Augmented reality cost: key factors and real-world examples

In augmented reality, people use cameras of their mobile phones or tablets, or smart glasses to see virtual objects superimposed on the physical world. Most AR solutions today are designed as mobile AR apps. However, the rise of WebAR should change this trend, as it makes AR experiences accessible from a web browser, with no app downloads needed. Head-mounted displays and smart glasses are expected to be the next megatrend. The cost of developing your augmented reality app will depend on your business idea and what it needs in terms of technologies, skills, and time to become a reality. Specifically, ITRex AR/VR Leader Vasil Tarasevich highlights the following key factors that usually influence augmented reality cost:

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

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. If you are after something simple, you can buy ready-made 3D models for a small fraction of the cost at sites like 3DExport or Turbo Squid. In our experience, however, more than 50% of AR systems require creating unique 3D graphics from scratch to suit individual business needs. This is also a very common case with industrial giants. They might have a 3D product design ready at hand, but what they usually provide is a model worked out to the smallest screw, which makes its repurposing for AR experiences too complicated. Or, if your company is in entertainment or sports, you might want to make a volumetric video that records a person three-dimensionally to reconstruct their hologram. This technology, dubbed the next evolution in making video, is also used to bring living experts into the classroom or a corporate or industrial environment for employee training. Overall, it takes from one to three weeks for a 3D artist to create one 3D model, costing between $1,000 and $3,000. If you need to build many 3D models, for instance, for products sold on your eсommerce site — a project worth considering with the rising popularity of virtual try-on technology — 3D scanning will save you some money. 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 3D content.

Additional functionality increases the cost of developing an augmented reality app. 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 influence your augmented reality price. AR SDKs that provide packages of software tools and libraries can be free or paid. The best-fit SDK for your project will depend on the platform and features of your app, including its recognition and tracking requirements. Vuforia, Kudan, and Wikitude are probably some of the most popular platforms, with commercial licenses ranging from $99 to €1,990 per month. For most apps more complex than an animated 3D AR postcard or business card, you are likely to need advanced features, such as object tracking or extended tracking. In this case, a paid platform will be a better option than customizations built from scratch using an open-source library.

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. According to a recent report, the global AR market is forecast to grow from $12.56 billion in 2020 to $85.47 billion by 2026 at a double-digit CAGR of 37.66%. 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.