How Much Does Augmented Reality App Development Cost in 2023?

Augmented reality broadens the borders of the real-world environment and opens new business opportunities. According to research by Digi-Capital, AR could surpass $70-75 billion in revenue by 2023, while the revenue for VR could be around $10-15 billion. The numbers speak for themselves.

AR’s popularity and forecasts of its growth should motivate entrepreneurs to consider developing an AR app to create a digital business. If you are among those who have ever contemplated this possibility, then you’ve probably thought about augmented reality app development cost as well.

In our article, we uncover the basics of AR development, talk about how to create augmented reality apps, and answer the question regarding AR costs. After reading, you will be able to estimate your budget and the time needed for AR app development.

AR App Development: Insight into the Technology

The concept of augmented reality is relatively mature, as it was developed in the 90s. However, only with the rise of computers have augmented reality applications really become ubiquitous – for businesses and end users alike.

Before discussing augmented reality app development cost, let’s dive into the concept of AR development.

How Does Augmented Reality Work?

How AR Application Works

Before moving to more complex notions, we need to understand what augmented reality stands for and what AR development is.

Augmented reality is a technology that deploys a virtual image over real-world objects. AR application is a superimposition of a CG Image combined with the real world.

Superimposition occurs simultaneously with inputting visual data from a device like a camera or smart glasses. As a result, a user can see a combination of real-life objects and virtual things on the screen of a smartphone, tablet, TV, or other connected device.

How AR application works:

• The camera produces footage of real-life objects. This provides a foundation for the scene wherein augmented objects are placed.
• The registration process, which depends on the AR application type, determines how to put an AR object in the picture.
• The combined image is transmitted to the device where a user can see it.

What is the Difference Between Virtual and Augmented Reality App Development?

AR vs. VR

Despite the distinguishing differences between augmented reality and virtual reality app development, these two terms are often confused.

So, how does AR differ from VR? Let’s clarify the confusion before discussing augmented reality app development costs.

While AR applications allow 2D or 3D graphics elements to be put into a real-world environment and interact with it based on the position and orientation of the camera, VR technology creates an interactive artificial world acting within a simulated user's environment.

How does augmented reality work on a mobile device?

Augmented reality works with the help of unique algorithms and requires sensors to determine the position and orientation of the camera. This offers AR experiences that render any 3D graphics at any location and see the content on a device’s screen. Thanks to technological progress, devices can determine the location of the graphic elements with high accuracy, so it is possible to interact with life-size models in real-time, walk around them, come up to, move away from, or even go through them.

With regard to virtual reality, it also requires a lot of work with math algorithms and sensors. The distinction between the two lies more profound in the interaction with users. Virtual reality is a simulated environment where users are fully immersed and can see everything with their own eyes. Graphics react accordingly, moving together with the users so that they can test AR experiences with a realistic environment comprehensively.

Both technologies have many application areas where they can bring real value. Let’s take a closer look at those of augmented reality.

Create AR Solutions: Areas to Explore

AR app development is a profitable field to explore for various types of businesses. According to predictions by Hackernoon, we will see the majority of advancements in AR technology in the healthcare industry. However, almost any area stands to benefit. Let’s find out how.

The Most Promising Industries for AR and VR

1. Medicine

AR has been taking root in this field for years. It has already been used in education by helping students learn anatomy, surgery techniques, and other relevant matters. Numerous apps have been designed to enable medical staff to provide better patient care. Companies in the healthcare industry utilize 3D AR apps during surgeries and for diagnosis.

Building AR apps in healthcare is not just trendy but a life-saving solution.

2. E-commerce

If you own an e-commerce company, then you might consider exploring the field of AR technologies. Augmented reality solutions improve customer loyalty by enhancing product previews.

For example, scanned images of products or any other triggers can activate additional multimedia content such as real-sized models of furniture, design attributes, or any other product your business deals with. You can also create some promotional videos and AR content to provide your customers with exhaustive infotainment.

The most vivid example of this sort of AR use is IKEA Place. IKEA’s augmented reality app is built on the augmented reality development kit ARCore and was designed to help users see how a piece of furniture will look like before purchasing.

The AR cost may differ for these kinds of apps based on the set of augmented reality app features you provide.

