VRX 2019 Highlights Ongoing Challenges, but Augmented and Virtual Reality Outlook Promising

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2Q 2019 | IN-5468

At VRX Europe 2019, augmented reality (AR) and virtual reality (VR) solution providers and adopters highlighted the numerous advantages, rising opportunities, and main challenges that exist in the AR and VR ecosystem today. HP, Magic Leap, Sixense, ABB, Hugo Boss, Google, HTC VIVE, the Manufacturing Technology Centre (MTC), Philips, and many others presented their use cases and expectations regarding the potential of AR/VR solutions and the limitations that must be addressed to allow the market to flourish. Education and corporate training, applications for manufacturing and architecture, engineering, and construction (AEC), and location-based apps are some of the most promising use cases. Many businesses have already implemented these use cases and have moved from the proof of concept (PoC) stage and trials to the actual implementation stage. Outcomes are encouraging; AR and VR tools help significantly reduce operational costs, improve organization development, and improve employee efficiency and customer satisfaction. The high cost of hardware and the limited content available are the main challenges that the AR and VR markets face today. More affordable devices and a richer variety of applications with improved or extra capabilities will play a catalytic role in the growth of AR/VR, encouraging adoption by both consumers and enterprises.

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Present and Future Trends and Challenges

NEWS


At VRX Europe 2019, Augmented Reality (AR) and Virtual Reality (VR) solution providers and adopters highlighted the numerous advantages, rising opportunities, and main challenges that exist in the AR and VR ecosystem today. HP, Magic Leap, Sixense, ABB, Hugo Boss, Google, HTC VIVE, the Manufacturing Technology Centre (MTC), Philips, and many others presented their use cases and expectations regarding the potential of AR/VR solutions and the limitations that must be addressed to allow the market to flourish. Education and corporate training, applications for manufacturing and Architecture, Engineering, and Construction (AEC), and location-based apps are some of the most promising use cases. Many businesses have already implemented these use cases and have moved from the Proof of Concept (PoC) stage and trials to the actual implementation stage. Outcomes are encouraging; AR and VR tools help significantly reduce operational costs, improve organization development, and improve employee efficiency and customer satisfaction. The high cost of hardware and the limited content available are the main challenges that the AR and VR markets face today. More affordable devices and a richer variety of applications with improved or extra capabilities will play a catalytic role in the growth of AR/VR, encouraging adoption by both consumers and enterprises.

New Devices and Capabilities

IMPACT


Technological advancements in regard to AR and VR headsets are among the key factors that determine user experience and use case efficacy. For instance, HP presented a demonstration of its HP Reverb Pro Edition, a tethered VR headset that is lighter than its predecessor, allowing extended usage. The Reverb Pro also has improved resolution per eye, a wider field of view at 114 degrees, and an inside-out Six Degrees of Freedom (6Dof) camera. Together, these new features offer enhanced optical clarity, higher accuracy, deeper immersion, and better experiences overall. The new headset is ideal for corporate training; immersive and interactive experiences help trainees acquire a better understanding of content and retain knowledge longer. Businesses can also use the device in product design to visualize products before final production and enhance review processes and collaboration between all involved parties. In addition, Philips for healthcare and MTC for manufacturing presented their use cases in collaboration with Microsoft’s new Mixed Reality (MR) headset, the HoloLens 2. The HoloLens 2’s wider field of view, improved voice and gesture recognition, lighter and more comfortable build, and updated eye tracking system allow physicians and construction employees to handle and visualize high quality data and other information hands-free while maintaining focus on their tasks. Improved clinical outcomes, enhanced patient experience and staff satisfaction, lower cost of care delivery, and higher productivity are among the most important impacts of AR in healthcare. At the same time, lower costs, higher productivity, reduced errors, and immediate responses to issues are some of the most valuable benefits of AR in the construction industry.

Regarding the consumer-oriented devices, VR headsets have mainly captured the interest of consumers for gaming and entertainment, although high prices and a lack of content have hindered adoption. VR headset manufacturers are continuously enhancing and expanding their product portfolios with improved quality headsets that provide better experiences to users. At the same time, prices are relatively more affordable compared to previous years and are expected to be reduced more in the future.

User interface and experience is another important feature that is continuously improving, adding value to headsets and use cases. For instance, standalone VR headsets remove both the barrier of cables and the extra cost of compatible PCs and laptops. Wider availability of 6DoF tracked controllers means greater immersion and accuracy of input. User interface (UI) research is required to extract the most out of these devices and maintain a streamlined and easy to understand experience for users. Flexibility is a factor that drives growth in both consumer and enterprise markets. Consumer AR smart glasses is a market that still needs furtherer improvements for massive adoption in terms of product development, both in design and capability.

Essential Components of AR and VR Success

RECOMMENDATIONS


New content development and applications are the most vital challenges that must be addressed to drive growth in the AR/ VR market and provide more incentives to consumers and enterprises to invest. More and more manufacturers are expanding their partnerships to add more value to their customers with new applications and more capabilities, and some hardware and software providers (such as Magic Leap and Amazon Sumerian) have set up competitions that offer grants to the best app ideas in order to encourage content development. In addition, enriched content suitable for all genders and age groups will play an essential role in increasing adoption rate. Other innovations, such as 3D TVs, have proved that a lack of content and expensive equipment are critical factors that determine a product’s growth and progress.

There is an interesting and important social aspect to these devices as well. Bringing people together from various locations, sharing common experiences, and interacting with friends, family, and other groups are important factors that will affect the growth of AR and VR. Developers and manufacturers need to follow consumer behavior trends and embrace common/shared experiences. Massive gaming hits like Pokemon Go or, outside of AR, Fortnite, have already proved the importance of social gaming and shared experiences. The growth of location-based apps and 5G connectivity will allow multiple users to share common experiences both in their homes and at outdoor locations.

Regarding Return on Investment (ROI), businesses and investors must take into consideration both qualitative and quantitative metrics and Key Performance Indicators (KPIs) when deciding to invest in AR and VR solutions or assessing their efficiency. AR and VR solutions are still maturing; consequently, quantitative metrics and outcomes are still under examination and development for the majority of businesses. However, the number of successful implementations and use cases have proved that emerging technologies foster employee and customer engagement, increase satisfaction, and contribute to employee and customer retention. All of these metrics are important to total organization efficiency and growth, and the level of improvement required to see ROI for one’s specific use case or company must be identified to ensure success.

All in all, the future of AR and VR is optimistic. Not only are businesses and consumers starting to better understand the value, use cases, and applications of AR and VR solutions, but collaboration within the AR/VR ecosystem is also continuing to grow, which is essential to educating audiences and users, overcoming challenges, and accelerating growth on all sides.

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