Why Your Industrial Skills Gap Is More Than Just a Retirement Problem. AR Heralded as the Solution

For manufacturing, service, and other industrial markets, the skills shortage problem is well documented, and it shows no signs of slowing. Frequently attributed to aging experts exiting the workforce via retirement, the role this trend is playing shouldn’t be overlooked—in the next few years, over a quarter of all manufacturing workers will be older than 55. However, the skills resource problem is more nuanced than age-based attrition.

Augmented reality has been heralded as the solution, but AR isn’t one-size fits all; it’s highly customizable and requires proper direction to solve specific problems. To successfully address the skills deficit with AR, it is important to recognize the four factors that are contributing to your skill drainage.

Lack of systems to produce new skilled workers

Simply put, there’s a lack of systems to put people on the path towards becoming skilled experts. Students are increasingly encouraged to pursue traditional college degrees rather than careers in skilled work, due to societal and economic factors. Technical schools have also broadened their focus to include IT curriculum, and many secondary education districts have reduced courses that expose students to labor skills. But while STEM initiatives are up, the focus is often on utilizing those skills outside of a manufacturing context.

Screen Shot 2019-05-27 at 1.36.05 PM.png

While the industry needs to address these underlying trends to increase demand for manufacturing jobs, AR can provide an important stopgap. AR-delivered training has proven to both accelerate skills development and improve competency outcomes, which allows manufacturers to get more expertise from smaller pools of candidates.

Competition with other types of jobs

As manufacturing has seen declining preparation and focus in education systems, it also must contend with competition with other job options once students graduate. Potential employees are being lured away to retail, construction, shipping and transportation and service sector industry jobs—even if long-term career benefits for these jobs are not as good. These jobs are frequently more ubiquitous in populous areas, and have a lower barrier to entry.

Innovative technologies like AR can help the manufacturing industry appeal to a new generation of students consisting of “digital natives”. AR-driven training and guidance can help to quickly upskill novice technicians while bringing the allure of working with exciting emerging technology solutions.

Continued global expansion

Screen Shot 2019-05-27 at 1.41.21 PM.png

Global expansion is a complex issue that affects the skill gap in multiple ways. Primarily, it reflects an exodus of manufacturing jobs from industrialized nations to countries where the cost of living and salaries are lower. While this reduces costs of operations for large enterprises and helps create global economic growth, it has also contributed to the skills gap. Manufacturing increasingly becomes considered an outsourced occupation—which can hinder companies that desire or require operations in more developed economies. It also creates a burden for companies that must increasingly manage localized processes, from training and guidance, to translation, to local compliance and governance.

AR is a communication medium that can massively reduce localization requirements, both in providing new training and in ongoing guidance. Content is easily adapted to local languages, but more importantly, AR also relies heavily on iconography, design files, products themselves, and other elements that reduce the amount of text-based content.

Increasing product complexity

While the previous factors deal primarily with workforces, product complexity represents a different type of skills gap pressure. Competition and evolving market conditions have accelerated the need to customize and personalize products, requiring more intricate and agile operations and a wider variety of processes for individual skilled workers. Product complexity also requires manufacturers to better facilitate the documentation, management, and delivery of training and guidance. This pressure increases with accelerated, on-demand processes.

Industrial enterprises can now use AR to easily update and deliver manuals and guides almost immediately, instead of reprinting and shipping them to reflect product variance. Even relative to PDF and digitized manuals, AR is easier to navigate and select. Hands-free, over-the-shoulder guidance allows workers to easily understand instructions for different assembly, operation, or maintenance variations.

Addressing complex challenges requires a multi-faceted skills solution: augmented reality

The skills shortage is a complex problem that requires manufacturers to change how they recruit talent, manage their resources, and even how they interact with government agencies as they lobby for workforce-friendly legislation. And while there is no single answer, augmented reality is proving to be a game-changer for how industrial companies onboard, upskill, and empower their employees. In fact, industrial applications of augmented reality are predicted to far outpace all other types of AR investment over the next half-decade.

To learn more about why augmented reality is so effective for training and guidance, the innovative ways its being implemented, and how you can harness AR for rapid value, download this complementary eBook: Closing the Industrial Skills Gap with Augmented Reality.

Screen Shot 2019-05-27 at 1.42.32 PM.png

VR/AR Association New York Chapter Celebrates 3 Years at NYC RLAB

The third anniversary of the VR/AR Association (VRARA) New York Chapter was a positive snapshot on the growth of the immersive industry in the greater New York area in the past few years. The event was hosted on Tuesday evening, May 21st, at RLAB, the massive space that the City of New York opened in late-November, 2018. RLAB hosts several companies, including members of its XR Beta program, and is being built out as a larger facility for immersive innovation, including volumetric capture space.

As VRARA has grown globally, so too has its New York chapter, and this mirrors the broader focus on the VR/AR industry in New York, which embraces enterprise and consumer firms alike.

IMG_3895.jpg

The event featured demos from VR/AR Beta companies, as well as Mantis Vision (http://mantis-vision.com), and remarks by RLAB’s Alexis Seeley and VRARA New York chapter advisor Chris Pfaff. And, of course, numerous demos of mobile AR experiences were shown by VRARA members as well.

Mantis Vision’s mo-cap installation, and some of its forthcoming collaboration tools, were a major hit at the event. Unseen Media, a narrative AR game developer, demonstrated its soon-to-be-released game, while echoAR, and AR-focused CMS and CDN provider, and SIY (Speak it Yourself, a VR-based language instruction firm, demonstrated their solutions as well.

