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AR, VR, and XT represent the trio of modern-day immersive technologies. There were days when tech pandits called them just a fad.
However, as the market for AR, VR, and XR is projected to $40.4 billion in revenue in 2024, it’s clear that these technological advancements are way more than just a fad or trend. These innovative digital solutions are increasingly becoming more mainstream and are set to revolutionize nearly all industries.
From banking to manufacturing and retail to healthcare, everyone is betting on AR, VR, and XR to drive employee and customer experience, achieve better outcomes, and positively impact the bottom-line growth. This blog will guide you through the essentials of these technologies, how they are already transforming industries, and whether you should consider them to drive your business forward.
AR, VR, and XR: Understanding the essentials
First, AR is an acronym for Augmented Reality, whereas VR and XR stand for Virtual Reality and Extended Reality.
These technologies leverage computer systems to craft immersive environments or experiences for users who could be students in a school or university, shoppers, business professionals, or healthcare professionals—anybody. One more thing—these technologies can be deployed individually or in combination, depending on your specific use case.
Now, let’s understand the fundamentals of these advancements one by one.
Augmented reality (AR)
Augmented Reailty or AR overlays digital content onto the real world, allowing users to interact with the environment in real-time. For example, AR apps can place historical figures in a room with students in 3D. And this is just one single-use case. There are numerous out there.
AR apps or software solutions build on the real world; using these apps, you can enhance your learning experience.
Virtual reality (VR)
Virtual Reality or VR creates a completely simulated environment that immerses users in a virtual world. For example, VR games can let users build cells and watch how they function.
Extended reality (XR)
Extended Reality, or XR, is an umbrella term encompassing all three technologies and any experience that extends beyond the physical world. XR can include virtual environments that simulate real-world environments, augmented environments that overlay digital content, and mixed environments that blend virtual and real-world elements.
Key business advantages of these technologies
- More impactful training and development
Imagine employees getting hands-on practice without any real-world risks. With AR, VR, and XR, they can dive into realistic training scenarios safely. This is a game-changer for fields like healthcare, manufacturing, and aviation, where mistakes can be costly. Workers can build their skills through experience, leading to fewer errors and more confidence on the job. - Smarter remote collaboration
These technologies make working together from different locations feel more natural. Virtual meeting spaces let team members interact as if they were sitting around the same table. This cuts down on travel time and costs and helps everyone stay connected and communicate better, which is crucial for businesses with teams spread across the globe. - Engaging customer experiences
AR, VR, and XR can transform how customers interact with products and services. Think about being able to see how a new couch would look in your living room using AR, or taking a virtual tour of a house you’re interested in buying. These immersive experiences help customers make better decisions and feel more satisfied with their choices. - Creative marketing and branding
AR, VR, and XR open up a world of creative possibilities for marketing. Imagine giving your customers the chance to interact with your product in a virtual world, or hosting a virtual product launch that feels just as exciting as being there in person. These immersive experiences grab attention and create memorable moments that make your brand stand out. - Improved efficiency and productivity
These technologies can make work processes smoother and faster. For example, AR can display step-by-step instructions right in front of a worker's eyes, helping them complete tasks quickly and accurately. VR can be used to design and test new products virtually, saving time and resources on physical prototypes. By integrating AR, VR, and XR into everyday operations, businesses can streamline workflows and increase productivity.
AR, VR, and XR: Driving change across multiple sectors
Forward-looking organizations are increasingly investing in cutting-edge technologies to amplify their competitive advantage by automating their workflows and paving the way for increased innovation and customer experience. From construction to retail and manufacturing to healthcare, nearly every industry is embedding futuristic AR, VR, and XR apps and software solutions into their processes.
- Construction
Building Information Models (BIM) are created by overlaying CAD models in AR/VR. The data generated through these models helps optimize construction projects, leading to enhanced productivity and cost savings. Another application of AR in construction that boosts the sector's efficiency is using AR devices like tablets or smartphones to visualize the precise location of the construction process. These devices can also help determine where future installations can be envisaged. AR visualization helps urban planners model the layout of an entire city. - Healthcare
AR-based systems provide healthcare professionals with computer-processed imaging data in real-time. Wearables, head-mounted displays, and mobile apps have enhanced the quality of healthcare delivery and patient experience. AR helps healthcare professionals overcome limitations like physical therapy and rehabilitation, surgery, real-time patient data access, seamless hospital navigation, and more.
