For the full video of this presentation, please visit: http://www.embedded-vision.com/industry-analysis/video-interviews-demos/opportunities-and-hurdles-embedded-vision-augmented-reality For more information about embedded vision, please visit: http://www.embedded-vision.com Sam Rosen, Vice President at ABI Research, delivers the presentation "Opportunities and Hurdles for Embedded Vision in Augmented Reality" at the September 2016 Embedded Vision Alliance Member Meeting. Rosen shares highlights of his firm’s research on augmented reality market opportunities.

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1
Opportunities and
Hurdles for
Embedded Vision in
Augmented Reality
Sam Rosen
Vice President
September 20, 2016

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Agenda
 Device Classes
 Augmented Reality & Virtual Reality Device Shipments by Device Type
 Augmented Reality Use Cases & Vertical Segmentations
 Augmented Reality Value Chain
 Evolution of Augmented Reality – Augmented Vision

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3
Device Classes
Tablet
based AR
Smartglass
based AR
Mobile and
Standalone
VR
Tethered
VR
Immersion – in enterprise and consumer settings

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4
AR & VR Device Shipments by Device Type (Millions)
0
10
20
30
40
50
60
70
80
2016 2017 2018 2019 2020 2021
AR Smart Glasses VR Standalone
VR Mobile VR Tether
Source: ABI Research, MD-ARVR-102, Table 3

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5
Logistics
Training and
Education
Remote
Collaboration
Remote Field
Work
Navigation Marketing
Augmented Reality Use Cases Sample

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6
$114 Billion AR Market (2021)
Hardware + Software/Services
Revenues driven by:
• Revenues are split 41% to 51% for software/services and hardware, respectively (with other revenues
accounting for 8%)
• By vertical the top three contributors are; Industrial at 33%, Healthcare at 19%, and Government & Military at
11%.

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7
AR Verticals, Use Cases, and Applications
Enterprise
Healthcare Industrial Education
Government
and Military
Retail,
Commerce,
and Marketing
Other
In-Surgery
Consultations
Training
Consumer
Augmented Reality
Educational Institutes
At-Work Training
eCommerce
Marketing
UAV Piloting
Architecture
Transportation
Factory Floor
Remote Field Work
Automation
Training
School
Fire
Police
Military
Security
Tourism
InsuranceLocation-based
Administration
Workflow CreationWorkflow Creation
HUDs
Digital Signage Digital Signage
Navigation
Planning
Points of Interest
Creative

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8
Augmented Reality
Vertical Segments
• Augmented Reality is driven by
industrial (energy, logistics,
manufacturing, etc.), healthcare,
and government/military
verticals
• Total AR Market Revenues by
Vertical, shown to the right
(2021: market size $114B)
Education
5%
Gaming
2%
Healthcare
25%
Industrial
41%
Media &
Entertainment
1%
Government &
Military
16%
Retail, Commerce,
and Marketing
3%
Transportation
2%
Tourism
2%
Telepresence
2%
Other
1%
Source: ABI Research, MD-ARVR-102, Table

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9
Augmented Reality Value Chain
Example Players
System Integration
Suppliers Hardware Platform Development Application
Value Added
Reseller
Value Added Services
Cloud
Backend
Infrastructure
Maintenance Analytics
Device
Management

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10
Augmented Reality Market
Revenue by Category
• Software and content (which will
span industry verticals) have
significant room for growth
• Total AR Market Revenues by
category, shown to the left
(2021: market size $114B)
Smart Glasses
Hardware
41%
Enterprise
Software and
Content
14%
Consumer
Software and
Content
12%
Non-Smart
Glasses HW
10%
AR Advertising
15%
Other
8%

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11
Augmented Reality Evolution
1.0 -> 2.0

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12
Augmented Reality 3.0
 Greater reliance on Mixed
and Merged reality
technologies (via improved
depth perception, etc.)
 Integration with Robotics
– such as military drone
piloting or oil rig control
of a submarine from the
surface, etc.
 Deeper IoT integration,
feeding data back to AR
devices specializing in data
visualization

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13
Augmented Vision

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14
Technology Components
• Sensors • Processing
Architecture &
Performance
• Displays
• Algorithms • Power • Network
+ &
LCD
LCoS
DLP
Si OLED

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15
Sensors
• 3D objects/text overlaid on
camera view
• Typically not hands free
• Lower cost option if tablets
already used by enterprise
• Large touchscreen allows for
more variety of applications
• Other sensors could include:
Magnetometer, Altitude
Sensor, Humidity Sensor,
etc.
Capacitive
Touch panel (UI)
Camera Accelerometer
Gyroscope
Etc.
Camera
Capacitive
Touchscreen (UI)
Accelerometer
Gyroscope
Etc.
Depth-Sensing
Camera +
Motion/Gesture
Control (UI)
Accelerometer
Gyroscope
Etc.
Voice Control (UI)
• Can be used mostly hands
free (still use touch panel)
• Lightweight, particularly if
monocular HMD used
• Digital images overlaid over
visual space
• Sensor packages similar to
tablets
• Can replace touch entirely to
go completely hands free
(voice + gesture/motion)
• Can make more precise
measurements.

