Market Challenges And Opportunities

Global Extended Reality Market Drivers:

Business drivers and manufacturing technologies

Government spending, especially in the field of aerospace and defense, is a key driver for the extended reality market. Recently, Microsoft received a tender for supplying 100,000 HoloLens from the U.S Defense Department. Such investments are expected to drive the market growth in the region. For instance in June 2023, Windows Holographic (an ergonomic, untethered, self-contained holographic device with enterprise-ready applications to increase user accuracy and output), Microsoft HoloLens 2 is a mixed reality head-mounted display developed and manufactured by Microsoft, 23H1 is made available which brings great set of new features to HoloLens 2 users, IT professionals and developers.

Increasing demand in mobile devices with new applications of extended reality

The demand for more futuristic mobile phone applications and technologies in general, and immersive technologies in particular, has increased as a result of this explosive era of innovative mobile application development. The market for developing mobile apps for virtual reality and augmented reality is expanding worldwide. Virtual reality and augmented reality have a plethora of potential applications across all technological fields, from healthcare to industrial development. The main applications of virtual reality and augmented reality apps are Social Media Applications, Virtual Reality Mobile Apps, Troubleshooting of Large Scale Manufacturing Systems, and Healthcare Education Industrial Design. A special subfield of digital technology known as "immersive technology" allows users to become completely or partially immersed in a digital simulation. Augmented Reality (AR) is the use of technology to improve a user’s perception of the real world. Virtual Reality (VR) refers to the use of technology to completely immerse the user in a virtual world. Every day, more and more applications for these two technologies emerge. The mobile app development trends for augmented reality and virtual reality applications have undergone significant shifts. The gaming sector accounts for the majority of the virtual reality technology market. To give users a surreal gaming experience, virtual reality mobile apps make use of specialized virtual reality headgear, 3D technology, and motion-sensors. The possibilities for expansion in this sector are virtually limitless as VR equipment becomes increasingly affordable. For instance, in February 2022, Netflix is an American subscription video on-demand over-the-top streaming television service owned and operated by Netflix, Inc. Sandbox & Co, a millennial learning company focusing on digital products, services and platforms, Sandbox VR partnered with Netflix to create a Virtual Reality (VR) experience inspired by Squid Game, the streaming giant's most-watched show of all time. The Squid Game VR experience is due to launch in late 2023. Netflix VR is an app that’s uniquely compatible with Google’s Daydream virtual reality viewing device, though it promises to be available to more platforms in the future. It allows you to watch television, movies, and other Netflix fare (but mostly television and movies) with a normal Netflix subscription and all the benefits of VR.

Global Extended Reality Market Opportunities:

Growing Demand for Mobile-Based AR and VR Platforms

The market is primarily driven by the rising use of the internet and the developing video game industry. The increased adoption of virtual reality and augmented reality in industries including retail, entertainment, healthcare, media, aerospace, manufacturing, and defense will cause the AR and VR market to grow quickly over the projected period. To support the growth of the manufacturing and automotive industries, governments all over the world are promoting the adoption of various technologies, including new ones. For instance, in October 2022, Meta is an American multinational technology conglomerate launched Meta Quest Pro, a Mixed Reality (MR) headset developed by Reality Labs, a division of Meta Platforms. The Quest Pro closer resembles AR headsets such as Microsoft's HoloLens rather than other virtual reality VR headsets, with a thinner lens enclosure, and a more visor-like form factor that does not obscure the entirety of the user’s peripheral vision; "peripheral blinders" are included as an accessory, with a "full light blocker" attachment sold separately.

Continuous 5G technological advancements

Extended reality technology use is accelerating in both professional and personal settings. The introduction of 5G technology is anticipated to solve these issues by enabling the efficient distribution of processing power. A few countries, including China, South Korea, and the U.S., have already started offering 5G services in a select number of their chosen cities. A huge amount of money has been invested globally to bring 5G to every region of the world. For instance on May 31 2023, Qualcomm Accelerates an Open, XR Developer Ecosystem with Snapdragon Spaces Milestones, Snapdragon Spaces adds an innovative feature, and Dual Render Fusion that enables developers to seamlessly add headworn AR experiences to existing smartphone applications.

Global Extended Reality Market Restraints:

Excessive use of extended reality devices causes health issues

The sensory system can be thrown off by virtual reality, which can cause symptoms like nausea, dizziness, sweating, pallor, and losing one’s balance, which are referred to collectively as "virtual reality sickness." These symptoms may begin within a few minutes of use in sensitive individuals. A person’s sensory, motor, and perceptual abilities can also temporarily change after a virtual reality session, affecting their manual dexterity or body orientation. "AR/VR devices use LED screens that potentially contain a high blue light content, which can disrupt our biological rhythms when viewed at night or in the evening (delayed sleep onset, disrupted sleep, etc.)" Dina Attia, ANSES’s scientific coordinator for this expert evaluation, makes this point. Epileptic seizures can be triggered in susceptible individuals by exposure to the temporal modulation of the light emitted by these LED screens, which flashes light that is sometimes hard to see.

Privacy and data protection

It's important to know that Augmented Reality (AR) devices overlay additional visual information on top of the real-world scene after analyzing it. As a result, data collection is an essential component of augmented reality. Users and viewers of AR-enabled devices are the subjects of data collection. As a result, data security and privacy play a crucial role. Hacker attacks and security, despite its numerous benefits, augmented reality technology is susceptible to various cyber-attacks and security threats. These kinds of actions can have severe repercussions. An AR-enabled navigation system, for instance, can be used by hackers to misdirect a vehicle and cause an accident. As a result, utilizing the principle of limited trust and independently verifying the data presented is always recommended. Addiction in continuous use of mobile or other devices is becoming simpler and more straightforward for individuals to encounter computer generated reality. This has led to a significant increase in the amount of time people spend using this technology. It may be difficult for younger generations in particular to resist the lure of virtual reality and choose other activities. It is essential to keep in mind that young people require time to experience the world as it is, not as it might be displayed on a screen, and that if virtual reality takes over their lives, they may not be able to do so. Monitoring AR usage is essential to avoiding the danger of addiction. Even though the idea of using augmented reality in a variety of industries typically elicits positive feelings, we need to be aware of the actual dangers of using augmented reality. Even for responsible users of new gadgets, this technology may be risky and prone to errors like any other. As a result, when experimenting with augmented reality, it is essential to constantly monitor its usage and to act immediately upon any negative signals before they become problematic.