Worldwide spending on augmented reality and virtual reality (AR/VR) will reach $17.8 billion in 2018, according to the International Data Corporation.
This is a staggering 95% increase from the $9.1 billion spend in 2017 and the IDC’s research shows that worldwide spending on AR/VR products and services will continue to grow at a similar rate for at least the next few years. Infact, a report by Goldman Sachs predicts that the overall virtual and augmented reality industry will grow to $110 billion by 2020.
The UK is playing a huge role in this phenomenal growth and, according to Innovate UK, is on track to become a global leader in immersive technologies.
PWC’s ‘Global entertainment and media outlook’ 2017-2021report’ reveals that the UK’s virtual reality industry will grow at a faster rate than any other entertainment and media industry in the period to 2021, with the UK’s video games industry set to remain Europe’s largest market and the fifth largest globally.
Experience UK spoke to Jonathan Robson, Consultant, to gain some expert insight into why Britain is making massive strides in the development and production of immersive experiences. He said that Britain’s strong history and exemplary reputation internationally in theatre, the arts and museums is proving pivotal to its role in the growth of the global immersive experience economy.
Jonathan explained that UK companies within these ‘traditional’ sectors are introducing immersive and VR attractions and experiences in order to tell the stories that want to tell. Immersive theatre, while being a growth area in itself, is also educating the VR world in how to engage with audiences in 360 immersive storytelling, taking the lessons learnt creating real-world immersive experiences and applying them to the virtual.
For example, Les Enfants Terribles’ create immersive shows for companies across the world, including Hong Kong, Cannes and Barcelona; working with companies as diverse as Cannes Lions Advertising Festival and Heineken.
Immersive production company Punchdrunk International collaborated with Samsung and Rhianna on a major campaign for the launch of her eight album, and dynamic media attractions specialist Simworx has partnered with water ride specialist Interlink to create the world’s first immersive superflume attraction, due to open in Indonesia in 2019.
Jonathan also commented on the move towards ‘destination’ retail, with shopping malls housing theme-park rides, pop-up immersive entertainment, and other attractions that are solely about ‘experience’ and enjoyment. The UK sits in the top three, alongside the USA and China, in terms of countries leading the way with shopping and retail experiences.
Organisations across the UK are keen to nurture the growth of immersive experience. Arts Council England and Digital Catapult have just awarded funding to 20 companies to develop virtual reality (VR), augmented reality (AR), and mixed reality (MR)) projects. And the Arts and Humanities Council and the Engineering and Physical Sciences Research Council have announced the funding of 32 new research projects, exploring the future of immersive experiences.
