1、RISE OF WEB3 TECHNOLOGIES TO ACCELERATE XR 2022|SIXTH EDITIONXR Report22022 XR Survey|Executive SummaryWhen we published our first XR survey report in 2016,major media outlets were still skeptical about whether XR,or Extended Reality,would live up to the hype,and industry respondents cited a lack of

2、 compelling content,user experience issues,and high costs as the biggest barriers to widespread adoption.Fast forward to 2022,and while those challenges certainly havent dissipated,one thing has become eminently clear:Accelerated by the pandemic and the emergence of NextGen technologies like Web3 an

3、d the metaverseXR has hit the mainstream.Yet new audiences,technologies,and products bring new challenges.When we add in a economic volatility that has at least temporarily affected many in the tech industry,the question becomes:What does the future have in store for XR?Our new survey of 150 XR indu

4、stry leaders,conducted in July 2022,paints a picture of an industry moving forward with a more temperedperhaps pragmaticsense of optimism as companies seek to deliver on the hype to an increasing number of XR consumers in the aftermath of sky-high growth and spending.For instance,while more than hal

5、f(52%)of respondents believe that XR investment in 2023 will be higher than in 2022,83%said as much about 2022 in last years survey.Thats not to say the industry isnt still poised to grow:98%expect their XR spending to increase either moderately or greatly in the next year,while NextGen technologies

6、which go hand in hand with XR are already an investment focus for nearly all those we surveyed.When asked about the relationship between the two technologies,most survey respondents(88%)agreed or strongly agreed that XR is the gateway to NextGen technology and that NextGen depends wholly on XR.A maj

7、ority(88%)also agreed that the development of NextGen experiences will drive adoption of XR hardware.“XR allows us to build NextGen technologies by integrating immersive experiences that are critical for its success,”said a senior vice president of an established tech company.Past surveys have shown

8、 a lack of quality content to be a major roadblock to mass adoption,pointing to a disconnect between content developers and consumers.This years results show that progress has been made in that area,even though industry insiders still think theres room for improvement.Meanwhile,consumer awareness be

9、came a significant issue this year,perhaps as a result of more XR experiences,products,and technologies to introduce to a burgeoning consumer base.Despite some claims that advancements in these areas will help improve equity and inclusion,respondents agreed that the first beneficiaries of immersive

10、and NextGen technology will be high-income individuals and working professionals.In addition to the 150 XR industry leaders we surveyed,this report is informed by a spring 2022 focus group of top industry executives.In the following report,we analyze their insights along with the survey findings and

11、 include key takeaways to help readers understand the current immersive technology environment.Executive Summaryof respondents believe the pace of XR investment will be higher in 2023 than in 202252%32022 XR Survey|Key Findings While the vast majority(98%)of those surveyed expect to see increased gr

12、owth in immersive tech spending over the next 12 months,growth expectations have tempered in 2022 compared with 2021.NextGen technology is already an investment focus for nearly all respondents,and its seen as both symbiotic with and dependent upon XR.A substantial 54%of respondents are developing o

13、r investing in Web3,while 50%are doing the same in the metaverse.Nearly half(49%)expect to see widespread adoption of such technologies within five years.Development of more immersive and interactive content is still seen as an area where companies can improve.However,it appears that notable strides

14、 were made relative to content over the past year.In our 2021 XR Survey,workforce development and training was a major focus for immersive technology,as 76%of respondents expected slight or significant growth in the sectors immersive technology use from 2021 to 2022.Similarly,most respondents(72%)in

15、 2022 think that immersive technology in this area will increase over the next year compared with last year,with respondents anticipating plenty of future workforce development and training opportunities for XR as well as NextGen.Both XR and NextGen tech have work to do when it comes to inclusivity.

