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Augmented Reality & Virtual Reality Augmented Reality & Virtual Reality Understanding the new digital interface and potential for financial services Rahul Bansode Associate Director - Technology Augmented Reality & Virtual Reality Introduction The Digital space around us has We still primarily use this Digital changed significantly in the last ecosystem as 2-Dimensional decade or so, and the amount of (2-D) space and time. But with time we all spend around digital the evolution and acceptance of gadgets is far more than anybody Augmented Reality (AR) and Virtual would have ever imagined. The Reality (VR) in the entertainment millennial generation that is industry, we are slowly getting growing up in this Digital era prepared for the virtual and accepts this as their natural augmented world – FOR REAL. environment and part of the AR and VR technology enables usual routine. Most of us are new ways of interaction and now quite familiar with internet communication with the virtual usage – browsing, shopping, world (that does not exist) and watching a movie, communicating merges with the real world. AR with friends/family. However, and VR are becoming mainstream, even though this is still a virtual but the pace of evolution is quite environment created in the Digital slow. Currently, the applications ecosystem, we have accepted it of AR and VR are mainly in the as a reality and part of our daily Gaming, Entertainment, Marketing, routines and lives. Just imagine a Education, Fashion, and Art day without internet and mobile industries. phones – though not IMPOSSIBLE, it is not VIABLE either. Market Overview $3.5 Billion $26.4 Billion 800+ Financial Backing Market Valuation Companies The approximate value of venture capital The market was $2B in 2016 and is Are currently engaged in the Augmented investment made since 2016. Facebook expected to rise to $26.4 Billion by 2022. Reality and Virtual Reality segment paid $2bn to acquire Oculus in 2014 worldwide. 2 Million 48 Hours 200K Shipping Out Selling Out Developers The number of Google Cardboard The amount of time it took for Samsung The number of developers registered head-mounted displays distributed since $99 Gear VR o sell out on Amazon.com for Oculus to create games on the VR the product’s June 2014 launch and BestBuy.com – an indication of strong platform. demand at lower price points. 150 Million 60/40 Ratio 121 Countries VR Users Hardware/Software Revenue Global Interest In 2014, there were less than one million Out of the total project revenue, The number of countries represented VR users, but that number has incredibly Hardware is expected to generate 57% in the viewership data for the first US grown to more than 150 million users this revenue while Software will generate the Democratic presidential debate, which year remaining 44%. CNN streamed in VR. Reference - Goldman Sachs – Virtual & Augmented Reality Report – 2016 | GrowthEnabler ARVR Report – September 2016 Augmented Reality & Virtual Reality Application and Adaptions Verticals Augmented Reality and Virtual Reality has been evolving over the years as a new means of visual communication and interface. It broadens the horizon of our interaction with the Digital environment and moves away from the 2-D interface of the screen. It is visually possible to create our own visual environment by augmenting the surrounding using the phone, camera, glasses etc., which it does not exist. Active Usage Video Games 360 Video and Live Events Design, Architecture Engineering & Virtual Reality games are being one of Rendering a 360-degree video an event, Construction (AEC), Commercial Real the primary application of AR and VR to watch globally or locally resulting in a Estate (CRE) currently. It provides a virtual experience much more immersive experience Virtual Reality, 3D Animation and in a three-dimensional interactive Augmented Reality are being used in environment to play a game. Design, AEC, and Commercial Real Estate to provide architectural visualization, design reviews and approval before the actual construction begins. Next Phase Usage Education and Training Diagnostics Collaborative Virtual Environment Apart from the gaming adoption, VR and With an Augmented Reality, remote (CVE) AR have been adopted at a faster pace diagnostics, where a person would A collaborative work environment is the in the Education and Training sector be able to visually see, interact and futurist thought process of how people will – primarily in Aviation, Flight Training, collaborate to solve a problem, provide have a working environment to interact, Healthcare, Military Training, and a solution and recommendations. This change, and amend the data within Engineering. is primarily being envisioned in the the virtual environment. A collaborative Medical/Healthcare field where a doctor working environment could be entirely could translate CT and MRI scans into digital, or mixed with the digital and real interactive 3D models and virtually world. perform