The VR/AR Association Publishes the Universities and Colleges Report with over 40 Institutions that offer Virtual Reality and Augmented Reality Courses and Programs

An educated workforce is a more than a qualified workforce; it is citizenry embracing curiosity. That very curiosity, encouraged by educators, creates the realm of possibility for a thriving, human-centered global populace. Enterprise may develop novel and innovative products with the latest VR/AR and immersive technologies, but without access to a trained, well-educated, and yes, curious workforce, business and industry cannot flourish or compete globally, no matter how cutting-edge or groundbreaking the technologies may be.

The overarching goal of the VRARA Universities and Colleges Committee is to increase higher education’s curiosity and knowledge of VR/AR. We seek to support and promote the bringing together of diverse disciplines, stakeholders, and interest groups within and across institutions in the service of learning both with and about VR/AR.

This report represents the first in a series of steps intended to advance that goal. It provides a high-level overview of over 40 institutions around the world are doing in this space, including:

  • VR/AR courses and programs being offered;

  • Use of VR/AR to support learning and teaching in other courses and programs;

  • VR/AR-related research and development activity being undertaken;

  • VR/AR in other areas of the institution (e.g., recruitment/ marketing/outreach, libraries, student services).


We hope that the report will be a useful resource for locating expertise, facilitating connections, and building collective capacity among those who are part of the growing community interested in the potential of VR/AR in higher education.

Beyond this report, a further role of the VRARA Universities and Colleges Committee is the coalescing of a higher education– industry alliance aimed at bridging the gap between current educational practices and offerings on one hand, and the emerging workforce needs and demands on the other. To that end, we have recently embarked on an environmental scan of major industry sectors using or otherwise impacted by XR— such as transportation, medicine and healthcare, arts, media and entertainment, and advanced manufacturing—the findings of which will be cross walked to curricular and pedagogical approaches as a means of better understanding how we can prepare students for the jobs and careers of the future.

Screen+Shot+2019-05-20+at+10.53.53+AM.jpg

In the words of Jean Piaget, “the goal of education is not to increase the amount of knowledge but to create the possibilities ... to invent and discover, to create [ people ] who are capable of doing new things.” Join us in our efforts as together, we forge a path for a thriving future of higher education, and of a global workforce enabled by as well as further enabling next-generation VR/AR and immersive technologies.

Screen Shot 2019-05-20 at 10.56.03 AM.png

RSVP for our Fireside Chat with Charlie Fink, Vertigo Games, Schell Games, and Ubisoft. A candid discussion about designing and licensing Games for Arcades

RSVP here

Location Based Entertainment consumer spending is expected to reach $809 million by 2022, but what about from the development perspective…how do business models differ here from the rest of the Games Industry? Are releasing, licensing and creating titles for Arcades really all that much different? And is there a new type of Gamer for whom these titles designed for?

This fireside chat moderated by the LBE Committee’s go to man Charlie Fink, will be asking some of the most recognised Games Studios how they are diversifying their portfolios by offering unique gaming experiences for Out-of-Home Entertainment and how making the move to LBVR compares with developing successful titles for the home consumer market (console, PC, mobile, VR, etc.)?

Schell Games – I Expect You to Die! & Until You Fall

Ubisoft Blue Byte – Escape the lost Pyramid – Assassin's Creed

Vertigo Games – Arizona Sunshine

Build a prototype in 10 weeks through Unity-Certified VR and AR Training. The next cohort begins May 27

The VRARA is committed to providing members the educational resources you need to strengthen your development skills for the VR/AR industry. Our ongoing partnership with leading VR/AR educator Circuit Stream helps us achieve that by delivering Unity-certified virtual and augmented reality education direct to our members.

Circuit Stream is a Unity authorized training partner and has taught over 20,000 students through workshops and classes since 2015.

Circuit Stream's training is designed for professionals investing in their careers and companies building their own VR/AR projects. Their VR and AR course is based on industry best practices to give you the skills, contacts, and confidence to kickstart your virtual reality or augmented reality application.

We’re helping bring premium education and student support to all VRARA chapters and members interested in advancing their development skills in Unity.

  • VRARA members receive a 20% discount on all Circuit Stream events and courses

  • Circuit Stream hosts free live online workshops on Virtual and Augmented Reality for foundations in Unity development

  • The online VR & AR course features weekly 1:1 sessions focused on creating a working prototype in 10 weeks

Download Circuit Stream’s syllabus to start building your own VR/AR application. The next cohort begins May 27.

Access Circuit Stream’s syllabus here. VRARA members receive 20% off all Circuit Stream courses and events. Download the syllabus to automatically qualify for the discount.

The VR/AR Association Publishes the Enterprise Industry Sector Report with over 100 Companies

Worldwide spending on VR/AR is forecasted at $20B in 2019 with a five-year compound annual growth rate (CAGR) of 69.6% (IDC). According to Gartner, the use of VR and AR are one of six top technology workplace trends that will drive the digital workplace and “are ready for mainstream businesses.” And, Nielsen concluded enterprises adopting VR/AR training technology will save $13.5B that would otherwise have been spent on traditional training that includes instructors, dedicated learning spaces and traveling to remote facilities.

There are plenty of other examples and predictions that demonstrate the importance of VR and AR to forward-thinking enterprises in the immediate future. Successful trials (and increasing number of deployments) of VR and AR in enterprises are getting the competitors of early adopters companies to start recognizing that they may be missing out on the real strategic advantage they can achieve.

The VR/AR Enterprise Industry Sector Report includes a wide range of companies and the kinds of customers they serve, showing how impactful their VR and AR solutions have become to enterprise customers. A quick look through this report also makes it clear just how targeted many of these companies are, with products and services often aimed squarely at specific industries and use cases.

