The global immersive media industry size was valued at USD 86.02 billion in 2021 and is poised to exhibit a CAGR of 36.3% between 2022 and 2030, according to “Immersive Media Industry Data Book, 2022 – 2030,” published by Grand View Research. The havoc wreaked by the COVID-19 pandemic compelled leading companies to adopt state-of-the-art technologies, such as metaverse, augmented reality (AR), and virtual reality. Immersive technologies have forayed into a host of industries, such as education, healthcare, entertainment, manufacturing, logistics, and sports. For instance, the volumetric video gained unprecedented traction, creating holograms and enabling viewers to watch from any angle.
Augmented Reality (AR) revolutionizes Industries
Augmented reality (AR) has emerged as a promising technology to imitate or mirror the physical world, providing an impetus across end-use sectors. The healthcare sector, for instance, has witnessed an ever-growing trend for personalized patient experience. The technology has come to the fore (not an exhaustive list) to boost surgery, help manage post-traumatic stress disorder, and offer physical therapy. In essence, the surgeons are showered with visualization of data and accessibility of information in “real-time” during the surgical procedure.
The rising footprint of head-mounted displays, wearables, and smartphones has redefined the industry vertical. AR has become prevalent in video effects, camera filters, and games. Media houses have exhibited notable traction for the technology, with advertisement, social media, and short video platforms becoming the major consumers of AR. These dynamics corroborate the valuation of the global augmented reality market size at USD 25.33 billion in 2021 and the forecast of a strong CAGR of 40.9% through 2030.
Metaverse is Here to Stay
The rising footfall of AR, VR, and blockchain has impelled the next-gen technology—metaverse—as virtual shopping, gaming, and social interaction continue to gain momentum. Although the market is nascent, bullish investments could add a fillip to the growth outlook. In January 2022, Microsoft announced the acquisition of Activision Blizzard for USD 68.7 billion to foster gaming business across PC, mobile, cloud, and console. It will also offer building blocks for the metaverse platform, propelling interactive entertainment. The global metaverse market will expand at a CAGR of 39.4% through 2030, partly due to soaring demand for digital assets using cryptocurrency.
Technological advancements, including the expanding footfall of 5G and the penetration of digital twins and virtual worlds, have put the metaverse at the forefront. In September 2022, NVIDIA announced the rollout of Omniverse Cloud Services to build and develop industrial metaverse applications. Industry leaders are poised to cash in on the prevailing opportunities the metaverse presents.
Trends, opportunities, and challenges are expected to underscore the immersive media industry’s growth. Stakeholders are slated to zero in on the following dynamics:
- The trend for virtual reality (VR) will be pronounced in the wake of the evolving media & entertainment industry and technological advancements in smartphones. In addition, VR-powered design enables architects, product engineers, and designers to shift through a host of designs robustly.
- AR and VR are touted to be the go-to technologies to augment virtual prototyping in construction and manufacturing, provide virtual training to employees, and offer virtual showroom displays. For instance, state-of-the-art technologies can help employees better prepare for high-risk environments.
- North America will observe investment galore on the back of 5G penetration and the growing footprint of social media apps. Besides, the rising footfall of gaming and e-commerce tools in the U.S. has spurred the demand for immersive and interactive experiences.
Asia Pacific Relishes on Next-Gen Technologies
Immersive media technologies in the Asia Pacific have gained ground against flourishing gaming, entertainment, and media industries. The tech-savvy Gen Z population will likely be the frontrunner in consuming next-generation technologies. In Q1 2022, Microsoft noted that around 3 billion people actively play games, alluding to the prospect of the entertainment industry. Furthermore, edge computing, cloud, and 5G have brought a seismic shift in the regional landscape. Incumbent players will cash on the demand for generative AI, IoT, and the rising trend for the metaverse. In February 2022, Infosys rolled out the Infosys metaverse foundry to propel the exploration of the metaverse, such as virtual and augmented environments.
Automakers Bank on Immersive Experience
Original Equipment Manufacturers (OEMs) and other stakeholders have exhibited immense traction for AR/VR and metaverse. Several automakers and dealers offer immersive experiences through VR simulation and virtual showrooms. Metaverse technologies have brought a paradigm shift in fostering simulation and testing of vehicles. The prevailing opportunities are galore for automakers in Asia Pacific to cash in on 3D modeling, edge computing, IoT, 5G, natural language processing (NLP), machine learning, blockchain, and real-time rendering.
Roadmap
Amidst evolving trends, forward-looking companies could inject funds into organic and inorganic strategies, including innovations, technological advancements, R&D, mergers and acquisitions, collaboration, product offerings, and geographical expansions. For instance, in March 2023, MetaversePlus partnered with Aéropostale to launch AeroWorld, designing, developing, and augmenting the brand’s presence in Web3 through NFTs and exclusive perks and promotions. Industry dynamics suggest key players will focus on gaming experience, socializing, and shopping experiences. State-of-the-art technologies will continue to receive an impetus across sectors to drive innovations and bolster productivity.
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