The global augmented reality (AR) market was worth nearly $7 billion in 2020. The market is expected to grow at a CAGR of 36% during the forecast period. Â AR is a technology that allows the user to see the real world overlaid with digital data. Artificial intelligence (AI) and AR-enabled inspections as a service platform have allowed insurers to carry out remote inspections during the COVID-19 pandemic. They will continue to streamline the claims process, saving on travel costs and time. AR enables underwriters to simulate real-life disasters, such as flooding or landslides, and estimate potential damage. Importantly, AR glasses can improve onsite safety for inspectors and specialists by allowing them to record information hands-free, overlay notes on their field of vision, and easily communicate with other team members. Insurers can use AR to create interactive advertising campaigns and entertaining in-app services to attract younger customers and fend off insurtechs.
AR market overview
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What are the value chains of AR market in the insurance industry?
The value chains of AR market in the insurance industry are semiconductors, components, devices, platforms, and apps and content.
Semiconductors
Semiconductors are one of the key battlegrounds in AR today. Chipmakers are now striving to improve their existing capabilities to suit the evolving requirements of AR, mostly around screen resolution, frame rates, processing speed, and connectivity.
Components
Much of the major action in AR components is around 3D sensors, cameras, audio, displays, and batteries. These components come together for positional tracking, motion tracking, gesture recognition, and machine vision.
Devices
AR-enabling hardware comes in various forms, including smartphones, eyewear, and AR headsets. For consumer AR applications, smartphones are the most used platform, while enterprises typically prefer AR headsets and AR smart glasses, which offer a broader range of functions.
Platforms
Building an AR ecosystem by incorporating both hardware and software is essential for the long-term success of any company in the AR market. The five prerequisites for a successful AR ecosystem are APIs and SDKs, AR engines – games, AR engines – enterprise, AI, and application delivery networks (ADNs) and content delivery networks (CDNs).
Apps & Content
Content is a major area of concern for AR companies. Enterprises are an increasingly important area of focus for AR companies. Media houses and ecommerce companies have been early adopters of AR, while the technology is also used by healthcare, engineering, and military organizations. Microsoft, PTC, Deloitte, McKinsey, and Accenture are investing in AR development platforms to support firms through the AR implementation process.
What are the key insurance companies associated with the AR theme?
The key insurance companies associated with the AR theme are Allianz, AXA, Tokio Marine Holdings, USAA, and Zurich Insurance.
Allianz
They partnered with SightCall to allow its adjusters to carry our remote, real-time video assessments of claims damage to digitalize and streamline the claims process. It also created an interactive AR installation to further brand engagement and raise awareness of potential household risks.
AXA
They have explored using Microsoft’s HoloLens headsets to overlay digital environments on a designated area to help clients and underwriters visualize and assess risk. AXA has also partnered with SightCall to digitalize more of the claims process.
Tokio Marine Holdings
They partnered with SightCall to use AR-enabled video calls to digitalize and streamline the claims process. It also released a smartphone AR game aimed at university-age consumers.Â
USAA
They are exploring the use of AR smart glasses by field adjusters to aid collaboration with a remote team, saving travel costs and time. It has also created an AR-enabled smartphone app that overlays price and insurance information on cars.
Zurich Insurance
They have been integrating AR into its training programs since 2015. Employees can use their phone camera and a specialist application to explore posters, or learning cards, which then display further information, a video, or an online course. Zurich Insurance is also exploring the use of AR smart glasses among risk engineers and onsite specialists.
Who are the specialist AR market vendors in the insurance industry?
The specialist AR market vendors in the insurance market are AiBorne Tech, Blippar, and SightCall.
AR Market Report Overview
| Market size (2020) | Nearly $7 billion |
| CAGR | 36% |
| Forecast period | 2020-2030 |
| Value chains | Semiconductors, Components, Devices, Platforms, and Apps and Content |
| Key insurance companies | Allianz, AXA, Tokio Marine Holdings, USAA, and Zurich Insurance |
| Specialist AR vendors | AiBorne Tech, Blippar, and SightCall |
Reasons to Buy
- Position yourself for success by understanding the ways in which AR can help to solve the major challenges for the insurance industry, such as COVID-19, ESG, and insurtech.
- Source the leading and specialist vendors of AR technologies for the insurance industry. Discover what each vendor offers, and who some of their existing clients are.
- Quickly identify attractive investment targets in the insurance industry by understanding which companies are most likely to be winners in the future based on our thematic scorecard.
- Gain a competitive advantage in the insurance industry by understanding the potential of AR technologies in the future.
Key Players
Table of Contents
Frequently Asked Questions
The global AR market was worth nearly $7 billion in 2020.
The global AR market is expected to grow at a CAGR of 36% during the forecast period.
The value chains of AR market in the insurance industry are semiconductors, components, devices, platforms, and apps and content.
The key insurance companies associated with the AR theme are Allianz, AXA, Tokio Marine Holdings, USAA, and Zurich Insurance.
The specialist AR market vendors in the insurance market are AiBorne Tech, Blippar, and SightCall.