The Report will be presented at our VRARA Enterprise Summit at LiveWorx in Boston on June 10th. For details about the event and tickets see here

Thank you to our Sponsor Atheer for helping with this report!

About VR/AR Association
The VR/AR Association (VRARA) is an international organization designed to foster collaboration between innovative companies and people in the VR and AR ecosystem that accelerates growth, research and education, and develops best practices and guidelines. VRARA has over 4200 companies and 26,000 professionals registered, over 50 chapters globally, and 20 industry committees. VRARA programs & initiatives are designed to accelerate anyone’s growth, knowledge, and connections. Learn more here  

 
 

Enterprise AR: Hear from ExxonMobil, Fidelity, Intel, Julabo, Lenovo, Accenture

See detailed program and get tickets here

VRARA Enterprise Summit at LiveWorx

The premier event for industrial VR/AR applications

Presentations and demonstrations will include topics on AEC, Aerospace & Defense, Energy, Healthcare, Manufacturing, Training, and much more.

The VRARA Enterprise Summit, hosted by the VR/AR Association, will take place on June 10th at the LiveWorx digital transformation conference at the Boston Convention and Exhibition Center. The full-day event will bring together the best minds in VR/AR from across the globe. Presentations from industry leaders will include topics on AEC, Aerospace & Defense, Energy, Healthcare, Manufacturing, Training, UX & Design, and much more. LiveWorx is the world's most respected conference for the enterprise to experience the most innovative and disruptive technologies — VR/AR, IoT, machine learning, blockchain, robotics and much more. 6500+ attendees are expected. LiveWorx is June 10-13.

JULABO is the world's leading experts in temperature control systems.

Lenovo - Sivan Iram, XR Business Development Manager North America, will talk about the newly announced ThinkReality Platform and ThinkReality A6 AR headset.

Fidelity - Matthew will present VR education and training modules for multiple business units

Intel - Raj’s keynote will be about proposing VR, AR or MR into any enterprise environment can raise eyebrows within business units, IT operators and Finance teams. There are lots of questions and there always concerns around viability and efficacy. As company that drives technology enablement in the enterprise segment for MNCs, large scale businesses and SMB shops, Intel has been right in the center of the tremendous growth of technology. Intel has seen first-hand the successes and failures of enterprise and scale deployments of new technology. Come listen to Raj Puran, Director of XR Business Development and former IT Systems Engineer  from Intel Corporation share the experiences Intel has had in deploying new technology to the enterprise like VR and AR and how to build customer confidence.

See more info and get tickets here

Join us in Vancouver! Applications open for the VR/AR Global Summit

On November 1 & 2, 2019, the most innovative leaders in VR/AR/MR will come together from across the globe at our VR/AR Global Summit to share their knowledge and discuss topics like education, enterprise, training, and blockchain. This world-class event takes place in person in Vancouver, Canada. 

Do you consider yourself a leader in the VR/AR/MR industry? We’re looking for speakers, exhibitors and sponsors like you to join us! 

Current featured speakers include Cathy Hackl of Magic Leap, Marco DeMiroz of The Venture Reality Fund, Matt Miesnieks of 6D.ai, Amy LaMeyer of WXR Fund, and Amy Peck of EndeavorVR. 

The VR/AR Global Summit is your chance to connect with industry experts from around the world and an enterprise-focused audience of founders, executives, and businesses that rely on immersive tech. You don’t want to miss out!

Apply here to be a speaker, an exhibitor, or a sponsor at the VR/AR Global Summit
https://www.vrarglobalsummit.com/apply-now

Early bird tickets are available now... don’t miss out on great deals!

Zappar Expands Its ZapWorks Platform with ARKit & ARCore Compatibility

Zappar, a leading global developer of Augmented Reality (AR) experiences and creative tools, today announced the launch of a slew of new features to their AR content creation platform ZapWorks Studio, providing brands, agencies and independent creators with a one-stop shop for building immersive augmented, virtual and mixed reality experiences. 

“This new update is our most impressive release to-date and makes ZapWorks Studio one of the most versatile and scalable AR platforms currently on the market, continuing our mission to build the most accessible, affordable and feature-rich toolkit for AR creators across the globe,” commented Caspar Thykier, CEO and co-founder of Zappar. 

Advancing the last iteration of the software, which prioritized lowering the barrier to entry by enabling creatives without coding knowledge or development background to build interactive short-form content for mobile, ZapWorks Studio 6 aims to put more power and functionality into the hands of the creative community. This level of control means that AR creators can build the widest range of fully customizable AR experiences possible without compromising on speed or ease of use.

Notable new features include:

World Tracking — In addition to best-in-class image tracking, ZapWorks Studio 6 gives AR developers even more creative freedom with the addition of world tracking powered by ARKit & ARCore. Build once and instantly publish across both iOS and Android.

Face Tracking — Studio now supports powerful computer vision facial tracking algorithms, enabling AR developers to create more expressive face-tracked experiences using ZapWorks Studio’s new built-in UI. 

Sketchfab integration — Access to Sketchfab’s extensive library of over two million 3D models, characters, scenes, and environments directly in ZapWorks Studio. Powered by Zappar’s support for the gITF 3D model format, creatives can search and import chosen models quickly and reliably.


Sketchfab CEO, Alban Denoyel, commented on the new Sketchfab integration: “Sketchfab’s mission has always been about making it as easy as possible to find, publish and share 3D content with the world, having Zappar (and ZapWorks Studio) as one of our key partners further expands this mission into the world of AR”. 

