1、A Mid-Year OutlookOn the next big bet from the tech worldEXTENDEDREALITY The State of 2022In an Experience EconomyTodays customers are digitally savvy,demanding,and value driven.They expectbrands to be proactive,offer personalized solutions,and be sustainable in theirpractices.Given the increasing a

2、cceptance of a hybrid world,its no surprise thatcompanies are moving towards creating superior digital experiences across anomnichannel setup.Users have witnessed a pandemic for more than 2 years now,and are clamouringfor an enriched experience that goes beyond the 2D outlay a laptop or mobilecan pr

3、ovide.With this demand for improved CX and the rapidly evolving digital infrastructure,extended reality(XR)has gained tremendous interest from technology andbusiness leaders in equal measures.IntroductionThe pandemic has helpedaccelerate the developmentof emerging technologiesthat are more cognizant

4、 of modern-day challenges.XR brings together humansand computer-generatedgraphics for digitalinteractions.It can bedefined as the superset oftechnologies like mixedreality,augmented reality,and virtual reality.And,bybringing these technologiesto the fore,we are potentiallyunlocking an entire spectru

5、mof opportunities across boththe real and virtual worlds.According to the latest report by Emergen Researchi,theglobal XR market is expected to reach a market size of USD1,246.57 Billion at a steady CAGR of 24.2%in 2027.WhileNorth America continues to be the largest market for thetechnology,the next

6、 growth spurt will be driven by the AsiaPacific region.Closer home,the Indian market continuesto see fast adoption and growth in the XR MarketOverviewSource:Accenture Report:Virtual is the newrealityFig 1:The Indian Market for XR takes offIndia has the largest youth population(18-29)inthe world,whic

7、h is more than 261 million people.As the generations which have been digitallynative from the word go,turn into decisionmakers,the high demand for qualityexperiences will drive greater XR adoption.Key Growth DriversIncreasing demand for realistic andimmersive user experiencesSaturation of existing c

8、hannelsThe saturation of content in existingchannels during the pandemic has causeddigital fatigue.The time spent by a user on their screen hasincreased exponentially,but most digitalchannels continue to offer blas visualgraphics which no longer excite the endconsumer.Users want an omnichannel exper

9、iencethat allows them to interact with brandsacross multiple digital touchpoints.Metaverse provides an opportunity forbrands and users to interact by mashingvirtual and real environments together.Bloomberg estimates that Metaverse isalready valued at more than 800 BUSDAccording to a study conducted

10、by Poplar,globally,75%of consumers expect theirretailers to now offer an AR experience.Further,the rise of Metaverse has been augmented bythe rise in Web 3.0 applications like NFTs andCryptocurrency.The global transaction volumesfor NFTs is expected to grow from 24 mn in 2022to 40 mn in 2027iv.Testa

11、ment to its widespread acceptance,inIndia,which is already the largest investormarket for cryptocurrency,NFT trade is tradingat similar levels as the crypto market.Change in consumer mindsets andacceptabilityCheaper costs of hardwareAs the technology becomes morewidespread,the cost of hardware andso

12、ftware needed is decreasing.This makesit more accessible to a wider range ofpeople and businesses.Reliance Jio haslaunched its version of the VR headsetcalled Jio Glass.Further,VR headsets inIndia are available from starting prices aslow as$Improved technology infrastructureIn UK,the research on 6G

13、technology has picked up thepace.Countries in the Middle East region show morethan 90%digital penetration.And,India recentlyconducted its 5G spectrum auction to begin providingthe service to consumers.All across the world,thetechnology infrastructure required to support an XR-driven future has been

14、growing.Faster speeds andgreater connectivity help blur the lines between thephysical and virtual worlds.Rise of the IndianCustomerIn 2021,India had 1.2 billion mobilesubscribers,out of which 750 million wesmartphone users.Given the high digital literacy tricklingdown to the Tier 2 and Tier 3 cities

15、,theappetite for adopting newer technologiesreamin high.As telecom companies start providing 5Gservices by 2022-23,the digitalinfrastructure required to support suchhigh-quality experiences will get a This is fueled by the Jio revolution,increasing investment in digitalinfrastructure and the low cos