16、Higher-income,well-educated,and tech-savvy populations are seen as the near-to-medium-term beneficiaries of advancements in both.Key Findings42022 XR Survey|Table of ContentsExecutive SummarySection 1:XR and NextGen Investment LandscapeSection 2:Barriers to Mass AdoptionSection 3:How Can Content Imp

17、rove?Section 4:Industry-Specific OutlooksSection 5:Who Benefits Most From Immersive and NextGen Technologies?Methodology and DemographicsAdditional FindingsTable of Contents52022 XR Survey|Section 1:XR and NextGen Investment LandscapesINDUSTRY EXECUTIVES SHARE A MORE TEMPERED OUTLOOK ON IMMERSIVE TE

18、CHNOLOGY INVESTMENT AND SPENDING.In the past decade or soparticularly in 2021investors poured billions of dollars into the XR industry.Now,amid uncertain market conditions,industry leaders appear less focused on large new investments and are reevaluating their priorities.For instance,having invested

19、 in XR for better remote collaborations and trainings during the past few years,most industry leaders(70%)plan to increase spending on such technology only“to a moderate extent”(vs.51%who planned to increase spending“to a large extent”in 2021).This is part of a broader trend.When asked to what exten

20、t immersive tech spending will increase over the next 12 months,fewer than a third(28%)of respondents chose“to a large extent”(i.e.,by more than 15%)a significant change from last year,when more than half(51%)said their organizations would increase their immersive technology spending more than 15%or

21、 to a large extent.Meanwhile,36%said the pace of investment would be slightly higher in 2023,while another 32%said it would remain the same;in 2021,respondents were more optimistic,with 83%saying the pace of investment in immersive technology would increase.According to data from Pitchbook,that opti

22、mism was(and continues to be)justified.The total value for XR deals in 2021 was nearly$7 billion,a significant increase over 2020 when deal value was estimated at about$5.5 billion.In the first half of 2022,VR deals totaled just over$5 billion,though the full effects of the downturn remain to be see

23、n.In the next 12 months,to what extent does your organization plan to increase spending on immersive technology solutions for better remote collaborations and trainings?(Select one option.)Section 1:XR and NextGen Investment Landscapes28%70%2%0%51%44%3%2%To a large extent(more than 15%)To a moderate

24、 extent(5%-15%)To a small extent(up to 5%)Not at all20212022Those who planned to increase their immersive technology spending are also planning to diversify their post-pandemic monetization strategies in a number of ways.The most popular strategies include charging for additional features or in-app

25、purchases(38%),product placements(36%),and the sale of products or subscriptions(36%).Respondents gave similar responses to the same question last year,indicating that no tried-and-true path to generating revenue with immersive technology has emerged.This finding further supports the likelihood of a

26、 less robust spending outlook,particularly as the bear market heightens the importance of revenue and profitability.62022 XR Survey|Section 1:XR and NextGen Investment LandscapesINVESTMENT IN NEXTGEN TECHNOLOGIESNearly all respondents are already investing in NextGen technology,with Web3 and the met

27、averse most popular among those surveyed.Currently,54%are investing in or developing Web3 technology,and 50%are involved with the metaverse,an immersive version of the internet.For instance,major luxury brands are using NextGen and immersive technologies not only to promote but also to sell their pr

28、oducts,like in the first-ever Metaverse Fashion Week in March 2022.Some research suggests that luxury goods,NFTs,and metaverse gaming might make up to 10%of the market in less than a decade.Other industries,from banking to entertainment,will be similarly affected.54%50%40%41%40%7%11%17%23%13%3%1%2%0

29、%0%Web3MetaverseNon-Fungible Tokens(NFTs)CryptogamingSpecialized Hard-ware(Haptics,Biometrics,etc.)UnsureNot considering investment or development at this timeConsidering investment and/or developmentCurrently investing and/or developing36%39%41%35%47%Please indicate your organizations status when i

30、t comes to investment and development in the following NextGen technologies.Our survey respondents agreed that these two technologies are intrinsically linked.During a presurvey focus group,a chief technology officer of a startup said,“XR and NextGen are in a symbiotic relationship where both brands

31、 of technology stand to gain from each other.”And a senior vice president of an established technology company noted“XR allows us to build NextGen technologies by integrating immersive experiences that are critical for its success.”72022 XR Survey|Section 2:Barriers to Mass AdoptionOne needs to look

