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Will emergence of Android XR be a new era for VR and AR?

Customers may prefer to refrain from investing in products that do not yet demonstrate clear benefits

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  • Gap between theoretical advantages of these technologies and their practical implementation can lead to hesitance among consumers, who may prefer to refrain from investing in products that do not yet demonstrate clear benefits.
  • One factor contributing to consumer scepticism is the disparity between advanced technology and practical application.

Google, in collaboration with Samsung and Qualcomm, unveiled its latest innovation, the Android XR operating system, designed to enhance virtual and augmented reality (AR/VR) experiences and the first platform built entirely for the Gemini era.

Samsung’s Project Moohan, the first device powered by Android XR, exemplifies this new direction. This virtual reality headset, featuring mixed reality capabilities through external cameras, combines elements from both Apple’s Vision Pro and Meta’s Quest 3.

The user interface of Android XR resembles existing AR/VR systems, allowing users to arrange app windows in a virtual environment while maintaining awareness of their physical surroundings.

Notably, the integration of Google’s Circle to Search technology enables users to interact with real-world objects and access information seamlessly.

The potential of Android XR extends beyond headsets. Google’s ambitions for augmented reality glasses are particularly noteworthy, especially given the mixed success of its previous endeavor, Google Glass.

The new glasses promise to offer users real-time information and navigation through voice commands and an in-lens display, leveraging the capabilities of Gemini AI.

A niche segment

The advancement could redefine how users interact with their environment, providing contextual information with unprecedented ease.

In recent years, the infusion of artificial intelligence into augmented reality (AR) and virtual reality (VR) technologies has generated considerable optimism within the tech community.

Google, a leader in innovation, is at the forefront of this trend, particularly with its ambitions in developing headsets and smart glasses that seamlessly integrate AI functionalities.

However, despite this enthusiasm, there remains a palpable scepticism among consumers that cannot be overlooked. The prevailing sentiment suggests that the current demand for AR and VR technologies has notably declined, as evidenced by recent shipment data.

While augmented reality (AR) and virtual reality (VR) headsets are gradually gaining traction, they still occupy a niche segment of the technology market.

According to International Data Corporation (IDC), the industry is projected to ship approximately 6.7 million AR/VR units in 2024, with an anticipated growth to 22.9 million units by 2028.

However, this figure pales in comparison to the staggering 316.1 million smartphones shipped globally in just the third quarter of 2024.

One factor contributing to consumer scepticism is the disparity between advanced technology and practical application. While Google’s AI-forward approach promises a more integrated and user-centric experience, potential customers often question the immediate utility and relevance of such innovations in their daily lives.

The gap between the theoretical advantages of these technologies and their practical implementation can lead to hesitance among consumers, who may prefer to refrain from investing in products that do not yet demonstrate clear benefits.

Moreover, the broader economic landscape has compounded these issues, as economic uncertainty has made consumers more discerning about their expenditures.

Lingering complexities

The decline in demand for AR and VR is indicative of a market still maturing, where early adopters have yet to be convinced of the value proposition that lies in advanced headsets and smart glasses.

These devices must overcome not only technological barriers but also psychological ones, as consumers grapple with the potential obsolescence of current offerings and the lingering complexities that accompany emerging technologies.

The potential for smart glasses to capture the average consumer’s interest remains uncertain. Smart glasses, in particular, represent a relatively untested technology.

Companies like Meta have ventured into this space with products such as the Ray-Ban Meta glasses, which feature built-in cameras and an AI assistant. Despite claims of strong sales, Meta has not disclosed specific figures, leaving the market’s reception ambiguous.

Ultimately, the future of smart glasses hinges on consumer demand, which will become clearer as Android XR headsets and glasses enter the market.

The industry’s ability to gauge genuine interest in high-tech eyewear will depend on consumer engagement and the extent to which these devices can seamlessly integrate into everyday life.

As of now, the appetite for smart glasses among average consumers remains an open question, one that the market must explore further in the coming years.

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