Fast Expanding Markets - Augmented Reality and Virtual Reality
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Immersive technologies such as virtual and augmented reality are currently taking the world by storm. Over the past three years, we’ve seen a huge interest in immersive technologies from the likes of advertising agencies, games developers, construction companies and more… Here we take a look at what the hype is all about and what the future holds for these technologies!
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Fast Expanding Markets - Augmented Reality and Virtual Reality
- 1. Immersive Technology Article Content >>> #Trending >>> The gradual path to seamless integration Immersive Technology - Introduction Virtual Reality Augmented Reality AR and VR Market The Players Forecast and Conclusion Fieldworkers at Toms River Municipal Utilities Authority - a New Jersey Utility, use AR and VR glasses to see concealed utilities lines under the streets in real-time. Immersive technologies such as virtual and augmented reality are currently taking the world by storm. Over the past three years, we’ve seen a huge interest in immersive technologies from the likes of advertising agencies, games developers, construction companies and more… Immersive technology is not a new concept. Experimentation with virtual and augmented reality has been taking place since the 1960s, hit sci-fi tv show, characters could enter a specific room and it would create an expansive virtual world that was so in-depth, so heavy that it had to mounted to a mechanical arm attached to the ceiling when in use. When using the device, the users would be able to see a virtual environment, but since graphics technology was not very advanced, these were usually just simple wireframe rooms. Immersive technology was further popularised by Star Trek’s Holodeck. In the sectors, especially in the games industry. Graphics, processing and screen technologies have improved dramatically over the past decade and these advances have opened the door to create enthralling and immersive experiences. Being experts in storytelling and interactivity, this provided an opportunity for games makers to experiment with immersive technology in a new creative medium. hidden inside research facilities across the world. The Sword of Damocles is considered by most to be one of the first virtual reality headsets. Built by Ivan Southerland and Bob Sproull in a laboratory at MIT, it was a large and somewhat dystopian looking device. The device was it was almost identical to reality. Lots of people were excited by the thought that, one day, in the distant future, we may be able to recreate whole worlds inside a holodeck. Over the past 5 years, immersive technology is making a comeback, playing a much larger role across many The possibilities for immersive technology are seemingly limitless; the only potential barriers being the practicalities of the technology available. A guide for investing in the technology of the future - now Expanding Markets Reality and Reality By Karthik ACHARYA IMBA emlyon business school Boeing's use of augmented reality for technicians has increased productivity by 40% and reduced wiring production time by 25%. At Ford, VR is used to capture human movement during equipment assembly through motion sensors to re- engineer movement to decrease risk of injury and increase productivity. The Gatwick airport passenger app just won a number of awards for its creative use of AR technology. With the help of more than 2,000 beacons throughout its two terminals, passengers can use the AR maps from their mobile phone to navigate through the airport. As the app matures, it might eventually help improve traffic flow in the airport. 1
- 2. The AR and VR Market >>> Technologists might still be working on smell and taste, but Albert Ludwig’s “magic spectacles” eerily foreshadow the current prominence for headsets and 360-degree games, videos and virtual worlds. Augmented Reality Google and Apple’s next battleground The two biggest players in smartphone software are pitching to win the war for AR. But will Ikea and Pokémon Go be enough to get consumers on board? Virtual and Augmented Reality market is expected to reach $150bn by 2022. Source: Markets and Markets Until recently, virtual reality had been something of a fantasy for storytellers and technologists. As long ago as 1935, American science fiction writer Stanley G Weinbaum described something like virtual reality in a short story called Pygmalion’s Spectacles. Augmented Reality (AR) and Virtual Reality (VR) headsets are poised to reach $150bn in sales by 2022 according to a research published by Markets and Markets. ➢ The global Augmented Reality market is expected to reach USD 117.40 billion by 2022 at a CAGR of 75.72% during the forecast period of 2016 – 2022 ➢ The Virtual Reality market is expected to reach USD 33.90 Billion by 2022, at a CAGR of 57.84% during the forecast period Augmented reality (AR) is nothing new. Many people’s first experience of the concept was seeing through the eyes of Arnold Schwarzenegger’s T-800 Terminator in James Cameron’s 1984 blockbuster. The movie showed the Terminator’s vision overlaid with information about subjects, objects and objectives. Virtual Reality - All the hype From Oculus Rift to Google Daydream, VR is getting plenty of hype “But listen – a movie that gives one sight and sound. Suppose now I add taste, smell, even touch, if your interest is taken by the story. Suppose I make it so that you are in the story, you speak to the shadows, and the shadows reply, and instead of being on a screen, the story is all about