Video: VR, AR, or mixed: Which reality is best to sell your story? Overhyped by some, drastically underestimated by others, few emerging technologies have generated the digital ink like virtual reality (VR), augmented reality (AR), and mixed reality (MR). Still lumbering through the novelty phase and roller coaster-like hype cycles, the technologies are only just beginning to show signs of real world usefulness with a new generation of hardware and software applications aimed at the enterprise and at end users like you. On the line is what could grow to be a $108 billion AR/VR industry as soon as 2021. Here's what you need to know.
While enterprise markets have made use of professional-grade virtual reality (VR) technology for some time, the recent debut of consumer-grade VR head-mounted displays (HMDs) from companies like Facebook/Oculus, HTC, and Samsung has raised the profile of VR immeasurably and, more importantly, sparked the potential for enterprise VR use cases leveraging consumer-grade VR solutions. In addition to the availability of low-cost consumer-grade VR solutions, the adoption of VR among enterprises is motivated by the opportunity for increased productivity, improved results, and efficiency, through the greater level of immersion that VR applications offer compared to more conventional means. According to a new report from Tractica, the worldwide market for enterprise VR hardware and software will increase from $1.0 billion in 2018 to $12.6 billion annually by 2025. The market intelligence firm anticipates that the top applications for enterprise VR will include training and simulation, medical therapy, location-based entertainment, and education. "Even with continuing growth, market adoption of enterprise VR use cases is moving slower than previously anticipated due to market acceptance lagging behind for several use cases," says principal analyst Mark Beccue.
Asia/Pacific (excluding Japan) spending on augmented reality and virtual reality (AR/VR) is forecast to reach US $11.1 billion in 2018, an increase of more than 100% from $4.6 billion the previous year. The latest update of IDC's Worldwide Semiannual Augmented and Virtual Reality Spending Guide provides a detailed view at the investments on AR/VR products and services which have gained exceptional market momentum in 2018 and are expected to achieve a five-year compound annual growth rate (CAGR) of 68.5% throughout the forecast period (2017-22). "The availability of new standalone VR headsets such as Oculus Go from Facebook and Mirage Solo from Lenovo is expected to drive adoption as well as content spending in 2018 and beyond, as these headsets eradicate the need for pairing with PCs or Consoles that used to drive costs higher for AR/VR experiences," Being the largest source of spending, the consumer sector will continue to drive growth for AR/VR products and services holding a 51.3% share of overall spending in 2018. The growth will be primarily driven by the availability of new headsets for VR which will lead to VR consumer spending. While AR spending will be dominated by the purchase of services – the launch of Augmented Reality SDK platforms from both Google and Apple are also expected to drive spending on application development and games for mobile platforms.
Wearing a computer screen on your face seems like something only a gamer or tech enthusiast could love. But headsets, and other devices that create mobile virtual or augmented reality experiences, are showing up in places other than labs and gaming centers. Big companies far outside the world of consumer entertainment are testing and deploying augmented reality and virtual reality (AR/VR) equipment in a wide range of work-related applications, and improving capabilities are inspiring more potential uses. The technology is getting so effective--and sufficiently user-friendly--that more companies should consider incorporating AR/VR solutions into their workflow. Virtual reality (VR) and augmented reality (AR) technologies have been around for quite some time,6 yet many remain unclear about the differences between the two.
According to Gartner's latest report, Worldwide IT spending is forecast to reach $3.5 trillion in 2017, up 2.9 percent from 2016's estimated spending of $3.4 trillion. Additionally, IT services spending is also set to rise 4.8 percent in 2017 to reach $943 billion. All of these figures tell us that many organizations have already allocated billions of dollars to keep up with the emerging trends in enterprise technology. One of our CMS-Connected contributors and a founding partner of Digital Clarity Group, Cathy McKnight, wrote a splendid article about the relationship between artificial intelligence and marketers. She also pointed out that more and more of the technology titans have adopted and leveraged the power of AI to enable their platforms to generate natural language, content optimization, analyze consumer behavior, and ultimately, be ahead of the game by knowing more about their customers' needs than even the customers know themselves.