The Future of the Metaverse:
AR & VR as Catalysts for Breakthrough

#metaverse #ar #vr

We are on the brink of a technological revolution that has the potential to fundamentally change our digital interaction and perception. Recent developments in the world of Virtual Reality (VR) and Augmented Reality (AR), notably with the introduction of the Apple Vision Pro and the Meta Quest 3, mark a turning point comparable in significance to the introduction of the iPhone.

Disruptive Technology

When the iPhone was released in 2007, it revolutionized the world of technology by not only ushering in the era of connectivity and mobility but also consolidating numerous devices into one. From the video camera to the alarm clock or navigation device, stopwatch, or MP3 player – smartphones suddenly combined various features, rendering a wide range of established devices redundant overnight.

Similarly, today’s Vision Pro and Quest 3 are disrupting the landscape. These devices offer an integration of VR and AR that goes far beyond mere gimmicks and has the potential to redefine how we work, learn, communicate, and entertain ourselves.

The Apple Vision Pro stands out for its ability to enable seamless integration of iPhone and iPad apps while providing an immersive experience through specially developed applications such as FaceTime, Safari, and a variety of third-party apps and games. The glasses promise to offer users unprecedented immersion and interactivity, opening wide the gates to the metaverse. Hardware such as a television will no longer be necessary in the future, as it can simply be projected via AR in any desired size to any desired location.

On the other hand, the Meta Quest 3 builds upon the success of its predecessors. Advances in tracking technology, improved graphics, and the integration of social experiences are just some of the features that make this headset a potential milestone for the proliferation of VR. Unlike Apple, Meta focuses on its VR metaverse “Horizon Worlds,” where users navigate as avatars in a completely virtual world. Meta, with its vision of a connected metaverse where people can play, work, and create together, sees the Quest 3 as a crucial building block to realizing this vision.

Promising Market Development

Looking at the revenue projections of the global AR & VR market, it becomes clear why the world’s largest companies are engaging with it: with an annual growth rate of around 16%, global revenue generated by AR & VR is expected to significantly exceed the $50 billion mark in the next five years. Hardware and software solutions are the main drivers of this growth. Revenue is evenly distributed between B2B and B2C, but geographical differences must be considered: the European and US markets are particularly attractive, as they realize the highest per capita revenues. Asian countries, on the other hand, score points due to their large population and technical affinity. The steady revenue growth is accompanied by a global user base that could reach 2.5 billion by 2027 – meaning one in three people could be using AR or VR! If one interprets AR & VR market penetration as an indicator of metaverse development, then the coming years will see the metaverse spreading into the mainstream.

Impact on the Metaverse

AR & VR glasses are more than just the next generation of consumer electronics. They herald a comprehensive cultural and social change. The metaverse, which has long been an abstract concept, is taking shape through these devices. If the Apple Vision Pro and the Meta Quest 3 deliver on their promises – in terms of user-friendliness, accessibility, and immersive experiences – then we are on the verge of a revolution that could bring the metaverse out of the shadows of niche existence into the spotlight of global attention.

Accordingly, these introductions also signal a crucial moment for financial companies and investors. The success of the metaverse largely depends on the development and acceptance of these VR/AR glasses. It is therefore crucial for financial companies to actively engage with the metaverse today. While early players like JP Morgan or Deutsche Bank are already active, the majority of financial institutions seem to be ignoring current developments. The term “metaverse” is still too closely associated with platforms like The Sandbox or Decentraland. Instead, it is essential to understand that the concept of the metaverse offers a wide range of opportunities for innovation, creativity, and economic growth that go far beyond the boundaries of these platforms. The development and success of the metaverse are not dependent on the success of individual providers but rather on the technological infrastructure created by devices such as the Vision Pro and Quest 3.

Opportunities for Financial Companies

While it will take some time for the market penetration and compatibility of VR and AR glasses to advance to the point where remote B2C customer consulting becomes the new standard, there are already meaningful use cases today, especially for internal use. From onboarding new employees, training and education, to remote events – the applications are extensive. As described earlier, targeted use of AR/VR glasses can significantly reduce hardware costs (both acquisition and maintenance/IT support), as the number of required screens, webcams, headsets, etc., is significantly reduced. This has implications not only for enabling work models like “remote work” or “mobile work” but also for their effectiveness in concepts like home office, which are becoming increasingly important, particularly in terms of the younger generation’s choice of employers and the balance between work and family.

But even beyond internal use, meaningful applications are already emerging today. Let’s think about the topic of project financing, for example, a wind farm or infrastructure project. Wouldn’t it make sense to make the project tangible for our customers through an immersive VR/AR (on- or offsite) simulation?

The introduction of the Apple Vision Pro and the Meta Quest 3 is more than just another step in the evolution of technology; it is a leap into a future where the metaverse could play a central role in our daily lives. This moment should be seen as an opportunity. For those who have been waiting for the starting signal to seriously consider positioning their financial institution in the metaverse: here it is!

ARE YOU CONSIDERING ENTERING YOUR COMPANY INTO THE METAVERSE?

Our experts at Horn & Company are available to you personally to discuss your individual potential and market entry strategy. Contact us today to learn about your opportunities in the emerging metaverse.