you, and you are in it. Would that be to make real a dream?” The current age of virtual reality began in 2010, when American teenager Palmer Luckey created the first prototype of a VR headset that would evolve into the Oculus Rift. Two years later, he launched a $250,000 Kickstarter crowdfunding campaign to commercialize it – and $2.4m of pledges later, the tech industry’s interest in VR was reborn. Two years after that, Facebook’s CEO, Mark Zuckerberg, liked the Rift so much he bought the company for $2bn. Virtual Reality Vs Augmented Reality Since Ludwig’s magic spectacles found their way into print, there have been decades of experimentation around virtual reality, from the first head- mounted VR system in the late 1960s to the first commercial products in the 1980s – not to mention Hollywood’s interpretation in the 1992 film The Lawnmower Man, which shaped mainstream perceptions of virtual reality, or VR, for some time afterwards. But after failed attempts at making that concept a reality for the mass market, with Google Glass and others, AR was thrown back into the spotlight in July 2016 with the launch of Pokémon Go, which overlaid the mini-beasts bobbing about in the real world for players to catch. While Google has had AR systems in place with its Project Tango technology from 2014, which ended up in specialized tablets and smartphones, but was discontinued by early 2018. While Apple’s system doesn’t rely on specialist hardware, and may lack some of the skills that dedicated sensors afford, ARKit is due to roll out to not only Apple’s iPhone, but also on smartphones as old as the iPhone 6S from 2015. After the shutdown of Project Tango, Google has moved towards ARCore and it expects to make ARCore available to at least 100 million users, starting with owners of Samsung’s top-end Galaxy S8 smartphone and Google’s own Pixel phone. Apple took the spotlight with its ARKit and released it as part of its iOS 11. But the diversity of the Android ecosystem presents challenges for a unified platform that relies on a consistent experience. 2
- 3. The Players VR / AR Performance Statistics >>> Chief executive officer Tim Cook of tech giant Apple continues to hint that the company is investing and sees massive potential in the field of AR. "I regard it as a big idea like the smartphone. The smartphone is for everyone. We don't have to think the iPhone is about a certain demographic, or country or vertical market; it's for everyone. I think AR is that big. It's huge. I get excited because of the things that could be done that could improve a lot of lives and be entertaining." Demand for AR and VR technologies in healthcare, retail, and gaming will drive market growth in the coming years According to research from Omnivirt, 360° videos received higher engagement in 2017 than regular video and content. The Omnivirt study also found that besides the fact that brands using 360° videos were spread across all verticals, content quality is improving every year. Major brands that have used VR and 360° videos include NASA, Microsoft, IBM, Honda and Ford. We will see more VR adoption in advertising. We have already seen signs of this in the recent past: last year Google announced its experiment with virtual reality ads that react to users’ eyes, Infiniti formed an alliance with OmniVirt to let people virtually test drive the Q60 using 360° VR video and Chick-fil-A launched a VR website around its “Eat Mor Chikin” Cow icon. The AR market in particular, is affected by not only consumer demand but by commercial/retail and medical industries as well. It's applications provide digital information and 3D visualization of physical objects and therefore have potential to be highly useful, or entertaining, in various fields. In the case of industrial applications, which has accounted for over 25% of the AR market share in 2015, "several industry players are developing AR for the industrial sector to leverage the full potential," As was explained by Global Market Insights. AR technology also has started to help mitigate. "Rising demand to handle complex machinery, assemble and maintenance will propel augmented reality industry growth. The reluctance towards conventional showroom visit with virtual experience and improves user experience." ➢ Compared to regular video and content, 360° video / VR received higher engagement. This can be measured by the number of video completions, clicks, and overall engagement rate. ➢ Worldwide shipment of smart Augmented Reality glasses is forecasted to reach around 5.4 million units by 2020, together with other devices the shipment could hit 64.8 million units. ➢ By 2025, the worldwide user base of AR and VR games is expected to grow to 216 million users and will be worth $11.6 billion. ➢ According to ISACA survey, 64% US consumers believe that augmented reality enhancements would benefit workplace by facilitating remote participation in workplace learning and development. Consumers are holding on to their smartphones almost twice as long as they were years ago. Phone companies are not giving consumers a reason to value a new smartphone. AR technology could turn around revenue and sales. Devices that are equipped with AR and VR will be innovative to consumers and reign supreme over those without the technology. It is hard to predict all of the trends in 2018, but the technology is only going to get better over the next few years. Consumers will soon be fully immersed in a virtual world, creating a whole new experience for them.These technologies can help build a good marketing strategy for any brand. Businesses should start adjusting and find ways to take AR and VR serious in their marketing and business plans. Taking advantage of these trends early will give any brand an advantage over their competitors. Key Drivers >>>Augmented Reality is expected to have 1 billion users by 2020. Right now, more than 543 start- ups are listed under this category on Angelist According to Infoholic Research, the “AR Gaming Market” is expected to reach $284.93 billion by 2023, growing at a CAGR of 152.7% during the forecast period 2017–2023. Pokemon Go has been downloaded more than 750 million times and its revenue is estimated to be more than $1.2 billion Source: Seabery 3
