Source: news.google.com
SEATTLE, November 29, 2022–(BUSINESS WIRE)–After years of heavy investment, XR industry executives and investors have tempered their outlook for growth in the sector, according to Perkins Coie’s sixth annual XR report, released by the company today.
The survey of 150 industry stakeholders involved in XR and NextGen technology, spanning technological advances like Web3 and the metaverse, shows that immersive technology has reached a tipping point. Conducted from April to May 2022, the survey was preceded and informed by focus group interviews with experts in the field. This year’s findings reveal that while stakeholders still expect the industry to grow, the pace of growth will be slower than in recent years.
“This year’s respondents seem to have a pragmatic sense of optimism about the industry, given potential economic headwinds and the need to deliver on the immersive technology hype,” said Kirk Soderquist, co-chairman of the interactive entertainment group and Digital Media & Sports, Games and Entertainment Industry Group at Perkins Coie. “Our respondents are also clearly focused on NextGen technologies, with approximately half (49%) expecting widespread adoption of the technology in the next five years.”
In addition to the investment landscape and development of NextGen technologies, the 2022 survey asked about immersive technology in various industry verticals. As the 2021 survey found, workforce development and training continue to provide many opportunities for XR. The majority of respondents (72%) agreed that immersive technology in this area will increase over the next year compared to last year.
Amid uncertain market conditions, industry growth expectations moderate
Compared to last year, respondents seem more pessimistic about their spending for the coming year, which is not surprising given the uncertain economic climate. Just over half of respondents (52%) expect XR investment in 2023 to be higher than in 2022, 83% said the same in 2021.
But industry insiders are still predicting growth: 98% of respondents predicted that their XR spend will increase moderately (70%) or a lot (28%) in the coming year. The industry is also exploring NextGen technology; 54% of respondents are developing or investing in Web3 or the metaverse.
Respondents also believe that XR and NextGen have a symbiotic relationship, with the majority of respondents (88%) agreeing that XR is the gateway to NextGen technology and that NextGen depends on XR.
XR has gone mainstream, barriers to adoption still remain
“The industry has come a long way since we published our first survey in 2016. At the time, mainstream media were covering viral sensations like Pokémon Go and weren’t convinced that immersive technology was more than a flash,” he said. Ronald Y. Koo, Co-Chairman of the Perkins Coie Interactive Entertainment Group. “But our research shows that XR, and NextGen technology, have reached the mainstream. For example, our respondents have seen a significant improvement in the quality of immersive content, which had been considered a major obstacle to mass adoption since We started doing this research.”
Despite industry improvements over the past decade, barriers to adoption remain. About a third of respondents (29%) cited a lack of consumer awareness as a top barrier to widespread adoption. Others said user experience (54%) and content offerings (49%) are other barriers to adoption.
Early beneficiaries of XR and NextGen technologies
For the first time, the 2021 survey report looked at the findings from the perspective of minority- and women-owned businesses and validated that the industry was becoming more diverse. This year, approximately half (45%) of respondents (more than half of whom were from minority- or women-owned organizations) agreed that there is commensurate VC funding for diverse, women-founded start-ups in The world of technology.
But the survey results also reject claims by some industry insiders that XR and NextGen will promote inclusion and fairness. The majority (58%) of respondents think that high-income individuals, working professionals, and those in technical fields will be the beneficiaries of the technology in the short to medium term.
“Some of these results are not surprising: any emerging technology tends to be used by higher-income people first before it becomes cheaper for mass adoption,” said Jason Schneiderman, co-chairman of Perkins Coie’s interactive entertainment group. “It’s also great to see that the industry is making progress in funding companies owned by underrepresented groups. But our results also make it clear that there is still work to be done to make products available to more people.”
About Perkins Coie LLP
Perkins Coie is a leading international law firm that is known for providing high-value strategic solutions and outstanding client service in matters vital to the success of our clients. With more than 1,200 attorneys in offices throughout the United States and Asia, we provide a full range of corporate, commercial litigation, intellectual property and regulatory legal advice to a wide range of clients, including many of the world’s most innovative companies and industry leaders. the industry. as well as public and non-profit organizations.
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