New YorkAnd the November 8, 2022 /PRNewswire/ – There is an exciting and fast-moving Augmented Reality/Virtual Reality (AR/VR) market on the horizon that will bring new types of content and usage scenarios. To support this, networking and communication technologies are growing in both pure bandwidth and XR-friendly capabilities such as latency, network transmission, and segmentation. According to global technology intelligence company ABI Research30% of total augmented reality shipments, and 23% of virtual reality shipments will include cellular connectivity by 2027.
“Much has been said about 5G as a pillar of AR and VR success, and while that is true in a vacuum, other variables make the reality more complicated,” Eric Abruzzi, director of research at ABI Research. “5G plays a major role in augmented and virtual reality, but time depends on the use case. Today, most use cases do not require the latency and bandwidth improvements that come with 5G. However, the payment connection needs to match more users in more places, and consuming more types of content over time.”
While AR and VR have been around for a while, neither side has reached the mass market. This is partly due to a lack of content, interest, and device selection. Both change over the next few years: Apple, Google, and Meta are investing heavily in both sides of the immersive market — and have been for some time — with this investment hitting the market significantly in new HMDs. Qualcomm is an equal investor and market leader in XR hardware chips – its dominance in the smartphone space for SoCs, including network components, overlaps significantly with the XR space thanks to similar components inside the XR headphones as well as connecting HMDs to smartphones.
Cellular networks are playing an increasingly important role as this market reaches critical mass thanks to this momentum. While most XR connections are handled via Wi-Fi today, this misses the flexibility of mobile use and connectivity outside of expected network environments. Computing Edge and Stream is the next step for calculating XR, but with the expectation that networks can handle the coverage, response time, and reliability required.
On the network side, few carriers are already working towards specific support for augmented and virtual reality for content and devices. SK Telecom goes so far as to build a global metaverse, expanding beyond the coverage of its own telecom network. Nokia and Ericsson have been supporters of the XR for years and are now an important part of the 5G-Advanced release coming in 2024.
“The technologies that will drive connectivity and challenge existing networks are not mature or pervasive enough to make a noticeable impact today. However, these technologies will mature along with the rest of the connectivity pool, touching augmented reality and virtual reality and becoming more capable and pervasive. The role of 5G and broader connectivity becomes less Basically augmented/virtual reality and more synergistic – one benefits from the other, and they go hand in hand, but not just because of the other,” concludes Abruzis.
These findings are from ABI Research’s AR/VR Connectivity Application Analysis Report. This report is part of the company’s Augmented and Virtual Reality research service, which includes Research, Data, and ABI Insights. Based on extensive preliminary interviews, Application Analysis reports provide an in-depth analysis of key market trends and factors for a specific application, which can be focused on an individual market or geographically.
About ABI Research
ABI Research is a global technology intelligence company that provides actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping today’s industries, economies, and workforces.
ABI Research is an international technology intelligence company that provides actionable market research and strategic guidance to global technology leaders, innovators and policy makers. We pay close attention to all the innovations and technologies that are disrupting industries, the global economy and the job market.
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SOURCE ABI Research