We find, however, that the adoption of immersive technologies today is most significantly characterised by niche use cases, rather than by widely adopted general-purpose use cases.
Many of these use cases take place in high-impact industries, augment safety-critical tasks and overlap with vulnerable groups, such as children and people receiving mental health care. These factors create significant potential for risk.
There are limited consumer applications,4 and the applications that do exist are not offering enough added value to compel people to replace traditional technology with immersive technology products.5
Their use is isolated, characterised by applications that give people extra things to do rather than making existing day-to-day activities easier.
usability difficulties (e.g. set-up difficulty) and difficulty in integrating these technologies into social contexts.
Accessibility issues with immersive technology products15 mean that people with physical disabilities may not be able to use them effectively without additional adaptive technologies.1
Venture capital and start-up funding has decreased significantly,
anti-competitive market practices and the concentration of biometric data driven by the ‘loss leader’ data business models of big technology companies,
these may change in the future
Against the backdrop of the mass release of AI foundation models and generative AI products such as OpenAI’s GPT-426 in 2022, the immersive technology market seems to have slowed down, particularly for VR.
‘I think [Facebook], especially after the election, had just a terrible brand name and that’s why they had to rebrand themselves.’109
funding rounds for start-ups related to AR/VR and IVWs dropped by over 90 per cent, and total start-up funding fell by more than half between 2022 and 2023.115
For broad-scale adoption to occur, the technology must move beyond niche adoption and be widely utilised within the target market, not just by early adopters.