16、tsmartphone penetration,which isexpected to go from 54%in 2020 to 96%in2040.In India,the adoption of extended realitycontinues to be led by AR and VRtechnologies.According to Research and Marketsii,thetotal market size of AR/VR in India isexpected to advance at a CAGR of 38.29%to US$14.07 billion by

17、 2027.Fig 2:Indian AR/VR Market ExplodesSource:Research&Markets ReportBusinessAdoption ofXRBusinesses need tounderstand the opportunitythat the XR market presentstoday.Whether it is employeeproductivity,or,customerexperience,stakeholders areopen to adopting AR/VRWhile the maturity rates are not the

18、same in all industries,some show greater inclinationthan others in their quick adoption.One can divide these into B2B and B2C segments.Source:Statista 2021,Market Spending on XR Technologies Worldwide from 2018-2023Industry leaders need to tap into the benefits and differentiation that having an ARe

19、xperience can provide.A reluctance to do this would invite the risk missing the bus todisruptive new entrants more attuned into the consumer needs.With customer loyaltywaning away faster than ever before,companies can no longer afford to be reactive in theirofferings.A common misconception isthat in

20、vestments in XR arelimited to consumerapplications.When in fact,industrial spending overtookconsumer spending in 2019 XR Use Cases in theB2B SegmentSpends in industrial usage are primarily aimed at improving the business processes,andreducing costs and manpower required.Industries such as Oil and Ga

21、s,Financial Services,and Manufacturing have shown aproclivity towards faster adoption.And,have invested in capabilities to support their vision.Reducing cost and risk of trainingnew workforceEmployees in traditional industries require a longperiod of training time to learn the complexmachinery invol

22、ved.Further,this comes at both highcost and risk.Given that these industries are lookingat training a younger workforce,this timelyintervention helps companies save huge costs,ensure safer environments for the trainees,and helpreduce errors.The business applications which have seen favourable tracti

23、on across theseindustries include-Hindustan Petroleumvi,an oil&gas giant,has set up anXR facility at its Petroleum House Learning Centre.Itprovides an interactive and simulated environment topractice field situations in functions such as refinery anddepot.Its helping address the challenges of tradit

24、ionaltraining methods that are fraught with difficulty,and risksand come at a huge Offering personalized services forbetter customer engagementProviding personalized assistance can go a long wayin building long-lasting relationships with customers.Whether it is with guided product tutorials through

25、aVR environment,previewing products through an ARapp before purchase,or remote assistance throughmixed reality.Such digital touchpoints can helpimprove customer satisfaction.As per IBMsviii report,the Financial Services industry isexpected to have the highest spending in XR for improvedcustomer enga

26、gement.The market is estimated to grow at aCAGR of 133.9%in the next decade,with a keen interest inhigher brand recall through XR.Banking mogul Citi developed its HoloLens HolographicWorkstation which helped its advisors in the visualization ofcomplex financial models.The same technology could also

27、beextended to clients,using visual elements to explaindecisions better.Improving workplace transformationthrough a collaborative hybridenvironmentXR enables teams spread geographically tocollaborate better.Whether it is remote conferencingfor discussions or building digital twins of newproducts,XR h

28、elps supervisors and experts step infrom remote locations as the need for XR Use Cases in theB2C SegmentModern consumers demand empathy and personalization.They can,and will leave abrand that doesnt provide quality digital experiences.XR provides an opportunity forbrands to extend their customer tou

29、chpoints beyond the standard channels,and in effectincrease their brand recognition and recall.Industries such as Healthcare,Gaming,Education,and Travel have emerged as earlyadopters of XRImproving Patient Engagement inHealthcareRemote Patient Monitoring has taken off postCovid thanks to the ease it

30、 provides indisseminating healthcare to distant patients.Asthe wearables market continues to surge,thetelehealth industry can leverage XR to provideemergency care,VR-focussed physiotherapy,and pain management.Some of the applications in these industries include -VR focussed organization SnowWorldix,

31、developed with over2 decades of research by Hunter Hoffman and DavidPatterson,helps patients with acute pain management.Itredirects patients from their acute pain to simulatedenvironments where they are focused on meaningless taskssuch as throwing snowballs.Burn patients have shown 35-50%lesser pain