3. Real estate and architecture

Real estate is another area where AR development is worth exploring. Apps that use augmented reality can showcase how buildings and construction projects will look in the real world. They can greatly help architects present their designs in the form of 3D models or 2D drawings. The technology allows specialists to assess the aestheticism of their creation and how it may blend in with the surroundings.

The ARki app is a great example of how designers and architects can benefit from AR implementation.

4. Entertainment industry

When we talk about AR app creation, we can’t go without mentioning the entertainment industry. Augmented reality games, movies, and other entertainment apps are a fruitful area to explore. If you decide to create an AR mobile app in this domain, remember that the augmented reality cost here is very high.

5. Tourism and travel

If you want to create AR apps, be sure to think about the tourism industry. People enjoy seeing various information about locations and sites they visit in real-time on their smartphones. As an option, an app could reproduce historical events that took place in a given location centuries ago.

6. Education

Is there a better way to learn about new things than to see them with your own eyes? Most AR apps create a unique opportunity to study anything – from tropical plants, to animals, to human organs.

AR apps could be a good additional solution for gaining new skills in different disciplines. As part of a traditional curriculum, these apps could facilitate further education by making students more interested in active learning.

For instance, educational reading materials could contain embedded markers that produce comprehensive multimedia content for learning once a device scans them.

The cost to develop an AR app like this may vary greatly, but the result is worth it, as such apps can be used for entertainment, homeschooling, and in educational institutions.

7. Military

The first augmented reality application in the military was created in 1992 at the U.S. Air Force Research Laboratory. Ever since, military personnel has used AR solution to get access to data in real-time via a pair of goggles.

These are just a few of the areas where you can create augmented reality apps and make a real impact on their development.

AR App Development Cost: Influencing Factors

When you plan your budget for an AR app, you need to consider a number of influencing factors. Below you will find information on the main types of augmented reality applications and the most popular SDKs that are used to create them.

Main Types of Augmented Reality Apps

Types of AR Apps

You can’t start the app development process without first understanding the main types of AR apps, as they all influence the augmented reality app development cost in different ways.

Usually, the type of app is identified according to the technology underlying it. Based on this, all AR apps can be divided into the following three groups:

Marker-based AR apps

AR applications based on markers are not challenging to create. They require the use of trigger-markers that are placed in various locations in the real world. The triggers may be a QR code, a card, an icon, or an image.

A user scans a trigger with a devices’ camera and the AR app projects an appropriate AR scene. These apps are a great way to recreate historical events or to tell the history of a famous building.

Various AR software development kits (SDKs) allow for the creation of marker-based AR apps, including, but not limited to, Vuforia, Wikitude, Kudan, and Maxst.

Marker-based augmented reality app has the lowest cost among all the AR  apps, as it does not require the implementation of difficult technologies.

Location-based AR apps

This type of AR app is based on data from GPS. These sensors provide information about a user’s location and place virtual objects in the real world. There is no need for markers or other triggers.

A great example of this kind of app is Pokemon GO, a famous game that stole the scene a couple of years ago.

If you choose this option, the cost of your location-based AR app development cost will be a little higher, as these apps require the integration of GPS, a compass, and other sensors.

AR based on visual odometry

Unlike location-based AR apps, apps with visual odometry use complex algorithms and data received from multiple sensors. The associated camera images are used to identify a precise location and perform respective actions. ARKit and ARCore both use this technology.

These are the most difficult AR apps to develop as the process is quite complex and challenging. This complexity will directly influence the augmented reality app development cost you will need to pay in this case.

ReVistor, the application developed by the MLSDev team, an offshore software development company, was created based on visual odometry.

SDKs for Building an AR App

The choice of SDK (software development kit) is another important factor to consider during app development. The use of an SDK allows you to avoid creating everything from scratch and instead use packages of software development tools. You can choose either paid or free AR tools.

Below, you can see the comparison table of some popular augmented reality creation software options:

You can find more information on AR SDKs on the Socialcompare website.

The choice of an AR development kit directly impacts the AR app cost formation process.

AR App Development Costs: Services

AR app development cost depends on many factors, including the app type, features, and even the augmented reality app developers you hire.