- 4. Forecast augmented (AR) and virtual reality (VR) market size worldwide from 2016 to 2022 (in billion U.S. dollars) Projected size of the augmented and virtual reality market 2016-2022 Note: Worldwide; 2016 to 2018 Further information regarding this statistic can be found on page 8. Source(s): IDC; ID 591181 6.1 14.1 27 209.2 2016 2017 2018* 2022* MarketsizeinbillionU.S.dollars The demand for Virtual Reality (VR) and Augmented Reality (AR) is anticipated to increase inside the coming years. Growing demand for AR and VR service, cheap hardware fee, and increase in end-use utility. The growing demand for VR and AR in healthcare, schooling, gaming and media and entertainment within the North American, Asia Pacific and EU regions is predicted to grow the adoption of VR and AR in these markets. By End User Analysis this market is segmented on the basis of Education, Construction, Automotive, Healthcare, Gaming, Media and Entertainment, Defense and Aerospace, Retail and Others (Manufacturing and Energy). By Regional Analysis this market is segmented on the basis of North America, Europe, Asia-Pacific and Rest of the World. The major driving factors of Global virtual and augmented reality Market are as follows: ➢ Increasing Demand for AR-Based Software Applications and Hardware Devices for 3D Visualization in Medical Sectors ➢ Increase in the Demand for AR From E-Commerce and Retail Sectors ➢ Growing Interest of Large Tech Companies in Augmented Reality The restraining factors of Global virtual and augmented reality Market are as follows: ➢ Development of AR Technology Dependent on Innovations in Computing and Digital Network Systems ➢ Limited Processing Power, Less Storage, and Restricted Size of Storage Devices ➢ Limited User Interface Affecting the Navigation Performance of Augmented Reality Applications 4 Just a few short years from now, headsets for entering virtual and augmented landscapes will populate the desks of most of the country's Fortune 1000 companies. But employees won’t be using these tools for gaming. VR/AR will shift the way teams learn, interact, and communicate with customers in ways never thought possible. VR/AR will introduce whole new ways to socialize and whole new ways to learn, but these methods will only be as effective as their overall design. That's why designers, animators, and developers need to start planning for this future today. Ineffective visual communication on these platforms—the kind that uses stock imagery or falls short on its ability to tell a story—can create disorientation and confusion, and you might risk turning people away from your brand or product entirely. Effective visual communication in VR and AR is not only aesthetically engaging but offers a guiding hand as users explore this new world. Logically organized and carefully implemented visual communication can place your brand at the forefront of VR/AR. - Amy Balliett, CEO, and owner of Killer Infographics There a many use cases for VR, but the most interesting and most immediate is training and education. Several studies have shown that people who learn and train in VR retain the information much more deeply and for longer periods of time than those who simply use books and videos and other traditional methods. In one case, students learning construction management were broken into two groups, one using VR and the other traditional methods, and the VR group scored higher on tests about the information both immediately after the lesson and a month after. In another case, medical students using VR did much better on live patients than those who learned via traditional methods. VR allows students to run the lesson as many times as needed, and they cannot be distracted while in the headset. AR will absolutely revolutionize the e-commerce industry and has actually already started doing so. The possibilities are endless, but one big change will be the shift to "virtual showrooms." Consumers at stores like Uniqlo and Gap can already try on different colors and styles of clothing in a virtual dressing room, with mainstream expansion soon to follow. And it only extends from there – imagine actually being able to "see" furniture in your home before you make your purchase, or checking out a car and all its features, right from your phone. PTSD treatment has been shown to benefit from VR and AR as well by gradually exposing the subject to the stimuli that caused the PTSD in the first place in a safe manner and allowing the subject to work through the trauma at the subject's own pace. Virtual and augmented reality is coming to real estate. The future of this technology is virtual showings. Home buyers will be able to don VR goggles and walk through a home anywhere in the world. AR for Home shoppers will allow them to virtually stage the potential home within their VR goggle view. And, within the view, they can also find data, nearby schools, shopping, dining. Realtors can leave post-it notes within the virtual tour describing building materials, the year the home was built, lot size.
