa termusedforinteractivecomputergraphicswhichoverlaysaviewof the physical
world. The trick isdone by capturingthe currentview witha camera, andinsertingcomputergenerated
contentinto the scene,so the user seesboththe real worldand the extracontent: an augmentedview
of reality. (McGrath, 2014)
AR allowsthe userto see the real world,withvirtual objectssuperimposeduponorcompositedwiththe
real world. Therefore,ARsupplementsreality,ratherthantotallyreplacingit. Ideally,itwouldappearto
the user that the virtual and real objects coexisted in the same space. (Azuma, 1997)
1.2 Current Scenario
Augmented Reality started to boom and came under lime light soon after the introduction to smart
phones. Marxent’s Visual Commerce is cross-platform SaaS (Software as a Service) designed to manage
infinite 3D products on multiple platforms. (Marxent Labs LLC, 2014)
Google’s projecttangoandmagic leap,Microsoft’s HoloLens
indicate the involvement in the AR sector. Recently, Apple
has also acquired augmented reality company: Metaio.
(Constine & Miller, 2015)
Wikitude,layarare the AR basedbrowser,providinglocation
based experiences and assisting to find various items based
upon AR technology. (CUTLER, 2009)
Automobile giant Volkswagen uses AR app called MARTA
(Mobile Augmented Reality Technical Assistance) aimed at repair technician and car dealers (Zibreg,
2013).
The Umpire Decision Review System (UDRS) is an AR based system used in cricket for reviewing the
controversial decisions made by the on-field umpires. (espncricinfo.com, 2015)
Figure 1.1 Microsoft's HoloLens (Hushen, 2015)

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1.3 Key Terms used in Report
 AR: Augmented reality,
 VR: Virtual Reality,
 Magic Leap,
 HoloLens
Figure 1.2 UDRS on Cricket (ESPN SPORTS MEDIA LTD., n.d.)

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1.4 History
The timeline below highlights the major achievements and milestones in the history of Augmented
Reality.
(Fritz Nelson, 2014)
1968
•Ivan Sutherland invented firsthead mounted display system
1975
•Myron Krueger creates Videoplacethat allows users to interactwith virtual objects for the firsttime
1981
•Dan Reitan brings AR to tv by displayingvirtual reality earth maps and abstractsymbols for
television weather broadcasts.
1990
•Term AR was coined by Boeing reasercher Tom Caudell
1992
•Louis Rosenberg develops virtual fixtures,one of the firstfunctioningAR system for the air force.
2000
•Bruce H. Thomas develops AR Quake, the firstoutdoor mobile AR game.
2004
•German reserchers brought see through AR to cell phones.
2009
•ARToolKit brings AR to Web browsers.
2011
•A team at University of Washington created a contactlens assembled with functional circuity and
LED's.
2012
•Project Glass by Google.
2013
•Volkswagen’s MARTA(Mobile Augmented reality Technical Assistance) app assists technician in car
repairing.
2014
•WearableAR makes headlines,mostly Google Glass.Innovega introduces smartcontactlenses.

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2 Background
Augmented Reality (AR) is a variation of Virtual Environments (VE), or Virtual Reality as it is more
commonlycalled. VirtualReality completelyimmerseauserinasyntheticenvironment.While immersed,
the user cannot see the real world around him. (Azuma, 1997)
The furthersectionunderbackgroundconsistsof working mechanismof AR, its types, key components
used and the application areas.
2.1 Working Mechanism of Augmented Reality
The figure belowprovidesinformationonhow ARtechnologyworksinoneof the ARintegratedHardware
i.e. HMD (Head mounted display).
Figure 2.1 Optical see-through HMD conceptual diagram. (Azuma, 1997)
The videosee-throughHMDsworkbycombiningaclosed-view HMDwithoneortwohead-mountedvideo
cameras. The video cameras provide the user's view of the real world. Video from these cameras is
combinedwiththe graphicimagescreatedbythescenegenerator,blendingthereal andvirtual.The result
is sentto the monitorsinfront of the user'seyesinthe closed-view HMD. Figure 2.1 showsa conceptual
diagram of a video see-through HMD.
(Azuma,1997)

