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The Key Difference between AR and VR: Unmasking the Secrets

Artem Zaitsev
·
March 25, 2024

Virtual technological advancements are affecting people’s lives at various levels by altering the way they engage with their environments. Of course, technologies of augmented reality and virtual reality are no exception either. Yes, let yourself have a view of the real life, where instead of pulling out your phone to check the directions to the nearest café, you will have the directions literally mapped out on your face. Or you are in your living room put on a headset and then you find yourself standing on the moon with actual sand of the moon under your feet and a look at the earth. 

And now there is no need to talk about such things as AR and VR are no longer dreams of a movie maker but are real and promising world. In the last several years, AR and VR has been applied across different types of business sectors such as entertainment, financereal estate and media and many more. 

It may sound counterintuitive at the first sight that AR and VR are two siblings that are both revolutionary and that belong to the category of augmenting the existing reality. In reality, one can clearly identify a lot of similarities between them. 

AR enriches our reality and places digital tags on real-life objects. It is like having an X-ray vision whereby you clearly see something on the road if you are driving or event a dinosaur in your compound. On the other hand, VR removes us from reality by presenting new paradigms of the world for engagement. It is a gateway to a dream world that gives everything from climbing the Everest to walking on Mars and all is possible from home. This is not just about looking at a new world but being in the VR world. 

In today’s article, you’ll learn: the detailed overview of AR and VR as technologies, their similarities and differences focusing on how you can expand your business using AR and VR technologies. It will be evident that AR and VR are not all fun and games, here and there. As you move forward and remove the layer of AR and VR, it reveals the potential of implementing advanced technologies in changing how people work, study, and interact with one another.  

Continue reading to discover how business can use AR and VR to set themselves light-years away from the competition!

An Introduction to AR/VR in Digital Technology 

Businesses should go with the flow in this incessantly developing digital environment in order not to fail. Now it is the time to provide more information about the basic components of AR and VR. While both seek to enhance users’ experiences, the features and consequences of each are slightly different and rather interesting.

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What is Augmented Reality?  

Definition and Core Concepts:

Augmented reality (AR) is a sort of development that synchronizes digital bits of information such as pictures, voices or text with the physical environment surrounding the user. Just for instance, suppose that whenever you pointed your phone camera at the wall painting at some monument, brief facts about the monument came flashing on the screen of the phone, or suppose interior designing apps where you can virtually get a feel of how a new sofa would look in your living room through the phone camera. AR does not overlay a new reality to your own reality, rather it overlays reality to make the ordinary appear magical. 

Also, have you realized that, based on Statista report, the estimate for 2024 is 1.7 billion mobile AR user devices? This an indication of its growing adoption in our society ranging from social media filters to navigation aids.

How AR Works: Technologies and Tools

AR works utilizing cameras, sensors, and software which is an excellent symbiosis of the virtual and the real world. Smartphones, tablets and AR glasses can put up the augmented elements in and on the real world. Having tracking and mapping helps to place objects within real environments with significant precision.  

One piece of trivia for entrepreneurs is that an American research stated that the presence of AR can cause a 30% rise in the usage rate in various applications. It focuses on AR’s powerful ability to revolutionize how the communities engage the objects in various fields, such as education, commerce, and media.

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What is Virtual Reality?  

Definition and Core Concepts 

Virtual reality (VR) through some extent replaces the physical world by capturing the users and placing them in an altogether different virtual world. Video games, schooling, and virtual tours assist in provoking the existence of presence through Virtual Reality, making one feel like they are physically present in an environment that is not physical. It is not about the picture but the emotions that are portrayed.

The VR market is expected to have a great growth given the estimates are it could hit over $12 billion by 2024. This growth clearly depicts that the application of VR is not only limited to entertainment but it is also used in the healthcare sector for therapy and training.

How VR Works: Technologies and Tools

It is in head mounted displays (HMDs) whereby the user is tracked and depending on the user’s movement, the virtual environment is changed. Graphics, effective sound and other localized haptic feedback tools are integrated to provide uncompromised realism. It largely depends on fast and effective processors and graphics cards, which enable to draw intricate virtual realities in the process of user’s actions. 

Concerning the surveys that have been conducted, it has been ascertained that VR can enhance reiterated learning by a level of up to 75%. The interest that is created by VR allows for the replication of actual events in practice or training, ranging from operating table sessions for medical students, to mock drills for fire fighters.

