MIXED REALITY MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics - Drivers

1. Rising adoption of mixed reality in healthcare and medical sectors is expected to drive growth of the global mixed reality market during the forecast period.

Video game companies are increasingly adopting MR technology, in order to create games that are realistic and offer to enhance experience. A plethora of PCs and mobile games available in the market use augmented reality though many gamers are expected to opt for more interactive and entertaining playing games with support devices. Mixed reality has revolutionized the gaming industry and has also given a platform to be a part of virtual world with a realistic experience without actually being present at any specific location or open field. Moreover, augmented reality technology could offer immersive experience for movie reviewers of the future, 3-D film characters could appear in front of viewers, or at their side, as the story unfolds; the viewer could interact with the movie characters. For instance, Magic Leap, an augmented reality company, offers technology that shines on the retina of the user and allows interaction between the fictional characters and the real world. Furthermore, MR is used in healthcare organizations to formulate their existing processes more accurately and effectively. Thus, these factors are expected to support growth of the market during the forecast period.

2. Instructive user experience in e-commerce shopping and retail is expected to propel the global mixed reality market growth over the forecast period

Rising expectations from users to experience and feel goods in reality, leading to development of MR devices. These devices create a strong illusion of real-life shopping and retail experience. Majority of retailers are using this technology to provide their customers with an interactive experience, which is taking shopping to new edge. For instance, if a consumer needs a pair of shoes urgently, he or she can use the MR device to point to the nearby shoe stores and browse the stock before heading over in person. This helps consumers save time and retailers match up with the right customers. There are numerous barcode apps available that let customers scan codes and read more about the product. Moreover, incorporation of mixed reality augments online shopping experience. For instance, car manufacturers can create a virtual manual, enable owners to visualize 3-D information about everything from the functions of the buttons on the dash to the location of the coolant reservoir. The retail sector using mixed and augmented reality for the marketing of products is a new concept, although the industry is expected to witness the significant growth of successful campaigns in the future.

Market Dynamics- Restraints

1. Financial constraints and privacy issues are expected to hamper the global mixed reality market growth over the forecast period

MR technology is a cutting-edge technology, which is why it requires significant investments in infrastructure and R&D to develop advanced MR devices. Currently, organizations are facing financial issues due to high costs associated with implantation of MR technology. However, this cost varies according to different companies and industries and can be measured differently. Most companies in the MR market face uncertainty issues while assessing the financial outcomes of MR projects that could increase risk. Moreover, privacy concern is another factor hindering adoption of MR technology. MR complicates intellectual property law by gathering and potentially transforming copyrighted or trademarked material that appears in the real world. For instance, recording copyrighted material expected constitutes copying, for purposes of copyright violation.

2. Technical issues regarding MR are expected to restrain growth of the global mixed reality market growth during the forecast period

There are some technical issues arising with mixed reality despite being highly advanced. Limited battery life and image latency issues are major technical difficulties faced by end users, which in turn, is expected to hamper the global mixed reality market growth during the forecast period.

Market Opportunities

1. Rising demand from automotive sector can present major growth opportunities

Mixed reality is expected to witness massive demand from automotive industry thereby driving the overall market growth. Numerous automotive companies across the globe have started implementing AR in their advertising campaigns. For instance, in April 2016, BMW Group (Germany) introduced a mixed reality system into vehicle development, which has been developed with the help of components from the computer games industry. This system bids significant advantages over the VR systems that have existed to date, thereby making virtual reality on developer workstations obsolete.

2. Increasing government investments in the field of MR can pose excellent growth opportunities

Governments of various countries are focused on investing in mixed reality technology after acknowledging its several benefits. For instance, in April 2018, the U.K. Government invested US$ 35 million (€ 33 million), as a part of its industrial development strategy, in AR, VR, and MR. Such significant investments in the U.K. is expected to create major opportunities for market players in the near future.