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2.2 Types of Augmented Reality
There are twoprimarytypesof AR implementations: MarkerBasedandMarkerless.Markerless mayalso
be referred to as Location-based or Position-based AR. (Dartmouth College Library, 2015)
The brief working mechanism of these two types of Augmented Reality has been described below.
i. Marker-based
Markersworkbyhavingsoftwarerecognizeaparticularpattern,suchasabarcode or QR/2Dcode,
whenacamerapointsatit,and overlayingadigital imageatthatpointonthe screen.If the image
is(3D) three-dimensionaloranimated,the effectisof a digitalexperience unfoldingonthesurface
upon which the pattern is printed. (Ooi, 2014)
Figure 2.2 Marker based Augmented reality. (Ooi, 2014)
ii. Markerless
Markerless/Location-basedapplicationsuse the abilityof aparticulardevicetorecorditsposition
in the world and then offer data that’s relevant to that location: finding your way around a city,
naming the mountains, monuments around you or the stars in the sky. (Ooi, 2014)
Figure 2.3 Location based Augmented Reality. ( Dice UK, 2014)

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2.3 Key Components of Augmented Reality
The list below gives the core components required for buildingAR systems for both fixed and mobile
environments:
Hardware
• Computer of some form factor, either a PC or a mobile device
• Display screen
• Camera
• Tracking and sensing systems (GPS, compass, accelerometer)
• Network infrastructure
• Marker
Software
• An app or program running locally
• Web services
• A content server
(Kipper & Rampolla, 2012)

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2.4 Application Areas
Few among many application areas have been discussed under this topic.
i. Advertising
Lego stores use an AR system to provide an
animatedversionof the completedLegoset
inside the box they are holding.
(AppFutura.com , 2015)
ii. Task Support
AR for Maintenance and Repair (ARMAR) as being viable in the execution of procedural tasks in the
maintenance and repair domain. (Padzensky, 2014)
Figure 2.5 Demonstration of viability of AR for Maintenance and Repair tasks. (Padzensky, 2014)
Figure 2.4 Animated version of complete lego set. (AppFutura.com , 2015)

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iii. Navigation
City guides such as Yelp helps people find places to
eat, drink, and shop have AR capabilities that give a
user real-time visual directions to the destinations.
iv. Education
With AR students can manipulate virtual objects or
representationsof realobjectsthatwouldotherwise
be impossibletoholdaswell aslearntasksandskills.
v. Translation
An update of Google Translate also integrates Word Lens,
which instantaneously translates written text. (Pachal, 2015)
Figure 2.6 Yelp app on iOS. (Mind Vomit, 2013)
Figure 2.8 Google translate (Pachal, 2015)
Figure 2.7 Mobile AR app for education. (Santana, 2012)

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3 Analysis
This chapter analyzes Augmented Reality technology from different perspective. This includes its
advantages, disadvantages and also the analysis based on various graphs, charts and stats.
3.1 Advantages of Augmented Reality
Under this topic advantages of Augmented reality has been identified and briefly elaborated.
i. Better Navigation
Wikitude Navigation helps drivers and pedestrian in navigation with turn-by-turn GPS based guidance
usinga unique augmentedrealitydisplay.Itaddsconvenienceandsafetybenefitsof neverhavingtotake
their eyes off where they’re going. (Wikitude, 2015)
ii. Improves Education and Educational Sector
The 3D objectviewersfrom AugmentedRealityDevelopmentLab (ARDL)increasesstudent’sinvolvement
makingteachingand learningprocessmore interactive.Teachercan usedAR alongwithVR to showthe
bully, how harmful his activities are from the perspective of victim. (Kluwe, 2014)
iii. Aid those with disabilities
AR assists people with disabilities. LookTel Recognizer is an iOS apps that aid visually impaired or blind
people to recognize everyday objects. (LookTel, 2015)
iv. Being multi-modal increase Productivity
Technology like Google Glass responds to voice commands, taps, gestures or head movements. This
means that anyone from any field could use the glass for increased productivity. (Galer, 2014)
v. Helps in sports for better decision making and achievement tracking
Coaches from the German Bundesliga football club TSG 1899 Hoffenheim have tested Google Glass to
gain insights on player performance during practice helping to make better decisions. (Galer, 2014)

