What is Augmented Reality: A Comprehensive Overview

Augmented reality (AR) is a fascinating technology that has gained significant popularity in recent years. With AR, digital information is seamlessly integrated with the user’s environment in real time, providing an enhanced experience.

Unlike virtual reality (VR) which creates a completely artificial environment, AR allows users to experience the real world with computer-generated information overlaid on top of it.

We may be familiar with augmented reality from electronic first-person shooter games, where environmental, health, and other data are added to players’ viewpoints. In fact, various militaries have also begun experimenting with adding similar overlays to real soldiers using head-mounted visors.

As technology continues to advance, we can expect the applications of augmented reality to grow and become more diverse, impacting different industries and aspects of our lives.

Utilising the CPU and GPU of our AR devices, the ‘augmented’ part of AR refers to the addition of computer-generated imagery (CGI) to the reality we see.

From entertainment and gaming to education and professional settings, the potential of AR to create immersive and interactive experiences is changing the way we perceive and interact with the world around us, opening new doors for innovation and creativity.

Understanding Augmented Reality

Augmented reality (AR) allows us to enhance our perception of the real world with digitally created visual, auditory, and haptic elements. It provides an interactive and immersive experience by overlaying digital content on top of our physical surroundings.

Smartphones, smart glasses, and head-mounted displays are some of the devices used to experience AR technology.

Difference Between AR and VR

Although augmented reality and virtual reality (VR) share some similarities, they serve different purposes. While AR enhances our real-world environment by adding digital components, VR creates a completely artificial environment that isolates us from the real world.

This is usually achieved using headsets and headphones, which are specifically designed for immersive VR experiences. The main distinction between these technologies lies in their interaction with the physical world.

In AR, digital elements are superimposed over real-world views, whilst VR replaces the real world entirely with a simulated environment.

Key Components of AR

Augmented reality systems are primarily composed of three core components:

  • Hardware: Devices that enable users to interact with the digital content, such as smartphones, tablets, smart glasses, and head-mounted displays.
  • Software: Applications developed to display digital content, for example, games, educational apps or industrial tools, tailored specifically for AR experiences.
  • Data: Digital elements, such as 3D models, visual markers, and multimedia content, which are generated and combined with real-world environments.

AR technology relies on sophisticated sensors and algorithms to track the user’s movement, understand the physical surroundings, and accurately overlay digital information on top of it.

Due to the vast possibilities offered by AR, it has found applications in various industries such as gaming, education, healthcare, retail, and entertainment, to name a few.

Types of Augmented Reality

In this section, we will discuss the different types of augmented reality (AR) to give you a better understanding of how this technology is implemented and utilised. There are several types of AR, which are primarily categorised into Marker-Based AR, Markerless AR, Projection-Based AR, Superimposition-Based AR, and Mixed Reality.

Marker-Based AR

Marker-Based AR, also known as image recognition-based AR, uses specific physical images or markers to position digital content on top of the real-world environment.

When the camera detects the marker, the AR application displays the virtual elements created by designers or developers. One of the famous examples of Marker-Based AR is the app Built In, which enables users to view 3D models on marker points.

Markerless AR

Unlike marker-based AR, Markerless AR does not rely on pre-defined markers to initiate the augmented reality experience. Instead, it uses various computer vision algorithms and technologies, such as Simultaneous Localisation and Mapping (SLAM), to position virtual content in the real-world environment.

This type of AR is often found in applications related to navigation, gaming, and interior design.

Projection-Based AR

Projection-Based AR projects digital information directly onto physical objects or surfaces in the real world. This method uses light projection technology to create interactive holograms and displays on the physical objects themselves, allowing users to manipulate or interact with the virtual content.

Projection-Based AR has found applications in areas such as retail, education, and manufacturing.

Superimposition-Based AR

Superimposition-Based AR replaces the original view of an object with a new, augmented view. This type of AR typically requires object recognition technology to identify the object being replaced.

