Apple Inc. (AAPL) - Get Apple Inc. (AAPL) Report is on par to create a $14 billion market for 3-D sensing hardware by 2020 as the iPhone becomes the largest augmented reality platform in the world, Deutsche Bank analysts said, according to a report from Bloomberg.

Semiconductor manufacturers AMS AG NPV (AUKUF) , Aixtron SE  (AIXG) , Largan Precision Co., Sunny Optical Technology Group  (SNPTF) and Tong Hsing Electronic Industries Ltd. are all set to rise as Apple implements new 3-D sensing hardware, analysts wrote, which will likely be added to both the front and back sides of the iPhone by the second half of 2018. Deutsche Bank said 3-D sensing modules are "a must-have component" for augmented reality.

As Apple becomes the market leader in augmented reality platforms, Alphabet Inc.'s (GOOGL) - Get Alphabet Inc. Class A Report Android phones could have an inferior user experience for at least two years as the company works to make up ground lost to Apple. Analysts suspect hardware providers will prefer "well-entrenched" relationships with Apple over relationships with Android.

Apple is expected to release its 10th anniversary iPhone at an event on Tuesday, Sept. 12. The new phone is rumored to includes features such as facial recognition, a dual-lens camera, edge-to-edge screen design with an OLED display and possibly wireless charging. The new phone could cost up to $1,000 for top-of-the-line models, some analysts suspect. 

Apple stock traded down 0.35% to $161.34 midday Thursday.

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