Opportunities and Obstacles Facing Augmented and Virtual Reality
Earlier this week, Perkins Coie and Upload released the results of a survey they had conducted, involving ARVR startup founders and tech company executives.
Challenges facing mass adoption of Augmented and Virtual Reality are listed in the report, including:
• Inadequate content offerings
• Regulation and legal risks
• Tech and intellectual property licensing
• Product liability/health and safety issues
• Consumer privacy/data security
• User experience (e.g. technical glitches)
• Cost
• Lack of an established market
• Requires more time and resources to develop technology
• Funding rounds for startups are still quite small
However, it is anticipated that AR will gain more traction in the near future, since its potential to attract consumers was realised even before the Pokemon Go phenomenon. As well as affordable apps and games, AR can offer practical uses. In addition, 89% of respondents to the survey said that in the next two years, VR and smartphone manufacturers will prioritise mobile VR tech development; this continued focus on mobile devices tackles problems related to bulky equipment requirements and cost.
ARVR startup respondents are also taking a long-term view by considering their growth strategy over the next three years. Will Mason, co-founder of Upload is quoted to have said that this is due to the evolution of the ARVR ecosystem, and startup companies are also actively seeking funding for growth.
Sectors expected to get the majority of investment for ARVR tech in the next year went as follows:
• Gaming (78% of respondents)
• Movies and television (40% of respondents)
• Live events (34% of respondents)
• Education (30% of respondents)
• Healthcare/medical devices (24% of respondents)