Once the object has been identified, the AR application overlays a digital image or a 3D model on top of the original object. A well-known example of Superimposition-Based AR is the IKEA Place app, which allows users to place virtual furniture in their homes before purchasing it.

Mixed Reality

Mixed Reality (MR) is a combination of augmented reality and virtual reality, blending the real and virtual worlds to create new environments where physical and digital objects coexist and interact in real-time.

In MR, users are able to interact with both real-world objects and virtual elements using a spatial computing device or a head-mounted display. Microsoft’s HoloLens is a popular example of a mixed reality device.

Key Technologies and Tools

In this section, we will discuss some of the main technologies and tools that enable augmented reality experiences. These include AR platforms, tracking sensors and cameras, and display technologies.

AR Platforms

Augmented reality platforms are essential for developing AR experiences. They provide developers with the necessary tools and frameworks to create immersive AR applications.

Some popular platforms include ARKit by Apple, ARCore by Google, and Microsoft’s Mixed Reality Toolkit. Each platform offers unique features and benefits, making them suitable for different types of AR projects.

For example, Microsoft Dynamics 365 is designed for adding digital elements over real-world views with limited interaction, while ARKit and ARCore provide more comprehensive support for creating immersive AR experiences on mobile devices.

Tracking Sensors and Cameras

Tracking sensors and cameras are essential components of an AR system, enabling it to understand the user’s position and orientation in the physical environment. By tracking the user’s movements, these sensors can overlay digital content accurately onto the real world, enhancing their experience.

There are several types of tracking sensors, such as GPS, accelerometer, and gyroscope.

These sensors help determine the user’s location, speed, and direction of movement. Cameras are used for visual tracking, capturing the environment and identifying specific markers or features to anchor virtual objects. Augmented reality starts with a camera-equipped device, which is loaded with AR software.

Display Technologies

Display technologies play an essential role in presenting the augmented content to the user. There are various forms of display technologies used in AR, including:

  • Smartphone and tablet screens: Many AR applications are designed for mobile devices, which make use of their screens to overlay digital content onto the real world.
  • Head-mounted displays (HMDs): These devices, such as the Microsoft HoloLens, feature transparent glasses or screens that allow users to see both the physical environment and the augmented content simultaneously.
  • Projection displays: In this method, virtual images are projected directly onto physical surfaces, creating a seamless blending of digital and real-world elements.

Choosing the appropriate display technology depends on the intended use and the desired level of immersion.

Current and Future Applications

Augmented Reality (AR) has seen significant advancements in recent years and is rapidly becoming an integral part of various industries. In this section, we will discuss some of the key areas where AR is being used today and its potential future applications.

Education and Learning

AR is revolutionising the way we learn by providing students with immersive and interactive experiences. From visualising complex concepts to enhancing practical skills, AR is being used in classrooms, museums, and even the workplace.

For example, AR applications are being developed for learning languages, exploring historical sites, and understanding scientific phenomena, making the learning process more engaging and effective for everyone involved.


In the healthcare sector, AR is being utilised to improve medical training, patient care, and rehabilitation. Medical professionals can use AR to study anatomy in 3D, perform virtual surgeries for practice, and even assist in live surgeries by overlaying valuable information on the patient’s body. 

AR devices also hold immense potential for aiding physical therapy, mental health treatment, and helping patients visualise their treatment plans.

Marketing and Advertising

Companies are harnessing the power of AR to create innovative marketing campaigns and advertising strategies.

AR allows consumers to engage with products and services in new and interactive ways, like virtually trying on clothing or placing furniture in their homes before purchasing.

By bridging the gap between the digital and physical worlds, AR has the potential to transform the marketing landscape as we know it.


AR is becoming integral to the retail sector, offering dynamic solutions for both in-store and online shopping experiences. AR-powered applications can provide customers with personalised recommendations, virtual fitting rooms, and interactive product displays.