32、 no further than Metas Super Bowl ad to realize that,in many ways,XR has already hit the mainstream.Costs have gone down,and according to one projection,consumers will collectively use 70 million VR headsets worldwide by 2026up from 26 million in 2021.Part of that has to do with quality,too.Though r

33、oughly half of respondents named user experience(e.g.,bulky hardware and technical glitches)and content offerings(e.g.,lack of quality content)as top barriers to mass adoption,respondents expressed less concern on these fronts than they did in 2021,indicating they perceive the industry is making sub

34、stantial progress.“Widespread adoption for immersive technology might not look the same as it does for other technologies.XR might be more similar to Xboxes than smartphoneswhile they arent as ubiquitous as smartphones,Xboxes are common enough that consumers can buy them in most retail stores,”said

35、Ronald Koo,co-chair of the Interactive Entertainment industry group at Perkins Coie.But as the industry takes off,new challenges will come to the fore:namely,educating and attracting new consumers.Nearly a third of respondents(29%)cited a lack of consumer awareness as a top barrier,up from 6%last ye

36、ar.As consumers grow more skeptical of companies abilities to protect their data,it is not surprising that respondents named improved data security and the protection of personal information(57%)as the biggest factor that would increase mass adoption among consumers.This was followed by developing i

37、nfrastructure that enables immersive technology(52%)and improving the affordability of software,hardware,and content(51%).Section 2:Barriers to Mass Adoption54%49%29%21%23%26%65%53%6%23%25%27%User experience(e.g.,bulky hardware,technical glitches)Lack of consumer awarenessLegal risks and governmentr

38、egulationFinancing and investmentCost to consumers20212022Content offerings(e.g.,actual or per-ceived lack of quality content,amount of content available)What are the top barriers to mass adoption of immersive technology(outside of gaming and entertainment)?(Select top two options.)As for enterprise

39、s,respondents listed infrastructure that enables the use of immersive technologies(47%)and wide-scale immersive technology adoption by government agencies(47%)as the top factors that would improve broad adoption.While infrastructure was also a major concern for enterprise adoption last year,responde

40、nts also listed the development of more accessible software to meet the needs of all users and government funding as some of the bigger obstacles,neither of which was top of mind this year.82022 XR Survey|Section 3:How Can Content Improve?As noted above,a lack of quality XR content remains a top bar

41、rier to mass adoption.One reason:a disconnect between what developers and consumers consider compelling content.Fortunately,however,the gap appears to be narrowing,which could indicate that companies are conducting more market research and trying to better understand what their consumers are looking

42、 for.For instance,though 43%of respondents agreed or strongly agreed that developers do not understand what makes compelling content from a consumer standpoint,this is down nearly 10 percentage points from last year,when 52%said as much.Forty-six percent of respondents also agreed or strongly agreed

43、 that consumers dont understand or dont know where or how to find compelling content.Though this decreased from 64%last year,a percentage this high still underscores concerns about consumer awareness.Section 3:How Can Content Improve?52%49%43%42%33%61%53%44%31%26%Produce moreinteractive/immersive co

44、ntentProduce content that is compatible across different platformsProduce content that allows more seamless interaction with peopleEnsure they have licenses/legalpermission for any third-party imagery,characters,music,and other content used in XR productsAccount for diverse audi-ence preferences/dev

45、elop content for diverse audiences20212022 In which of the following ways,if any,can existing immersive technology content be improved across industries by content developers?Please finish this sentence with any statements that you believe are true:Content developers should _.(Select all that apply.

46、)So how can developers improve immersive technology content?Our respondents top recommendations were the same as in 2021:Produce more interactive and immersive content(52%)as well as content that is compatible across platforms(49%).The bar will always be high for what consumers consider good content

47、,but companies can make strides by implementing effective feedback loops to collect,analyze,and act on customer feedback.92022 XR Survey|Section 4:Industry-Specific OutlooksAs remote and hybrid work become more common,organizations are looking for new ways to train and collaborate with employees fro

48、m their homes.It follows,then,that workforce development and training was the sector most changed by immersive technology since the outbreak of the pandemic,aside from gaming and entertainment(which were long the original applications of XR technology).Other industry sectors have seen significant ad

