Extended Reality (XR)

 XR is an emerging umbrella term for all the immersive technologies. The ones we already have today—augmented reality (AR), virtual reality (VR), and mixed reality (MR) plus those that are still to be created. All immersive technologies extend the reality we experience by either blending the virtual and “real” worlds or by creating a fully immersive experience. Recent research revealed that more than 60% of respondents believed XR will be mainstream in the next five years. To get a better picture of XR, let’s review each of the existing technologies that exist today.

Augmented reality (AR)

In augmented reality, virtual information and objects are overlaid on the real world. This experience enhances the real world with digital details such as images, text, and animation. You can access the experience through AR glasses or via screens, tablets, and smartphones. This means users are not isolated from the real world and can still interact and see what’s going on in front of them. The most well-known examples of AR are the Pokémon GO game that overlays digital creatures onto the real world or Snapchat filters that put digital objects such as hats or glasses onto your head.

Virtual reality (VR)

In contrast to augmented reality, in a virtual reality experience, users are fully immersed in a simulated digital environment. Individuals must put on a VR headset or head-mounted display to get a 360 -degree view of an artificial world that fools their brain into believing they are, e.g., walking on the moon, swimming under the ocean or stepped into whatever new world the VR developers created. The gaming and entertainment industry were early adopters of this technology; however, companies in several industries such as healthcare, construction, engineering, the military, and more are finding VR to be very useful.

Mixed reality (MR)

In mixed reality, digital and real-world objects co-exist and can interact with one another in real-time. This is the latest immersive technology and is sometimes referred to as hybrid reality. It requires an MR headset and a lot more processing power than VR or AR. Microsoft's HoloLens is a great example that, e.g., allows you to place digital objects into the room you are standing in and give you the ability to spin it around or interact with the digital object in any way possible. Companies are exploring ways they can put mixed reality to work to solve problems, support initiatives, and make their businesses better.

Extended Reality Applications for Business

• Retail: XR gives customers the ability to try before they buy. Watch manufacturer Rolex has an AR app that allows you to try on watches on your actual wrist, and furniture company IKEA gives customers the ability to place furniture items into their home via their smartphone.

• Training: Especially in life-and-death circumstances, XR can provide training tools that are hyper-realistic that will help soldiers, healthcare professionals, pilots/astronauts, chemists, and more figure out solutions to problems or learn how to respond to dangerous circumstances without putting their lives or anyone else's at risk.

• Remote work: Workers can connect to the home office or with professionals located around the world in a way that makes both sides feel like they are in the same room.

• Marketing: The possibilities to engage with prospective customers and consumers through XR will have marketing professionals pondering all the potential of using XR to their company’s advantage.

• Real estate: Finding buyers or tenants might be easier if individuals can “walk through” spaces to decide if they want it even when they are in some other location.

• Entertainment: As an early adopter, the entertainment industry will continue to find new ways of utilizing immersive technologies.

Major Challenges Faced by Companies Developing Extended Reality (XR)

1. Cost: Cost is the most prominent challenge, that is faced by companies developing XR. The XR devices are very costly. Since many technologies are working together & a lot of hardware goes into the making of these devices, the cost is very high. If the cost is higher, common masses may not be able to use this product and companies developing would not able to increase their sales, this would not motivate the investors to invest their money into XR.

2. Hardware: Developing the hardware of XR devices is also a challenge for companies in this field. Since a lot of technologies, software & components are being used, making hardware is a difficult task. The hardware should just not be robust but also be compact and able to process a lot of information very quickly and swiftly, and on top of that, the hardware should be cheaper.

3. Privacy: Privacy is a challenge will be faced both by the users as well as the companies. Since XR devices are required to create an environment based on the user requirement, a lot of private details might be needed to create a user-rich environment. Storage of such data can be costly on the company’s side, & privacy of the information can be a worry on the user’s side.