Augmented Reality (AR) doesn’t simulate an entirely new environment, but rather overlays digital elements onto your natural field of vision.

AR is often experienced with a Head Mounted Display or smart eyewear, with devices in the latter category being introduced this year from many of tech’s most dominant firms. (See also: The Decade of Connected Eyewear) Following a $480 million contract with the U.S. military, Microsoft is developing the Integrated Visual Augmentation System (IVAS), a custom device based on the company’s Hololens 2 mixed reality product. This one is for soldiers to use in training and in combat.

AR has incredible valuable market potential, with applications across the military, healthcare, engineering, and entertainment industries, to name a few. Be on the lookout for significant investment in the space, due to growing demand for its practical applications.

We expect AR’s adoption and value to eclipse VR over the next few years, especially as smart eyewear grows in popularity among consumers for everyday use.