Reality Check: Looking Back at Augmented Reality in 2022

As we look back on the year that was, it's time to reflect on the augmented reality (AR) trends I was keeping an eye on and how they played out in 2022.

In January of last year, I published "22 Augmented Reality Trends to Keep an Eye on for 2022 " and now, as the year has come to a close, I'm here to give myself a reality check. It's time to see which trends I was spot on about, which ones took me by surprise, and what new developments the world of AR had in store for us.

So, sit back, relax and prepare for a journey through the most exciting developments in AR from the past year. Enjoy the recap of yet another eventful year in the world of Augmented Reality!

Interesting in diving deeper into each trend? My full 48-page report found here has a "Suggested Reading" section for each trend with links to related news articles. Also, if you just received this in your inbox, I suggest hitting the "Open on LinkedIn" option above for a more optimal reading experience.

Industry

#1 Metaverse remains at peak hype as the next iteration of the Internet feels so close but is actually much further away

What I Thought Would Happen

I expected 2022 would be another big year for the ""metaverse"" and anticipated that the buzzword of 2021 would continue its reign at the Peak of Inflated Expectations in the Gartner Hype Cycle before moving into the Trough of Disillusionment. I expected to see much of the same metaverse activity we saw in 2021: more brands spending money in the metaverse, new job postings for metaverse positions, and a wealth of launches and investment announcements from “metaverse” companies.

What Really Happened

In 2022, metaverse indeed remained at peak hype, in fact, it was nearly selected as Oxford's word of the year, indicating its increasing significance in popular culture and technology. According to NASDAQ, a total of 216 metaverse funding deals were done in 2022, totaling almost $2 billion. This shows the significant amount of investment being put into the development and growth of the metaverse. As did Meta indicating that it is devoting 20% of its costs to the metaverse.

As expected, 2022 continued to see brands engage in similar metaverse activities as we saw in 2021, although not at the same intensity. Research shows that nearly $2 billion was spent on virtual land as people and companies race to get a foothold in the metaverse. Despite the fact that monthly NFT sales were 80% lower than the previous year, many companies continued to invest in the metaverse. Starbucks opened up its web3 loyalty program and NFT community to beta testers, while companies such as Walmart, Disney, and Nike were pushing further into the metaverse.?

We also saw a number of new Chief Metaverse Officers announced in 2022 including those for P&G, Disney, CAA and LVMH to name a few.?

While the year with a strong outlook for the metaverse, it ended on shakier terms with news of VR headset sales shrinking, waning confidence in Meta, and a realization that the metaverse, as the next iteration of the Internet, is vast and hard to build and is going to take some time to get there.????

Hardware?

#2 The smartphone continues to become an even more powerful augmented reality machine with advancements in chips, displays and connectivity

?What I Thought Would Happen

I say this every year but it is because it is true, the smartphone continues to become an even more powerful augmented reality machine thanks to advancements in chips, cameras, displays and connectivity. While I expected the bigger bells and whistles would be featured in the newer flagship phones in 2022, I was also keeping an eye out for features rolled out for new lower cost models which is key to greater adoption of AR. While I anticipated 2022 would be a year filled with news and launches around AR headworn devices, I expected the smartphone would continue to offer the biggest opportunity for consumer augmented reality.

What Really Happened

As expected, the smartphone did continue to become a more powerful augmented reality machine in 2022, with this year seeing new devices, more advanced components and innovative displays. Both Apple and Samsung debuted new flagship smartphones with upgraded specs. Apple’s iPhone Pro features Apple’s latest bionic chip, A16, which they indicate is “about 40 % faster than the competition”. While both the iPhone 14 Pro and Samsung Galaxy S22 made iterative improvements across the board including a better camera and battery life, all of which enhance the AR experience.?

In addition, more accessible, lower cost devices were also introduced in 2022 with features that enable even better AR for the masses. Apple introduced its next generation SE device two years after the original SE was released to the market. The launch price for Apple’s 2022 iPhone SE was hundreds of dollars cheaper than the iPhone 13 base model. The device features 5G, longer battery life, a sharper front-facing camera, and Apple’s A15 chip which, together, can result in a faster, longer and higher quality AR experience. This device joins Samsung’s Galaxy A42 5G and Google’s Pixel 5A with 5G as a powerful smartphone option for budget-conscious users. In September of 2022, Qualcomm announced its Snapdragon 6 Gen 1 and Snapdragon 4 Gen 1 Mobile Platforms which are set to provide advanced technology solutions to the mid-tier and mass-volume segment in 2023.