AR technology is making huge strides in medical training as well. Medical students can learn human anatomy with the help of AR, which enables them to delve into the human body in an interactive 3D format. AR can also boost the depth and effectiveness of medical training in multiple areas, including operating medical equipment or performing complex surgeries.
- Manufacturing
AR has revolutionized the manufacturing sector by fostering increased innovation. It facilitates improved product quality, better decision-making, enhanced operational efficiency, greater employee safety, and reduced costs. AR provides product specialists with a 3D representation of various product elements. This helps them improve the product quality and quickly deliver the product to the market. AR offers professionals contextualized information and insights into equipment performance. This data speeds up problem-solving and helps optimize processes. - Logistics
AR has made inroads into different logistics functions to enhance productivity. The technology provides real-time insights into operations, thereby boosting accuracy and efficiency. AR enhances inventory tracking accuracy by quickly scanning and monitoring product locations in a warehouse. It improves the speed, accuracy, and safety of maintenance by providing remote assistance to technicians. AR optimizes the efficiency and accuracy of warehouse operations by recommending layout and workflow changes. - Retail
AR and VR have revolutionized shopping. Imagine visualizing a piece of furniture in your living room before purchasing it. Virtual fitting rooms allow you to try on clothes without being in a store, making shopping more convenient and reducing returns. Retailers are leveraging these technologies to create immersive shopping experiences that captivate customers and enhance satisfaction. - Education and training
AR and VR transform education and corporate training. Students can explore historical sites in virtual reality or see complex scientific concepts come to life through augmented reality. Businesses utilize these technologies to provide employees with realistic simulations for skill-building exercises, resulting in more effective and memorable learning experiences. - Entertainment and Gaming
Gaming has never been more immersive. VR transports players to entirely new worlds, creating authentic experiences. AR enhances live events by adding digital elements to the physical world, making concerts, sports, and other entertainment events more interactive and exciting.
The table below explains how IoT technology can augment and amplify the AR-VR experience.
| Mode of Reality | Value added by IoT |
|---|---|
| Augmented Reality | 1. The synergy of AR and IoT: a convergence of digital and physical worlds
2. The combination of IoT and augmented reality allows businesses to collect real-time data and use it to visualise operations and proactively address problems. This predictive approach transforms maintenance from a reactive to a proactive task, significantly reducing downtime and operational costs. |
| Virtual Reality | 1. IoT connects physical devices, sensors, and networks to the internet, enabling data collection and exchange. 2. IoT enhances VR by providing real-time and accurate information about the physical world, enabling users to interact with virtual objects that correspond to real ones, and creating seamless transitions between reality and virtuality. 3. IoT enables users to experience VR in different settings, such as outdoors, in vehicles, or in public spaces. 4. Hand, Head and body movement tracking using sensors. 5. Use of Spatial Audio integrated with body and head movement 6. Gesture Tracking through devices |
The three senses that are leveraged for rendering an immersive XR experience are Vision, Audio and Touch.
- Vision
Visual rendering can be done using Mobile, Desktop, Projector, video-see-through Display, or head-mounted display. - Audio
Like a head-mounted display, airport/earbuds render spatial audio in 3D space. An accelerometer and gyroscope monitor head and body movement to render contextualized spatial audio. Dolby Atmos is one such technology standard. - Touch
Haptic technology and devices render a simulated feel. A closed-loop mechanism provides feedback using actuators feeding vibration and synthetic touch.
Ready to explore how immersive technologies can revolutionize your business?
Let's talkIs AR, VR, or XR right for your business? Key considerations to evaluate
If you have not yet invested in or embraced these technologies, you can start by assessing your organization's specific needs and challenges.
Determine whether an AR, VR, or XR-based digital solution can help you solve an existing challenge or unlock new opportunities or revenue models. Then, calculate the potential ROI on your AR/VR/XR investments against the development costs.
Engaging a professional AR/VR/XR app development company can be a long-term and substantial investment. Therefore, consider all the benefits you can unlock by embedding these advancements into your IT infrastructure, such as competitive differentiation, improved customer or employee engagement, etc. Then, compare them against the overall costs and efforts you will put into developing and managing these tech solutions. By thoroughly weighing these factors, you can make an informed decision.
