Market research firm IDTechEx says that 2023 will be a much better year than this one for extended reality (XR), an umbrella term for augmented, virtual, and mixed reality technology. In a recent news release, the company outlined the challenges the technology has faced and put forth three predictions for XR next year.
XR Has a PR Problem
Economic upheaval hit the tech industry hard this year. That includes Meta, formerly Facebook, which hasn’t made as much progress on its XR-powered metaverse technologies as investors hoped, despite spending $15 billion on the endeavor over the course of the year.
The metaverse, which uses XR to connect people to immersive, interactive, real-time virtual worlds, has been described as a 3D version of the Internet. The hype turning to disappointment is likely what’s behind Apple CEO Tim Cook’s aversion to the term metaverse, though that hasn’t stopped the iPhone maker from—if the rumors are true—planning to release its own VR headset early next year.
Due to technical and social challenges, the metaverse will likely take many years to materialize—but XR devices still have many applications today. In 2022, Meta’s Quest 2 became the best-selling VR headset in history, surpassing 10 million units sold, and although its successor the Quest Pro has earned mixed reviews so far, it’s shaping up to be a hit with professionals. In addition to Apple’s (rumored) upcoming headset, Cook has hinted that the tech giant is also planning to develop a pair of AR smart glasses.
2023 Will See Broader XR Adoption
IDTechEx expects that increased technical sophistication and understanding of consumers will make 2023 a year when AR devices like smart glasses will find marketplace success. The key will also likely be designing headsets and AR devices that have applications beyond the mass-market—namely, the workplace. But as Microsoft just discovered with its HoloLens, comfort is key for industries like the military, where heavy headsets don’t make the cut for long-duration use. Just as in the military, in the white-collar world, not only do headsets need to be designed for extended wear, but they also need to allow for seamless multitasking.
IDTechEx argues that it’s hard to design a device that can replace the smartphone’s market success and ubiquity. Instead of making headsets that take on too much functionality, a better approach is developing simpler devices that target a single high-value application.
There are still many technical challenges for the industry to overcome, but there’s also hope for a better year. Here’s what IDTechEx predicts will happen in 2023:
- Enterprises will be some of XR’s biggest customers as companies like Accenture embrace professional headsets to harness virtual worlds for onboarding staff, training, product simulations, collaboration and more. Device makers like Meta and Lenovo are already responding to the demand for compact, easy-to-wear headsets.
- Metaverse developers will become more apt to collaborate to help the technology move forward. There’s already been movement toward this as Meta and Microsoft worked together on the Quest Pro’s productivity features. Additionally, the Metaverse Standards Forum was minted this year and could gain more members in 2023.
- Despite metaverse disappointments, IDTechEx’s data suggests that market growth is ahead for XR. With consumers still battling inflation, it will be a slow rather than a steep ascent—but expect to see VR headsets become increasingly commonplace in homes, and lightweight, attractive AR glasses to eventually compete with smartphones.