- 5. Finding An Agent That’s Right For You • Ensure content availability. Organizations should have a repository of content and data available in the proper format for a well- functioning AR/VR system. It is not easy to aggregate and collate data from operating and repair manuals that need to be coded in order to create work instructions for a procedure. Replicating workers’ tribal knowledge into a database is an additional challenge. Various types of data such as system specifications, performance metrics, and vital statistics of machines that operators work on, when combined with AR/VR systems can be a powerful enabler. However, making this data available for AR/VR systems is a daunting task. An IT Innovation Manager at a multinational automotive manufacturing company says, “data preparation is the biggest challenge we face with immersive technology. Much time is required to prepare the data, there is a need for automated processes, and general data standardization.” Professor John Erkoyunco at Cranfield University agrees that data is the foremost challenge to AR or VR adoption. “Data architecture, how data is being collected and structured internally, and how it’s shared across departments is a big struggle,” he attests. Consider shifting the mentality from the traditional way engineers develop and design products. To be successful, organizations need to think in terms of information rather than hardware. • Evaluate partnering with experienced vendors to minimize complexity. To minimize AR/VR complexity in execution, organizations can collaborate with software providers, often times found in a start-up company ecosystem. Many of these solutions originated as custom solutions created on a case-by-case basis, but have since evolved to include a variety of turnkey AR/VR solutions. Diota is a prime example of this evolution. “After building custom solutions for customers, we found that we could address 80% of the use cases with one application so we said, ‘let’s develop this application,’” says Thomas Perpère, of Diota. For David Nedohin, president and founder of ScopeAR, an augmented-reality software company, these solutions are just part of his company’s offering. “Some customers know they want to use AR and build content but they aren’t ready to do it themselves, yet which is why we offer both a custom and turnkey solution,” he says. • Carefully consider connectivity requirements for your AR/VR use cases. Not all use cases need a high availability of network and bandwidth. However, for those use cases that do, the absence of remote collaboration, or a lack of proper connectivity and bandwidth can be a deal breaker. For use cases that can work without network connectivity, computing power proves to be more crucial as most AR/ VR systems involve heavy use of graphics and real-time rendering. • Integrate AR/VR solutions with existing technologies to reap full benefits. To yield higher benefits, consider AR/VR as an important part of a larger digital journey. Part of this journey is the integration with the company’s various enterprise systems such as enterprise resource planning (ERP), product lifecycle management (PLM), etc. Organizations should also keep in mind the process changes and associated investment necessary for such integration. Moreover, because AR/VR is a fairly new technology that is advancing and being integrated with Companies should consider a reasonable investment for a predetermined use case(s) to understand where the business potential lies while taking into account the user experience (usability and ergonomics). Thoughts>>>final “It can be a tricky situation because under certain conditions, employees might feel that wearing AR/VR headgear makes their task cumbersome.” – a concerned organization The real challenge will be for companies to Prepare technology infrastructure to integrate AR/VR legacy systems, security and privacy is key. Surveyed organizations reveal cybersecurity and data-privacy concerns to be one of the top three challenges that hinder adoption. This challenge should be addressed with a proper security and privacy framework built-in, to avoid exposing sensitive and proprietary information. Conclusion Immersive technology has come a long way in a short time and will continue to evolve. For organizations, the major brakes on progress will be technological integration, data readiness, the inability to identify use cases, talent, and general awareness. However, these challenges outweigh the long-term growth potential this technology offers. Even among the organizations that are not exploring AR/VR, 50% plan to do so within the next three years#. For those looking to begin or advance their journey, having a centralized governance structure and focusing on the most valuable use cases will be key. Additionally, until broader adoption happens, companies shouldn’t overlook the importance of having internal key influencers champion AR/ VR technology to bring awareness of its potential benefits. #Capgemini research institute 5