TITLE OF
PRESENTATION
Augmented Reality & Virtual
Reality- Trends & opportunities
January 2019
2
Source : DRAUP
AGENDA
DRAUP viewpoint on AR/VR technology evolution patterns01
The current Landscape of AR/VR players and
their critical technology spend areas
03
Potential applications and recommendations to build AR/VR
capability
04
Understanding the AR/VR core technology segments02
3
AR & VR technologies have immense potential to revitalize the global economy
~$22 Billion USD
Size of global AR VR market in 2018
~65%
Total AR VR spending is constituted by Consumer Electronics, Retail and
Manufacturing segments
~16 Billion
# Worldwide spending on AR VR in 2018
2000+
Startups in the AR VR space as of 2018
~80,000
Engineers working on AR VR Technology as of financial year ending 2018
Source: DRAUP- The platform tracks engineering insights in the Augmented & Virtual Reality ecosystem using our proprietary machine learning algorithms along with human curation. The platform is updated
in real time and analysis is updated on a quarterly basis
4
Ontology of Augmented Reality, Virtual Reality and Mixed Reality
Augmented Reality (AR) Virtual Reality (VR)Mixed Reality (MR)
PHYSICAL
REALITY
DIGITAL
REALITY
Real world with digital
information overlay
Completely digital
environment
Merges the physical and
digital worlds
Fully enclosed, synthetic
experience with no sense of real
world
Interaction with and
manipulation of both the
physical and Virtual environment
Real world remains central to the
experience, enhanced by virtual
details but users cannot interact
with virtual objects
PokeMonGO Microsoft HoloLens Google Cardboard
Source : DRAUP Analysis as well as primary inputs from interviews with digital stakeholders and DRAUP’s existing customers
5
AR/VR industry has seen high adoption in the consumer segment and has been
gathering momentum for the enterprise applications…
Note: Timeline above illustrates landmark events in the Augmented & Virtual Reality ecosystem. The list above is non-exhaustive
Source: DRAUP Engineering Module: Consists of around 180 engineering organisations and nearly 100,000 start-ups working across Automotive, Software/ Internet and other Hi-Tech verticals
Harvard scientist Ivan Sutherlands in
1950s demonstrated the first display of AR
allowing the users to project a cube on the
wall
Morton Heilig published first research
paper on world’s first immersive VR
system that makes mechanical prototype
Virtual interactive Environment
Workstation (VIEW): Researchers at
NASA’s Ames Research Center
developed an immersive 3D VR system
for robot teleoperation and HMI research
Lack of development ecosystem :
Widespread use of the internet & Mobile
distracts the public from the failed
promises of consumer AR VR
Gaming giants such as Nintendo also
failed to develop a successful VR product
after a number of R&D efforts
Technology giants started acquiring AR
VR based startups and investing in AR VR
based ecosystem to drive innovation
Facebook acquired Oculus for $ 2 bn US,
and then Google, Microsoft, Sony, HTC,
Samsung joined the VR movement
Companies like BMW & IKEA started
exploring opportunities for industry use
cases
5
4
3
2
1
Early
Application
in industry
~50
Players
~1000
Players
~300
Players
First use case:
Simulation of flight
cockpit
Dark period
for AR VR
Rise of consumer
HMDs
Potential industry
application
Researchers at NASA’s
Ames Research Center
work on a multisensory,
interactive, immersive 3D
VR system
2000-2010 2011-2014 2015-Present1990-2000
• Shift to internet/ mobile
based devices
• Lack of required capability
for AR/VR processing ,
networking and affordable
HMDs
Early Pioneers of
AR VR
Experimental
Period
The
Sensorama:
Mechanical
prototype of
AR VR
1930-1990
• Facebook acquired
Oculus VR for USD $2 bn.
• Google releases Google
cardboard
1 2 3 4 5
Traditional giants from
industries such as retail,
automotive, healthcare have
started exploring AR VR
solutions for better costumer
experience
“The Screen is a window through which one sees a virtual world.
The challenge is to make that world look real, act real, sound real, feel real”
-Ivan Sutherland, 1965
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
6
AR/VR has huge potential to implement solutions where business takes place and decisions
are made; This enables the transition from web-based technologies to point-of-user-contact
The transition from client-server
based systems to smart screens was
enabled due to disruption in the
interface technology such as Touch-
enabled displays and Natural
language processing capabilities
Smart screens gave way to Intuitive
interaction which allowed users to
interact with the digital environment
without the need for any physical
device and components
AR and VR has taken this a step
further by offering experiences built
around natural modes of interaction
such as posture, gesture, and gaze,
thus shifting attention from a glass
screen in our hands to the real or
simulated world around us
Messengers
ClickPoint Type
Intermediate devices interact with
interfaces; virtually all input
occurs through a mouse or
keyboard.
Smart Screens
SwipeTouch Speak
Screens manipulated based on
environment facilitated, direct
physical or spoken interactions
with displays
Intuitive Interaction
Mood Gesture Gaze
Devices respond to ambient
cues and intentional movements
to create empathetic,
personalized experiences
Evolution of Digital interfaces
Hardware
Interface Interface
Server
Client
Server Client
Potential Digital
interactions enabled by
AR/VR
Web based Mobility based Simulation based
Digital
Input
Methods
Source : DRAUP Analysis as well as primary inputs from interviews with digital stakeholders and DRAUP’s existing customers
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
7
Reduced network latency, robust network infrastructure and widespread mobility
adoption is accelerating the AR/VR technology adoption
Cloud
computing
Fog
computing
Edge computing
Parameters
Cloud
computing
Fog
computing
Edge
computing
Data Traffic on
cloud
Response time
Data analysis Cloud
Gateway
/Router
Device
High Medium Low-Medium Low
Reduced Latency for seamless Experience High wireless capacity for 3D visual content
Bandwidth
1 Mbps
Image & workflow
downloading
2 to 20 Mbps
3D model & Data
visualization
10 to 50 Mbps
Current-gen 360
degree video (4K)
200 to 5000 Mbps
6 DoF Video of free
viewpoint
2 Mbps
Video Conferencing
5 to 25 Mbps
Two-way telepresence
50 to 200 Mbps
Next gen 360 degree (8K,
90+ FPS, HDR,
stereoscopic)
Critical for Immersive
experience
Mobility based solutions to enhance AR adoption
Limited by:
• Hardware
development
• Privacy & safety
• Lack of
compelling
content
2015 2017 2020 2023 2025
Accelerated Uptake
Base Case
Delayed Uptake
Enabled by
mobility
• Cellular
Advances
• Increased
battery life
$ 175 bn
$ 95 bn
$ 35 bn
AR/VR technology drivers
AR/VR requires processing of rich visual content:
• High resolution, High frame rate
• Stereoscopic, High dynamic range (HDR),
360 degree spherical content, 6DoF
Total addressable market
Smart phone disruption is accelerating AR VR adoption:
• Consumers will not want to be physically tethered to a
PC
• Mobile enabled AR will be viable for field operations
Analysis with primary interview insights from industry digital stakeholders and DRAUP’s existing customers
Source: DRAUP
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
8
What makes up the technology stack?
Processors
Immersive VR
GPU
Physical world
input
Sensors Haptics3D