the procedure and plan ahead of time. Augmented Reality & Virtual Reality Examples of AR/VR Applications Healthcare Real Estate Sports VR has been effectively used in the VR allows the customer and 3D and Virtual reality in sports is being widely healthcare for a year. It provides the 360-degree view of the of the real-estate adopted across the industry for a variety doctor with a controlled environment to – house, building, apartment etc. and of training, live streaming service etc. perform and study the health issue. enhance the real-estate sales. Major Baseball and Football Leagues are In 2016, a doctor in Miami used Google Sotheby's International Realty has begun using VR to train umpires and referees. Cardboard to plan a survey on a baby who experiencing with Samsung Gear VR as NextVR has a contract with Fox Sports as was born with one lung. The cardboard a new showcase for multi-million-dollar the exclusive virtual reality broadcaster for was used to create a 3D image of the homes based in Los Angles, New York. all events covered by the network. baby heart. Automobile Tourism VR is used for creating the car design and VR is helping consumers make a decision driving simulators about where to travel and also experience TheLondon Audi City showroom in Green what they could expect. The apps will Park, is the smallest Audi dealership in help convey the intensity and emotions of the UK, measuring 420 Square Meter and the travel experience before the journey featuring 4 models. 50% of the customer begin. ordered vehicle at the store without a Thomas Cook partnered with Samsung physical test drive. and Virtual filmmaker Visualise to create a series of short films in several destinations. Marriott is testing VRoom service – a first- of-its-kind guest service that allows guest to order inspiring virtual reality experience to their rooms. https://lbbonline.com/news/how-virtual-reality-is-changing-the-automotive-industry-for-the-better/ https://appreal-vr.com/blog/5-virtual-reality-uses-in-sports/ http://fortune.com/2015/09/09/virtual-reality-real-estate/ Augmented Reality & Virtual Reality Key Challenges for AR/ VR Adoption The year 2016 is the key year for AR/VR and prototypes launched around currently hit the gap-of-disappointment platform as people started to take notice the technology. AR/VR is the prime where the evolution in technology is of this new technology. attraction at the Consumer Electronics trying to overcome the key challenges • Facebook bought Oculus in 2016 for Show (CES) and at the Virtual Reality, before it comes mainstream and ready $2B Los Angles (VRLA) conference/expos, for mass adoption. Secondly, most of where companies demonstrate the the use-cases or prototypes are visually • Microsoft released their Augmented various prototypes and use cases of this very appealing, but the practical usage Reality product HoloLens on 30th technology. But the reality is that it is far remains low. March 2016. from the main-stream mass adoption Some of the key challenges or roadblocks Over the past couple of years, there has at this point in time. Like all the major in the adaption of this technology is as been tremendous discussions, events, technology adoption, AR and VR have follows: Cost AR/VR technology is relatively new and evolving, thus the costs of all of the components are relatively very high. To build a good augmented or virtual experience, it tasks multiple components to build the AR/VR apps, which include – Headset, Desktop, Software, Content, and Distribution; Component Details Average Cost Headset To experience the high-end virtual experience, the user needs $12.99 - $3,000 to a hands-free, mobile and easily accessible device. The headset is one of the key components to experience the AR/ VR world. In the simplest form, a device is a Mobile phone, Google Cardboard box and the high-end if the Microsoft Holocene or Oculus Rift head-mount devices High-Processing Most of the VR requires a high-end desktop computer $1,500 - $2,5000 Desktop powerful enough to run the graphics hardware on the VR. To be widely acceptable these hardware component costs need to come down below $1,000. Software The cost of the developing an AR/VR apps is directly Basic Application - $10,000 - $25,000 proportioned to the targeted devices. Also, it depends on Customized App - $40,000 -- $60,000 the use case of the application which could be basic like streaming a video to a more immerse visual experience. Oculus/HoloLens App - $1,00,000 Content AR and VR require a highly immersive visual content which $10,000+ - $25,000 + requires a high-quality camera for recording and intense editing process is a big part of the cost of the content. Additionally, the cost is proportional to the increase in the complexity of the application. • 360-degree Camera • High-end Computer Graphic • High-end Photorealistic camera Distribution Distribution of the AR and VR component is another big $0 - $$$$$$ challenge and high-cost activity to be considered.
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