Consumers are entering an era of fluid interaction between the real and virtual realms, as immersive technologies drive new digital economies, transform the skills of tomorrow’s workforce and extend our experience of the world.
The cognitive separation between the real and virtual realms is becoming far less pronounced. A digital ball thrown across the room in augmented reality would once have fallen through the furniture, but now it bounces off the material as though it possessed real weight.
At the same time, real objects are now replicating with ease the ever-changing nature of the digital sphere. Trainers that mold themselves to your feet in real time and smart airplane seats that prompt you into healthier flying routines are just some of the realities that signal our move into a new era.
Over the next decade, advances in extended reality (XR) – as in advanced augmented and virtual reality (AR and VR) – and new levels of connectivity will see this digital layer become so seamlessly integrated into our lives that reality will be reconfigured, the nature of work transformed and what it means to be human redefined.
From gimmick to game-changer
Despite its game-changing potential, mass adoption of XR has been a long time coming. The high price of headsets and relatively primitive nature of smartphone-based XR apps have proved significant barriers. A report by Perkins Coie says that more than one in four (27 percent) of industry experts view user experience issues as the biggest obstacle blocking mass VR adoption.
However, whereas XR apps on 4G networks suffered from stilted experiences, the low latency, incredible speed and massive capacity of 5G are enabling enhanced experiences in XR, providing ubiquitous, all-pervasive connectivity that surpasses the reaction times of human beings. In doing so, the game-changing possibilities of XR are finally being realized and new value created, and PwC says that XR technologies could potentially add USD 1.5 trillion to the global economy by the end of the decade.
A programmable reality
Elevated experiences represent one way that immersive technologies are driving this new value. Across industries, innovative applications are beginning to harness the potential of XR, creating multi-layered, mixed-reality experiences that change our perception of the world and bring animated layers to physical spaces, as reality becomes programmable.
London’s Sketch restaurant has launched an augmented reality app allowing visitors to transform their restaurant view with playful 3D avatars and animations, while in retail, Selfridges has made digitally rendered products directly shoppable from its stores windows, which shoppers can access by scanning a QR code. Apple’s collaboration with New York’s New Museum, meanwhile, has transformed what it means to walk down the street, enabling the public to view large-scale virtual artworks through their smartphones.
As well as elevating the consumer experience, XR is also transforming the world of work. Particular value is being provided in manufacturing as Industrial Internet of Things (IIoT) applications – from smart machinery to advanced analytics platforms – use immersive technologies to drive efficiencies, a development accelerated by Covid-19.
Detroit-based Guardhat, for instance, has developed smart glasses that provide front-line workers with hands-free operation, voice commands and wireless connectivity. When wearing them, workers are empowered with immersive, real-time situational awareness about their immediate environment. Such functionality has relevance across industries, and the US Navy is adopting an AR-based system to help inspectors rapidly observe ‘as-is’ versus ‘should be’ conditions to speed up installation and increase accuracy.
As people spend more time experiencing the world in this ‘phygital’ way, the perception that monetary value is solely tied to tangible ownership of physical things is also shifting. Spending real money on virtual assets has long been a characteristic of online gaming environments, and monetary value is now being attributed to digital things in other sectors too. “People spend their money where they spend their time,” says David Uy, co-founder and CEO of BLMP Licensing Marketplace, “and more and more people are spending their time in digital eco-systems.”
It’s a development driving a new ‘digitization economy’ and a move toward a new generation of aspirational digital goods. Numerized is a French start-up facilitating this future, enabling brands to digitally reconstruct their physical products in 3D, while Norwegian retailer Carlings has created a digital collection that replicates the cut and texture of real garments.
Perhaps the most fundamental shift as XR fulfills its transformative potential, however, is that consumers will soon find themselves able to create their own hyper-sensory versions of reality, choosing what they see, hear and engage with. In this future, experience will become entirely subjective and fully customizable. This will transform not only how we interact with each other, but also the world around us, while creating immersive opportunities for brands to tailor their offerings to individuals on a granular level.
Key implications
Key implications
- Elevated experiences: Brands are tapping into the potential of smartphones and XR to elevate consumer touchpoints, allowing people to immersively experience products and spaces both physically and digitally.
- Immersive assistance: Instead of learning on the job, employees are now learning through XR. In order to fully harness the potential of new digital tools, the future workforce will have to upskill to maintain pace with technological progress.
- Digitization economy: Monetary value is being attributed to digital things. Businesses are increasing desire for digital products by emphasizing their real-world worth, from digitally replicating fabrics and textures to highlighting their environmental credentials.
- Personalized perspective: Reality is becoming subjective. Consumers will soon expect more autonomy over the world around them, and will seek new sets of tools that empower them to personalize their own products and experiences.
More to explore
More to explore