The Development and Progress of Augmented Reality and Virtual Reality 

It is time to discover more about the rather unknown earlier phase of the AR and VR history. It will be pertinent now to have a brief look at the evolution of AR and VR. Since the beginning with and integration of simple screens to the mind-blowing technologies we see in the market today, both AR and VR have a long way to go. Now we will explain to you how such technologies appeared in people’s lives and became thoroughly embedded in it as AR and VR.

The history of AR and VR 

Milestones in AR Development 

AR has evolved over the past several decades after Ivan Sutherland developed the first Head-Mounted Display system in 1968. Moving to the year 1990, Tom Caudell who was a researcher at Boeing came up with the term, augmented reality, AR was finally born and underwent the process of morphing into what overlays the real world with computer-generated graphics. 

The first known actual use was in the entertainment and broadcast industries in the early 1990s, particularly in television broadcast system of sports to enhance viewership through the use of interactive graphics.

Milestones in VR Development 

The history of virtual reality starts at 1956 with Morton Heilig’s creation of the Sensorama; it was the first VR machine to introduce the user to sensory experiences. It was in the 1980s, though, that things started getting some progress: Jaron Lanier coming up with the term 'virtual reality' and first VR gloves and goggles by VPL Research. 

The portable Virtual Boy was released in 1995 by Nintendo, it was a VR console that was meant to be a consumer level experience, albeit another commercial failure. These set up the building blocks of special digital experiences paving way to the advanced VR systems as of today.

Integration of AR and VR in the Digital Age 

Current Development of AR Technology 

The previous ten years have seen a powerful development of the AR technology fueled by various improvements in the operating systems of the smartphone and the increased Internet speed. Apple has introduced ARKit and Google has introduced ARCore that has opened the gates of AR development for millions of developers. Today, AR is not only applied in games and entertainments, it becomes the tool that helps to make the shopping more comfortable, gives the opportunity to assist people remotely, brings changes to the learning and medical processes. 

According to the data of the prognosis, volumes of QR codes in 2023 will surpass 2. Currently, there are 4 billion users of AR applications on mobile devices and the level of use of AR applications has increases dramatically from the levels which existed a few years ago, proving the fact that AR is getting more and more integrated into our lives.

Breakthroughs in VR Experience

It has been further noted that VR has undergone tremendous evolution, especially regarding the hardware and developing contents. Oculus consumer models like the ‘Rift’ the ‘HTC Vive’ and ‘Playstation VR’ that were launched around 2016 showed that high-quality VR was possible at mass scales. 

Apart from gaming, VR is applied these days to virtual tourism, real estate, learning, mental health treatment, media, and many others that provide hitherto unthinkable experiences. In the research conducted by Grand View Research the global size of the VR market was estimated to be 59 billion in 2020. In 2022 it was 96 billion and is predicted to increase at a CAGR of 27 in the next few years. 4 – 5% per year and 15% from 2023 to 2030. This is a clear sign that VR is moving from just being a gaming tool to a tool that is universally aplicable in business, health, and education among others. 

Indeed, turning to the future, AR and VR become even more of a revolutionary development, rendering the reality more like a science fiction!

Preliminary Distinctions between the AR and VR in Digital Spaces 

At first glance, AR and VR do not differ significantly, however, the performed functions, the advantages provided, and the areas of application may vary significantly. Perhaps one needs to delineate these differences in order to get a better perspective.

User Experience and Interaction 

Sometimes there are issues managing the differences between occupied domains because the method of telepresence behaves differently than virtual reality. AR augments digital aspects on top of the real world and enhances your surrounding without removing you from it. This means that there is a continuation of the interaction with the surrounding space, only with the additional use of technology. 

On the other hand, VR comes up as a whole new experience that takes you into a whole new world reducing the physical environment completely.

LinkedIn’s surveys have revealed that 70% of AR users get the feeling of being more connected to the physical world while 90% of the VR users feel immersed as compared to the traditional media. Besides this, AR only needs a smartphone or glasses to be felt, whereas VR needs a headgear sometimes combined with sensors and a safe and dedicated space for whirling around.

Technology and Implementation  

Other differences that presented are that the technology of AR and VR are also quite distinct from one another. AR depends on a real-time screen on which the real environment is viewed and augmented with additional information; this may be a smartphone screen, the view from AR glasses, etc. 

But VR technology is based upon head-mounted displays, motion tracking accessories and often hand controllers to set up a fully digital environment which responds to the user’s movements. 

More than 80% of augmented reality development work is dedicated to the mobile and wearable platforms, proving that even in 2022, the technology is based on existing platforms. On the other hand, VR technology that has materialized since 2016 came with over 230 different headsets that show a market based on diverse equipment. 

