Sensorama, 1962
The first stereoscope, which allowed the viewer to see the picture as a 3D object, appeared in 1837. The principle of its work is the basis of all current VR headsets: the device combines two flat images into a single three-dimensional one. However, the father of virtual reality is rightly Morton Heilig. In 1962, he patented the world's first virtual simulator, Sensorama. The device was a bulky object resembling slot machines of the 1980s. It allowed the viewer to experience immersion in virtual reality, such as riding a motorcycle through the streets of Brooklyn. Sensorama stimulated the senses with speakers, a 3D display, scent generators, and a vibrating chair. Heilig saw Sensorama as the movie theater of the future and wanted to immerse people in movies fully. Six short films were developed for Sensorama. However, at that time, investors distrusted Heilig's invention, and the scientists had to stop working on it.
The real boom began only in 2012, when a little-known startup, Oculus, launched a Kickstarter campaign to raise funds to release a virtual reality headset. The required amount of $250,000 was raised in the first four hours.
Oculus Rift CV1, 2015
VR headsets device diagram
VR suits, gloves, tracks, better controllers, and other devices allow for a more immersive experience.
The main matrices that produce VR headset displays include LCD, OLED, and AMOLED. In 2024, the industry is set to turn towards new matrices – OLEDoSi, which features high efficiency. Sony Semiconductor leads the OLEDoSi market in revenue, while Samsung Display is acquiring OLEDoSi pioneer eMagin, which has direct emitter patterning technology.
VR headsets device diagram
AR headsets device diagram
The transparency technology used in today's VR headsets is called VST (Video See-Through), while the transparency technology used in AR devices is called Optical See-Through (OST). VST technology combines a digitized three-dimensional image of the real world with a computer simulation of reality, which is then displayed on an opaque display. Using VST together with the appropriate rendering technique and algorithm, interaction and occlusion between virtual and real objects can be provided, and a digital 3D model of the physical world can be reconstructed.
Tethered VR headsets work only when connected to a PC. This type of connection has advantages, including the wide availability of content on SteamVR platforms, stability, the ability to run high-performance applications, and interactivity.
Standalone VR headsets run on their operating system, without a PC and cables. The main advantages of such headsets are affordability, interactivity, lack of wires, and full interaction with the environment.
Key headsets released in 2023-2024
Apple Vision Pro and Meta Quest 3 comparison
VR/AR technology has multiple applications in various fields, including gaming, film and television, sports, real estate, education and training, medicine, commerce, and more.
For example, Ford, Hyundai, BMW, and many other automotive brands use VR technology in their vehicle design process.
For example, Matterverse enables brands to create hyper-realistic virtual stores.
For example, Labster offers virtual science courses and simulations in VR.
For example, Immersion VR produces 360VR content.
For example, aNUma provides digital group therapy sessions.
AR/VR chip market size forecast
The AI & ML market is divided into 3 segments by type of solution:
Looking at Augmented Reality, the market can be segmented based on technology type into marker-based AR technology segment and markerless technology segment.
The number of active VR headsets will reach 46 million in 2024, showing a CAGR of 42% from 2019.
Despite its potential, Virtual Reality still needs to overcome barriers to widespread adoption.
Virtual Reality – VC deals number and investment dynamics
Venture capital investment in the AR market increased from $0.12B in 2014 to $1.85B in 2023 with a CAGR of 35.5%.
Augmented Reality – VC deals number and investment dynamics
AR&VR market players by revenue size for 2023 by country, $M
Top 6 global VR/AR headset manufacturers
Segmentation of companies in the market
Meta Platforms
Apple
Other deals
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