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vi. Provides advantage with diminished reality
Technical UniversityofIlmenau in Germanyhave developedsoftware thatcanremove objectsfromlive
videos. Forexample:Architectscanimagine whatasite will looklikeafter abuildinghasbeendemolished.
(Khanna & Khanna, 2011)
3.2 Disadvantages of Augmented Reality
This topic discusses the disadvantages of augmented reality.
i. Privacy
Maintaining privacy wouldbe much harder. Using AR facial recognition,a digital profile of an individual
can be pulled up on anyone that can be seen.
ii. Augmented Bullying and Harassment
Bully may paste a marker on the back of the victim which on viewing throughAR tech shows “Kick Me”
sign. Similarly, someone can find the nude pictures of the others who are walking by simply looking at
them through AR tech. (Gordon, 2010)
iii. Augmented Terrorism
High-profile targets could be tagged and then tracked through a crowd of any size; densely populated
areas could be monitored and shown exactly when they have reached a peak density for maximum
devastation. (Gordon, 2010)
iv. Disadvantage with diminished reality
It couldbe destructive tool forspreadingapathyinsociety. If youdon’twanttosee anyhomelesspeople
on the street,you can program the AR glass to do so,and the software will keepdeletingthe poorlying
on the sidewalks and you will never feel guilty of not helping those. (Khanna & Khanna, 2011)

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3.3 Augmented reality innovations patents
The increasingnumberof patentregistrationindicatesthe innovationsinthe fieldof AugmentedReality.
Figure 3.1 AR and Headmounted display US patent holders. (Lee, 2015)
The Sony tops the list owing over 600 patents, followed by Samsung electronics which owns 550 US
patents related to AR and HMD technologies. Samsung is followed by IBM(550), Microsoft(476) and
Google(392).The smallercompaniesinthe listamong the Tech giants: MicroVisionandKopinalsoholds
the significant amount of US patents in this area with 289 and 206 patents respectively.
Hence,itshowsthataugmentedrealityisgettingbiggerandtechcompanieshavebeen activelyinnovating
in this field.

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3.4 Augmented Reality Vs Virtual Reality Device and Revenue Forecast
With majortech giantslike Microsoft,Google,Sony,Facebook,Samsungetc.all involvedinthe latestAR
and VR revolution, it is perhaps not surprising that the market is set to explode in popularity.
Figure 3.2 AR and VR forecast by CSS Insight. (Lamkin, 2015)
Accordingtochartabove,ARandVRdevicessaleswill risefrom2.5millionthisyear(2015),toawhopping
24 million by 2018. It forecasts that the market will be worth more than $4billion.
The hardware shipmentsof VRdevicesalone willincreasefrom$2.2M in 2015 to $20M in2018. Similarly
shipments of AR devices will increase 16-fold i.e. $300,000 to $4M by 2018. (Lamkin, 2015)

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3.5 Developer Investment in AR
The graph below shows the new market forecast from ABI research on Developer investment in AR.
Figure 3.3 Developer investment in AR forecast . (Extension Media, 2013)
Developer investment in AR applications was total US$670 million in 2013. The annual amount was
expected to exceed US$2.5 billion in 2018. This application segment accounts for 68% of the developer
spend in 2013, with product enhancement and standalone apps contributing 22% and 10% of the total,
respectively. (Extension Media, 2013)

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3.6 Installed Base of Mobile Augmented Reality Apps
The chart ispublishedbyTractica,showsthe installedbase of activelyusedmobile ARappsin2015 to be
292 millionwhichwill growto2.2 billionby2019. This will representa compoundannual growthrate of
76%. (Tractica LLC., 2015)
The coloring of bars in figure 3.4 depicts the install base of AR apps in specific areas.
Figure 3.4 Install base of AR apps by application type. (Tractica LLC., 2015)