Thousands of creatives already use ZapWorks Studio to build AR experiences that engage audiences and level-up their brand’s mobile app strategy — from small businesses and creative agencies to big brands such as the BBC and Oath. 

Peter Maddalena, Director at VRCraftworks added: “ZapWorks Studio has become an essential tool for us to create engaging AR content for our clients — transforming their products, campaigns and ideas into interactive experiences that generate engagement, spontaneous media, and financial return. With every Studio upgrade, we are better equipped with the strategic tools to produce quality experiences while positioning ourselves as innovative and forward-thinking to our customers — a win-win situation.”

To download or learn more about ZapWorks Studio 6, please visit: https://zap.works/studio/

Learn more here http://zap.works

VR has a longer history than you might imagine (Intellectual Property)

What do The Sword of Damocles, Morton Heilig’s Sensorama, and the 18th century apparatus La Nature à Coup d’Œil all have in common?

They were in fact all early attempts at simulating an artificial reality. The present day equivalents to these inventions are termed “virtual reality” (VR), “augmented reality” (AR), mixed reality (MR), or, more broadly, “extended reality” (XR) devices and now utilise cutting-edge technology.

The concept itself, however, is by no means new. One of the earliest inventions in this field was patented by artist Robert Barker in 1787. 

La Nature à Coup d’Œil, later termed ‘The Panorama’, comprised a large landscape image painted onto a long canvas strip which was then displayed inside a circular building. The intention being that the observers would stand in an enclosure in the centre of the building and view the painting as if it were a real panorama as seen from a high viewpoint. Barker’s patent even goes on to describe the lighting, ventilation and access required to achieve maximum immersion. Despite sounding very elementary, it was reported that many visitors felt disoriented and sick as a result of the experience.

Jumping forward nearly 200 hundred years to 1962, we come to Morton L. Heilig’s patent for his Sensorama Simulator. This contraption, operating a bit more like present-day VR devices, but looking a lot more like a test you would have at the optician’s, includes means of providing a 3D visual effect, vibrations, a breeze, stereo sound effects, and even “odour-sense stimulation”.

The simulator, which ran short films such as “Belly Dancer” and “I’m a Coca-Cola Bottle”, was unable to secure funding and ultimately ended in failure.

Just six years later, computer scientist Ivan Sutherland developed what is widely considered to be the first VR Head-Mounted Display (HMD): The Sword of Damocles. This device used head-tracking technology to display a virtual overlay that changed perspective based on the user’s head position. Such an overlay meant that this device was also a precursor to augmented reality technology.

Extended reality experiences have clearly been of interest to innovators for many years, but how far have we really come from these early endeavours? And where might this technology take us?

Despite an unsuccessful reception in the late 90s, advances in technology have seen VR devices experience a resurgence of interest in the last few years. This sudden revival has culminated in the development of high-end gaming devices such as Oculus Rift, HTC Vive, and PlayStation VR.

While the broad concept has changed very little, current technology now allows users to enter completely artificial worlds in ways that had not previously been possible. By using positional tracking sensors and handheld controllers, users are able to interact fully with a simulated environment, while the HMD provides immersive visuals and 3D sound.

This refined fusion between precision tracking and high-resolution displays is allowing VR/AR technology to regain traction in the gaming industry. Beyond the mainstream developments already mentioned, AR company Magic Leap has recently released for general sale their cutting-edge AR goggles: Magic Leap One. Using a multitude of tracking cameras and what Magic Leap call a “photonic lightfield chip”, the Magic Leap One is able to display virtual objects in different focal planes relative to real-world objects. This means that if a virtual ball is sitting on your real-world coffee table and you virtually knock it off, you will see it virtually fall off the real-world table and virtually roll along the real-world floor. 

The complexity of achieving such a feat is reflected by the array of advanced technology implemented in the goggles. In a 22-step “teardown”, technology analysis and repair firm iFixit identified a range of components such as: infrared projectors and LEDs for depth sensing; magnetic sensor coils for tracking headset position; a LCOS microdisplay to provide the visuals; and a plethora of processing units to analyse the incoming image data.

But the ability to realistically simulate an artificial environment stretches well beyond the gaming and entertainment industry. Increasingly VR/AR devices are being used in other industries as genuine tools for improving experiences and efficiency and many believe this is where the future of these technologies lie.

VR is being applied in education as a means of providing VR field trips, such as to the International Space Station, or inside the human body. In the retail industry, shoppers are able to try on make-up, explore their dream kitchen, or even explore the shop itself all through VR. In manufacturing, AR technology is being used for visual inventory management (“vision picking”) and remote maintenance and inspection of machinery. Architects are using XR technology to design and demonstrate buildings. The increasing realism and precision now available through XR means that it is even being applied in healthcare, allowing surgeons to perform surgery remotely.

While it is clear that the present day XR innovations are worlds apart from the early attempts there is one thing that all of these inventions certainly have in common: Intellectual Property.

From a big painting in a round building (Patent for displaying Views of Nature, Robert Barker) to corneal sphere tracking for generating an eye model (EP3329316A1, Oculus VR LLC), it is clear that all of these individuals and companies understood the importance of protecting investment and market share.

A recent study by IPlytics found that VR/AR patent applications have increased nearly six fold between 2010 and 2018. Whether it is a registered design for the shape of a headset or a patent to protect the technology inside it, the value of intellectual property protection has never been higher in this field and we expect to see many more interesting inventions coming our way in the years to come.

