Realities are Becoming Augmented and Virtual, but the Opportunities are Real
Augmented Reality (AR) & Virtual Reality (VR)
In Lusaka, Zambia, ten novice surgeons specializing in oncology enrolled in a groundbreaking, experimental study that allowed them to significantly improve their movement and time efficiency performing a radical abdominal (open) hysterectomy (RAH) for a fraction of the usually prohibitive cost of mastering this kind of surgical procedure.
In Colorado, USA, six inmates serving long-term sentences for crimes they committed as teenagers, before the sentencing of life without parole was made unconstitutional in 2012, are being exposed, through an innovative reentry program, to the significant changes made in society over the twenty plus years of their imprisonment, preparing them for life on the outside.
In yet another case in Quito, Ecuador, 700 young Latin American students from disadvantaged backgrounds were given access to high quality training in technical and vocational fields using state of the art technology and laboratories without having the need for the government to make large capital investments in teaching materials, technology, and laboratories, helping these students overcome the classical barriers to education.
What do these real life examples have in common? The use of Extended Reality (XR) Technology, a term encompassing Virtual Reality (VR) and Augmented Reality (AR), which are also referred to as “immersive technologies”.
As these examples suggest, the XR industry is entering the mainstream, finding productive use cases.. No longer confined to the entertainment industry, XR’s use is becoming increasingly widespread and impactful, with tangible and significant advances across sectors such as healthcare, education, workforce training, manufacturing and retail.
Industry reports are projecting the global AR & VR markets to grow from $18.8B in 2020 to about $297B in 2024 with a CAGR of 99.37% (a 15.7x increase). The global AR market size alone was estimated to be $2.82B in 2019 and is projected to reach $65.22B by 2027 at a CAGR of 48.3% (a 23x increase). The recent surge in investments from VC funds into the space is driven by a growing momentum in nearly every area of immersive technology’s use, as well as expanding avenues for its monetization.
Immersive technology is redefining the healthcare sector by providing the ability to spatially visualize data, patients, environments, and materials. The global AR & VR market for the healthcare industry alone is expected to grow to nearly $11B (of which more than $5B in North America) by 2025 at a CAGR of 36%.
An example of how VR impacts healthcare in a meaningful way can be found in a study conducted in Zambia, a country facing a scarcity of trained surgeons. According to a study published in the Journal of Global Oncology, 80% of people diagnosed with cancer will require surgery during the course of their disease. However, in developing countries, such as Zambia, only 5 to 20% of the population have access to timely, safe and affordable surgery. The major challenges relate to the costs and the time required to master surgical procedures. VR simulators help address the shortage of mentors, reducing the time required to develop surgical proficiency. VR helps novice surgeons to acquire psychomotor skills, sensory acuity, cognitive planning, and surgical dexterity necessary to perform complex surgical tasks. Of the 10 students who enrolled in the study in Lusaka, all showed substantial improvement in both movement and time efficiency.
In a completely different healthcare context, an article from the National Institute of Justice in the USA shows how the government is using VR to prepare inmates for release. In Colorado, the Department of Corrections (DOC) was faced with a dilemma after the Federal Government made a retroactive decision on prohibiting mandatory life sentences for juveniles. Most of these convicts were now middle aged and had never driven a car, used a debit card or visited a laundromat, making them unprepared for a life on the outside. The state government developed a series of interactive VR videos and provided headsets to the inmates. The program allows participants to familiarize themselves with tasks we take for granted: how to self scan at a checkout counter, walk on a busy street, or use an ATM card.
In Pennsylvania, released prisoners who participated in reentry VR programs reported less anxiety, leading to lower rates of relapse and reincarceration. Alaska’s prison system implemented a VR pilot program to help prisoners cope with the long dark winters in the far north. Statistics have shown that specialized outreach programs have done wonders in the re education and rehabilitation of prisoners.
Rehabilitation, workforce training and the education system at large are being vastly impacted by the advances and the increased access to immersive technologies. Training and professional development are areas where the ROI of the upfront investment, payback period, and resulting impact to both the communities and the bottom line are easily quantifiable. For instance, effective “in-person” training programs involving immersive technologies can be implemented in large companies with employees around the world, eliminating travel costs and increasing participation rates.
VR is also impacting workplaces and the way organizations interact. One of the direct results of the COVID pandemic was a surge in sales of XR devices and applications using immersive technology. But most importantly it allowed a reevaluation of how workers interact in physical spaces. For instance, the VR company Immersive Technologies offered an alternative to Zoom, where instead of talking to 2D images of coworkers on a screen, Immersive virtually recreates office environments (or cooler backgrounds) where workers can productively collaborate.
The government of Ecuador recently showed another way immersive technology could impact the education sector and local communities. Ecuador launched ActiVar, a nationwide program that offers immersive training through VR to 700 students from a disadvantaged background, the first of its kind in Latin America. Technical programs in low income countries have traditionally prepared students to respond to the immediate needs of the service sectors such as accounting, tourism or computer science. Studies have shown that the use of VR in immersive training can effectively build practical skills for surgeons, welders, security officers, and pilots, opening up a new world of possibilities to the students enrolled in the Ecuadorian ActiVar program. ActiVar is implemented in close collaboration with the University of Technology and Education of Korea (KOREATECH), and financed by the Korea-World Bank Partnership Facility, with technical assistance from the World Bank. The results of the program will serve to inform policy makers about the benefits, scalability, and potential of using immersive technology in the region
All these advances and real life uses of immersive technology show an increasing acceptance of what was once thought of as gadgets for passionate gamers. The possibilities of AR & VR are limitless and can be applied in every sector of the economy. In a recent study, Pwc estimated that AR & VR have the potential to add $1.5T to the global economy by 2030, stating: “everything is in place for these technologies to now deliver on their promise by improving the ways organizations operate, making processes faster and more effective and creating incredible new experiences”.
Tech behemoths such as Facebook, Apple and Microsoft are heavily investing in the sector and are pushing the frontiers of what the future of immersive technology will look like. An example of this future includes the idea of a “mirror world”, where a 1:1 high-fidelity digital map of our world, created by the fusion of data collected through satellite imagery, cameras, and other modeling techniques, is under way. A simpler version of this already exists with apps like Google maps AR, but the concept of the mirror world takes it a step further. Another example is the merging of the human body with XR technology. For example, AR lenses are being produced by California-based startup Mojo Vision. The lenses, equipped with micro-LED displays, could project data and statistics in real time about our surroundings. Lastly, the development of smart cities, led by the USA and Asia, allows new technologies like cloud computing, advanced analytics, and blockchain to improve the delivery of services and overall quality of life. Real life applications of immersive technology in smart cities include enhanced navigation, urban planning, traffic flow management, improved parking systems, smart building management, and disaster response.
VR and AR are changing, and will continue to change, the world as we know it. The future is now!
