Augmented reality cost: key factors and real-world examples

A number of variables, such as project complexity, technology selections, and content creation needs, affect how much augmented reality app development costs. Here are the top factors that influence the cost of augmented reality development.

This factor can have a big impact on augmented reality app development costs. There are two major types of augmented reality:

While essentially there’s little cost difference between the two pure types of AR, augmented reality app prices begin to rise for different combinations of AR technologies.

For instance, many SLAM-based apps also use location-based AR technology that relies on data from GPS, compass, accelerometer, gyroscope, or other sensors to add more geolocation context.

Marker-based apps can also be fused with location-based technology to display different AR content in different locations using the same marker. An example here would be an AR-powered brochure of a car maker that shows the user the address of the nearest dealership depending on their location.

On top of that, your app may need advanced AR software, like object tracking for marker-based AR or occlusion handling or multi-user experiences for markerless AR, which will drive up the cost of augmented reality development. The more complex its functionality is, the more time and niche skills the coding will require.

Even a team working on a simple mobile AR app will need experience in 3D modeling and professional-level knowledge of popular SDKs, apart from native/cross-platform mobile development expertise. If you want WebAR that takes users to AR content via a hyperlink, be prepared to spend a few more coins. Though definitely trendy, this technology is new and has technical limitations, requiring top expertise for creating smooth augmented reality experiences.

Similarly to virtual reality solutions, creating 3D content is a huge challenge for many AR projects, which directly affects the cost of augmented reality app development and can make it a pricey affair. In fact, AR content can account for more than two-thirds of your total project budget, particularly for apps that require detailed, high-quality 3D graphics.

If your project is relatively simple, you can save augmented reality costs by purchasing ready-made 3D models from platforms like 3DExport, TurboSquid, or Sketchfab.

However, it is frequently required to create original 3D models from scratch for more complex applications, especially those that are suited to particular business demands. This is particularly true for sectors like engineering and manufacturing, where models need to faithfully depict complex products or machinery.

AR content producers frequently utilize the following tools to create these unique assets:

Advances in photogrammetry and AI-driven 3D model development have started to change the AR content creation landscape in recent years. AI-powered tools can automatically create 3D models from 2D pictures or movies, expediting processes and cutting down on development time. For instance, platforms like Polycam and Luma AI allow businesses to scan objects with a smartphone to create AR-ready models quickly and affordably.

Photogrammetry, which captures high-resolution 3D images using overlapping photos, is another cost-effective option for producing realistic models, particularly for ecommerce applications or virtual try-ons. Even though they can’t yet fully replace traditional 3D modeling, these technologies are getting easier to use and can drastically reduce expenses for projects that need a lot of models.

Companies in the entertainment, sports, or educational sectors might improve augmented reality experiences by producing volumetric movies, which are 3D holograms of actual people. Even though this technique is still very costly because it requires specific hardware and software, advancements in the field are progressively lowering prices and opening up volumetric video production to a wider audience.

Overall, it takes from one to three weeks for a 3D artist to create one 3D model, costing between $2,000 and $6,000.

An important thing to understand here is that AR content can use more than two-thirds of your total augmented reality project budget if your AR system requires top-notch 3D content.

Additional functionality increases augmented reality app development costs.

If your library of 3D models is going to be bulky, you should put aside money for building a custom content management system. For instance, you’ll have to manage a lot of content if you are a bird protection society that wants to publish and update dozens of AR-based fundraising brochures featuring a variety of animated species in different locations and in different seasons. The problem with AR content management tools available in the market is that they don’t allow easy customization or scalability.

Implementation of additional features like payment gateways, sound effects, or chats can add at least one week more to your project timeline, increasing the price tag of your AR app.

Integrations can also make up a substantial component of your augmented reality cost. They should be factored in if your idea is to integrate AR content into your existing products. Or you might want to create interactive experiences through voice or gesture recognition where integrations with third-party services might be necessary.

And don’t forget about the personalization of your AR content if you want to deliver individually tailored experiences like greeting users by their name or playing their favorite tracks as background music. It will increase your augmented reality cost as well.

The choice of AR tech stack will also significantly influence the cost of augmented reality app development.

AR SDKs that offer sets of tools and frameworks for creating AR apps range from free to commercial licenses. Well-known platforms in the sector include Vuforia, 8th Wall, and Wikitude; their monthly commercial licenses range from $99 to $1,990. These platforms are a fantastic option for complex AR projects since they provide strong capabilities, including extended tracking, picture recognition, and object tracking.

