12 ways virtual reality will change the world for the better
TRANSCRIPT
12 WAYS
PART 1
VIRTUAL REALITY WILL CHANGE THE WORLD
FOR THE BETTER
1| marumatchbox.com
PEOPLE EXPECT VIRTUAL REALITY TO MAKE A POSITIVE DIFFERENCE IN MANY SPHERES OF LIFE, NOT JUST IN THE GAMING SPACE WHERE IT IS LARGELY CURRENTLY CONFINED.
In this first installment of a series on virtual reality (VR) and augmented reality, we’ll investigate who is currently using virtual reality and how they are using it. But more importantly we’ll look at current and future potential users and report on a dozen ways they expect virtual reality to make a difference in their lives.
RETAILERS
EDUCATORS
HEALTHCARE ORGANIZATIONS
EQUIPMENT MANUFACTURERS
MEDIA
AND YES
VIDEO GAME MAKERS...
WE SEE IMPORTANT OPPORTUNITIES FOR:
| marumatchbox.com
The years 2015 and 2016 were breathlessly touted as the “the year of virtual reality,” but the truth is we’re still at the early adopter stage. Overall, by the end of 2016, just 15% of Americans had used some form of virtual reality. The early users tend to be male (20% used) and younger.
But to write off virtual reality as the exclusive domain of young men is to greatly underestimate the widespread nature of early adoption. In fact, young men represent a minority of people that have used virtual reality, according to our research. Even one in ten baby boomers have already used some form of virtual reality.
THE FUTURE IS (STILL) COMING
2
EVER USED VIRTUAL REALITY
Millennials (18-34)
(35-54)
(55+)
30%
20%
10%
22%
17%
8%
| marumatchbox.com
USAGE HAS, TO DATE, BEEN LIMITED MOSTLY TO GAMING (71% OF USERS). But, there has been budding use for virtual visits or tourism, such as previewing destinations before planning a trip (33%). A few have even used virtual reality for shopping (15%) or training (15%). But consumers expect that to change—dramatically.
So do market watchers. In 2016, $1.8 billion was invested in virtual
reality and augmented reality, triple what was invested in the prior year.
3
“We think virtual and augmented reality will be as transformative as when we used to see people walking around with the streets of New York City holding a big brick to their ear and talking to someone we couldn’t see at the other end. We think this technology has the potential to transform how we interact with almost every industry today, and we think it will be equally transformative both from a consumer and an enterprise perspective”
- Heather Bellini,
Goldman Sachs analyst
| marumatchbox.com
Goldman Sachs and others have varied estimates of the size of the market, but most expect usage to double year over year, at least for the immediate future.
BARCLAYS BANK PROJECTS HUGE GROWTH IN THE NUMBER OF VIRTUAL REALITY DEVICES BY 2020.
So while we are in the early adopter stage right now, mainstream use appears to be right around the corner, and people have positive expectations.
4
50
40
30
20
10
0
2016
6.6
12.2
20.5
30.5
42
2017 2018 2019 2020
US Virtual Reality Devices, in millions (Barclays Bank)
| marumatchbox.com
VIRTUAL WILL BE A POSITIVE NEW REALITY—FOR 360 DEGREES OF LIFE
People can envision virtual reality having a much more panoramic role in their lives. We asked people about a dozen potential uses for virtual reality, including training, remodeling their homes, tourism, exercise, and healthcare. People were not only widely interested in using virtual reality in these contents, they even expected these uses to make a “positive difference in the world.”
5
| marumatchbox.com
% EXPECT VR TO MAKE POSITIVE DIFFERENCE IN THE WORLD
80%
70%
60%
50%
40%
30%
20%
10%
0%
12 WAYS
VIRTUAL REALITY WILL CHANGE THE WORLD FOR THE BETTER
TR
AIN
ING
AN
D/O
R D
EV
SK
ILL
S
68%
HO
ME
RE
MO
DE
LIN
G
68%
DE
SIG
N/D
EC
OR
AT
E A
T H
OM
E
66%
TR
AV
EL
CO
NS
IDE
RA
TIO
N/S
EL
EC
TIO
N
64%
AID
ST
RE
SS
RE
LE
IF
58%
EN
HA
NC
E E
XE
RC
ISE
AN
D A
CT
IVIT
Y
57%
GA
MIN
G/I
NT
ER
AC
TIV
E E
XP
ER
IEN
CE
56%
RE
MO
TE
DO
CT
OR
VIS
ITS
55%
TR
EA
T P
HO
BIA
S
53%
AP
PA
RE
L S
EL
EC
TIO
N/S
TY
LIN
G
52%
CO
OK
ING
/EN
TE
RT
AIN
ING
52%
CA
R B
UY
ING
43%
6
| marumatchbox.com
THE NUMBERS OF PEOPLE WHO THOUGHT VIRTUAL REALITY WOULD MAKE A POSITIVE DIFFERENCE ARE ALMOST EXACTLY MIRRORED BY THE NUMBER OF PEOPLE WHO SAID “THIS IS SOMETHING I WOULD PERSONALLY USE.”
The only real exceptions were “remote doctor visits” and “treat phobias”—where the usage numbers were roughly half of the numbers who thought it would be a positive thing. Retail is a likely breakthrough space for virtual reality. We see that six in ten Americans (59%) are personally interested in using virtual reality for home remodeling and design. Stores like Ikea and Lowes, among others, are already experimenting with virtual reality, allowing people to lay out rooms and tour them virtually. Half (47%) of all Americans are also interested in using virtual reality to shop for clothes.
7
Virtual reality is developing quickly and in five to ten years it will be an integrated part of people’s lives. We see that virtual reality will play a major role in the future of our customers.
- Ikea’s
Jesper Brodin
| marumatchbox.com
GIVEN THE POTENTIAL FOR VIRTUAL REALITY TO CHANGE HOW FLOOR SPACE IS USED AND THE RANGE OF PRODUCTS THAT CAN BE MADE AVAILABLE, THE RETAIL SPACE APPEARS RIPE FOR A VIRTUAL REVOLUTION.
Simulators have been used for things like flight training for years, giving people a model for the potential with virtual reality. Hence we see such interest in virtual reality for training and skills development. Six in ten (58%) can see themselves using virtual reality for training. With virtual reality it becomes possible to make training more scalable and less expensive, which will be popular with companies and educators alike, making it a likely candidate for early expansion too.
One of the barriers to travel is you can’t really know what a destination is like unless you’ve been there. But 61% of Americans can see themselves using virtual reality to “try before they buy” by touring exotic locations. It’s a kind of promotion that lends itself well to epic locations, so it’s no surprise that places like British Columbia started experimenting with VR back in 2014 with their campaign The Wild Within.
8
| marumatchbox.com9
POSITIVE EXPECTATIONS OPEN THE DOOR FOR MASSIVE CHANGE
With positive momentum, massive investment and widespread expectation of using virtual reality in a variety of ways, it seems we are poised for massive adoption of virtual reality. While virtual reality came to attention through gaming applications, it would appear gaming is just one of many viable uses for virtual reality. One might even say the opportunities are 360.
TO LEARN MORE, CONTACT: