AR/VR Will Account for a Boost in GDP of $1.5 Trillion
This is a heady claim to make, and before going further it is important to reflect upon the source of such a bold statement. So let’s look at who is making this assertion, why they make such a claim and what this means for the industry moving forward?
PricewaterhouseCoopers (PwC), a UK-based professional services network of firms, recently published a report asserting a strong link between economic growth, and AR/VR. It is important to note that PwC is no slouch. This firm, founded in 1998, posted $43B in revenues in 2019, while employing 276,000
workers. To make such a statement, you need to have some credibility in the industry, and PwC has just that. So let’s examine the claim.
We estimate virtual reality (VR) and augmented reality (AR) can bring net economic benefits of $1.5 trillion by 2030.
To get a sense of what $1.5T USD ($1,500,000,000,000) means is to understand that the national GDP (the total value of goods and services produced) of Australia is estimated to be about $1.3T in 2020. This is a significant number. To build up to this, there needs to be a proper methodology. Here is what they
Identified VR/AR use cases
Quantified productivity uplift
Ran those findings through a dynamic economic model
Very simply, this meant that PwC talked with AR/VR experts in the field to “form a comprehensive list of potential use cases for VR and AR technologies that these specialists believe could realistically be implemented by 2030.” These use cases speak to the benefits to businesses wrought from the inclusion
of immersive technologies based on improved user experiences gained from technological advances.
The benefits are plentiful, so we will just touch on a few of the more obvious ones. Realistic training scenarios allow for a safe and effective means of providing experiential opportunities. This can range from oil & gas companies and other difficult work environments, to extremely high-risk military operations. In such cases, removing someone from potential danger is reason enough to seek alternatives, but on a practical side, not requiring plants and machinery to sit idle in order to train new recruits is simply an economic upside to immersive training.
AR and VR can be used to reduce costs, boost efficiency, accelerate the work of design teams, increase product engagement and create new revenue streams. It is no longer a question of if this technology will impact global industries, but when and by how much. The when is now, and the how much has been mapped out within PwC’s report. It’s a report well worth exploring and Veative knows that the workers of tomorrow need time and experience with the tools coming out today, so we will continue to support the advancement of AR/VR technology into schools, factories and enterprises around the world.