49、vancements in incorporating immersive technology,too.For example,doctors and health systems are using immersive technology to aid in surgeries and other procedures.And in the manufacturing space,companies are using XR to accelerate prototyping and product development.Section 4:Industry-Specific Outl

50、ooks3%3%5%6%9%9%9%11%13%13%14%15%15%16%19%21%27%TourismMilitary and defenseAutomotiveLogistics/transportationMarketing and advertisingArts and entertainmentCommercial real estate(including construction)Regulated gaming/gamblingEducationManufacturingResidential real estate(virtual showings)Marketplac

51、es/Web3 marketplacesArchitecture/designRetail/ecommerceHealthcare and medical devicesWorkforce development and trainingVideo gaming In which sectors has the use of immersive technology most changed since the outbreak of the pandemic?(Please select up to three options.)102022 XR Survey|Section 4:Indu

52、stry-Specific OutlooksWorkforce development and training,marketing and advertising,and healthcare and medical device industries are all expected to see significant growth in immersive technology over the next 12 months.“Healthcare seems poised to take some big steps forward,”said the leader of a non

53、profit industry trade association that represents the XR industry.“Workforce training has been the trendsetter,in my opinion.”Education was an area that respondents identified last year as one that would significantly increase its immersive technology use(45%),but as schools have opened up this year

54、,that figure has dropped to 37%.For respondents investing in or developing NextGen technology,the top industries they are focusing on include entertainment and gaming(32%),marketplaces/Web3 marketplaces(32%),and workforce development and training(26%).leader of an XR industry association“Healthcare

55、seems poised to take some big steps forward.Workforce training has been the trendsetter,in my opinion”112022 XR Survey|Section 5:Who Benefits Most From Immersive and NextGen Technologies?The industry has claimed that immersive and NextGen technologies,and particularly the metaverse,will advance incl

56、usion and equity.Some think that the fashion industrys entrance into the metaverse will involve more women,while others see the potential for NextGen technologies to break down traditional barriers that affect underrepresented communities.But our surveyalong with other reportingsuggests that may not

57、 be the case,at least not yet.When asked who is poised to benefit the most from NextGen technology over the next five years,survey respondents agreed that the beneficiaries included high-income individuals(58%),working professionals(50%),and people working in technical fields(49%).Respondents views

58、on the beneficiaries of XR technology are similar,too.Most(62%)agreed that high-income individuals will benefit the most from the technology,followed by working professionals(50%)and those in technical fields(47%).This view from industry insiders is surprising in some waysif immersive and NextGen te

59、chnologies are being used for workplace development and training,for instance,the tech could be used at all levels.And some industry insiders are optimistic about the technologys potential to boost diverse voices.Section 5:Who Benefits Most From Immersive and NextGen Technologies?13%13%14%15%21%22%2

60、9%42%44%49%50%58%Racially and ethnically-diverse populationsThose working in nontechnical fieldsLow-income individualsOlder demographics/senior citizensDisabled populationStudentsPopulation with high school education or lowerPopulation with college and advanced degreesMiddle-income individualsThose

61、working in technical fieldsWorking professionalsHigh-income individuals Within the next five years,which groups do you think will benefit the most from advancements in NextGen technology?(Please select all that apply.)agree that there is proportionate venture capital funding for diverse and female-f

62、ounded startups in the technology space78%122022 XR Survey|Section 5:Who Benefits Most From Immersive and NextGen Technologies?“The creation of immersive experiences offers great opportunity to have more diverse voices involved.I say this because one does not necessarily need to have a background in

63、 computer science to succeed in XR.Creatives are needed to design the spaces and that means the potential for more diverse people contributing to the creation of XR,”said the leader of a nonprofit industry trade association representing the industry.At the same time,new technology tends to be used b

64、y higher-income individuals first before the cost decreases,making it more accessible for mass consumption.On a brighter note,even as industry experts see this technology benefiting high-income consumers first,they do not necessarily feel that diverse or female founders are being excluded from acces

65、s to investment.Of our respondents,53%of whom hail from minority or female-owned organizations,nearly half(45%)agreed that funding for such founders is proportional to their white male peers,while 33%strongly agreed.132022 XR Survey|Methodology and DemographicsIn May and June 2022,Perkins Coie engag

