In the ever-evolving landscape of technology, Augmented Reality (AR) and Virtual Reality (VR) have emerged not just as buzzwords, but as pivotal forces shaping the future of business.
According to Statista, the global AR/VR market is projected to generate revenue of USD 38.6B in 2024. For forward-thinking business leaders, the need to leverage the potential of AR/VR technologies is more critical than ever.
This article explores several key trends and challenges that characterize the 2024 AR/VR landscape, offering strategic insights for business executives who aim to navigate and capitalize on the virtual frontier.
Key Takeaways
- The Growth of AR/VR Wearables: AR/VR wearables are experiencing massive growth in 2024, offering immersive experiences for individuals and businesses alike.
- The Year of Mixed Reality (MR): AR and VR are converging, creating blended experiences. Companies like BMW are using MR for driving assistance.
- Opportunities for App Developers: Growing demand for AR/VR apps opens new avenues for mobile app development across various domains.
- AR Meets Generative AI: AI can significantly speed up and streamline AR/VR content creation, benefiting marketing, advertising, and design.
- From Brick-and-Mortar to Borderless Workspace: AR/VR enables virtual collaboration and remote training for companies.
- Revolutionize Healthcare with AR/VR: Immersive training, improved accessibility, and mental health support are key areas for healthcare applications.
- Lack of Awareness and Experience: Businesses need continuous learning, research, and partnerships to overcome this hurdle.
- Integration with Existing Systems: Auditing existing systems, investing in infrastructure, and collaborating internally are crucial.
- Diversity and Inclusivity Considerations: Businesses should ensure accessibility for users with impairments and tap into this market segment.
- Data Security and Privacy: Robust security measures, user education, and transparent data policies are essential to address these concerns.
AR/VR Technology in 2024: 6 Remarkable Trends
The Growth of AR/VR Wearables
Activity-tracking devices and smartwatches, once the pinnacle of wearable technology, are now just the tip of the iceberg.
With the advent of AR/VR, and the highly anticipated launch of Apple’s Vision Pro next month, wearables have been taken to a whole new level. The current surge of devices developed by key tech players such as ASUS AirVision M1, Valve Index, Meta Quest Pro, etc. underscores the increasing prevalence of wearables towards 2024.
It can be predicted that more ergonomic and affordable models of wearable technology will appear shortly. This revolution offers immersive and personalized experiences for users, but its impact extends far beyond living rooms.
In organizational settings, especially the manufacturing sector, AR projections offered by wearables can display step-by-step production procedures – from assembly, and inspection to maintenance – in the form of high-quality simulations. This facilitates effective cross-department communication and reduces time spent on optimization.
The proliferation of these devices presents an unparalleled opportunity for businesses from different industries to explore their own novel use cases and drive organizational performance.
The Year of Mixed Reality (MR)
The convergence of AR and VR, commonly referred to as Mixed Reality (MR), is poised for significant advancement in 2024. As conventional virtual reality headsets evolve into devices with mixed reality capabilities – evidenced by Meta Quest 3 and Apple’s Vision Pro, a new era of blended experiences has officially emerged.
Additionally, incorporating multisensory technology can elevate mixed reality experiences, fostering more authentic and memorable interactions.
In the realm of entertainment and experimentation, this potential combination can offer a dynamic interaction between the subject and the environment, as well as enable comprehensive data collection.
BMW is at the forefront of innovation, among global automobile manufacturers, by actively initiating technological advances. In the Lisbon WebSummit 2022 event, BMW introduced the concept of a mixed reality driving experience, where the driving takes place in both physical and virtual worlds.
Most recently, the Consumer Electronics Show (CES 2024) witnessed the German automaker showcasing its use of XReal Air 2 AR glasses, which display navigation instructions, hazard warnings, and infotainment data into drivers’ sight, wherever they look.
Opportunities for App Developers
The increasing adoption rate of AR/VR among both individuals and businesses, as well as the proliferation of wearables, signals a new demand for applications specifically tailored to this technology. This opens up new lucrative avenues for mobile app development companies.
No longer limited to entertainment and gaming, adopters of the technology may seek an application that serves any purpose from health and fitness to productivity.
Once an underserved need in the market is identified, the possibilities are endless for app developers.
One thing for app developers to keep in mind is that cross-platform compatibility should be one of the foremost priorities to ensure seamless integration between devices and broader adoption. To achieve this, regular testing and debugging sessions should be conducted to make sure the app runs smoothly across different devices.
AR Meets Generative AI: A Synergistic Future
AR/VR content can take up a lot of time to make, but the situation has changed now that generative AI is in the picture.
With the ability to generate designs much faster than humans can do manually, generative AI can offer significant cost savings on design, streamline the development of AR/VR content, and help businesses introduce the experience to users earlier.
In the realm of marketing, AR advertising can greatly benefit from generative AI as a sidekick:
- Instead of spending a huge amount of resources on graphic design and video production, businesses can leverage generative AI’s ability to generate highly customized and adaptive ad content, allowing them to focus on strategic aspects of the entire campaign.
