Application and Device Ecosystems

One thing is clear: It is unlikely that the first AR/VR killer apps will emerge from a single player. Not even the largest or best-funded companies can wrap their arms around the sprawling ecosystem of innovation. Collaboration, partnering and developing a strong supply chain will be as critical to success as cutting-edge design.

The majority of those taking a wait-and-see posture toward the AR/ VR market believe that consumer applications will pave the way for the technology. Among decision-makers who have committed to a plan or a pilot program, 66 percent predict that the first killer app will be produced for business use, and of these 71 percent believe that will take the form of a medical application. Manufacturing (47 percent) and military applications (46 percent) are also expected to be major market segments for AR/VR.

In addition to applications and use cases, survey respondents were asked to predict which types of devices would have the widest use. Smartphones (69 percent), gaming consoles (62 percent) and smart-glasses (54 percent) led the way. Respondents also predicted a significant role for headsets (52 percent) and tablets (32 percent) but seemed skeptical that immersion chairs (10 percent) would find widespread adoption.

Technology, Content and Cost

Ultimately, AR/VR requires technology to produce the content and devices to provide the experience. To identify innovation gaps, Jabil asked respondents committed to an AR/VR plan or pilot about the progress of content creation. Nearly three-fourths (74 percent) say that the technology that’s needed to create the content isn’t mature enough. There’s also the matter of cost. Nearly half (45 percent) say that it’s still too expensive to create content.

There are also some specific technology challenges that need to be overcome before AR/VR will enter the mainstream, though there was little consensus on what form this would take. Just over half of respondents agreed the price of manufacturing or technology limitations with AR/VR-specific devices are the greatest concerns. Survey respondents also cited the need to overcome consumer technology limitations with smartphones, watches, and tablets. Concerns about mobile connectivity and how AR/VR form factors will integrate into daily life also received attention.

Jabil’s new white paper, “The State of Augmented and Virtual Reality,” contains numerous additional insights for technology and business stakeholders in product companies.