The future where the virtual world and the real world merge is approaching

We will explain the differences between AR and VR, their current status, and in what areas they will be used.

As technology evolves, humanity is beginning to reach beyond the real world.

The fields known as AR and VR are becoming more and more prominent every year as tools that visually invite people into another world. They are used in a wide range of areas, including medicine, manufacturing, logistics, and retail, and the list is endless. Mixed reality (MR) and other technologies have also emerged as a fusion of these two.

Where do these fields stand now, and how will they develop in the future and become integrated into people's lives?

Differences between AR and VR

Although some people have heard the terms AR and VR, there are probably still some who are unsure about the differences and how they are used. Before we discuss their future potential, let's first briefly explain the differences between them.

First of all, AR is an abbreviation for "Augmented Reality," which means "extended reality." On the other hand, VR refers to "virtual reality." Both terms use similar words, and at present, the differences are unclear, but the main difference is whether they focus on the "real world" or the "virtual space."

As the term "augmented reality" suggests, AR is a technology that projects digital information into the real world using a device. For example, in the popular game "Pokémon GO," you can experience Pokémon as if they were in the real world through your smartphone.

In this way, AR is a technology that projects virtual items and other things into the real world, bringing visual augmentation.

Although VR is virtual reality, it is a technology that allows you to experience various worldviews in a virtual space. In recent years, the quality of virtual spaces has been improving, and VR-related products, especially games, have been appearing. Many people associate virtual spaces with the metaverse, and it's safe to say that VR is a tool to create a more immersive experience in the metaverse world.

Thus, while AR and VR are similar, they actually have clear differences. From here on, we will introduce some specific topics to look out for in each.

Smart glasses attract attention as AR becomes more widespread

Smart glasses are attracting attention as a tool that can help popularize AR. Smart glasses are sometimes confused with AR glasses, but strictly speaking, they are different.

AR glasses are glasses-type devices like smart glasses, but they can recognize the real world and display digital items in real time.

On the other hand, smart glasses themselves do not have the ability to recognize the real world, and are merely like "next-generation smartphones" that are more multifunctional than glasses or sunglasses.

Therefore, they do not basically have the function to display information in real time, and when viewed as a single technology called AR, AR glasses can be said to be a tool that expands the real world more.

So why are smart glasses leading to the spread of AR? It is because they are becoming more multifunctional and there are differences in cost.

Of course, there are price differences between smart glasses and AR glasses depending on the product, but AR glasses tend to be more expensive to purchase than smart glasses because they have a camera to project AR. Therefore, although it may depend on the purpose, the hurdle to suddenly purchasing AR glasses is very high.

On the other hand, smart glasses are more affordable than AR glasses, and in recent years, more and more smart glasses are equipped with AR functions. As mentioned above, smart glasses also have the functions of a next-generation smartphone, so they can be used for more than just AR experiences.

Specifically, it is possible to watch movies and other video works and play games. Also, since they are worn like glasses, smart glasses equipped with a camera can take photos and videos that match your line of sight.

In addition, more multi-functional devices can make phone calls, and it can be said that they are becoming equipped with functions that are comparable to the smartphones that many people currently use.

In anything, it is important to first lower the barrier to entry and create an environment that makes it easy to experience. In that regard, the spread of smart glasses, which have various functions and can be used for purposes other than AR experiences, could be a major catalyst for the spread and growth of AR in the future.

In addition, there has been an increasing movement in recent years to use AR in business. The main purpose is to improve work efficiency, and examples of this include using smart glasses to perform simulations and share data while working.

For example, in the construction industry, AR is being used to improve work efficiency by simulating designs and conducting early reviews, as well as to explain the image of a building to customers.

In addition, in the logistics industry, smart glasses are being used to improve the efficiency of picking work, and in the furniture industry, AR is being used in a variety of situations, such as services being offered that allow customers to choose furniture to suit their room.

3 Smart Glasses to Choose From

1. XREAL Air 2 Pro

The Air 2 Pro is made by XREAL, a Chinese company that boasts the top market share in smart glasses. It was released in November 2023 and has been highly praised for its immersive feel and screen display.

