Virtual Reality and its Impact on Business in the Post-Pandemic World

Virtual Reality (VR) plays a pivotal role in several industries such as IT services, healthcare and automotive manufacturing. Gyeonggi Province is helping virtual and augmented reality flourish.

The age-old desire to enter a realm of stories, to pursue a conscious exploration of dream-like worlds, is now being realized through technologies on the mixed reality (MR) spectrum, namely virtual reality (VR) and augmented reality (AR). VR technology has been under development since the 80s, but it was not until Palmer Luckey created and unveiled Oculus in the early 2000s that VR became a tangible reality.

Today MR technologies are presenting us with many new possibilities and the COVID-19 crisis has incentivized related innovators to fast-track their projects.

COVID-19 and the Future of VR

In 2014, Facebook acquired Palmer’s company, Oculus, and the VR gear Oculus Rift was publicly launched in 2016. Despite high expectations, VR failed to gain popularity among consumers and the number of adopters of the technology remained low. This is partly attributed to the high pricing of the headsets and accompanying systems as well as a lack of content.

The rise of technology - Virtual Reality(VR) & Augmented Reality(AR)

However, VR and AR technologies found their place in the enterprise world. As a result, various companies have begun modifying the headsets and gear to match different niche markets. One area where these technologies have a great impact is in the medical and healthcare industries.

Post-COVID-19 VR Consumer Market

Some call the current health crisis a historical epoch. It has already had a big impact on the way we live and interact with each other. Social distancing, lockdowns, and remote work have created a stressful situation for many around the world. It’s expected that these changes could revive the AR, VR, and MR market and bring forth new innovative products.

AR, VR, and MR technologies can help us enhance our environment by creating virtual environments or adding helpful artificial projections upon the real environment.

VR and AR technologies are not viewed as products just for gamers anymore; the boundaries of our interaction with reality through MR technologies is being pushed in new innovative ways.

Last May the K-Pop band Super Junior performed in an online concert that attracted 123,000 viewers from around the world. During the concert, Super Junior members interacted with fans through video chat and, at one point, a massive holographic image of one of the members entered the stage. Using AR allows entertainers to reward homebound viewers with refreshing and magical experiences.

Concurrently, many people will be unable to travel this summer. VR can offer immersive experiences in different locations around the world, experiences such as climbing mountains and diving, activities that might not be otherwise possible for everyone to undertake. This does not mean that VR will replace traveling after the health crisis is over; however, it can revolutionize the way people plan their trips.

Post-COVID-19 MR & Remote Work

Not surprisingly, the pandemic has forced enterprises to rethink their work models and consider remote work more seriously. As a result, there has been a big spike in innovative ideas for the future of work that include VR, AR, and MR technologies.

First and foremost VR is becoming significantly more important in employee training. It allows on-demand training that can be done in any location, saves money, and can reduce possible health risks of close social interaction.

VR is being used for remote work in the Post-COVID-19 Era

Many tech companies are dreaming of futuristic MR working spaces. Facebook has revealed its plans to invest in improving remote work and increasing productivity. They are exploring the use of VR gear combined with cameras to create an MR experience in which the user is anchored in their own space but the equipment (monitors, etc.) are virtual. The user can rearrange the screens and change their size using gestures. The combination of the VR headset and camera helps remote workers reduce the amount of space needed for a work set-up. The company has also taken major steps to make remote work available to its employees.

Another company has created a concept that mixes a large screen and four cameras to create 3D real-life sized video communication. The cameras track the viewer’s eyes and position to shift the perspective, giving a realistic sense of presence. The concept imagines a device that creates a window-like view of coworkers which can make remote work meetings more pleasant and comfortable.

The possibilities of using MR to enhance work are mesmerizing and it’s expected that VR for enterprises will continue to grow.

VR & AR Contribute to Healthcare

Medicine and healthcare sector tend to be early adopters of high-end technology. Even prior to the COVID-19 crisis, the health sector had heavily invested in using MR technologies for teaching and improving surgical procedures. Now, as the pandemic has placed health workers at the frontline, the incentive to innovate and improve has only increased.

Virtual Reality and Augmented Reality in Healthcare

Training is one area where VR plays an important role. The rapid spread of COVID-19 around the globe brought about the need to quickly train health professionals while avoiding in-person sessions. In this, both VR and MR technologies can be the solutions to keep doctors safe while treating patients. It can help reduce the presence of healthcare staff in high-risk areas and significantly reduce the use of personal protective equipment.