However, recent SDKs like ARKit for iOS AR development and ARCore for Android AR development have become more popular because they work well with mobile operating systems and can use the hardware of the device to make AR experiences run quickly. Both ARKit and ARCore are free to use and come with features like motion tracking, light estimation, and environmental comprehension. This makes them a perfect fit for companies seeking to lower license fees without sacrificing the availability of powerful tools.

When selecting between open-source and commercial SDKs, it is crucial to evaluate the trade-offs regarding capability, pricing, and scalability.

Because they are extremely configurable and free, open-source SDKs are perfect for companies with constrained budgets. However, they may necessitate additional development effort and skill to integrate sophisticated features, which boosts the initial augmented reality expenditures in terms of developer hours.

Commercial SDKs are more costly, but they frequently offer comprehensive documentation, technical support, and ready-to-use additional features. Timelines for development can be greatly accelerated by this, particularly for companies with minimal internal AR knowledge.

Advanced capabilities like object tracking, occlusion handling, or extended tracking are frequently required for most apps that go beyond basic animated 3D AR postcards or business cards. Therefore, a commercial platform may be preferable to developing unique features from scratch with an open-source library.

Finally, the optimal SDK for your project will be determined by the platform (iOS, Android, or web), feature requirements, and budget. Evaluating your requirements and engaging with AR professionals can help you select the best technology stack for your project.

A builder of yachts has approached ITRex to create a 3D model of a luxury high-performance yacht around 50 meters afloat for demonstration to potential buyers, yacht charter services. Their idea was to show the technical capacity and exterior designs of the yacht on the water.

Using SLAM and location-based AR technology, we’ve built a high-precision life-size 3D model that is retrieved by viewers upon pointing a camera to the harbor.

A key challenge in this project was to build a realistic 3D model based on an engineering design provided by the client and resolve lighting issues to seamlessly insert the AR content into the scene.

Overall, this type of an augmented reality app will cost you between US$43,000 and US$98,000, taking two or three months of development.

Our client in this AR project was a provider of visualization and marketing services in the real estate industry. They wanted to build an AR/VR solution for real estate firms to help them increase sales through engaging interactive tours of properties they offer.

Apart from VR functionality delivering immersive 360-degree tours of projects, the mobile app we’ve built uses markerless augmented reality. This technology displays compelling 3D models of buildings on any surface, like a table or the floor. It also gives virtual representations of floor plans and allows rotating and zooming in models for viewing details.

Creating the high-precision 3D models from scratch, along with a custom content management system that enables updates in the property listings, was perhaps one of the biggest challenges in this project. These efforts took about 80% of the total augmented reality cost.

Due to the custom content management functionality, cost and time estimates for such AR solutions will be higher than above: around US$131,000 and four months, respectively.

To delight customers and reduce human interactions with the onset of the COVID-19 pandemic, an electronics retailer turned to ITRex AR experts for assistance with creating an AR solution that would enable consumers to retrieve AR-powered information about products on the go.

The platform we’ve built uses WebAR technology, unlocking access to product details and best deals in AR through a web browser. A customer only needs to open the retailer’s site, click a link, and point their camera on displays to get the information.

An in-built AI chatbot communicating through voice provides accurate responses to customers’ product queries in real time without the need for them to interact with living consultants.

A significant part of the AR development focused on creating custom WebAR object tracking. Additionally, the team built an enterprise-grade content management system that allowed the client to manage AR content across multiple stores and quickly update it when new products were released.

The cost of such augmented reality apps can start from US$200,000. Their development takes around six months.

Augmented reality is viewed as a technology still in its infancy but with a very bright future ahead.

AR is already pushing new frontiers in healthcare, engineering, and live events, the industries where the highest growth in revenue from AR solutions is expected in the next couple of years. Also, we should prepare for AR advances in retail and education as companies are struggling to deliver unique and engaging experiences to younger, tech-innate generations and provide remote cooperation options.

In 2023, the global AR market was valued at approximately USD 62.75 billion. It is projected to grow from USD 93.67 billion in 2024 to USD 1,869.40 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 45.4% during the forecast period.

Since augmented reality exploded in popularity with the Pokémon Go launch in 2016, we’ve barely scratched the surface. This will change, as AR technologies are advancing and becoming pretty much affordable today.