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With the simulative and immersive nature of technological innovations, virtual reality witnesses accelerated acquisition among companies worldwide. Industry analysts and prognosticators share projections and predictions since we have just entered a new year, identifying “trends to keep an eye on” and forecasting market dynamics for the approaching years.  The extended reality (XR) industry, encompassing virtual reality (VR), augmented reality (AR), and mixed/merged reality (MR) technology, is no different. 

Laying our eyes on some facts and figures, the latest VR/AR market predicts that the industry has earned approximately $13.8 billion in revenues for 2022 and will evolve to $50 billion in 2026, with a five-year compound annual growth rate of 32.3%. The VR market will grow by 50% compared to the previous year, reaching a volume of 7 billion dollars. 90% of the growth will come from VR helmet sales. Moreover, it is estimated that 14 million VR headsets will be sold by the end of 2023, with an average price of 450 dollars. Also, reports suggest that VR has a market potential of about $5 trillion into the immense potential of this technology. Deloitte Global estimates that the virtual global production tools, estimated at $1.8 billion in 2022, will strike $2.2 billion in 2023, an increase of 20%. 

Sumir Bhatia, President Asia Pacific, Lenovo ISG, says that, 

“Smarter, more integrated technology is already strengthening research, revamping businesses, and transforming how we collaborate with colleagues in the digital ecosystem. As edge computing and artificial intelligence upsurge, bringing efficiency and power to countless activities and industries, we forecast tremendous changes in 2023 and beyond. ”

With that being that, hold on to your hats while we hurl through virtual reality, advancements, and uncertain artificial intelligence future. Let’s dive in. 

  • NFTs

Virtual reality is one of the critical experiences to create and experience NFT assets. According to exhibitors at the 2023 Consumer Electronics Show (CES), NFTs and next-level VR on your TV will all be part of the future. The strategic utilization of NFTs in VR environments provides users the flexibility to unlock a wide array of use cases. One can create complex contractual structures and agreements in these environments. The underlying blockchain mechanisms will make the contracts that govern these NFTs tamper-proof, transparent, and auditable in real-time. This will expedite and simplify any negotiation process in the future. For instance, the Sandbox is a virtual metaverse where users can explore, play, create and trade NFTs assets.  

  • Metaverse 

Metaverse is emerging at a swift pace with every passing year. It is a network of three-dimensional virtual environments designed to enable immersive social interaction experiences. Analysts believe the upcoming release of the Meta Quest Pro headset will spur more development with improved avatars and other features in the metaverse in 2023. According to researchers and analysts, the metaverse’s potential impact on Asia’s GDP is US$0.8T to US$1.4T per year by 2035, approximately 1.3% to 2.4% of the overall GDP. The metaverse market is expected to register a compound annual growth rate (CAGR) of 41.6% by 2027. In addition, the industry foresees strong growth of 39.8% CAGR through 2030. 

  • Learning, Training, and Treatment in AR/VR

The utilization of mixed reality is increasing in education, healthcare, shopping, and tourism industries, even during the pandemic outbreak. For instance, it is being implemented or trained in virtual-home-based therapy and surgery in healthcare. It is being utilized along with other technologies, in this case, such as monitors, sensors, and video. VR technology can be utilized in treating patients with anxiety and phobias disorders. In addition, remote AR and VR development and training systems are increasingly employed in the education and training sector, especially since the COVID-19 outbreak. The same is happening in the field of tourism. The emergence of artificial intelligence, virtual reality, and augmented reality will enhance AR/VR content customization according to customer requirements. 

  • Web 3.0 and WebXR

The virtual reality technology evolution paves the way to establishing new standards for the internet in 3D, including web XR, web AR, and web VR. The critical element of the transition from Web 2.0 to Web 3.0 is virtualization. The international Web 3.0 Blockchain Market revenue is expected to reach USD 23.3 Billion in 2028. The next cyberspace revolution is just around the corner, as Web 3.0 is all about experiencing the web in 3D. 3D web page content can be created with the help of WebXR and experienced in immersive VR. 3D webpage content can be created utilizing WebXR and experienced in immersive VR. WebXR is directly based on HTML codes and does not require separate software for 3D modeling.  Furthermore, LG Electronics of South Korea continued to blaze a new trail in its quest to integrate Web3 with television. The company claimed that LG Smart TVs will now support a Blade Wallet service, allowing users to purchase, sell and trade NFTs. 

  • Gaming with VR

The VR software market owes 43% of its value to the gaming sector. Undoubtedly, the gaming sector remains highly invested in the VR market. The current gaming revenue is valued at $1.1 billion and is expected to boost to $2.4 billion by 2024. VR technology in gaming offers users the ability to modify and control the game ecosystem. According to experts, the gaming sector’s share will decrease in the market in the coming years as the same technology will become more prominent in several other sectors. New and improved VR gaming content and trends keep hitting the market as VR-enabled games are in high demand.  

Conclusion 

Despite the influence of general global uncertainty and some loss of confidence in the metaverse, AI advancements lead us to the bright future of VR, AR, and XR technologies. The burgeoning hardware development results in VR headsets becoming increasingly commonplace in the home and good-looking, lightweight AR glasses set to substitute smartphones. While metaverse and VR are the targets of ridicule by a few media outlets, it was pleasant to see that CES welcomed this nascent technology with open arms. Holoride, which offers VR in cars, is the best example. Although not everyone will be buckled up to witness such a disorienting sensation, it seems like a wild idea.  

According to IDTechEx’s master VR/AR report, technology acquisition of optics, displays, eye tracking, haptics, headsets, and other accessories will become the new normal in the forthcoming years. Also, the report offers a data-based review of XR device pricing and specifications evolution. On top of that, IDTechEx’s AR/VR Optics report predicts the XR headset market to be worth US$20 billion in 2033. The report forecasts the acquisition of 20 unique optical technologies and the material demands these technologies create. Such reports feature interview-based profiles from key industry players, readiness level assessments, SWOT analysis, and much more. 

Hence, virtual reality and relevant technologies pave the way toward an unpredictable future.