32、 when immersed in this Enabling an Omni-Channel CustomerJourney through Experiential RetailBefore the pandemic,the retail sector was ripe for anoverhaul.Physical stores had begun experimentingwith omnichannel systems and eCommerce.However,now brands are embracing newapplications of XR to assist the

33、customer buyerjourney.In India,home decor brands Urban Ladder and Fenesta use ARto help customers visualize how pieces of furniture will appearin their house setup.Globally,companies such as Nike use ARVR in their physical stores to allow customers to understandtheir supply chain and get a more deta

34、iled insight into howtheir chosen product has been created.Building a sensory experience in theworld of GamingThe XR spending on gaming is expected to riseto$18 billion by 2023.High-quality graphics andimmersive visual experiences have led the userengagement in recent years.Now,withtransformative ha

35、rdware becoming common inhouseholds to companies developing hapticfeedback technologies for the next level ofimmersive experience,this industry continues todrive the mantle on XR Headsets such as Occulus Quest 2 sold over 15million units in just 20 months of its launch.InIndia,70%of the AR/VR market

36、 is attributed tothe hardware segment.We have RelianceJios Jio Glass which seeks to disrupt theindustry.Creating Deeper LearningFocused EducationThe National Education Association of theUnited States found that learning throughVR training led to a 75%retention,ascompared to 20%through audio visualto

37、olsx.Providing immersive learning experiencesand practical application throughsimulations help students learn and retainconcepts more effectively.Indian ed-tech major,Byjus acquired theblended learning platform Osmoxi in 2019 todevelop gamified experiences for children togain hands on learning for a

38、cademic and co-curricular activities.Building a personalized experience and virtualenvironment will require several details fromusers.Companies that capture such sensitivedata will need to have create or deploy robustsecurity systems to ensure the safety of thisdata.Further,users will need to be suf

39、ficientlyconvinced that their data will not be monetizedby the companies.Core ChallengesEnsuring Data Privacy and SecurityOptimizing Tech for SustainableUser HealthProlonged exposure to virtual environments,using the clunky hardware,and dissonancefrom reality can cause health issues to theend user.F

40、rom feelings of nausea anddisorientation in the short term to lifestylechallenges such as vitamin deficiency andeye sight soreness,the road to safeadoption for XR still remains Cybersecurity has been marked as the#1technology concern as the world moves towardsgreater digitalization.Cyber bullying an

41、d scamshave been rampant in the last 2 years.Buildingthe legal expertise to govern citizen in the newenvironment and evolving tech landscaperequires nuanced handling.Securing the Digital World AgainstCyber AThe futurelookspromising Extended reality is a driving force of the experience economy.Whethe

42、r it isunderstanding the insurance risk profile of your family members through anAR app,improving health and fitness through VR based esports or facilitatinghands on learning for children,XR firmly instils the customer at the centre of itsuniverse.As hyper-personalization continues to drive loyalty

43、in the market,businesseswill leverage the efficiencies that XR can offer for greater ReferencesiExtended Reality Market Size Worth USD 1,246.57 Billion by 2035,Extended Reality(XR)MarketSize|Share|Trend|Revenue report by 2028()iiIndias AR/VR Market|IBEF,https:/www.ibef.org/blogs/india-s-ar-vr-market

44、#:text=Krikey%2C%20an%20AR%20company%2C%20has%20launched%20Yatra%2C%20a,Defence%20to%20work%20on%20two%20defence%20startups%20challenges.iiiBloomberg Report,Metaverse may be$800 billion market,next tech platform,https:/ Equity Report,NFT transactions to reach 40 mn globally in 5 yrs amid scam threat

45、shttps:/ Report,Market spending on extended reality(XR)technologies worldwide from 2018 to2023,by industry,https:/ Report,Virtual is the new reality,https:/ Insights,Heres How Lockheed Martin Is Using Advanced Visualization to TrainMaintenance Engineers,https:/ Extended Reality will reshape commerce

46、,https:/ melts away pain for burn patients,using virtual reality snowballs,https:/ VR training more efficient than other learning methods?,https:/ BYJUS met Americas Playhouse of Learning Osmo,https:/ MantraLabsMantra Labs is a global experience engineering&consulting firmthat builds intelligence-dr

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