Shaping the World of Immersive Technology: Top 5 VR and AR Trends 2023

by Shivangi

Industry insights and predictions show that the AR and VR market is poised for significant growth. The AR and VR market value is estimated to reach US$31.12 billion in 2023. Augmented Reality (AR) and Virtual Reality (VR) are dynamic technologies transforming digital interactions. VR and AR trends for 2023 are centered around elevating the user experience and pushing the boundaries of immersive technology.

AR (Augmented Reality) enriches the real world by overlaying digital information. It’s accessible through devices like smartphones and tablets through AR-powered applications. While VR (Virtual Reality), with the help of VR headsets, offers a completely immersive experience. It replaces the user's actual environment with a simulated digital world.

These technologies are revolutionizing how we perceive and interact with our surroundings. Industries like gaming, healthcare, real estate and others are embracing AR and VR technologies at a rapid pace. Augmented and Virtual Reality are opening up new possibilities for various industries and applications.

Future of AR and VR Technologies

AR and VR are seeing increased investments as opportunities in the sector continue to evolve. According to eMarketer, there will be 100 million and 70.8 million AR and VR users respectively by 2024. Let’s explore the future of these emerging technologies.

Improved hardware and devices

One of the main factors in VR innovation is the evolution of the VR headset. They will continue to evolve into comfortable and lighter-to-use devices. Some of the emerging AR and VR devices to watch out for in the future are:

  • AI integration in AR and VR - Combining AI with Virtual and Augmented Reality can help enhance the digital world experience significantly. AI can power immersive tech with image recognition and tracking, navigation using voice commands, and more.
  • Smart Glasses - While there are some versions of smart glasses out in the market they have their limitations. Qualcomm, Lenovo, and TCL are some of the companies currently working on making them a household item. Upskill predicts that US workers will be equipped with smart glasses commercially by 2024.
  • Smart Mirrors - These mirrors use Mixed Reality to help users virtually try-on products. It can display the weather, date, news, and more. Healthcare may be another area that the technology may become useful for in the future.

Better graphics

Graphics and resolution play a crucial role in creating immersive virtual environments. New AR and VR technologies will grow into higher-resolution displays and better image quality.

  • SLAM - SLAM uses a camera and other sensors as input to create a map of an area. The tech is being used in robotics, UAV, and AR. The SLAM market is expected to grow to $4060.92 million by 2028.
  • 3D teleconferencing - Google has been experimenting with holographic telepresence booths. The Starline project of Google creates a lifelike, three-dimensional communication platform that enables real-time conversations with natural gestures, eye contact, and life-sized representations of people. Another version of the same project involves the use of a TV.
  • Extended Reality (XR) - XR is the merger of smartphones, AR, and VR into one wearable device. While the tech currently has some challenges, it is the future of all AR and VR devices.

AR trends and Virtual Reality today are rapidly expanding their presence across various domains. AR’s influence is growing across various industries globally. They have revolutionized industries such as gaming, education, and mental health care over time.

The latest AR and VR technology news suggests that spending on AR/VR technologies will grow to USD 10.5 billion by 2027. Here are a few emerging AR and VR technologies to watch in 2023:

1. Immersive experiences

The future of AR and VR will focus on a completely immersive experience. The VR headsets are just the first step toward a fully digital immersive experience. The technology will focus on 3D audio apps and micro sensation technology.

Haptic suits and gloves with micro sensation technology are already a growing market. A survey revealed that 65% of respondents would invest in additional VR gear such as gloves, shoes, and haptic suits. The OWO Skin, for instance, offers a gamer a complete digital immersive experience. The suit boasts micro sensations that stimulate 10 locations on the body.

2. Virtual learning

VR industry insights placed the VR education market value at USD 8.67 billion in 2022. VR-simulated classrooms teach students to apply theories in real-world scenarios. It is being used to train surgeons, and soldiers, and teach soft skills. Interactive learning will help students enhance their understanding of the subject. The Microsoft HoloLens is a great example of this.

In healthcare, it's helping enhance patient care and medical personnel training. It allows medical professionals to collaborate and plan surgeries with 3D holographic models.

3. Medical imaging and diagnostics

AR will play a crucial role in medical imaging. It will help simplify treatment planning and visualize medical data in real time. Aligner 4D is an innovative orthodontic service app. It tracks treatment progress, provides a 2D model for treatment planning, and more.

AR trends in medical tech will also focus on surgical training, physical therapy, and care management.

4. Mixed Reality

Mixed Reality (MR) combines AR and VR to create a digital world within the real world. MR is the next step to enhancing user experience.

Quintar’s live augmented wayfinding app uses Google’s ARCore to provide AR experiences live. For the PGA tour, the company provided an immersive experience to the fans. Their app offered live stat overlays, event action, and directions to the attendees. It helped them boost fan engagement and reduce frustrations in navigating through a crowded space.

5. Virtual wearables

Emerging AR and VR technologies continue to revolutionize the retail industry. Augmented Reality in 2023 has taken a step forward in the metaverse toward digital collectibles. Businesses are auctioning NFT wearables including clothes accessories, animations, and more.

RTFKT is a blockchain and AR-enabled digital artifacts retailer. They create sneakers and digital art for the patrons of the metaverse. Many luxury brands like Louis Vuitton, Gucci, and Burberry have also thrown their hat into the NFT wearable game. The luxury digital couture market is estimated to reach $56 billion by 2030.

Potential Challenges and Limitations of AR and VR

The advancements in VR and AR technology hold a lot of potential, but it also poses some challenges. It's important to understand AR and VR trends to stay ahead of the competition in 2023. However, to unlock their full potential, investment in research and development is crucial. It is also important to address the sector's challenges, which include:

  1. Technological limitations: Factors like a limited field of view, low-res displays, and other hardware requirements can impact user experiences. Continued investment in research and development will be vital to enhance the technology.
  2. Ethics and privacy issues: Safeguarding user data and ensuring the technology’s responsible use is crucial. AR and VR need to strike a balance between innovation and protecting user privacy. This will ensure sustained long-term growth for Augmented Reality and Virtual Reality.
  3. User Adoption: Businesses need to focus on overcoming certain challenges to increase AR and VR's potential for user adoption. These include reducing the cost and training to handle the complexity of these devices.

In 2023, we can anticipate a surge in the utilization of AR and VR technologies across diverse sectors. The advancements in hardware and graphics, coupled with the increased affordability of devices, will drive this adoption. As AR and VR continue to evolve, they will unlock new avenues for growth and transformation in various industries. The potential for immersive experiences and enhanced capabilities will empower businesses to harness these technologies to their fullest extent, revolutionizing the way we work, learn, and interact. Keep an eye out for the exciting opportunities that lie ahead as AR and VR redefine the boundaries of innovation in 2023.