■■ Hardware, software and third-party content creators for XR have seen much stronger growth in the enterprise side of their businesses compared to growth in the consumer sector over the last 12 months: Just 25.7% said that growth in the VR for enterprise segment had been weaker than expected, compared to 49.2% who said the same for the consumer side.
■■ Growth appears to be accelerating for enterprise applications, particularly VR. In 2018 38% said that they were seeing strong or very strong growth in VR for enterprise, which rose to 46% in 2019’s survey.
■■ This reflect demand trends with enterprise end users seeing strong ROI. 93% of enterprise users said that VR had had a positive impact on their business and 88.4% said the same for AR/MR.
■■ 98.6% of enterprise users said that they were at least considering investing more into XR in the next few years. Of these, 65.7% were sure that they would make future investments, 22.9% said that they were likely to but still undergoing testing and 10% said that they were at least considering doing so but could not confirm.
■■ XR technology and content suppliers are chasing this growth and shifting focus to providing enterprises with solutions: 73% of these companies said that they were working on VR for enterprise functions and just under 65% said that they were doing the same for AR and MR. By comparison, well under half said that they were working on either for the consumer segment, with just 37.4% reporting working on AR and MR applications.
■■ Product design and prototyping was the most common area of usage for enterprise end users, with more than 96% deploying VR to help the process, followed by workforce/ project collaboration (93.4%), educational learning (89.7%), training/worker guidance (89.7%), sales & marketing/external communication (84.2%) and manufacturing (81.1%).
■■ AR/MR is being used far less frequently across the board, with its most likely application to be in sales, marketing and external communications, where 56.6% say that they use the technology.
■■ The leading sector that XR-supporting companies intend to work with is the education sector, with 55.8% saying they expect to provide services to it. The next highest categories were AEC (Architecture/Engineering/Construction; 44.2%), healthcare (42.3%), manufacturing (39.6%) and automotive (36%).
■■ Gaming is now viewed with far less interest by companies working to provide XR technology compared to 2018’s results. In that year’s survey, 50% of respondents said thatthey intended to work within the gaming industry over the next 12 months, but this had fallen to just a third of respondents from the supply side of XR in the 2019 results
■■ The biggest barriers to mass consumer adoption of XR tech are principally the price of devices (46.2%) and the lack of content (45.6%). A second tier of issues noted by the survey population are around Head-Mounted Display (HMD) designs, lack of consumer awareness and usability of HMDs.
■■ 56% of respondents think HMD comfort and usability will need to improve to increase adoption. Other issues noted by a majority of respondents are improving the Field of View (FOV; 55.9%) and motion tracking (55.6%) capabilities.
■■ For VR, 94.2% of respondents think that it will take at least two years for consumers to make it a regular part of their technology diet, and a slightly lower 91.1% think the same for AR/MR.
■■ The majority of our survey population believe that it will take four or more years for AR to move from predominantly occurring on people’s smartphones to becoming headsetbased, with 51% taking this viewpoint and 44% believing that it will occur in the next two-to-three years.
■■ Observer Analytics estimates that weekly retention for consumer VR apps has dropped by an average of 7% between Q4 2018 and Q1 2019.
■■ However, consumer entertainment content creators in the XR space continue to find value in XR. Among this segment 75.9% reported that VR had had a very or somewhat positive impact on their business and 72.3% said the same for AR/MR.
■■ 82.3% of content creators were planning to increase their output of XR content in the medium term. Of these 63% were sure of their plans to expand XR production and 19% said that they were likely to do so after further testing. On top of this a further 15% said that they were considering doing so, leaving just 3% who reported that they were not intending to increase production.
■■ There needs to be a shift in the consumer-facing side of the business, however, from VR to AR. 38% said that they created content only for the VR space, 7% for only AR/MR content and 55% for both types, despite being twice as likely to say that AR/MR had more potential to disrupt the entertainment sector than VR.
■■ This is particularly so in the face of major product and developer kits that will enable easier production and dissemination of AR content particularly over social media, with Facebook, Google and Snapchat all making major enhancements in 2019.
■■ The clear market leaders for headset usage are the Oculus Rift and the HTC Vive, which have market shares of 45% and 41% among consumers, respectively.
List of Figures 3
Introduction . 4
Executive Summary . 5
1 Areas of Growth 7
1.1 Growth Trends 7
1.2 Developments Required for Future Growth 14
1.2.1 Viewpoint: Hooking Up HMDs 16
2 Immersive Technology for Enterprise in 2019 18
2.1.1 Viewpoint: A Sustainable Enterprise Ecosystem 21
2.1.2 Viewpoint: The Enterprise Use Case . 23
3 Immersive Technology for the Consumer in 2019 24
3.1 Consumer Content 24
3.1.1 Viewpoint: VR Consumer Adoption 25
3.2 An XR Breakthrough? 27
3.2.1 Viewpoint: AR at a Tipping Point? . 30
3.3 Supporting Consumer Technology . 30
4 Conclusion . 33