Similarly, the Statista report estimates that the global market of AR and VR market shall be US $38 billion in the coming years; 6 billion in 2024. This market is expected to grow at an annual rate of 10 percent which will lead to the development of accommodation facilities suited to sectors of the economy that have stable earnings, such as universities. 77% (CAGR 2024-2028), meaning the market volume is expected to be US $58; 1billion by 2028.

Applications and Use Cases  

Last but not least, the applications and use cases of AR and VR may be quite different because of the distinctions in the user experience and technical architecture. The application of AR has paved the way to enhance the realism of real-life activities such as orientation, learning, shopping, and work productivity by updating information and visualization in real-time. As a matter of fact, VR is at its strongest when the environment being provided has been constructed explicitly and exclusively for the technology, which is why applications of VR are often entertainment, virtual tourism, education through simulation, and a host of other training simulations.  

A research reveals that the application of Augmented Reality (AR) technology in handling of goods dramatically improves efficiency of the logistics and warehouse businesses by up to one quarter since accuracy is enhanced, and hands-free information acquisition is achieved. Nevertheless, VR makes it possible to increase the rates of retention of the training results up to 75% due to its high modernity. 

Besides this, there’s also an application of AR in the medical fields where it helps during the surgeries and representations of important data on the view of a surgeon. VR is also helpful in treatment of PTSD in the veterans based on exposure therapy within the controlled environment.

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Bridging Technologies: The application of AR & VR in Virtual Environments 

It is impossible not to mention the technology considered to be an intersection of AR and VR: used in this paper are Mixed reality (MR) and Extended reality (XR). Wearables link the physical and a digital reality combining concepts that were inconceivable only several years ago. Here is more information about what MR and XR are, the possibilities they are opened now and difficulties they have to solve.

Mixed Reality Augmented Reality (AR), and Extended Reality (XR) 

Descriptions and their Interconnection 

Mixed reality or MR is a form of technology that combines real and virtual environment to give a new environment or at least a new vision of the actual environment where the material objects coexist with the virtual ones and the two are perfectly interrelated. Translating this in simple terms, it is somewhat combining with AR a level further in order to enable users to interact with physical and virtual environment and objects in the environment. 

XR is a broad term that encompasses AR, VR, and MR, it basically refers to all real-to-virtual continuum. XR is about amplification of an experience which can either be merging of real and virtual environment or introducing a completely new kind of experience. 

By the way, MR technology is not only used in games and entertainment; in aerospace industries MR is used in design and manufacturing where engineers can work with 3D models of airplanes and space shuttles in reality. 

As mentioned in the report available in Zion Market Research, the size of the global Extended Reality [XR] market was USD 41 Billion. The global market value for VR and AR was USD 1 billion in 2022 and is envisaged to strike USD 142. 4 Billion by end of 2030. Still, the market is projected to set within a compounded annual growth rate or CAGR of 16%.

Potential and Challenges

It can be said that the potential of MR and XR is rather grand and is embedded in almost every sphere of our existence. 

In education, it can produce outstanding teaching learning processes that enhance understanding and knowledge acquisition. 

For healthcare, it provides radical methodologies of treating certain diseases or diagnosing them or even training medical practitioners. 

Cross reality or XR for short can revolutionise how products are designed, conceived and marketed in today’s business world. 

Nevertheless, the process of the integration of MR and XR into everyday life has its own peculiarities. Expenses, rudimentary technology, and humans’ unwillingness to adapt to the physical modifications required for hardware are considered challenges. Moreover, the real life privacy issues, data protection and feelings of loneliness are the other issues coming with these technologies. 

Furthermore, the MR and XR technologies may help enhance working from distance and let the numerous groups collectively work in virtual environment as if they are in the same room sharing physical objects which are virtual rather. A study reveals that 73% of the organizational executives expect that XR technology will be mainstream in their context within five years.

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Challenges & Opportunities of Promoting AR and VR in the Frame of Business Development for the Digital Enterprise 

As has been seen from this discussion, businesses of all industries are always on the lookout for new ways to capture the customer’s attention, optimize their operations, and outcompete competitors employing technological growths.

AR and VR are emerging as significant forces in this field as they are. How these technologies can fundamentally change the functioning of businesses, their relationships with customers and training and developing their human capital?

Improving the Performance of Customer Relations 

AR and VR have numerous applications in which the customers can be engaged in a number of ways, which have never been seen before. In the fashion industry, it enables virtual trials, in retail, 3D product demonstrations; these are all the ways, these technologies enhances the shopping experience. 

