The Immersive Technology’s Impact: Augmented Reality into Markets

Augmented reality (AR) and virtual reality (VR) technologies are still far from becoming mainstream, unlike some of the other emerging technologies (for example, smart home solutions from the likes of Amazon and Google). Many of the start-ups had to scale down their headcounts as the anticipated growth momentum is not here.

However, it doesn’t mean that the combined VR/AR industry is stagnating. For example, the monthly active usage of VR headsets on Steam, one of the most popular gaming platforms, has been steadily growing, albeit slowly. At the same time, according to analysts at IDC, global shipments of VR/AR headsets are going to continuously grow at an impressive compound annual growth rate of 55% for the next couple of years.

IDC also expects the major brands like Oculus, HTC, and Microsoft to keep carrying the torch and fuelling the potential growth. But traditional hardware companies, like Qualcomm, and their chip innovations should also provide the much-needed boost for the market. This potential supply could be met by creative industries and their growing interest in VR/AR technologies.

Opportunities for enterprise VR/AR are abundant. For example, according to a research, virtual reality training solutions could be a 6-billion-dollar market by 2022, as more companies find it to be more cost-effective and scalable than traditional training practices. The tipping point for enterprise VR/AR adoption might be close, and businesses should seriously consider exploring these technologies. Even Gartner already considers these industries to be relatively mature.

AR for Augmented Training of Compliances

It’s evident that nothing compares to real-world experience. The other end of this spectrum is theoretical learning, which anyone has to go through before the actual practice, be that driving a vehicle or learning how to repair a production line. VR/AR-enabled training capabilities are meant to bridge the gap between investing precious resources into practical skills and spending too much time on theory.

This is also reinforced by how humans naturally absorb information and learn. Over 65% of people are visual learners, i.e., those who are more susceptible to learning in a visual format. The rest of the major learning methods (aesthetic and auditory) can also be entirely covered by AR, as they engage all of these senses.

Scientific evidence is there to back up these claims. For example, research by the University of Maryland concluded that AR is roughly 8% more efficient at stimulating recall memory than standard computer-based training14.

That’s why these technologies are already proving to be effective at training. For example, we at xperi.nz have dramatically reduced the time it takes to train our AI compliance engine by 40%. A restaurant chain improved onboarding merchandizing and culture-by-season training through the use of AR, boosting successful certifications by over 20% using our traits.

A different restaurant chain managed to double the speed of kitchen skills training for its staff. Heavy industries are not an exception too. Boeing was able to cut production training by up to 75%. Needless to say, this creates a significant ROI for the whole training and onboarding process.

The opportunities presented by the augmented reality market across industries are bountiful:

· Using VR/AR to train medical professionals in equipment operations, diagnosis, and teamwork.

· Training military and police personnel by simulating combat and emergencies. For example, NYPD is training its force to deal with active shooters in VR simulations.

· Making sure that employees are continuously educated on workplace safety and hazards.

· Training on customer relationship management for the travel and leisure industry.

· Training for extreme conditions and emergencies, like astronaut training at NASA.

It’s also important to note that AR-based learning has the potential to significantly lower the cost of training:

· Employees don’t have to travel for practical exercises.

· VR/AR is incredibly scalable as the equipment is affordable, and software can be reused for an unlimited number of times.

· Safety and equipment integrity don’t have to be compromised, as everything happens in the digital world.

· The cost of training goes down with time, as the initial cost of producing a training program in VR gets shared among the numerous employees that reuse it.

AR to Bring Commendable Prospects to Customers and Businesses

The global AR market is set to grow at an unprecedented CAGR of almost 162% between 2019 and 2024. This development opens up new opportunities in marketing and advertising through immersive experiences, since around 50% of people globally are using different types of ad blockers to improve their experience.

And this is where immersion could break the spell. Over a third of AR users consider marketing and advertising applications of the technology to be the most promising. It’s obvious why. Consumers want to be convinced and wowed, and AR provides the perfect opportunity to do that, especially when most people already carry a device that can enable this (like smartphones and tablets).

Audiences treat product placement in AR a lot better than in traditional forms of advertising. One obvious explanation would be that VR is simulating the real world, where product placement is everywhere, from the bottle of Pepsi on your table to the strategically placed candy bar under your car’s windshield. AR could only set the deal-maker here.

All of this ‘enthusiasm’ is not just true for consumers. Over two thirds of agencies would like to see more VR/AR in digital marketing. It’s obvious why, given that nearly half of those aged between 18 and 34 in the US intend to purchase a VR/AR device, which corresponds to the most active spenders or people soon to become them.

While it may be harder to get a VR/AR marketing campaign off the ground due to higher costs, we at Xperi.nZ find it important to remember that the revenue potential, as well as brand recognition growth, is going to be the significant clatter into the charts of sheering growth. This is where you have to figure out if it makes sense to launch this type of a campaign, and to engage an experienced AR production partner like us. For example, a study concluded that AR ads are significantly more effective than display ads, as a whopping 63% ff people can recall ad elements from an AR Advertisements due to the detail in features and dynamics.

To know more about the dynamics and in-sights we provide at Xperi.nz, go ahead to www.xperi.nz or tune in to one of our social handles — FaceBook, Instagram, and more!

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