AR, VR, and XR customer experience trends 2023 in India

So, what’s the big deal about AR, VR, and XR customer experience? Aren’t they just the new buzzwords in town??

Actually, no. They are much more than that. The immersive experience offered by these technologies is changing the way customers interact with brands. And businesses need to start paying attention if they want to stay ahead of the curve.

AR is a technology that blends digital content with the real world, VR creates a completely digital environment, and XR incorporates elements of both AR and VR.

According to a recent report, the AR, VR, and XR market is expected to reach $397. 81 billion by 2026, registering a CAGR of 57. 91% over the forecast period. This growth is driven by the increasing demand for immersive customer experiences, rising adoption of AR and VR in retail and e-commerce, and growing demand for XR in gaming and entertainment.?

All three technologies offer great potential for customer experience improvement. Let’s look at some of the trends we can expect in 2023.

Increasing demand for mixed reality

Mixed reality (MR) is an immersive technology that combines elements of both AR and VR. It allows businesses to create truly interactive customer experiences by allowing customers to interact with digital content in the real world. In India, there is already growing demand for MR solutions from businesses across various industries. For example, Mahindra Holidays & Resorts has developed an MR solution called Mahindra Holidays 360 which allows customers to view 360-degree images of different resorts before they book them.?

Greater use of XR for marketing and sales

XR has already started to be used for marketing and sales purposes, and this trend is only likely to grow in 2023. For example, Volvo recently used VR to promote its new S90 car model. Consumers could put on a VR headset and take a virtual test drive of the car. This gave them a better idea of what the car would be like than if they had just seen a video or image. We expect to see more organizations using XR for marketing and sales in 2023.

Improved user experience?

One of the main goals of using AR, VR, or XR is to improve the user experience. In 2023, we can expect to see more organizations achieving this goal. For example, airlines could use VR to create an “in-flight entertainment” system that allows passengers to watch movies and TV shows or play games while flying. Retailers could use AR to create an interactive product catalog that lets customers view products from all angles. Hospitals could use VR to create simulated environments that allow patients to practice their surgery skills before they go into surgery. The possibilities are endless!

AR will be used for product visualization

Brands will use AR to allow customers to visualize how products will look in their homes. This will help reduce the number of returns as customers can decide better what they want to buy. Ikea is already using this technology to allow customers to visualize furniture in their homes.

Increased use of AR and VR for training and education

One of the areas where AR and VR already see widespread use is education. Both AR and VR can be used to create immersive learning experiences that allow students to explore new worlds or learn about complex topics in a more engaging way. In 2023, we expect to see even more organizations using these technologies for training and education. For example, airlines could use VR to train cabin crew on how to deal with emergencies, or retailers could use AR to help customers learn about products before they buy them.

More use of AI for content creation

AR, VR, and XR require lots of content – text, images, videos, etc. In 2023, we expect to see more organizations using AI to create this content. AI can generate realistic images and videos, so it’s perfect for creating content for AR, VR, and XR applications. For example, imagine being able to walk through an art gallery that’s full of AI-generated paintings – this is something that could become a reality in 2023.

Sector-wise adoption patterns

E-Commerce and AR&VR: A Match Made in Heaven

The Indian e-commerce sector is expected to reach $350 billion by 2030, growing at 10-15% annually. E-commerce will continue to grow strongly in India, with retail e-commerce accounting for ~10% of the total retail market. E-commerce has also seen a rise in augmented reality (AR) and virtual reality (VR) based shopping experiences, as the technologies promise to make the shopping experience more engaging and personalized. E-commerce companies can integrate AR and VR into their web and mobile app user interfaces to offer a more immersive and interactive experience to consumers. This can be done by offering a combination of product visualization, 360-degree view inside the product, product customization such as color and size selection, and virtual product demonstration.

Retail and AR&VR: Consumers Want to Try Before They Buy

More than 40% of shoppers in India have tried Augmented Reality (AR) as a part of their shopping experience. In-store AR experiences allow consumers to try out a product before they buy it. AR helps consumers make more informed purchasing decisions by giving them a look at how a product would look in their home environment. In addition to product visualization, retailers can also use AR to offer services like style advice, color matching, and virtual fitting and customizing. VR allows users to experience a created environment that can be either a real-life environment or a completely fictional environment. VR helps retailers enable customers to virtually try on clothing or accessories before purchasing them. VR can also be used to create virtual walk-throughs and virtual tours of a property or setting like a hotel room.

Automobile and A&VR: The Future is Here

The automobile industry is expected to be one of the most affected by AR/VR soon. VR can be used to create a virtual test drive experience for customers. They can wear VR headsets and be transported to a virtual environment with other cars on the road. AR, on the other hand, can be used to create interactive and informative manuals and service guides. AR can also be used to create holograms of cars that can be interacted with and modified in real time. AR-enabled automobiles can create an augmented view of a car’s interior and exterior, along with all its features, to give a customer an idea of how the car would look before he/she buys it. Customers can view their car from any angle or perspective and rotate or change the color of the car. They can also call up information about the car, such as the engine and fuel consumption. AR can also create remote assistance and help customers with car maintenance and service issues.