See our website marks-clerk.com to learn more

Call for Presenters and Invitation to Participate in our Tourism-Travel Committee and Webinar with Expedia and others

The VR/AR Association Tourism & Travel Committee is inviting speakers for a Webinar we are planning for June. Please email info@thevrara.com if you’re interested to present! Let us know if you’re also interested in Sponsoring this webinar. Our webinars get 200 people attending live, and 1000’s watch the recording.

This committee will create best practices, guidelines, and call to actions (e.g., recommendations for standards) for Travel & Tourism. Specifically, to identify opportunities and accelerate widespread adoption of VR/AR technologies in the travel industry by OTAs, Airlines, Lodging, DMOs and other Travel companies, for marketing, branding and enhancing the user experience through each phase of the traveler journey (dream, plan, shop, book, pre-trip and post-trip)

Join our Committee and representatives from airports, travel agencies, service and solution providers! 

Regards, 

Darshan Lama, Expedia

Craig Vezina, Realcast

VRARA Co-Chairs

The Enterprise Reality Ecosystem: how VR/AR is driving ROI

Come see Tim Merel speak at our VRARA Enterprise Summit at LiveWorx June 10th in Boston!

While consumer AR/VR is proving itself, enterprise AR/VR is already delivering strong return on investment (“ROI”) for major corporations like Walmart, Lockheed Martin and Verizon. But the market remains a series of connected point solutions, not a fully functioning ecosystem (yet). As major players like Microsoft build towards an end-to-end stack and win half-billion dollar contracts from the US Military with HoloLens 2, we’re still in the earliest stages of the Enterprise Reality Ecosystem. How is enterprise AR/VR driving ROI today, and what else does it need to scale across platforms?

(Note: this qualitative analysis is based on discussions across the industry extracted from Digi-Capital’s Augmented/Virtual Reality Report Q2 2019, and will be updated as the market develops)

Active Users

For the Enterprise Reality Ecosystem to thrive, it needs active users. Lots of them. Not hundreds of millions to billions like a consumer ecosystem, as even wildly successful enterprise platforms like Slack have just 10 million active users today. For our purposes, we’re talking about hundreds of thousands to millions of active enterprise AR/VR users.

The largest installed base for smartglasses today is Microsoft HoloLens 1, reported at 50,000 total across all enterprise customers (note: active users is a different number, due to both multiple enterprise users per device and device attrition). The launch of HoloLens 2 and Microsoft’s 100,000 headset US Army contract could more than double this figure in the short term, taking enterprise smartglasses active users into the hundreds of thousands.

Other enterprise smartglasses companies like Vuzix are in the tens of thousands, while Google has not discussed numbers for Google Glass for Enterprise. Recent industry surveys indicate Microsoft HoloLens (even before HoloLens 2 was announced) is seen by the industry as the market leader. (note: Magic Leap is often discussed in creator/consumer terms, but also supports enterprise)

Consumer VR is largely a games/entertainment market, particularly in light of Facebook/Oculus’ John Carmack’s comments. Yet VR headset makers and startups are also focused on enterprise. Enterprise VR active users (note: again different to installed base) are beginning to reach critical mass in the training vertical in particular. Enterprise VR training company Strivr partnered with Walmart to roll out 17,000 Oculus Go headsets loaded with its software to 4,700 stores and 1 million employees, as well as Verizon using it to train 22,000 employees across the US.

One of the veterans in the enterprise VR space, Ford (led by former Immersive Realities Tech Specialist Elizabeth Baron) developed its own Ford immersive Vehicle Environment (“FiVE”) system back in 2012, and has seen usage grow 50% annually ever since. Over 10,000 staff used it in 2017 across engineering, design, user experience/ergonomics and performance (motorsports), with over 1,000 “product health” reviews in 7 countries.

Mobile AR has hundreds of millions of compatible and configured smartphones and tablets that could run enterprise mobile AR already, but active enterprise mobile AR users make up a very small percentage of that number today. Just because someone’s mobile device is capable of running your enterprise mobile AR app, that doesn’t mean they have downloaded it or used it yet.

Nonetheless, PTC Vuforia EVP Mike Campbell says that it has “over 630,000 registered developers and 5,000 enterprise AR customers today, with 85% of Vuforia Studio usage on mobile AR and a $20 million software only (no services) business.” Those figures are pretty encouraging, and enterprise mobile AR has potential to grow active users far beyond its current base.

High Frequency Users

For enterprise AR/VR to succeed, it needs to become an indispensable, everyday business tool. Solutions that are used all day, every day, are why companies like Microsoft, Salesforce and Slack are so valuable in the broader enterprise IT space. High usage frequency is a good yardstick for the value of enterprise AR/VR solutions.

Upskill CEO Brian Ballard points out that type and frequency of use for enterprise smartglasses depends on use cases, “In manufacturing and logistics, we have most customers applying Assisted Reality (HUD-style) smartglasses in all-day, every-day use, sometime across multiple shifts. In field services, we see smartglasses predominantly used in exception-based repairs.”

The largest rollouts of VR in enterprise have been in training, which by its nature is an occasional activity for most staff. There are other enterprise VR use cases (e.g. design) where staff use it many times per day, but the jury is still out on high frequency usage of VR broadly across enterprise. High frequency usage in mobile AR is also early in its development.

Critical Use Cases

We think about enterprise use cases on a spectrum from valuable to critical. Critical is interesting, valuable not so much. Valuable might be cool and technically hard to do, but doesn’t transform enterprise user experience or isn’t something most enterprise users care about. And what enterprise users really care about is ROI. This is where enterprise AR/VR is beginning to shine across platforms.

