Early Stage Technology
AR/VR technology markets are at early stage in most of the countries. It is very interesting to analyse the pandemic lock-down, social distancing and the economic aftermath impact on Augmented Reality, Virtual Reality and Mixed Reality products and solutions. The analysis explores the positive as well as negative growth trends.
COVID19 effects
Billions of lives are affected by Corona virus. Multi-billions of business are devastated due to this. However, the same havoc and panic itself can boost up the use of simulation technology especially AR/VR. The sector will generate more demand due to the lockdown of educational institution, apprehension for direct visits to healthcare facilities, restrictions in mass production factories, meeting limitations in new supplier assessment, process or product outsourcing. Physical meeting and even component handling will continue to happen illegal in affected zones. This alarm can bell at any time at any new place. This uncertainty can be a major demand driver for AR/VR.
E-commerce
E-commerce sector is a booming one in this pandemic phase where the brick-and-mortar retails business came to standstill. So a remote access to the commodities look, fit and finish can be attractive features to the buyers. AR/VR has enough scope to build such applications. However, government regulations, local business resistances and the trend-setting by the market monopolies will decide the fate of this. Nevertheless, it is sure that AR/VR will be adopted more since it will ensure the physical distancing of the buyer and salesman.
Hardware
The ongoing US-China trade war will reflect in the sourcing of electronic hardware and component aggregates. This will affect AR/VR headsets, camera, smartphones, tablets, PCs and consoles supply chain. Let’s wait and watch how the production and exports are ramped up post COVID days.
Entertainment
The lockdown has shut the doors of common entertainment houses. Many location based entertainment will face the challenge of wearing common headset on face and touching the hand controllers. Frequent sanitizing those gears may not be 100% practical for a rush game-house. Making the hardwares cheaper interchangeable for each user owning the head-gears and hand controls could be a trend. This need to make the gadgets cheaper and affordable. Technology , manufacturing , pricing or subscription offers need to be worked-out to reinstate the business.
Ad spend
The mobile usage for the video streaming has increased more than 100% during the first week of the lock-down. This increases the potential for mobile AR advertising. However, the fall in retail business, FMCG and other sectors has reduced the number of companies giving advertisement. This will regain the normalcy once the business units are allowed to function with the social distancing measures.
E-Learning
Remote learning has already taken a leap during the initial rumors of social distancing and lock-down. Learning App to webinar have become so active. This trend is expected to continue for a long term. More e-learning apps and web-portals will find marketplace from k12 to corporate training. Digitalisation will increase multifold. Examinations, assessment, review etc. can go remote operation.
Healthcare
Healthcare 3.0 calls for a largescale technology sophistication. This will be accelerated more during post-COVID scenario. There are number of AR/VR technology disruption in medical field.
Augmented Reality market is expected to grow from $8 billion in 2019 to $60 billion by 2024. Ad spend, hardware, IAP all will become part of this revenue growth. Virtual Reality growth may go to $6 billion revenue by 2024. Mobile AR, Smartglasses, Premium/Standalone VR are the major platforms. Apple, Facebook, Microsoft may emerge major players in this sector. Nonetheless , a large number of medium and small scale enterprises will do a significant contribution in technology growth.
Let’s wait and watch.
