Emerging Technologies / Extended reality (AR-VR-MR)

XR, or Extended Reality, is an umbrella term that includes Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). It represents the spectrum of immersive technologies that blend the physical and digital worlds, unlike AR or VR alone which focus on either overlaying digital content on the real world or fully immersing users in a virtual environment.

By 2025, XR technologies, especially AR, are rapidly moving into mainstream adoption with projections indicating over 2 billion active mobile AR users worldwide. Approximately 75% of the global population is expected to be active AR users, with widespread applications across sectors such as retail, healthcare, and education, signaling that XR is no longer niche but becoming a part of everyday life.

A 180-degree field-of-view (FoV) in VR and MR headsets means that the device can display visuals covering a wide horizontal angle of 180 degrees, which is roughly the span of human peripheral vision. This allows for a more immersive and natural viewing experience compared to narrower FoVs found in many current headsets, which typically range from about 90 to 130 degrees.

Although the new Meta VR and MR headsets offer a groundbreaking 180-degree field-of-view and compact design, their market release remains uncertain due to potential trade-offs. These trade-offs could include challenges in balancing performance, such as display resolution and refresh rates, with the compact form factor, as well as possible design compromises that affect user comfort or cost.

The Meta Ray-Ban smart glasses feature a 12MP ultra-wide camera capable of 1080p video recording, open-ear speakers, and a Qualcomm Snapdragon AR1 Gen1 chipset for enhanced photo and video processing. They include Meta AI, an integrated conversational assistant activated by voice commands, and a redesigned charging case that provides up to 36 hours of use. Unlike some AR glasses, they do not have a heads-up display but focus on immersive digital content capture and sharing.

The Meta AI assistant allows users to perform tasks hands-free by voice commands such as recording videos, streaming content, and accessing social media interactions. It supports creative suggestions and information retrieval, making the glasses more interactive and useful for on-the-go activities. However, most advanced AI features are currently available only in the US, with limited functionality elsewhere. The voice recognition is supported by a five-microphone array for accurate command detection.

Meta and Anduril are collaborating to develop AI-driven XR tools for the U.S. military, integrating with Anduril's Lattice platform to enhance battlefield intelligence and decision-making. They are also competing for the Army's next-gen mixed-reality program.

Meta is eyeing an expansion into the medical field by focusing on regulatory roles for innovative medical devices, including augmented reality glasses. This indicates a strategic move towards applying XR technology in healthcare settings.

The 'critical tipping point' refers to a significant shift in the AR/VR headset market where traditional pure VR and AR devices are expected to decline, while mixed reality (MR) and extended reality (ER) headsets gain strong traction. This transition is driven by new entrants like Apple and the adoption of platforms such as Google's Android XR, which are expanding the market and diversifying the types of immersive experiences available.

The growth is propelled by advancements in mixed reality (MR) and extended reality (ER) technologies, increased demand for versatile immersive experiences, and the introduction of new platforms like Google's Android XR. Despite a forecasted shipment decline in 2025 due to delayed product launches, the market is expected to rebound strongly in 2026 and grow at a compound annual growth rate (CAGR) of approximately 38.6% from 2025 to 2029.

Extended reality (XR) is an umbrella term that encompasses virtual reality (VR), augmented reality (AR), and mixed reality (MR). XR integrates these technologies to create immersive digital experiences that blend or replace the physical world. VR fully immerses users in a virtual environment, AR overlays digital content onto the real world, and MR allows interaction between real and virtual objects. XR’s broader scope enables its application across various industries beyond gaming, such as healthcare, automotive design, and real estate.

In 2024, XR technology is revolutionizing industries by enhancing operations and customer experiences. In healthcare, XR improves diagnostic accuracy with 3D medical imaging and enables immersive surgical training. In automotive and design sectors, XR allows professionals to visualize and interact with 3D models at full scale, improving creativity and reducing costly revisions. Real estate uses XR for virtual property tours and design visualization, speeding up decision-making. The tourism and hospitality industries employ XR to offer virtual destination previews, increasing customer engagement. Overall, XR fosters innovation, efficiency, and remote collaboration across multiple sectors.

Immersive technologies include Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). VR creates a fully digital environment that replaces the real world, AR overlays digital content onto the real world, and MR blends real and virtual worlds allowing interaction with both simultaneously. These technologies are used to enhance collaboration, training, and customer engagement across industries.

Immersive technologies are revolutionizing these industries by improving operational efficiency, enhancing training programs, and enabling better customer engagement. For example, in healthcare, VR and AR assist in medical training and patient treatment; in manufacturing, they improve design visualization and troubleshooting; and in retail, they create interactive shopping experiences. These tools are reshaping business operations and driving significant growth.

Passthrough is a feature that delivers a real-time, perceptually comfortable 3D visualization of the physical world inside Meta Quest headsets. It allows developers to blend the physical environment with virtual content, enabling immersive mixed reality experiences where users can see and interact with both real and virtual elements simultaneously.

Unity supports Meta Quest 3 mixed reality development by providing an All-in-One SDK that bundles several Meta SDKs, including advanced rendering and social features. Developers can use Unity’s AR Foundation and the Meta Build Target to build and deploy applications efficiently. Additionally, tools like the Project Setup Tool in Unity help configure projects quickly for Meta Quest devices, streamlining the development process.

Cross-domain data mapping in augmented reality involves three main domains: the physical domain, which includes real-world parameters like geographical position, environment scans, and object locations; the virtual domain, which contains data correlated with real-world locations such as metadata or environmental data; and the human domain, which involves human context such as gestures or language that provide meaning to physical and virtual data. AI integrates these domains to create more intuitive AR experiences.

AI enhances augmented reality by processing and correlating data from the physical, virtual, and human domains to understand natural human interactions. For example, AI can interpret a physical gesture like pointing combined with a verbal query to form a complete understanding of the user's intent, enabling AR systems to generate appropriate responses and more seamless, context-aware experiences.

Mixed reality (MR) blends virtual content with the real world, allowing virtual objects to appear solid and photorealistic within a real environment. Unlike optical see-through augmented reality, which overlays holographic images that can appear hazy and lack opacity, MR with video pass-through technology digitizes the real world in real time and seamlessly integrates virtual elements that are indistinguishable from reality. This enables more realistic testing and design in automotive development, such as simulating new car features inside a real vehicle on a test track.

Mixed reality technology enhances car design and testing by reducing reliance on physical prototypes, enabling faster design iterations, and allowing engineers to test virtual features such as heads-up displays, materials, and infotainment interfaces inside real cars on real roads. It also provides rich data on driver behavior and safety mechanisms by integrating virtual objects that interact realistically with both drivers and vehicle sensors, thus improving design efficiency and user experience.