Lockheed Martin’s Emerging Technologies Lead Shelley Peterson explains that its “satellite operations have used HoloLens 1/Scope AR to reduce training time by 85%, as well as dramatically cutting operating times across alignment (-34%), Design for Inspection (“DFI”) (-39%), drilling (-46%), torque (-50%), and cable fastener activities (-93%). Cost savings at this level are unheard of in the satellite industry.”

Getting back down to earth, BAE Systems division building electric battery propulsion systems for hybrid buses has used Microsoft HoloLens 1/PTC Vuforia to cut front-line assembly workers cycle times by 50%, training by up to 40%, all at a tenth of the cost of alternatives.

Upskill’s Ballard described how they’ve leveraged smartglasses with clients across automotive, aerospace, and retail, “We’ve seen employee ramp time reduced by a week (25% faster), FTQ (First time quality) improved by 38% during training, productivity increases from 12% – 300% (mean 40%), and time to first fix improvement reduced from weeks to hours. Positive ROI is now measured in months, not years.”

For operational capability/readiness, King County is seeing ROI from working with Taqtile’s Manifest platform running on Microsoft HoloLens. Perhaps the most significant benefits have come from transferring and codifying institutional knowledge from a retiring workforce to new workers.

Remote collaboration is emerging as another way that enterprise ROI is being delivered, with smartglasses maker DAQRI CEO Roy Ashok describing how it “has enabled clients’ service departments to cut troubleshooting time by 60%, eliminating the cost of sending a technician entirely in many instances.”

Trimble has focused on the use of HoloLens for early identification of discrepancies between design and construction to reduce rework in architecture, engineering and construction (“AEC”) projects. Aviad Almagor, Senior Director – Mixed Reality and BCI, said that “using mixed reality for early resolution of clashes and coordination issues has saved clients weeks of work, prevented cost overruns, and schedule delays.” Trimble has also announced XR10 with HoloLens 2 bringing mixed reality to front-line workers.

In enterprise VR, Bell used HTC Vive to cut development time for its new FCX-001 helicopter from an industry standard of 5 to 7 years to just 6 months. While these time and cost savings are impressive, the increased competitive advantage and revenue growth from dramatically faster time to market are measured in the millions of dollars.

Strivr’s CEO Derek Belch explained how the company’s enterprise VR training solutions have enabled its customers including “Walmart to improve training test scores for 70% of associates, United Rentals to cut training times by 40%, Fidelity to grow customer satisfaction by 10%, and a Fortune 100 insurance client to reduce training times from 3 hours to 25 minutes.”

Integrated VR/CAD modelling company Mindesk has been helping AEC clients replace physical models with virtual ones. CEO Gabriele Sorrento said that this has resulted in customers “saving $2,000 or more per design phase, and delivering positive ROI straight away. Our integration with standard CAD software has also eliminated preparation/conversion between systems, cutting costs even further.”

Remote collaboration platform Streem is focused on using mobile AR to make enterprise expertise more accessible, enabling white goods and insurance company clients to cut up to 42% of service technicians callouts (“truck rolls”) and related costs. CEO Ryan Fink said this is achieved through, “using the customer’s smartphone camera to connect them to remote experts and call centers, while empowering the expert with more contextual insights than were possible before. This includes spatial mapping for accurate remote measurements, AR tools, and object recognition/OCR for automatic serial/model number capture, and context identification.”

Critical Apps

For reference, enterprise users access 8 enterprise mobile apps per month on average, with IT departments deploying another 2 to 3 enterprise mobile apps on average per year. So critical use cases for new platforms are not enough. They need to be part of existing enterprise apps, or something an enterprise IT department will actually roll out.

Many smartglasses rollouts require a significant services component for implementation and compliance, while SaaS solutions can be simpler and faster to implement. Microsoft’s approach with an integrated suite of standardized enterprise solutions like Dynamics 365 is aiming to make enterprise implementation/compliance easier, and leverage the company’s decades of enterprise experience.

But even with strong progress across the market, enterprise customers tell us it is too early to make a call on critical enterprise apps for smartglasses, VR or mobile AR.

Cloud/Data

The Enterprise Reality Ecosystem needs a strong cloud backbone and data analytics/business intelligence to support decision-making. The enterprise AR Cloud is emerging with Microsoft Azure Spatial Anchors, as well as broad AR Cloud startups like 6D.ai and Ubiquity6. So despite its early stage, there appears to be a path forward for the AR Cloud to support both smartglasses and mobile AR. There is less clarity for the enterprise VR cloud, although some have suggested blockchain as a solution. For enterprise AR/VR data analytics/business intelligence, Digi-Capital’s AR/VR Analytics Platform launched as the first dashboard solution to service this market at Google in mid-2018.

Installed Base

While the largest enterprise platforms today have users in the billions (PC, mobile, Microsoft Office etc.), enterprise AR/VR platforms need installed bases in the hundreds of thousands to millions to scale. Microsoft HoloLens 2 will reach hundreds of thousands of enterprise devices in the short term, but be highly concentrated in the company’s massive US Army contract at first.

HoloLens 2 (and eventually 3) could scale from that base to millions of devices across industries, but it might take Apple launching smartphone tethered smartglasses and bring-your-own-device (“BYOD”) demand for enterprise smartglasses installed base to reach their inflection point. Digi-Capital first forecast Apple launching in late 2020 over 3 years ago, but only Tim Cook and his inner circle really know if and when that could happen (and what it might look like).

VR’s enterprise installed base has seen individual corporate rollouts in the tens of thousands of units for training (e.g. Walmart), but still has a way to go to scale more broadly across enterprise.

Mobile AR has an enterprise installed base in the hundreds of millions today due to the ubiquity of compatible and configured devices. Again this isn’t active users, which is a much smaller number today.

