But it’s only recently that the technology underlying VR and AR has become commercialised enough to have real-world business applications –for research, marketing, customer service, or otherwise. 

Easier access to VR and AR technologies has stoked further debate about how this tech could improve our everyday lives and the way we interact with brands. However, is the tech ready to live up to the hype at this point in time?

What’s the state of VR & AR?

While both VR and AR have risen in popularity in recent years, it’s AR that’s come out on top in the consumer market.

Research by emerging technology analyst firm Telsyte revealed that the Australian VR headset market grew by 40% in 2017 to reach 302,000 devices sold. But despite the uptick in sales, high device costs and a lack of clear market winners are hindering more widespread adoption of the technology. As of 2018, VR use was mostly driven by the video game industry, with the market leader in VR headsets being Sony PlayStation.

Conversely, AR – the overlaying of digital images on a camera feed on smartphones, tablets and headsets – has rocketed into the mainstream market thanks to the advent of popular apps like Pokémon GO and Snapchat. By 2018, one in three Australians said they had tried AR applications.

As it stands, AR can integrate seamlessly with devices like smartphones, while VR requires its own hardware. Many tech experts agree that it’s this point of difference that makes AR more commercially adaptable.

Expectations vs reality

While the average person may not be able to exist entirely within cyberspace or work on holographic reports hovering in mid-air, there are plenty of existing real-world applications for VR and AR:

  • Data61, the data science arm of the CSIRO, runs the Immersive Environments Lab, a laboratory built to research VR and AR technology applications for health, agricultural, manufacturing and urban planning sectors.
  • AR techniques developed in this lab are currently being used in the Powerhouse Museum in Sydney to give visitors a holographic experience of various exhibits in the collection.
  • Healthcare technology firm Philips has developed augmented reality surgical navigation technology. It uses a combination of 3D X-ray imaging and optical imaging to enable more accurate and less invasive surgical procedures.
  • 360° virtual reality videos of real-life operations are used to train doctors all over the world in performing difficult or uncommon surgeries.
  • In the manufacturing sector, RealWear’s HMT-1Z1 headset overlays digital data from technical documents and streaming video onto live scenarios to enable more accurate repairs and troubleshooting of equipment.
  • Cosmetics giant L’Oreal acquired AR start-up ModiFace in 2018 and has since developed a variety of virtual “try-on” apps for consumers.
  • IKEA has developed a mobile app with an AR feature that allows customers to visualise furniture in their home before buying it.
  • Construction companies like Metricon are using VR technology to give virtual tours of real estate, allowing buyers to view their space long before construction is complete.
  • In the education sector, VR is used to enhance learning with interactive tours and immersive experiences.

Sci-fi dreams aside, these are just a handful of ways in which virtual reality and augmented reality are already reshaping our daily lives – and we’re likely to see more in the future.

So, what’s next for VR and AR?

Telsyte forecasts that 2.2 million households in Australia will have a VR headset in use by 2021, mainly for gaming and entertainment. VR headset annual revenue is also expected to grow to more than $200 million by 2020.

However, with greater accessibility and real-life applications, AR is likely to be adopted more widely than VR. Telsyte reports that enterprise interest in AR is already higher than in VR. Currently, the most popular AR areas in business are with customer-facing applications (40%), location-based services (38%) and project management (37%).

Although AR has greater real-world potential for the average consumer, VR is likely to dominate where full immersion is the preferred mode of action – for example, in training scenarios, entertainment, gaming and marketing for specific industries like tourism.

Only time will tell what the future holds for VR and AR, but as with any innovation, keeping an eye on the possibilities makes good business sense.