The next big trend in tech is augmented reality (AR), a market that's expected to climb from $657.9 million in 2015 to $80.8 billion by 2022.
And forward-looking investors who are familiar with augmented reality stocks now can cash in on this 12,181% increase in market value.
If you subscribe to Money Morning Profit Alerts, free money-making recommendations delivered in real time, you've already seen some opportunities in the virtual reality (VR) market.
While similar, augmented reality technology has some major differences from virtual reality. And because of the differences, companies are more easily implementing AR technology into their business strategies right now.
Here's how...
The Difference Between Augmented Reality and Virtual Reality
Through VR technology, you enter a "virtual world." Users wear VR headsets and are isolated from reality.
Right now, most VR technology is used for video games.
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With AR technology, VR and the real world are blended together to allow users to interact with their surroundings.
One of the best-known examples is Pokemon Go. In the game, Pokemon Go players use the cameras on their phones to search for Pokemon. The creatures will pop up on the phone screen in real time.
For instance, if you're taking a hike in the woods, a Pokemon could pop up on the trail you are walking on.
But there's more to augmented reality than just games...
For example, The Coca-Cola Co. (NYSE: KO) used AR technology for a marketing campaign in December 2014. When users downloaded a mobile app from Coca-Cola on their phone and scanned a code, Santa would appear in front of them on their screens.
When shoppers scanned certain Coke bottles in stores, the Coke bottle would be surrounded by snow.
Originally, sales representatives would need to use photographs to sell fridges, stands, and vending machines.
But with Cimagine Media, Coke can show prospective customers through AR technology where vending machines and other products can be placed in a store. When using the technology, sales representatives had a 92% success rate of making a sale, according to Cimagine's website.
For the AR and VR market, investors already know three of the top tech companies working on the emerging technology:
That's why today, we wanted to provide Money Morning readers with a list of AR companies that aren't publicly traded yet.
Keep in mind, these companies are speculative investments if they ever go public. Since this is still a new technology that isn't yet widely used by the general public, shares of small AR stocks could be extremely volatile.
But knowing the private companies and the advancements they are making is important for tech investors.
Here's everything you need to know about three private companies leading the AR industry...
Augmented Reality Companies to Watch in 2017
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The first private company to watch in the AR space is Gravity Jack.
Gravity Jack is a full-service software development firm that specializes in VR, AR, and mobile apps.
Through AR technology, the company boldly claims that paper manuals and maintenance handbooks are dead. For example, its PoindextAR technology can be used to place organs in a mannequin to help medical professionals prepare for surgeries.
And because of Gravity Jack's expertise in AR, VR, and 360 video, it has an impressive list of clients.
The Lincoln Motor Co., Kraft Heinz Co. (Nasdaq: KHC), and the band Maroon 5 have all worked with Gravity Jack.
The next company to watch is Magic Leap, which was called the "world's most secretive startup" by Wired.
Magic Leap has not released any products as of December 2016.
But on its website, you can see the impressive technology it's working on, such as:
- Whales jumping out of a school gym floor
- Tiny elephants appearing in a person's hand
- An AR game where players battle robots in an office
It's reportedly raised $1.4 billion in funding from companies like Google and Alibaba Group Holding Ltd. (NYSE: BABA).
Forbes estimated in November 2016 Magic Leap was worth $4.5 billion.
Finally, the third company to watch is Blippar.
Blippar combines deep learning, AR, and search tools to let people learn more about the world around them. As you can see in the video below, users just point their phone at an object and will instantly learn more about it.
And because of its groundbreaking work, Blippar was ranked No. 9 on CNBC's Top Disruptor List for 2016. CEO Ambarish Mitra was also named UK Entrepreneur of the Year by professional service firm Ernst & Young.
Retail investors can't invest in these companies now. But this new technology is at the center of the next big trend that Money Morning Director of Tech & Venture Capital Research Michael A. Robinson is calling Neural Imprinting.
And by 2020, Robinson believes just one major factor in this Neural Imprinting trend could create $2.86 trillion in new wealth.
You can see Robinson's full presentation, right here.
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