Gyeonggi-do VR Industry: Technology & Content

Looking to a future after the COVID-19 crisis and the strict quarantine and social distancing measures in South Korea, the Korean government is considering possible ways to use these technologies to benefit the citizens.

As mentioned before, the lack of compelling content is one of the reasons behind the slow adoption of VR by consumers. To tackle this, the government has announced plans to allocate KRW 267.7 billion for VR and AR content creation.

Gyeonggi-do Support for VR & AR

As the importance of mixed reality technologies becomes more evident, Gyeonggi-do is planning to follow up and improve its support for AR and VR companies. The provincial government has earmarked KRW 570 million to help companies with manufacturing, distribution, and more. Another KRW 170million has been designated for the creation and operation of a knowledge-distribution platform  dedicated to AR & VR technologies.

One goal these support programs are targeting is the development of a remote manufacturing plant management system. This would allow the continuation of manufacturing while reducing worker health risks.

Gyeonggi Content Agency

The Gyeonggi Content Agency (GCA) is planning to hold its annual New Reality Partners (NRP) Meetup, an AR/VR enterprise gathering, using VR technology . This ‘untact’ event is being held to promote the activities of and support AR/VR companies in Gyeonggi-do. This year the event will be held virtually to comply with health and safety regulations. Furthermore, it is only fitting that AR/VR enterprises pioneer virtual enterprise gatherings and cooperation.

GCA held New Reality Partners Meeup as part of VR/AR company development program
ⓒ 2019 GYEONGGI CONTENT AGENCY

Local AR/VR companies will have the opportunity to meet and exchange ideas with Nreal, one of the major global MR companies.

Gyeonggi AR/VR Content Production Base

Gyeonggi-do will be establishing an AR/VR production base in Suwon City, the capital of the province. The aim of the center is to create support for the production of commercial AR/VR content. This move follows the selection of Gyeonggi Province by the Ministry of Science and ICT in a program aimed at supporting the growth of AR/VR industries in different regions. The provincial government is committing KRW 1 billion on top of the KRW 1.95 billion allocated by the central government.

This program will cover different stages of AR/VR content production including equipment, spaces, and even the convergence of specific regional industries. Gyeonggi-do will also promote new projects to produce convergent services such as VR shopping and AR product promotion to help incorporate AR/VR technologies into the distribution industry.

AR/VR production base in Gwanggyo, Suwon City, Gyeonggi-do
© GYEONGGI PROVINCE

Since 2017, the province has been leading national development of the VR/AR industry by fostering 80 companies and creating 564 jobs through the 'New Reality Partners (NRP)' and the 'Gyeonggi VR/AR Academy' project.

VR in Vehicle Design & Distribution

In the Namyang Research and Development Center located in Hwaseong City, Gyeonggi-do, the Hyundai Kia Motor Group has created a design evaluation system that put VR technology to use; it allows up to 20 individuals to participate in the virtual evaluation process.

Virtual development allows the creation of a virtual car model or a simulated driving environment based on digital data before test-assembling actual parts. It’s expected that this innovation will noticeably decrease development time and annual costs.

In addition, the Hyundai Kia Motor Group is developing remote VR design assessment for real-time collaboration from remote locations, which means their R&D centers can collaborate remotely in real-time.

Hyundai and Kia's new Virtual Reality (VR) Design Evaluation System
ⓒ 2020 Hyundai Motor Company

The COVID-19 crisis has affected vehicle marketing as well. As a result, Hyundai Mobis is planning to enhance overseas sales through various untact marketing tactics including virtual tech fairs, online real-time promotion, and video demonstrations of core technologies. The company will be producing promotional material in VR form so that customers can have immersive experiences. 3D life-size VR content can help customers learn about products as if they were visiting a showroom in person. Hyundai Mobis will use the M.Tech Gallery in Yongin City, Gyeonggi Province, to make product videos.

In the post-COVID-19 world, MR technologies can significantly change and improve our lives. Gyeonggi-do is upscaling its support for local VR companies with the expectation that accelerating the rate of progress in this field can help everyone through these difficult times and open new doors to a brighter future.