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16
AR Across a Spectrum
Moving from Mobile adds value, but only sometimes
Entry Level Head-worn ARMobile AR High-end Head-worn AR (Mixed Reality)
Workflow Creation
Marketing
Factory FloorGaming
Education
Location-Based
EnterpriseConsumer
Factory Floor
Remote Work
Insurance
Administration Gaming
Data Visualization
Home Office
In-Surgery
Remote Work
Data Visualization
Government/Military Workflow Creation

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17
Processing Architecture & Performance
• Processing: due to Android’s ubiquity
most current architectures are mobile
centric
• 2.0 – mobile SoCs – TI, NVIDIA,
Qualcomm
• 3.0 – Add HPU (holographic
processing unit) or specialized
chips/processors
• Bridge gap in HMD and software
performance to meet expectations
• Machine vision, indoor positioning, etc.
coming in later generations
Vuzix m300
Android 6.0
Vuzix m100
Android 4.04
ODG R-7
Android 4.4
Atheer AiR Glasses
Android based AiR OS
Daqri Smart Helmet
Epson BT-200
Android 4.0.4
Epson BT-300
Android 5.1
Microsoft Hololens

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18
Displays
Heads-Up Display (HUD)
Head Mounted Display (HMD)
• Provides overlaid information
at fixed points of reference
(does not follow the viewer’s
gaze)
• Military and Automotive are
heaviest users – could extend
to larger viewable areas (e.g.
windshield+) • Provides overlaid information
in the orientation of the HMD
or user’s gaze (e.g. uses eye
tracking – “remote gaze” can
focus on what viewer is
looking at, for see what I see)
• Monocular and binocular
configurations – monocular
currently lighter, more power
efficient, and more
comfortable to wear for longer
period of time.
Virtual Pace/ghost
Car to Follow
Projected image
to “see through”
A-pillars

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19
Power
External Battery
Self-Contained HMD
• Provides longer service, but
comes with a cost to ergonomics
(extra weight, wires, etc.)
• Some battery packs include a
touchpad/remote to enhance user
experience
• In cases where external batteries
are not a problem ergonomically
they are optimal solutions for
more advances/full features
HMDs.
• Self contained could provide more
ergonomic solution, but battery life is
an issue – favors monocular HMDs
(battery and ergonomics – e.g.
lighter, obscures less of field of view,
etc.
• Additional weight and could limit
ergonomics
• Flexible batteries expand capacity
and fit in different form factors
• Wireless charging could enhance
charging experience – wire-free is a
longer term possibility

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20
Network
On person (PAN)
IoT & Remote Devices (LAN/WAN)
• Bluetooth & Wi-Fi to connect
mobile devices – peripherals
are not a significant factor
now (more about hands free)
but could play a role in some
applications
• 802.11ad/WiGig – for high
end use cases WiGig could
enable external processing
while maintaining a wire-free
use case (like untethered VR).
This arrangement could also
improve battery-life.
• Data transmission – inventory,
video feeds (see what I see),
training/walkthroughs, etc.
• 4G LTE for remote
connectivity - not common
today but cellular network
connectivity will increase as
applications extend beyond in-
house operations
• Wireless display
applications could also
benefit applications where
machines are remotely
controlled (with vision)

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21
Vision Applications
Complexity
Time
Reading
Instrumentation &
Maintenance
• Object
Detection
• 2 way
communication
• Fault detection
3D Spatial
Mapping
• Interior design
• Arch.
measurements
• Construction
Navigation &
Security
• Object/Facial
detection
• Location
• Multiple
targets,
uncontrolled
environments
Facial & Object
Detection
• Pick & Pack
• Inventory
Management
• Personnel
identification
Surgery
• Training first
• Requires more
rigorous testing
• Life & Death
• Complexities and
individuality of
human anatomy
Military
• Multiple targets
• Identification
(friendly vs.
hostile)
• Location & squad
management
• Visual
augmentations
(e.g. IR)
• Life & Death