Critical Hardware

Enterprise tech platforms don’t just need critical use cases and apps, they need critical hardware to run on. As above, HoloLens 2 could become smartglasses’ first critical hardware, with other players competing for that title (again Magic Leap has been primarily consumer/creator focused, but is also positioning for enterprise).

VR’s high-end and mid-range headsets from HTC, Facebook/Oculus and others have been used by the enterprise community for several years now, with ultra-high-end VR headset Varjo also launching this year. iOS/Android smartphones/tablets already do most things that enterprise mobile AR users need without dedicated hardware, although rear-facing depth sensors could add functionality as they become more commonplace.

Investment

Investment is a key driver to fuel the Enterprise Reality Ecosystem, with internal corporate spend as important as VC funding of startups.

In the consumer smartglasses market, Digi-Capital’s AR/VR Analytics Platform tracked Magic Leap raising over $2.6 billion so far. In the enterprise smartglasses market, Microsoft’s internal spend on the HoloLens ecosystem could dwarf that number (note: Microsoft has not discussed a figure). This appears to be yielding results, with the company’s $480 million US Army contract the largest single contract with an enterprise customer to date.

VC investment into consumer VR has dropped dramatically in recent years, with some enterprise VR exceptions. Facebook and HTC continue to spend internally to grow their enterprise VR businesses, with some large enterprise contracts to show for it. Investment into enterprise mobile AR has been small compared to smartglasses so far.

Leaders

There are strong players in specific parts of the enterprise AR/VR market, but only a handful of companies with resources and capabilities to lead across the stack (in a similar way to Apple in the broader smartphone market, not just enterprise).

For enterprise smartglasses, Microsoft’s HoloLens 2 and ecosystem look like the ones to beat in the Enterprise Reality Ecosystem. Google and Apple could challenge, but Google Glass for Enterprise is an indirect competitor in some ways, and Apple remains Sphinx-like. Magic Leap has been positioning itself too, so it will be interesting to see what it delivers.

For enterprise VR, HTC, Facebook/Oculus and Microsoft (with partners) are the contenders for full stack enterprise solutions leadership. Likewise Apple and Google for enterprise mobile AR.

Too early to tell

The Zhou Enlai quote “it is too early to tell” is an appropriate summary of the Enterprise Reality Ecosystem today. Enterprise smartglasses, VR and mobile AR have solved parts of the puzzle, but each needs key pieces to become a true ecosystem in its own right. The focus, energy and talent focused on the challenge are formidable, so it’s going to be exciting to see where things goes from here.

(A big thank you to other great folks who helped in the research: Herb Schilling of NASA, JR Dawkins of Verizon, Jan Pflueger of Audi, Amar Dhaliwal of Atheer, Dirk Shart of Re’flekt, Marco Campanari of Hyperfair, Karl Maddix of Masters Of Pie, Florian Haspringer of Holo-Light and Daniel Seidl of Innoactive)

About Digi-Capital: Digi-Capital is a Silicon Valley based AR/VR adviser (reports, analytics platform, strategy consulting, investment banking)

Come see Tim Merel speak at our VRARA Enterprise Summit at LiveWorx June 10th in Boston!

Call for Speakers, Exhibitors, Sponsors now Open for our VR/AR Global Summit in Vancouver Nov 1-2

Join us November 1 & 2, 2019 at Parq Vancouver!

The VR/AR Global Summit is a world class event bringing together the best knowledge and networking in VR and AR for enterprise, hardware, software and content providers from across the globe. Check out our new website and sign up to receive updates about speakers, workshops, demos and other great opportunities to connect at the summit.

Visit the Website

We have a new look and website.. and that’s not all

We are excited to launch this years’ event with a new logo, website and look.. and that’s not all. The 2nd edition of the VR/AR Global Summit will feature some new and exciting programming and fun networking opportunities at the event. We are curating a program that is based on real conversations and content-driven... along with great industry announcements and more. Plus, the event falls right after Halloween... costume party anyone? Buy your tickets early so that you don’t miss out.

Early Bird Tickets Available Now

Application for Speakers, Sponsors and Exhibitors Now Open!

The VR/AR Global Summit is looking for partners to make this event out of this world! If you are interested in speaking, sponsoring or exhibiting (or have an exciting idea you want to showcase) we would love to hear from you.

Apply here

Now is a great time to save up to $300 on your tickets to the event. Early bird tickets are available at VRARA member and non member rates. Buy now before prices go up!

Buy tickets now

The VR/AR Association issues an Open Call for Companies to participate in the VR/AR Enterprise Industry Sector Report

Fill out this form if you are interested in being featured (VRARA and non-VRARA Members are welcomed if you are a B2B company with a VR/AR solutions or services) and email info@thevrara.com if you would like to Sponsor this report

This industry report will feature companies specializing in VR/AR for B2B Enterprise solutions. The report will be published in June and will be promoted to the industry globally via our Newsletter (25K emails), Website (20K monthly visitors), and at our Global Summits, and via our partners’ networks.

Foreword

by Geof Wheelwright, Co-Chair, VR/AR Enterprise Committee

We are in an industry that most major analysts agree is growing fast. According to a December 2018 report from International Data Corporation (IDC), worldwide spending on augmented reality and virtual reality (AR/VR) is forecast to be nearly $20.4 billion in 2019.

This number is part of a five year growth prediction by IDC spanning the 2017 to 2022 period forecasting that worldwide spending on AR/VR products and services will achieve a five-year compound annual growth rate (CAGR) of 69.6%. And IDC is not alone in making this kind of prediction.

