Extended Reality (XR) is an umbrella term covering all real & virtual environments, like Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). The technology promises to change the traditional ways of learning, buying, and doing things, intersecting with almost every sector and providing added value to both consumers & organizations.
XR has unleashed business prospects that earlier were not possible to achieve cost-effectively. For instance, it now allows for virtual collaborations with field technicians, delivers interactive engagement marketing to consumers, and transforms how companies utilize simulation product development & training.
As a result, it’s clear that XR has established a foothold in enterprises, and numerous other business opportunities, including but not limited to devising new business models, enhancing consumer satisfaction & retention, and determining new revenue streams, are likely in the future. Hence, a recent study by MarkNtel Advisors has projected a whopping 55% CAGR for the Global Extended Reality Market during 2022-27, which would be backed primarily by the mounting trend of gesture-based computing, the growing establishment of smart factories, and 5G penetration globally.
Being Better & More Affordable
VR headsets, controllers, and other related software were very expensive when they first launched. However, companies like Sony, HTC, Oculus, & Google, among others, are all providing affordable & more dynamic products, with constant improvements in hardware & software, graphics & animation, sensory effects, tactile feedback, increased mobility, etc.
Consumer interest in VR, AR, & MR is flourishing as XR applications are moving beyond entertainment & gaming. Hence, as this technology continues to improve & expand to a larger population due to decreased prices, the industry will witness new directions to thrive in the years to come. Have a look below at a few industries that are adopting XR to enhance their business and add more value to their consumers:
- Travel & Tourism: Numerous tourist places like museums, especially after the Covid-19 pandemic, have made it possible for people to explore the world without stepping out of their homes. Some companies operating in the travel & tourism sector are developing AR-based applications to allow tourists to learn more about a building or landmark in real-time.
- Healthcare: Another prominent end-user of extended reality solutions is the healthcare sector, where the technology is aiding in risk-free training of surgeons & other medical professionals, safety equipment testing, virtual consultation, etc. Moreover, doctors can now well-understand specific diseases using XR devices and provide patients with enhanced therapeutics.
- Retail: In order to enhance the consumer buying experience and cater to more masses, the retail sector is increasingly adopting extended reality solutions. A few premium brands in this industry have started using XR to provide their customers with an immersive experience both online & in-store. For instance, Lacoste has combined 3D scanning & AR in their in-app shopping feature, enabling customers to virtually try on shoes in-store. Using XR, organizations are aiming for a great business & communication strategy, i.e., helping them boost both revenue & brand value.
By turning insights into experiences, XR is reshaping several aspects of our lives. Indeed, some challenges like privacy, values, etc., are yet to be overcome. However, the immense potential of this technology far outweighs them. XR promises to boost business growth by allowing companies to streamline their operations and engage more acutely with their customers while providing them with more creative answers to their queries. These aspects clearly cite that the extended reality industry is set to generate new avenues for the leading players to observe lucrative prospects in the coming years.