66、ed key decision-makers in the immersive technology industry including AR,VR,and MR(collectively called XR)to take part in an online focus group regarding trends and developments as well as the outlook for the year ahead.Participants included executives from leading global software and technology fir

67、ms in the consumer and enterprise space.Key takeaways from those conversations were used to shape an online survey of 150 XR industry executives in July 2022.Like our 2021 XR survey,respondents indicated they represented an organization best described as an established technology company(78%),follow

68、ed by a startup(8%),investor(7%),adviser or outside consultant(4%),or policymaker/government official(3%).Respondents identified their affiliation as:There are two reasons why percentages may not add up to 100%in certain questions.First,in questions where multiple selections were possible,the number

69、 of responses may exceed the number of participants,thus adding up to more than 100%.Second,rounding issues in single-response questions may result in the total percentage equating to slightly more or slightly less than 100%.Methodology and Demographics C-suite(64%)Engineer/Producer(19%)Senior Vice

70、President/Vice President(11%)Consultant/Lawyer(4%)Marketing/Business Development(1%)ABOUT PERKINS COIE LLPWith more than 1,200 lawyers in offices across the United States and Asia,Perkins Coie is a leading international law firm that is known for providing high-value,strategic solutions and extraord

71、inary client service on matters vital to our clients success.Our Digital Media&Entertainment,Gaming&Sports lawyers partner with established and emerging media,entertainment,and technology clients to capitalize on the next-generation and interactive entertainment innovations that are dominating the i

72、ndustry.The Immersive Technology vertical works with clients exploring immersive technology for gaming,education,healthcare,workplace productivity,training,retail,and beyond.We provide a full array of corporate,commercial litigation,intellectual property,and regulatory legal advice to a broad range

73、of clients,including many of the market leaders in AR,VR,and MR technology,products,services,and content.The firm represents clients in identifying,anticipating,and resolving legal issues raised by this developing technology,including corporate financings,IP protection,software licensing,privacy and

74、 data security,product liability,commercialization,and content strategy execution.142022 XR Survey|Additional FindingsAdditional Findings9%33%33%7%42%25%9%36%32%6%35%34%7%40%29%7%33%37%3%46%24%4%46%24%7%34%40%3%36%38%5%36%38%AutomotiveCommercial real estateResidential real estateRetail/ecommerceTour

75、ismEducationLogistics/TransportationManufacturingHealthcare andmedical devicesMarketing and advertisingWorkforce developmentand trainingWill increase significantlyWill increase slightlyWill remain the sameWill decline slightlyWill decline significantly2%3%3%3%3%1%3%1%1%2%2%23%24%22%24%21%22%24%23%16

76、%20%19%How do you believe each of the following sectors will fare in terms of immersive technology usage over the next year(2022 2023)compared with the previous year?12%18%31%28%Developers dont understand what makes for compellingcontent from the consumer standpoint Consumers dont understand or are

77、not aware ofwhere/how to find compelling content Strongly agreeSomewhat agree To what extent do you agree with these statements?152022 XR Survey|Additional Findings In which of the following industries is immersive technology content most limited?(Select one option.)Which of the following best descr

78、ibes the relationship between XR technologies and NextGen technologies,like Web3 and Metaverse?3%3%3%4%5%6%7%7%7%8%8%9%9%9%12%Architecture/designMilitary and defenseOtherMarketing and advertisingAutomotiveWorkforce development and trainingEducationPlanning/transportationRetail/ecommerceResidential r

79、eal estate(virtual showings)TourismCommercial real estate(including construction)Entertainment/gamingHealthcare and medical devicesManufacturing45%43%1%37%51%1%30%44%7%1%40%42%4%1%The relationship is still very fluid andyet to be determinedThe relationship is symbiotic ormutually beneficialXR is the

80、 gateway to NextGen tech;NextGen depends wholly on XRThe development of NextGen experienceswill drive adoption of XR hardware11%11%18%13%Strongly disagreeDisagreeNeither agree nor disagreeAgreeStrongly agree162022 XR Survey|Additional Findings You indicated that your organization is not considering

