THE NEXT BIG THING – SELLING EXPERIENCE IN NEXT 5 YEARS
I have been questioned by many industrialists, educationalist, business personalities that what is Virtual Reality and Augment Reality and how it will affect our lifestyle.
My Over the Year Experience in Industry and as a Part of AR / VR / AI Implementer and Strategist I can say for sure – IN NEXT 5 YEARS “We’ll be Selling Experience” , in Real Estate, Education, Travel, Tourism – AR/VR Will Dominate.
Augmented Reality (AR) and Virtual Reality (VR) are the two most interactive technologies used by the companies in today’s competitive scenario. These technologies have exploded for $1.1 billion investment by the year 2017 and are still growing considering the future of computing. Though the legacy of AR is not just confined to old fiction books but also throughout the 20th century, AR developed into the refined technology that exists today.
Augmented reality has been the hot topic for a number of years in software development circle. But, with the release of products like Google Glass, it is getting renewed focus and attention. It is the technology which works on computer vision based upon the recognization algorithms to augment sound, audio, video and other real-world objects. The use of AR is mainly prominent in gaming, sales and enterprise applications, marketing, etc.
Some of the examples where AR technology is used are given below as:
AR applications are most commonly used in the education industry for which apps are also developed like embed text, image, and videos.
Printing and advertising industries also use this technology where apps are developed to display digital content on the real-world magazine
On the other hand, Virtual Reality (VR) means experiencing through our computer system which does not exists. In other words, we can define it as the simulation of something which does not exist in the real world environment. In this technology, the user is being provided with some level of control through the sensors and motion tracking devices. This simulation is being created by using computers that engage the user’s senses to create an illusion of reality which is called Virtual Reality. Some of the features of Virtual Reality are: Explorable, Immersive, Computer generated, Interactive, Believable.
Why AR & VR is Important for Business?
In the arc of every modern technology development, a great deal of attention is required to focus on the technology itself. Today, AR & VR technologies have embedded in many of the products which companies and consumers use regularly. The market size is estimated for expansion to $485 billion by 2025.
Considering how businesses and industries are quickly endorsing VR & AR technology, below are some points that will make clear sense about why these technologies are important for businesses:
Augmented Reality (AR)
Commerce applicationsDeveloping AR for Android applications or iOS devices is the most prominent experience for both offline and online users in business. It helps users to choose the right size and decrease purchase returns and generate more profit.
Accurate building process AR can facilitate and accelerate the building processes at the business. Project managers can monitor work progress in the real time with the help of AR markers on equipment. Besides this, it saves tons of time with the help of plants and digital map.
Unlimited possibilities AR technology truly brings unlimited possibilities for education and learning process. In addition to this, it provides the unique cognition path with an immersive simulation of real life. It helps businesses to get authentic virtual experience which can be implemented in real life.
Directions & Destination With the help of augmented reality the routes, translate the signs on the street, give information about sightseeing, directions can be easily shown. It adds a layer of additional reality to museums to ensure users with new cultural experiences.
Virtual Reality (VR)
Product modeling, prototyping, designing The time for people to enjoy the VR experiences from home and in stores for shopping, that is not very far away. Businesses have started using this technology to implement futuristic prototyping processes. The companies claim that its engineers are able to save about $8million per year by the use of VR technology to design its parts.
Immersive Media Experiences It is quite obvious that VR technology can transform the world of media. For businesses, it means that they can easily advertise in ways that they have never imagined before.
Novel Business OpportunitiesVR is also helping innovators to create novel businesses with these technologies at the core. VR cafes, gaming centers, social media experience, content, etc are creating a varied option for people to look for augmented and virtually enriched experiences for businesses.
Advancing the idea of working remotely Today, the infrastructure of technology is advanced enough then it was ten years back. Remote work was little more than a thought experiment that only the corporations can afford it. It is the part of startups, SMBs, and enterprises. It empowers the businesses to get outputs from remotely connected employees worldwide.
Solving e-commerce’s biggest problem VR technologies can make the trial of the product and demonstrations possible for some of the categories of products, giving prospects more clarity on what their post-purchase experience will be. No business can afford to ignore the scope & potential of VR, because the growth of the business will demand to follow this technology.
Which Industries use AR & VR Technology? There are several industries that use augmented and virtual reality for their business. Some of them are described below:
Education AR/VR technology is highly important for education and training industry. It provide much better experience & learning to its students than those who have studied with the help of traditional methods. Instead of reading books, VR/AR helps students to run the lessons as many times as required without any distraction.
MarketingFor AR/VR, marketing is the strongest arena. To generate interest, excitement and strong memory associated with the brand, major motion pictures like Star Wars, Jurrasic World, Avengers, etc have used their release with AR/VR experiences.
E-commerce AR/VR technologies will absolutely revolutionize the e-commerce and retail industries and have actually started doing so. The possibilities are endless, but only one big change can lead it into the transformation of Virtual showrooms.
Healthcare AR/VR technology is being used in healthcare industries for years. It helps burn victims to deal with excruciating the process of rehabilitation and would care by distracting them with a snowy environment. This technology is also useful in the therapy process.
Travel & Tourism AR/VR helps travel and tourism industries to help people find out the direction for their required destination. It lets users sign automatically on their smart phones to translate the street signs directly which is quite useful for international business travelers.
Future Growth of AR & VR According to IDC, the worldwide spend on augmented reality (AR) and Virtual reality (VR) is forecast to reach $17.8 billion in 2018. There is an increase of nearly 95% over $9.1 billion since past years. In the year 2016, the virtual reality market was worth about $1.9 billion and was expected to reach $22.4billion by 2020. Those numbers include both i.e. hardware and software sales and marketing.
According to Digital Capital, the combined net worth of AR & VR technology will be worth $121 billion by the year 2021.IDC estimates that in the year 2021, more than 99million AR and VR headsets will be shipped up (huge rise since past years) which represents 58% C.I. growth rate between 2016 and 2021. The consumer sector will remain the largest selling source to spend for AR/VR products and services with the amount of spending $6.8billion in 2018
In contrast to it, in 2018 the commercial sectors will represent total spend of more than 60% of AR/VR. Among which the largest commercial sector will be a distribution in services that led by retail, transportation, professional services industries that worth $4.1 billion in 2018. Therefore, AR/VR will continue to drive greater levels of spending in next 12-18 months, as both; the consumers and commercials, use cases gain traction.