EXTENDED REALITY (XR): the key to success for businesses

It is in a (particular) health crisis context that we observe the extension of immersive solutions in the BtoB(toC) sector. Although they have existed for several years, it is only recently that companies have really become aware of the potential of extended reality. Why? Because remote and phygital events are multiplying, becoming part of current, and most certainly future, usage...

What is extended reality (XR)?

If the term XR (or extended reality) doesn't ring a bell, you've probably heard of VR, AR or even MR... XR is simply a generic term that encompasses these three technologies, thus covering a full spectrum of real and virtual environments.
A quick lexical reminder:

• Augmented Reality (AR) is the superimposition of virtual elements (2D, 3D images, videos, etc.) that enrich reality by providing additional information. For example, Pokemon Go is a game using AR.

• Virtual Reality (VR) is a technology that allows an individual to be stimulated and immersed in an artificial environment (totally imaginary or a reproduction of reality) created digitally.

• Mixed Reality (MR) is a mix between augmented reality and virtual reality. It is a fusion between real and virtual worlds.

As you can see, the XR renews the way people experience and interact with virtual and physical environments. They move from observation to total immersion, made possible by putting all our senses on alert.
This technology also offers a very real user experience, especially when it comes to interacting with other people. And that's not all, multiple possibilities can be integrated to take engagement to a whole new level.

A growing market

he extended reality market continues to grow. According to a study conducted by Mordor Intelligence, it is expected to grow by 62.6% annually between 2021 and 2026 and to be worth more than 30 billion dollars by the end of the year.
But how can this exponential growth be explained?
As mentioned earlier, the health crisis has played a major role in the expansion of immersive solutions, but not only... Today, the multiplication of manufacturers as well as players on this market has favoured the progressive democratisation of this technology. With the diversification of entry points, through a smartphone for example, access to XR is now much less complex and expensive.
This trend has not escaped the attention of investors. The start-up Varjo, which specialises in virtual reality headsets for businesses, raised more than €45.7 million for its summer 2020 round of funding. Among the players were Volvo Cars Tech Fund, Lifeline Ventures and Atomico.

Opportunities for a multitude of sectors

The use cases by sector for this high potential market are multiplying. That's the power of XR, there's something for everyone.

Reception:

Let us consider the case of reception. This sector faces problems relating to social distancing, waiting time, but also the lack of communication between the parties, leading secretaries to redirect the visitor. XR is used to provide precise and instantaneous information, both visually (virtual tours, media sharing directly on the interface) and audibly.

Education

Of the educationplayers, more than 50% are leaning towards immersive solutions. By reducing errors, accelerating learning and engaging the user considerably (through gamification), XR offers significant advantages. It is particularly interesting in sectors where the risks of manipulation are high and costly in reality, such as health for example.

Real Estate / Architect / Construction:

For real estate, architecture and construction professionals, there is a real interest in using 3D representation. By modelling existing premises in a virtual version, you can move around freely to discover the spaces or even test different layouts. The implementation of BIM (Building Information Modeling) in the XR provides valuable information for the expert as well as for his clients.

Media and Entertainment / Events:

Bringing concepts to life, the XR reinvents the way remote or hybrid events are organised. It brings many people together, no matter where they are, for instantaneous interactions of a new kind. Immersive technologies offer endless possibilities for staging. Although they are not intended to replace the real thing, they are a real added value for the entertainment industry.

Industry:

With the ever increasing demand and complexity of machines, XR accompanies the industry sector by allowing, among other things, the visualisation and remote control of technical elements. By integrating artificial intelligence, it offers the possibility to simplify the language for a clear and quick understanding. Industry 4.0 joins forces with the XR to achieve performance and reactivity objectives.

Collaboration

The democratisation of remote working has required companies to quickly adapt to this new way of working. Here again, the XR is at the forefront by offering meeting spaces where social interaction is more real than real. Collaborative tools for working in good conditions, even at a distance, are then made available. Employees using this technology are more motivated and more efficient.

Retail:

As far as retail is concerned, the creation of multiple virtual showrooms has been noted. This is particularly the case for luxury brands such as Charlotte Tilbury or Balmain. The incredible progression of e-commerce confirms the opportunities in this sector. XR allows for a higher memorization rate since it brings out all our senses. It transforms the simple shopping experience into a unique experience.

Conclusion

Although the term "extended reality" is still unknown to the general public, it is attracting the attention of more and more companies. As part of the Horizon 2020 R&D programme, the European Commission has funded the XR4ALL (eXtended Reality for All) project to strengthen the concept of XR in a sustainable way in Europe.
By offering strong added value for all sectors, XR stands out from digital technologies by meeting the specific needs of each one. One thing is certain, it has a bright future!