81、investment or development of certain NextGen technologies at this time.What are the reasons behind this decision?(Please select all that apply.)You indicated that your organization is currently considering investment/development of certain NextGen technologies.In which sectors do you plan to focus?(

82、Please select all that apply.)11%12%12%13%16%17%22%Lack of executive supportLimited researchData securityLow demandCostImplementation timeNot relevant to our organization32%26%18%17%17%17%15%14%14%13%12%12%11%9%6%6%32%Military and defenseTourismLogistics/transportationResidential real estate(virtual

83、 showings)AutomotiveRegulated gaming/gamblingCommercial real estate(including construction)Healthcare and medical devicesMarketing and advertisingRetail/ecommerceArchitecture/designArts and EntertainmentEducationManufacturingWorkforce development and trainingMarketplaces/Web3 marketplacesEntertainme

84、nt/video gaming172022 XR Survey|Additional Findings What do you believe will be the timeline for NextGen to experience widespread adoption?For respondents who indicated their organization does not plan to increase spend on immersive technology solutions for better remote collaborations and trainings

85、 in the next 12 months:In which of the following ways do you plan to diversify monetization strategies for immersive technology after the pandemic?(Select top two options.)Which factors are key in increasing development and adoption of immersive technology by enterprises?(Select all that apply.)49%4

86、0%8%3%1%Within next five years(2027)Within next 6 10 years(2032)Within next 11 15 years(2037)At least 15 years from nowNever13%23%26%30%36%36%38%Location-based entertainment(e.g.,VR arcades)Pay to PlayCharge for access to live events(e.g.,sports,concerts,esports)Revenue from advertising within the i

87、mmersive experienceSale of products or subscriptions(e.g.,devices,content,games)Product placement within the immersive experienceCharge for additional features or in-app purchases thatcan be downloaded for free26%28%29%34%36%41%47%47%Strong antitrust lawsGovernment fundingAssurance that personal inf

88、ormation andcybersecurity is top priorityA central body/group that establishes standardglobal industry regulationsClear,effective and standard laws,best practices and codes ofconduct by policymakersOpen-source coalitions that work in collaboration withgovernment entities and policymakersWide-scale i

89、mmersive technology adoption bygovernment agencies/entitiesInfrastructure enabling the use of immersive technologies(e.g.,5G networks,roads,etc.)182022 XR Survey|Additional Findings Which factors are key in increasing adoption of immersive technology by consumers?(Select all that apply.)What do you

90、believe the pace of investment by businesses will be in immersive technologies will be in 2023 as compared with 2022?(Select one option.)24%24%40%41%43%51%52%57%Implementation of laws,best practices,and codes ofconduct by policymakersImproved hardwareAvailability and access to open source so?wareand

91、 communitiesAwareness of different content and platformsAwareness of success stories or proof points(e.g.,use cases by enterprises)Affordability of any or all of the following:content,so?ware,hardwareDevelopment of infrastructure enabling the use ofimmersive technologies(e.g.,5G networks,roads,etc.)

92、Improved data security/protection of personal information16%36%32%11%5%Significantly lower in 2023 versus 2022Slightly lower in 2023 versus 2022About the same in 2023 versus 2022Slightly higher in 2023 versus 2022Significantly higher in 2023 versus 202219Some jurisdictions in which Perkins Coie LLP

93、practices law may require that this communication be designated as Advertising Materials|November 20222022 XR Survey|Additional Findings Which groups will benefit from advancements in XR technology?(Please select all that apply.)Please indicate your agreement with this statement:There is proportiona

94、te venture capital funding for diverse and female-founded startups in the technology space.13%14%15%19%22%29%29%41%44%47%50%62%Low-income individualsRacially and ethnically diverse populationsThose working in nontechnical fieldsOlder demographics/senior citizensDisabled populationPopulation with high school education or lowerStudentsMiddle-income individualsPopulation with college and advanced degreesThose working in technical fieldsWorking professionalsHigh-income individuals33%45%15%6%1%Strongly agreeAgreeNeither agree nor disagreeDisagreeStrongly disagree