Analysts at ROBO Global are bullish on the growth outlook for PTC Inc (NASDAQ:PTC), the company behind Vuforia which is an augmented reality technology platform in the industrial space.
The Boston, Massachusetts-based company’s software for handheld devices and digital eyewear is widely used by companies in manufacturing, technology, education and healthcare.
For example, chip manufacturing giant GlobalFoundries relies on PTC to provide augmented solutions to train its chip manufacturing workers. The workers snap on AR headsets and Vuforia software, which does cool things like superimpose animations on AR glasses so that a worker can see precisely which valve to turn on in a complex piece of machinery.
Vuforia is an augmented reality tech platform that enables applications to “see and interact” with things in the physical world.
In a recent report, ROBO Global senior research analyst Lisa Chai said: “At PTC’s user conference, LiveWorx 20, in Boston, I got a first-hand look at how the company’s software and hardware solutions are being used by today’s leading AR/VR solutions providers to help connect users between digital and physical worlds. The results are truly mind-blowing.”
ROBO Global created the ROBO Global Robotics & Automation Index, the world’s first benchmark index to track companies that focus on robotics, automation and artificial intelligence. As a tech leader in augmented reality, PTC is a longtime member of the ROBO Global Robotics & Automation Index.
Chai noted that PTC now boasts a “growing ecosystem” of customers that are using its comprehensive IoT software development stack to create the future of augmented reality and virtual reality.
She said: “While video games and entertainment may have created the earliest industry buzz, augmented and virtual reality technologies are now driving change in myriad industries — from manufacturing to education to healthcare. PTC’s strong presence in these verticals is already delivering growth.”
As a result, PTC stock has more than doubled to $68 from $30 in 2016.
The Vuforia edge
“Through its best-in-class computer vision technology and innovative tracking capabilities, Vuforia is transforming business models by incorporating augmented reality across the industrial space, ultimately saving time and money for its customers building out the factory of the future,” Chai added.
“Clearly, we are at the forefront of a bigger, better, and deeper generation of AR/VR technology, and its potential is enormous for industries, consumers, and investors alike."
Smart glasses will get smarter
The analyst pointed out that, as quality improves, “smart glasses will get smarter” and the scope of AR and VR applications will expand.
“That growth is expected to change how certain jobs are performed in industries like industrial design, architecture, oil and gas, and more,” Chai said.
The analyst also noted that Magic Leap was the “darling of the AR” world back in 2015 when it raised $1.4 billion in VC funding, with Google (NASDAQ:GOOGL) and Alibaba Group Holding Ltd (NYSE:BABA) as the company’s largest investors.
The company has filed a patent for a virtual retinal display (VRD) that projects a holograph onto the user’s eye for a seamless augmented reality experience.
Chia noted: “Its Magic Leap One smart glasses are futuristic in design with a user-friendly camera, sensors, speakers, memory, and a powerful optical relay. ROBO Global Index member NVIDIA Corporation (NASDAQ:NVDA) provides the glasses’ CPU and GPU processing power.”
The analyst pointed out that while there is still time before we see mass market adoption across industries, investors who prepare their portfolios for a future in which augmented reality and virtual reality are a commercial reality will reap the long-term growth to come.
ROBO Global provides its expertise to the ROBO Global Robotics and Automation Index ETF (NYSEARCA:ROBO), which closed at $38.21 on Friday.
Contact Uttara Choudhury at [email protected]