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Frost & Sullivan names AR/VR as future of UI

March 2, 2021
Analysis from its latest report highlight how the use of technologies such as AR/VR has accelerated to simplify interactivity and improve engagement in the manufacturing sector, among others, as a result of COVID-19

Frost & Sullivan’s recent analysis, "Future of User Interfaces Shaping New Consumer Experiences," finds that user interface (UI) technologies have evolved to enable sophisticated and personalized interaction. The COVID-19 pandemic has accelerated their use in healthcare, manufacturing, education, retail and banking to simplify interactivity and improve engagement.

The global augmented/virtual reality (AR/VR) market is expected to reach $661.40 billion by 2025, at a compound annual growth rate (CAGR) of 86.3% from 2019 to 2025, driven by contactless commerce. Its analysis also found that beyond 2030, AR and VR will merge, allowing users access to the total reality-virtuality continuum. The global biometrics market revenue is forecast to reach $54.97 billion in 2025, with next-generation identification, palm vein and behavioral biometrics experiencing significant demand.

(Source: Frost & Sullivan)

"The need for adoption of new user interface technologies to alleviate challenges posed by the global pandemic is immediate but constrained by infrastructure issues such as a lack of 5G networks and capable devices," said Murali Krishnan, Visionary Innovation Group senior industry analyst at Frost & Sullivan. "For futuristic UIs to become ubiquitous, security and privacy will be critical. Organizations must prioritize cybersecurity, business continuity plans, and risk assessments. Further, the transition to the fifth generation of wireless technology will be critical to the success of UI devices. Its ability to connect 1 million devices for every square kilometer will make 5G the backbone for UI devices and overall connected ecosystems."

The analysis also found that UI technologies will be an important as the shift from the office to a virtual workplace continues. Creating virtual spaces that are mobile and more flexible, while introducing interactive interfaces that expand the scope of methods in which businesses can engage with their customers and build relationships. Mixed reality, holographic displays, computer vision and wearables all will create new opportunities. 

According to Frost & Sullivan, technologies such as biometrics, digital twins, brain-machine interfaces and AR/VR will drive growth opportunities in the short term as the adoption rate for user interfaces rises and organizations realize the productivity gains created by UI technologies.

With vendors integrating biometric technologies with AI and machine learning, there is a market for high-end biometric interfaces in the public and commercial sectors. A combination of iris, vein, fingerprint, facial recognition and voiceprint interfaces for verification will offer additional security without compromising the user experience.

An estimated four out of five IoT platforms will employ digital twins over the next five years, propelling the global digital twin market to expand at a strong CAGR of 47.0% between 2019 and 2025. Retail, automotive, healthcare, manufacturing, energy and smart cities will benefit. However, implementations will require high-speed communication networks and no service disruptions.

Neural interfaces could have a significant impact on the restoration of vision and hearing, treatment of mental health disorders and alleviating pain through electrical stimuli by focusing on the appropriate areas of the brain. The gaming community is pioneering new gaming control mechanisms based on brain signals using electroencephalography (EEG) headsets.

By 2025, China is expected to lead the VR market, with investments pouring into patents, standards and products. AR, VR and robotics will merge to develop VR robots, which will have a huge impact on manufacturing, retail, security, healthcare and defense. In particular, AR/VR market revenue for manufacturing, robotics and the engineering supply chain is expected to reach $161.29 billion by 2025.

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