- These generated contents can be further refined if necessary to craft the perfect advertisement that resonates with the brand identity and the target audience.
- Advertisers can also choose from different ad variations to experiment and flexibly tailor campaigns for diverse audience segments, thanks to the remarkable speed and efficiency with which generative AI can produce designs.
We have seen AR advertisements like Burger King’s ‘Burn That Ad’, and we have also witnessed countless personalized advertisements generated by AI.
With these two technologies complementing each other, advertisers have endless opportunities to effectively capture their audience. In 2024, time-intensive design processes will be a thing of the past.
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From Brick-and-Mortar to Borderless Workspace
The landscape of office dynamics is on the brink of a transformative shift with AR/VR. From redefining traditional workspaces to revolutionizing training programs, these innovations will reshape how employees perceive and engage with the corporate environment.
When it comes to workspaces, AR/VR introduces the concept of virtual collaboration, liberating teams from geographical constraints and fostering a globalized workforce. Imagine a virtual meeting that employees all over the world can take part in without having to travel to a physical office. 3D avatars would replace physical presence, while dynamic 3D presentations would replace static slides, making remote collaborations feel more natural than ever.
As hybrid and remote working becomes more common in 2024, ‘borderless’ workspace enabled by AR/VR can offer businesses with significant operational efficiencies.
Simultaneously, the training paradigm undergoes a significant evolution as AR/VR creates immersive learning environments and interactive simulations. Remote training and onboarding have become a reality, providing companies with a cost-effective and globally accessible approach to employee development.
According to a 2023 survey of over 350 executives in the US manufacturing industry conducted by Deloitte, immersive training ranked third among the most common use cases of the industrial metaverse. Indicated primary benefits include improved employee retention and reduced costs.
Revolutionize Healthcare with AR/VR
The global healthcare sector is undergoing a period of unprecedented transformation, driven by technological advancements, demographic shifts, and evolving patient needs. In 2024, AR/VR is poised to further step in this trend and revolutionize global healthcare delivery.
AR/VR is increasingly being employed in medical training, offering immersive simulations to enhance the skills and confidence of healthcare professionals. For example, AR/VR anatomy visualizations can guide surgeons to achieve maximized precision in their operations.
Additionally, the technology is facilitating advancements in remote consultations and telemedicine, making healthcare more accessible and personalized.
AR/VR will also play a critical role in supporting mental health, an area that would get increased attention in 2024.
According to the American Psychiatric Association, a 2018 review study suggested that VR can be used to help patients manage stress and practice mindfulness through realistic visual and auditory elements.
Meanwhile, a 2021 review study from researchers at the University of Copenhagen indicated that VR can address the difficulty of transferring cognitive training to real-life situations by providing engaging virtual experiences to impaired patients.
Top 4 AR/VR Challenges in 2024
While the potential of AR/VR is undeniable, its path to widespread adoption isn’t without hurdles. As forward-thinking business leaders, it’s crucial to acknowledge these challenges head-on to make informed decisions about integrating AR/VR into your operations.
Let’s delve into some key obstacles, as well as some suggested approaches, to help you further navigate these immersive technologies and fully unlock their transformative power.
Lack of Awareness and Experience
One of the ongoing challenges that make business leaders hesitant to adopt AR/VR solutions in 2024 is a lack of understanding and experience with the technology.
Many businesses may not fully understand the potential capabilities of AR/VR, as well as how they can be integrated into various business processes. Some businesses may even struggle to identify specific use cases for AR/VR within their industry, due to a lack of proven successes.
Most importantly, there is generally insufficient information regarding ROI (Return on Investment) possibilities and the expenses involved, such as the cost of hardware, services, and software licenses.
Stepping into 2024, business executives need to acknowledge the importance of continuous learning. By thoroughly researching industry reports, existing case studies, and expert insights, they can become more familiar with the technology and prepare a comprehensive implementation strategy.
An ‘ecosystem approach’, which involves establishing external partnerships with professional service firms and software providers, is also highly encouraged to gain more knowledge and experience about the AR/VR landscape.
Integration with Existing Systems
AR/VR content can be typically challenging to integrate into a business’s existing hardware and software platforms:
- Some hardware limitations include costly graphic cards, limited storage capacity, and multiple interfaces not optimized to work together.
- Regarding software challenges, developing immersive virtual environments requires sophisticated programming performed by engineers with specialized expertise, which may not be readily available within the existing workforce.
Standards for AR/VR integration with existing systems are still evolving, making it more difficult for businesses to find a uniform integration path.
While significant efforts by industry actors to develop standard practices for AR/VR integration are already underway, business executives should proactively conduct a thorough audit of existing systems to better understand integration requirements and modify processes to adapt if necessary.
They should also continue to invest in hardware, software, and digital infrastructure to better prepare themselves for integrating these technologies in the future.