2.Rokid Max

Like XREAL, these smart glasses are from China. They can correct vision and can also be used to experience AR content from Rokid and third parties through a dedicated app.

3.MOVERIO BT-40

Epson's smart glasses have a large screen equivalent to 120 inches appearing in front of your eyes. The Android OS-equipped "MOVERIO BT-40S" is also available.

The popularization of VR is progressing

As technology advances, the use of VR is also increasing. In addition, the quality of images and immersion, which have been issues for a long time, and the performance of devices and UX are also improving, and signs are beginning to appear that VR will become more and more popular in the future.

VR generated so much buzz in 2016 that it was called the "first year of VR," but its history is surprisingly old. It started with a headset called "The Sword of Damocles" developed in 1968, and then a global boom occurred in the 1990s.

During the boom, Japanese companies such as Sega Enterprises (now Sega Holdings) and Matsushita Electric Works (now Panasonic) also entered the VR business, helping to raise awareness and popularize it as the next generation of video experience.

Currently, Meta in the United States is focusing on developing VR headsets in addition to developing the Metaverse, and the "Meta Quest 3" was released in October last year. In April of this year, the company announced that it would provide the OS that is also installed in the Meta Quest series to third parties as "Meta Horizon OS". This may accelerate the development of VR headsets even further in the future.

The quality is improving and related products are increasing year by year in the VR field, but the use of VR headsets alone is currently limited, which is a cause for concern. Currently, VR headsets are often used by connecting them to computers or game consoles.

In addition, VR headsets are very expensive, and the current situation where they are difficult to reach in terms of cost is also an obstacle to their widespread use. Nevertheless, with the emergence of VR goggles that allow you to easily experience VR by connecting them to a smartphone, the barrier to entry for widespread use is decreasing. In recent years, the number of types has been rapidly increasing, and many of them cost only a few thousand yen, so they have the potential to become a major weapon in popularizing VR.

However, naturally the image quality and immersion are inferior to VR headsets, so the opportunities for use will be limited to simple VR experiences. Still, since you can experience VR at an affordable price, it can be said that it is more familiar and easy to pick up for first-time users.

When you think of VR, you may have an image of putting on goggles and playing games, but it is also expected to be used in business. It is particularly likely to be used in the entertainment, real estate, and manufacturing industries, and the number of actual cases is increasing. In the future, it is likely to be used more in education and corporate training.

3 VR goggles and VR headsets

1. Meta Quest 3

The latest VR goggles from Meta, a US company. The resolution and graphics performance have been upgraded, and mixed reality (MR) functionality is now available.

2. Apple Vision Pro

A VR headset developed by Apple that is equipped with a 3D camera, allowing for a more three-dimensional visual experience.

3. PlayStation VR2

Sony's VR headset provides an immersive and high-quality video experience. It can display higher resolution images than the first generation.

Leveraging Japan's strengths to become a growth industry

So far, we have discussed the current situation of AR and VR, comparisons, and industries in which they are used. Although they may not be familiar in Japan, demand is beginning to grow rapidly.

According to a survey by IDC Japan, the number of AR/VR headsets shipped in Japan in 2023 will increase 67% year-on-year to 566,000 units. In detail, AR headsets will increase 32.3% year-on-year to 48,000 units, and VR headsets will increase 71.6% year-on-year to 517,000 units.

This is thought to be mainly driven by individual use due to the increase in game titles, but there is also the possibility that companies will increase their purchases and adoption in the future in terms of improving business efficiency.

▶︎Domestic AR/VR headset shipments: Quoted from IDC Japan

In addition, Japan has a lot of content that can be used as an international weapon, such as IP and games. Therefore, it is possible that such IP content will lead the AR/VR field in Japan for the time being.

Furthermore, the development of AR/VR will lead to the spread of MR. MR is "Mixed Reality", which means "mixed reality" in Japanese, and refers to a technology that combines AR and VR technologies. This allows virtual space to be synthesized into the space of the real world, and objects can be authenticated and designs can be confirmed in three dimensions through projected holograms.

The combination of these technologies may lead to improved business efficiency in various fields in the future, as well as major changes in people's lives. Naturally, as it is an emerging field, there are many challenges, but in the future, we may see a future where the virtual world and the real world blend together, just like in manga.

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