At MLSDev, the whole custom software development process is divided into the discovery and development stages. The image below describes them in more detail:

Processes That Influence Augmented Reality App Development Cost

Let’s take a closer look at each service that influences the formation of augmented reality app development cost.

Business Analysis

During this stage, a business analyst identifies business needs and determines the best solution for them. Our AR development team provides business analysts who offer the best ways to implement the required functionality by combining data from various resources. Business analysis helps to create an AR app that is competitive and brings value to end users.

With regard to AR app development, a business analysis might take up to 60-80 hours. This part of the discovery stage also influences an AR mobile app because a business analyst needs to conduct comprehensive research and give exhaustive recommendations.

Augmented Reality App Design

The work of a UX/UI designer depends on the conducted business analysis. Based on the data received from a business analyst, designers create UX and UI that meet the needs of end users, visualize all features, and make the interface user-friendly.

Due to the specifics of AR app development, designers’ tasks are not limited to UX/UI design strictly. AR apps rely on visual data and effects. Depending on the type of app you want to make, you may need to create animated images or 3D graphic models.

Designing AR applications may become the most time-consuming part of the app development process and thus skyrocket the final AR app development cost. This is because creating AR content is one of the most challenging and difficult tasks in the entire process.

Be aware that the design stage may take up to one-fourth of the time spent on developing an AR application.

Software Architecture Planning

This is also an integral part of the discovery stage that influences the final augmented reality app cost. The cost here depends mostly on the type of app you want to develop and what features you intend to include. The time needed to build architecture for an AR application may take between 25 to 40 hours. The more complex the app is, the more time this phase takes up.

Project Management and Team Review

The main task of a project manager is to correlate the efforts of all of the other team members and AR app developers. A project manager takes on the whole planning process, sets priorities, controls task accomplishments, etc.

Project management accompanies the entire app development process, just like the process of team review. During the latter, the team reviews the progress of development and identifies which portions of the work need to be improved.

These two steps directly influence the final AR app development costs.

Early Planning

Early planning is a very helpful preparatory activity before the development (coding) itself. It usually lasts 1-2 weeks and its main goals are to create the API contract, prioritize tech tasks, and choose the most suitable development tools and practices for the project.

Of course, this step adds to the total augmented reality app cost but it is vital for the further process.

Development

This is one of the main factors that influence augmented reality app costs. Below you will find our very approximate estimates on the time needed to create AR applications with a basic set of features.

Once you decide to take your app further, you will need to add more complex features.

Below, you can find some of these features and the approximate time needed for their implementation:

There are also some features that are really challenging to estimate. If you decide to develop an AR app based on visual odometry, add a feature to change the color and shape of AR objects, or provide animation of AR scenes, this could add up to a few more months of development and increase the overall augmented reality app development cost.

Quality Assurance of AR Applications

Quality assurance and testing are an integral part of AR app development that ensure everything works smoothly on different mobile devices and that users won’t encounter any problems.

QA usually takes up one third of the time spent on development.

AR Application Development Flow

Augmented Reality App Development Cost: Total

So, how much does it cost to build an AR solution?

Based on the listed services and the above rough estimations, we can calculate a very approximate AR app development cost.

Please note that the above cost is an approximation. The cost of app development highly depends on the features you want to include in your app, the platform you choose, and the level of the AR app development company you hire. 

The above cost was calculated based on the average rate for app development companies in Eastern Europe ($40/hour).

AR App Development Costs in Eastern Europe

If you choose to develop an app with some of the available paid SDKs, don’t forget to include that price into the final AR app.

MLSDev’s Experience in Creating a Custom AR App

Revistor App

Augmented reality is not just a fancy term at MLSDev. Our AR app development company has broad experience in building mobile software and provides mobile app development services - from a client’s idea to fully functioning application.

MLSDev was immersed in AR technologies while working on ReVistor History – among augmented reality applications dedicated to the American Civil War and other historical events.

ReVistor allows users to relive famous historical events, such as battles, as they occur around them. In the spin-off application, reVistor - which creates 3D Augmented Reality, users can create their own 3D augmented reality scenes at their chosen GPS locations.

Our development team helped the client with research, app design, and development. Creating 3D models for the application was the most challenging and time-consuming part.

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