During integration planning, internal collaboration with stakeholders across functional areas is crucial as well, so that diverse skills and perspectives are taken into account.
Diversity and Inclusivity Considerations
As societal awareness of diversity and inclusion continues to grow in 2024, it is highly recommended that business leaders take these factors into consideration when developing digital experiences.
By ensuring that AR/VR applications are accessible to all users, businesses can not only contribute to a more inclusive digital environment but also tap into a significant market segment.
People with impairments represent a substantial consumer base, so providing accessible AR/VR experiences allows businesses to reach a broader audience and gain a competitive advantage.
For businesses who are planning to implement AR/VR solutions, how can they start removing such barriers?
A research article published in 2023, through collaboration with disabled participants and other key stakeholders, has mapped out future pathways for improving the accessibility of immersive technologies for users with impairments such as physical, visual, hearing, and cognitive.
These identified pathways serve as a great foundation for businesses to address existing technical challenges and ethical issues, to make sure that people with impairments are not restricted from the proliferation of AR/VR technologies.
Data Security and Privacy
As AR/VR is making its way deeper into various industries, a wealth of potential security vulnerabilities begins to emerge.
AR/VR systems typically require access to personal data such as location and facial features. If not carefully secured, malicious third parties could exploit these data to track users, steal their information, and target phishing attacks. Future cybersecurity threats are expected to become even more sophisticated than we can imagine at the moment.
Additionally, privacy infringements could result in serious legal consequences that damage both customer trust and business reputation. For example, ClearviewAI, a company developing facial recognition software for AR glasses, faced legal challenges in 2020 for collecting and storing massive amounts of facial images without consent. The company faced a $22.6M fine in Britain and a €20M fine from Italy’s data protection agency.
To ensure data security for end users, developers should implement robust mitigation strategies such as secure communication protocols, strong authentication mechanisms, and most importantly, user education.
Furthermore, all AR/VR applications should comprehensively disclose how they store and utilize user data, as well as all external parties to which any sensitive data is shared, in the privacy policy.
It is crucial for business adopters to apply the same level of strategic effort for privacy issues as for the AR/VR initiative itself.
The Bottom Line
As we traverse the dynamic landscape of Augmented Reality (AR) and Virtual Reality (VR) in 2024, the trends we’ve explored showcase a paradigm shift in areas from entertainment and advertising to healthcare. However, amidst potential promises lies a set of challenges that demand strategic awareness from business leaders.
Navigating the lack of understanding, and data security concerns, and ensuring seamless integration with existing systems are imperative tasks for business adopters. Remember that the success of your AR/VR initiatives hinges not only on identifying trends but also on proactively addressing the challenges that come with them.
Dear visionary leaders, are you ready to step into the AR/VR landscape and unveil valuable use cases for your business?
Please contact us for collaborative consulting sessions and craft disruptive AR/VR solutions! Var Meta would love to hear about your visions and be a part of your success.
References
- American Psychiatric Association (2021). Expanding Mental Health Uses for Virtual Reality, available at: https://www.psychiatry.org/news-room/apa-blogs/expanding-mental-health-uses-for-virtual-reality
- A3Logics (2023). Explore The Challenges and Opportunities of Developing AR/VR Solutions, available at: https://www.a3logics.com/blog/explore-the-challenges-and-opportunities-of-developing-ar-vr-solutions
- BBC Top Gear (2024). BMW reveals mixed reality driving glasses and ‘teleparking’ at CES 2024, available at: https://www.topgear.com/car-news/future-tech/bmw-reveals-mixed-reality-driving-glasses-and-teleparking-ces-2024
- Business Insider (2017). Walmart is using virtual reality to train its employees, available at: https://www.businessinsider.com/walmart-using-virtual-reality-employee-training-2017-6
- Deloitte Insights (2023). Exploring the industrial metaverse, available at: https://www2.deloitte.com/uk/en/insights/industry/manufacturing/industrial-metaverse-applications-smart-factory.html
- GestureTek Health (n.d.). Science News: Study Suggests Virtual Reality Teaches Autistic Children Street Crossing, available at: https://gesturetekhealth.com/press/university-haifa-department-occupational-therapy
- ScienceDirect (2023). An immersive multisensory virtual reality approach to the study of human-built environment interactions, available at: https://www.sciencedirect.com/science/article/pii/S0926580523000961
- Statista (2023). AR & VR – Worldwide, available at: https://www.statista.com/outlook/amo/ar-vr/worldwide
- Taylor & Francis Online (2023). Inclusive Augmented and Virtual Reality: A Research Agenda, available at: https://www.tandfonline.com/doi/full/10.1080/10447318.2023.2247614
- The New York Times (2022). Clearview AI settles suit and agrees to limit sales of facial recognition database, available at: https://www.nytimes.com/2022/05/09/technology/clearview-ai-suit.html
AR/VR Trends and Challenges in 2024: Infographic
