Alphabet
’s
GOOGL
division Google has struck a deal to acquire a startup named Raxium to fortify its presence in the Augmented Reality (AR) market.
Raxium is a microLED company that develops tiny light-emitting diodes for augmented and mixed-reality device displays.
We believe that the latest move not only ramps up the efforts of Google in the AR space but will also add the power of micro LED to its product portfolio.
Per the report, it is looking into more potential buyouts associated with AR headset components.
We expect the Raxium buyout to raise Google’s bar against the peers like
Apple
AAPL
,
Meta
FB
and
Snap
SNAP
in the intensifying AR battle.
AR Holds Promise
AR is witnessing a rapid adoption due to the shift in consumer preferences and business needs. Several major sectors, including consumer, healthcare, retail, gaming, entertainment, construction and tourism, are using the technology to interact between the real world and 3D virtual objects in real-time.
The growing proliferation of AR-based applications globally is inducing tech giants to invest in the space.
The rising demand for AR-based hardware devices such as AR glasses remains noteworthy.
Per a report from Grand View Research, the global augmented reality market is anticipated to witness a CAGR of 43.8% between 2021 and 2028.
We note that Google’s aggressive stance on AR positions it well to capitalize on this immense growth prospect in the underlined market.
Competition Rises
Given the upbeat scenario, Apple, Meta and Snap are also making concerted efforts to rapidly penetrate the booming AR market.
Apple’s introduction of several augmented reality tools and technologies for software makers, including Object Capture, RealityKit 2 and ARKit 5, remains noteworthy.
The iPhone maker is set to release its AR headset in late 2022 or 2023 and a sleeker pair of AR glasses later.
Meanwhile, Meta is continuously putting efforts toward building metaverse, which is a futuristic idea of virtual environments, wherein users can work, socialize and play.
Meta is looking forward to setting up physical stores to introduce people to devices such as VR headsets and eventually AR reality glasses developed in its Reality Labs division.
Then again, Snap is striving to help companies take the leap into AR campaigns with its new creative studio for AR, Arcadia, which is focused on the next generation of branded AR experiences.
Nevertheless, Google’s strategic acquisitions and its AR glasses, specially designed for businesses and equipped with improved camera performance for first-person video streaming and collaboration, will continue to strengthen its market position.
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