Integrating AR technology into retail can enhance the customer experience, deepen brand engagement, and ultimately drive sales.


From gaming and movies to art and tourism, AR is reshaping the landscape of entertainment. AR games, like the popular Pokémon Go, have captivated millions of users globally, while AR in film and theatre can create immersive environments and enhance live performances.

In addition, art exhibitions and guided tours can be enriched through the use of AR to provide viewers with additional context and interactive experiences.

Industry and Manufacturing

AR is also finding applications in industries such as construction, automotive, and aerospace. By overlaying digital data onto the physical world, AR can aid workers in complex assembly processes, maintenance tasks, and quality inspection.

This technology can improve efficiency and safety by providing workers with real-time information, comprehensive training, and remote collaboration opportunities.

Challenges and Limitations

In this section, we will discuss some of the challenges and limitations currently faced by augmented reality (AR) technology. These challenges can be divided into three main categories:

Hardware Limitations

AR technology relies on a combination of hardware components, such as cameras, sensors, and processors, to operate effectively. As a result, the performance of AR applications can be restricted by the limitations of available hardware. These limitations include:

  • Power consumption: Running AR applications often requires a significant amount of energy, which can quickly drain the battery life of portable devices like smartphones and headsets.
  • Computational requirements: Processing and rendering AR content can be resource-intensive, and some devices may not have the necessary processing power to handle complex applications.
  • Size and weight: The need for multiple components can lead to bulky and heavy AR devices, which may be uncomfortable or unwieldy for users.

User Experience Issues

Creating a seamless and enjoyable user experience in AR applications can be challenging for several reasons:

  • Technological limitations: Many devices still struggle with accurately tracking user movements and aligning virtual content with the real world, leading to potential inaccuracies and glitches in the AR experience. 
  • Design challenges: Designing intuitive and efficient user interfaces for AR applications can be difficult, particularly when considering the wide range of devices and use cases.
  • Educating users: As AR is still an emerging technology, many consumers are not yet familiar with its wide-reaching applications in their daily lives.

Privacy and Security Concerns

AR technology often relies on the collection and analysis of data to function effectively. This aspect of AR raises significant privacy and security concerns:

  • Data collection: In order to deliver personalised AR experiences, applications may need to gather a wide range of sensitive user data, such as location, images, and personal preferences.
  • Information sharing: The sharing of this data between AR applications and third-party platforms can lead to potential breaches of user privacy. 
  • Security risks: Storing and transmitting this sensitive user data can introduce vulnerabilities to cyber attacks and data breaches, raising concerns over security.

Addressing these challenges and limitations will be crucial for the continued development and widespread adoption of augmented reality technology.


AR is a technology that enhances our perception of the real world by overlaying digital data, such as images, text, and 3D models, onto it. These digital elements can be experienced using AR-enabled devices like smart glasses, tablets, and smartphones.

As we explored, AR is becoming an increasingly influential technology, with its market projected to reach $18.8 billion by 2022. The number of companies entering the augmented-reality market is growing rapidly, with a variety of industries benefiting from its applications.

Some of the most exciting developments in AR technology include:

  • Enhancing gaming experiences by seamlessly integrating game interfaces with the player’s environment.
  • Military applications, with soldiers gaining access to crucial information through head-mounted displays.
  • Improving navigation and location-based services by adding contextual digital information to the physical environment.

As we continue to explore the possibilities offered by augmented reality, the potential for innovation remains limitless. The integration of AR technology into our everyday lives will undoubtedly continue to change the way we interact with devices, information, and the world around us.

Picture of Phil


I’m the resident head of comms and partnerships here at Draw & Code. I work on strategy, sales, marketing and other vital areas at a studio that was founded on a dream and has spent the intervening decade trying to make that dream come true. I believe that immersive and interactive technologies are impacting on our lives and being in the epicentre of this industry makes every day a thrill.

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