A poll revealed that 71% of the consumers would make more purchases if they incorporated AR, while 40% of the consumer said they would pay more for a good if they could touch, feel and see it through AR before paying for the product. For instance IKEA has launched an application IKEA Place that using augmented reality people can preview furniture and how it will fit in space before purchasing increases customers satisfaction and decrease rate of returns.

Economising of Operations and Minimising Expenditure 

Apart from use cases where AR and VR are used directly with the customers, the technology greatly enhances productivity and minimizes expenses. In manufacturing for instance, AR can help a worker who is assembling to be aided by instructions that are placed on his or her view directly thus eliminating chances of making wrong decisions and at the same time enabling the organization to execute his or her duties in the shortest time possible. 

Besides this, several companies that employing the technology for assembly & training cite that they have slashed the time taken by half and the errors by 90%. For instance, DHL - the courier service company - has adopted the use of AR glasses in some of its distribution centers to aid employee in identifying objects that they need which would see a boost in productivity by 25%.

Revolutionizing Training and Development 

 As you are aware, training and development are pivotal for any business and AR and VR are revolutionizing how it is done. It ranges from training purposes which involve creating an imitation of real environment for emergency responders to online internships that provide a student with an opportunity to practice his/her practical skills in a scenario that is encased to ensure that the outcome is controlled. 

It is argued by research that involving VR in training increase the retention by up to 75% as the modern experience of training enhances the retention. For instance, Walmart has adopted VR training for all its U. S. stores. This enables the employees to go through different exercises involving the Black Friday sales rush, spills or any other issue boosting the confidence of the workers.

Increasing the Marketing and Sales Promotion Techniques 

Lastly, mainly by using augmented reality and virtual reality, marketing and sales can reach the possibilities that were only dreamed of before. The real estate business for instance, has incorporated the technology in the housing industry, customers can easily take virtual tours of the houses without even visiting the place physically. 

According to a recent research, posts that included videos of the real estates attracted more than 40% more clicks than posts that didn’t. Furthermore, industries such as the automotive with brands like Audi and BMW have incorporated AR/VR in their showrooms and allowing the customers to personalize and touch on virtual models of car contributing a new face to automobile purchasing. 

 In conclusion, it is safe to say that as the technologies of AR and VR strengthen and the accessibility of these technologies increases, the possibilities of applying them in various industries for the purpose of introducing innovation and efficiency will only increase. Thus, having applied the technology of AR and VR, businesses are able not only to increase their profits but also offer their consumers outstanding experiences, which are crucial in the modern environment.

Conclusion for Changes in AR and VR and Its Potential 

Thus, when bringing the examination of AR and VR to a conclusion, it is possible not only to state that they actively expanded from the entertainment and gaming industry but also proved to be much more – the influential tools capable of radically changing numerous industries, enriching people’s lives, and even altering the ways people perceive the reality. 

When starting from the simple concepts of AR and VR as viewers as far as to the modern platforms we can observe significant changes. AR progressed from easy placing of textures over the real world to intricate engagements with the physical environment so as to create application that was previously thought of in sci-fi. Virtual Reality or VR, what a few years ago was seen as a rather distant idea, today is a modern reality that opens the doors to a world of impressive illusions and great usefulness. 

In conclusion, it can be said that the future of both AR and VR is rather promising and filled with possibilities. In the future we can only see more innovations in the hardware side bringing these technologies nearer to people and becoming the part of our lives. The phenomenon of the real and the virtual space will persist in the future and will extend to people’s daily experiences, creating new possibilities for work and study, cultural and artistic activities. 

Analysts estimate that by the year 2024, more than 1 billion people will be using AR and VR products, meaning the trend in consumption of these products increases at a very high rate. The possible future of augmented reality is what is called Augmented Reality Contact Lenses that would project information that would overlay the wearer’s vision and transform the whole world into a computer monitor. Likewise VR advances might result in the manifestation of ‘‘virtual holidays’’ with new travel experiences being achieved from within the confines of home. 

Looking at the horizon of the future brought forward by the development of digital technologies, AR and VR are not mere trends but paths to the new frontiers of people’s experience and communication. In this digital world, Idealogic’s technical and innovative approach is well blended with its core competency of understanding all that makes modern technologies effective in the contemporary market. 

This is why with the modern concept and strong technical experience, the success of your project is guaranteed!

Contact us or book a quick call with our CTO to brainstorm with us!

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