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3.7 Google trends for AR and VR
Figure 3.5 Google trend for AR (blue) and VR (red). (Google.com, 2015)
The above chart showsthe google trendforAR (blue) andVR(red).Itcouldbe seenthat the popularity
of the AR surpassedVRform2009 andcontinued until mid-2014.It isparticularlydue tothe Google
glass. The rise of Oculusriftanddownfall of Google glasswasthe majorfactor for the boostinVR
popularityanddecrementinARinterest.
The figure 3.6 showsthe google trendsforGoogle glass(blue)andOculusRift(red) whichsupportsthe
statementmentionedabove.
Figure 3.6 Google trend for Oculus rift (red) and Google glass (blue) (Google.com, 2015)

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3.8 Augmented Reality in Marketing: Compelling Statistics
Here beloware the fewconcreate example of how augmentedreality ismakinganimpactacross various
industries.
i. 8.5 Million Downloads
The IKEA in 2014 launchedAR basedmobile appfor its product catalog, which quicklygained popularity
and has since yielded over 8.5 million downloads. (Oser, 2014)
ii. 152% sales boost
Withthe launchof ARbased mobile appforstreetguide,The SunshineAquariuminTokyo yieldeda152%
boost in ticket sales entirely as a result of the application. (Oser, 2014)
iii. Sales Rise $50 Million
Sales reps uses in Mitsubishi Electric uses the AR based mobile app to let customers visualize air
conditioningunitsinvariouslocationsof theirhomes. Thishas reporteda50 milliondollarboostinsales
in response to the success of their mobile AR application. (Oser, 2014)

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4 Conclusion
This chapter concludes the report with critical evaluation and future escalation of the topic.
4.1 Critical evaluation
Based on the graphs and charts presented in the analysis chapter, it is expected AR, VR market would
heavilygrowby2020. ARbeingone of the mostpromisingtechnologiesisgainingitsimportance invarious
fieldsof application withitsmulti modal support.Whereas,VRcurrentlyseemstobe constrainedwithin
Gaming and entertainment.
From the perspective of current giants, there are pluses and minuses. Facebook placed an early bet on
Oculus, which might win VR but not address the larger AR market. Google learned from Glass, and had
the foresighttoinvestin MagicLeap.HoloLenscouldallow Microsofttoregainthe gloryitlostto Applein
the lastdecade (DIGI-CAPITAL,2015). Apple acquiringMetaioowning171 patentsworldwide (Eadicicco,
2015) and hiring of an audio engineer form Microsoft’s HoloLens gives the clear insight that Apple’s
starting to build out its AR initiative (Sullivan, 2015).
Since the development of first head mounted display in 1968 to the failure of google glass, AR have
continuously making the headlines.Different companies stepping up in AR, VR tech are competing each
othertomake the betterproduct.Inthe contextof Nepal,particularlyyouthsare keenlyinterestedtoget
handson experience withOculusRiftandHoloLens. Hence, thistechnologyhasable to grab attentionof
people from all over the world.
Even though AR may assist in differentareasbut it couldalso become handyfor notoriousactivitieslike
privacy breaching, harassment etc. This could be the major challenge which needs to be address
sensitively.
4.2 Future escalation
It is very obvious that AR is a big business and growing every year. The future for AR is immense.
It is expected that by 2016 the revenue for AR technology will be more than 600 billion dollar and 2.5
billionARappswill be downloadedontosmartphonesandtabletsby2017. ( the digital marketingbureau
, 2015)
Similarly by 2020, 103 million automobiles will contain AR technology. ( the digital marketing bureau ,
2015)
Microsofton collaborationwithNASA have developsoftware called OnSight, enablingscientiststowork
virtually on Mars using HoloLens. (NASA/JPL-Caltech, 2015)
Facebook’s CEO Zuckerberg has also confirmed that the instead of working only in VR, they will also
engage themselves with AR technology. (Amber, 2015)
Niantic is preparing to launch location based AR game: Pokémon Go which has secured $20M funding
from Google, Nintendo and The Pokémon Company.

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