Investors’ interest in augmented reality is rising, and they want to know everything about this technology and its market. From these conversations, I came away with two fundamental ideas about augmented reality. First, augmented reality won’t come quickly, nor will it be easy, but augmented reality will dramatically impact the way we interact with technology. Second, there are many challenges in bringing augmented reality to market, first for IT procurement personnel and later for ordinary users. This will drive a new round of technological innovation and bring a lot of new value within the technology industry.
New challenges, new opportunities
One of the reasons I'm bullish on AR is that I've tried out early AR devices and they were amazing. What's more, after trying out these devices, you get the sense that they're not just for demonstrations. Augmented reality will bring huge real-world opportunities. I’ve discussed the use of augmented reality in key vertical industries, but the current feeling is that augmented reality is going to impact everything and everyone.
However, seizing these opportunities is not easy. If we want all aspects of the virtual reality experience to be significantly improved, we will also need to develop new hardware components, new interaction modes, next-generation applications, and connected services that we currently do not understand.
Let's look at the hardware first. Microsoft's groundbreaking HoloLens now has a developer version priced at $3,000. HoloLens integrates a variety of sensors, cameras, speakers, and three main processors, including CPU, GPU (Graphics Processing Unit) and HPU (Holographic Processing Unit). Microsoft independently designed a 32-bit HPU based on the X86 architecture because the company found that the traditional CPU/GPU architecture could not provide adequate processing capabilities to handle large amounts of data input and visual information output.
Microsoft is not the only company investing in chip design as it advances the development of augmented reality. Many companies, large and small, are paying attention to this area, trying to study how to develop a new generation of chips to drive innovative experiences.
Another area attracting industry interest is the cameras, sensors and microphones in augmented reality devices. These devices capture the user's location, the people and objects around them, and what messages their hands, eyes and voice are sending.
One of the necessary technologies for augmented reality is to successfully capture the information entered by the user without using a keyboard, mouse, or even a touch screen. Companies such as Microsoft, Meta, Leap Motion and Ultrahaptics are all developing in this area, using cameras and software to capture the subtle movements of palms and fingers. In the future, you will be able to manipulate data and digital objects with your hands. In addition, some companies are further developing smart assistants to provide more powerful voice interaction functions.
Display technology is also important. One fundamental difference between virtual reality and augmented reality is that virtual reality can take advantage of the high-definition screens currently available on smartphones. This is because, when using virtual reality, you only have to look at the screen. But for augmented reality, you also need to be able to see the real world outside.
There are challenges in developing such a screen, which will become a key factor restricting the development of augmented reality technology. This is also a point where Microsoft HoloLens has been criticized. Due to cost, complexity, and battery life considerations, the current HoloLens screen viewing area for displaying augmented reality content is very small. The new meta 2 provides a larger viewing area, but it must be connected to a PC to use it. Magic Leap, the darling of the augmented reality industry, received $1.4 billion in investment. The company hints that its display technology will be different from current types of displays.
Of course, these powerful hardware cannot be used without software. Good augmented reality software needs to be able to collect and process multiple different input data simultaneously and adjust the experience based on new information. Such software requires a high-speed network connection to backend services. This may mean that future augmented reality devices will become the world’s most powerful IoT terminals.
It has just started, but the prospects are promising
These situations excite me. This is because, despite the huge challenges of augmented reality, it also means that the tech industry sees abundant opportunities in the areas it does best. Developing the next generation of smartphones, tablets, and laptops is necessary, but it won't ignite our imaginations. What’s really exciting about augmented reality is that once you experience it, you’ll realize that this technology is really important.
As a result, we will see more and more investment in augmented reality technology from big and well-known companies. In addition, more small companies will seek breakthroughs in one or two areas, hoping to become a more critical part of the industry.
Currently, augmented reality is still in its infancy, and it’s impossible to guess which company will be successful. But I would like to make the following prediction: This will be a world-changing field, and as this technology develops, the landscape of the technology industry will also change.
Note: The author of this article, Tom Mianelli, has been covering the technology industry since 1995. He manages the IDC Devices and Displays Group, which covers multiple industries including PCs, tablets, smartphones, displays and wearable devices.
ANNA