According to Gartner Distinguished VP Analyst Matt Cain, the use of VR and AR are one of six top technology workplace trends that will drive the digital workplace. “Immersive technologies, such as augmented and virtual reality, are ready for mainstream businesses,” he predicts in a March 2019 story that discusses evolving workplaces.

Screen Shot 2019-04-22 at 2.03.03 PM.png

Meanwhile, research firm SuperData (a Nielsen company), recently concluded that enterprises adopting XR training technology (covering Augmented Reality and Virtual Reality) will save $13.5 billion that would otherwise have been spent on traditional training that includes instructors, dedicated learning spaces and traveling to remote facilities.

Screen Shot 2019-04-22 at 2.03.12 PM.png

Another big story lies in where AR and VR are being rolled out. AR. in particular, has a strong mobile story - with analyst predictions suggesting that it will only grow stronger in the coming years. According to a recent story in AR Insider - also quoting recent SuperData numbers - there has been tremendous growth in the development of Mobile AR apps, particularly for iOS mobile devices.

Mobile AR applications are not, however, primarily driven by enterprise needs - but the steep growth in overall app development for ARCore and ARKit - reflects the massive installed base and opportunity they represent for enterprise AR developers.

There are plenty of other examples and predictions that demonstrate the importance of VR and AR to forward-thinking enterprises in the immediate future. The real story right now, however, may be in the “second wave” of adoption that will come in behind the first wave of adoption we are seeing now.

There will always be companies that have the budget, interest and bandwidth to conduct pilots and do field trials of potentially useful technologies. And those have been the primary enterprise customers for VR and AR technologies over the past couple of years.

We are now, however, on the cusp of a moment where the successful trials (and increasing number of deployments) of VR and AR in enterprises are getting the competitors of early adopters companies to start recognizing that they may be missing out on the real strategic advantage they can achieve.

The range of companies you’ll see in this report - and the kinds of customers they serve - are a great example of how impactful their VR and AR solutions have become to enterprise customers. A quick look through this list also makes it clear just how targeted many of these companies are, with products and services often aimed squarely at specific industries.

Just consider the range of applications on offer (and the sectors they aim to serve):

  • Virtual meeting room technology from Ireland’s meetingRoom.io, which counts the Bank of Ireland among the enterprise customers for its low bandwidth remote work platform.

  • Spiral Technologies, a company that uses Mixed Reality technology to deliver a solution for the aerospace industry that is aimed squarely at the MRO (maintenance, repair and overhaul) market. The company’s solution provides remote calls and video streaming, object recognition, display of static information, interactive voice assistance and 3D visualisation.

  • Apprentice.io, which aims its AR-based solution at lab, line and suite environments, with extensive specialization in pharma and biotech industries. The company says its solution is used to empower scientists, engineers and manufacturers who operate in various complex, compliance-driven environments

  • 900lbs, a creative agency and innovation lab offering VR/AR/MR experiences, with an impressive enterprise customer list that includes PepsiCo, Royal Caribbean Cruise Lines, Shell, NTT Data, Bell Helicopter, DXC Technologies, Perot Museum of Nature and Science and Activision/Blizzard.

  • Dimension10, a company that aims squarely at meeting the needs of industries such as  oil and gas, architecture, engineering and construction - where three-dimensional models in VR can deliver real value. Enterprise customers include Skanska, ÅF Group, Aker BP, Framo, NTNU and AF Gruppen.

  • Atheer, a pioneer in the development of the Augmented Reality Management Platform, with customers in the automotive, aviation, manufacturing and logistics sector. Customers include Porsche Cars North America, which says it has shortened service resolution times at its dealerships by up to 40 percent through the use of Atheer’s AR platform.

  • Frozen Mountain, which brings live streaming to AR and VR devices in the enterprise. The company provides the software, tools, and professional application development services that enable the delivery of multi-party ultra-low latency live video and data streaming.

  • vSpatial is designed to be a virtual reality workspace that connects users to their computer applications and coworkers. It allows virtual office collaboration using a VR headset while providing access to popular productivity applications.

  • VR Vision is a XR (Extended Reality) company that provides immersive technology training platforms for use across multiple vertical markets, including healthcare therapy as well as hospice and retirement homes. The company counts Toyota, Siemens, Thales, the University of Toronto and Alchemy Systems amongst its customers.

  • Viewpointsystem, a Vienna-based company with two decades of experience in eye-tracking technology, has made eye-tracking the centerpiece of its latest product:.the new “VPS 19” smart glasses that consist of Eye Hyper-Tracking glasses, a separate Mixed Reality click-on (that includes a waveguide display and is placed in front of the lenses) and a pocket-sized intelligent hardware component called the Smart Unit.

  • MeetinVR, as the name suggests, is a company all about using VR to empower and enhance enterprise collaboration. The company's public roadmap for VR hardware support includes Vive, Oculus Rift, Oculus Quest, Oculus Go and Windows Mixed Reality.


— Geof Wheelwright, Co-Chair, VR/AR Enterprise Committee

Companies already included in the Report include:

  • Apprentice.io

  • Atheer

  • meetingRoom.io

  • Spiral Technology

  • EndeavorVR

  • 900lbs

  • Dimension10

  • Frozen Mountain

  • Tech Guilds

  • vSpatial

  • VR Vision

  • Viewpointsystem

  • MeetinVR

  • VRgineers, Inc.

  • NextReality

  • Plus, 100+ Companies are listed in our Directory)

Fill out this form if you are interested in being featured (VRARA and non-VRARA Members are welcomed if you are a B2B company with a VR/AR solutions or services) and email info@thevrara.com if you would like to Sponsor this report