Innovative smartphone displays are increasing the FOV for AR with small devices that can extend to offer a larger viewing surface. One such category of smartphones is foldable phones of which IDC reports saw 7.1 million units shipped last year – up from the 1.9 million units shipped in 2020. IDC predicts that the foldable phone market will reach 27.6 million units with a value of $29 billion by 2025. In August of 2022, Samsung started shipping its latest foldable, the Samsung Galaxy Z Fold4 which. In December of 2022, OPPO launched the second generation of its foldable flagship smartphone series – the OPPO Find N2 offering a 7.1” outer screen size when expanded. Meanwhile, Lenovo joined Oppo and TCL, and LG in the rollable smartphone space. Lenovo’s mobile division, Motorola, demonstrated a 4” smartphone that extends to a 6.5” device with the click of a button. Motorola is also in the foldable race with a Razr device that is only available in China. Foldables and rollables increase the FOV for mobile AR—more display, means more of the world that can be augmented.?

While 2022 was not lacking in news of headworn wearables (as you can see from other sections of this report), one particular news theme reinforced that, for the time being, the massive opportunity for AR is with the smartphone. eMarketer’s post “AR/VR headsets can't compete with smartphones” highlighted the scale of the smartphone: “Even with the rapid growth of headset shipments over the next five years, AR/VR sales are quite small compared to global smartphone sales, which hit 1.3 billion in 2021, per International Data Corporation.”. While a piece by David Pierce for The Verge, “Everybody promised to disrupt the smartphone — and the smartphone outlasted them all”, showcased how critical this device is to our lives today: “Smartphones may be boring now, but that’s only because they’ve been so good for so long. As they’ve become so entrenched and ubiquitous in our lives, they’ve become even harder to disrupt.”.

#3 Early consumer smart glasses reinforce the need for smartphones rather than attempt to replace them

What I Thought Would Happen

As new consumer smart glasses launched in 2022, I expected it would be clear that the smartphone would not be replaced by AR glasses but rather reinforced as a device critical to our evolving digital lives. I also expected we would see more than one type of smart glasses hit the market for consumers in 2022. While I expected the specs for each of these glasses to differ (video glasses, audio glasses, AR glasses) I anticipated that the common element would be a reliance on the smartphone. In addition to powering glasses, I was also keeping an eye out for the smartphone used as a necessary companion for AR and VR headsets allowing more family and friends to join in on the fun.?

What Really Happened

In 2022, early consumer smart glasses did indeed reinforce the need for smartphones rather than attempting to replace them. This was evident in the market as several companies released their versions of smart glasses which all required a connection to a smartphone in order to function properly.

AR glasses maker, Nreal, announced a Series C raise of $60 million in 2022 along with making its $379 Air glasses available in the US, just one year after its initial debut. Like its $599 Nreal Light glasses which are also available in the US, the Nreal Air requires tethering to your smartphone or other devices such as your laptop to work. Whereas the Nreal Light is a pair of augmented reality glasses with two spatial computing cameras designed for AR, Nreal Air however, only offers screen mirroring from a device, acting as a heads-up display peripheral for entertainment, gaming, and productivity. Rokid Air is also a display extension device. These foldable, lightweight glasses also require a connection to a smartphone. Rokid reported that Rokid Air shipments exceeded 30,000 worldwide. Finally, Ray-Ban and Meta expanded the global availability of their connected eyewear, Ray-Ban Stories, which connect to your phone to enable you to listen to music, take calls and record media on the headworn device.??

Lenovo, Xiaomi, Vuzix and TCL all announced new smart glasses that followed this trend of requiring a smartphone connection. Lenovo’s T1 glasses act as a wearable private display to extend the display of the device it is connected to. While Xiaomi, Vuzix and TCL devices are more akin to Google Glass in that they connect to your smartphone to relay information on a heads-up display. Both Xiaomi and Vuzix are monocular heads-up displays while TCL is offering a binocular heads-up display with its device. All three of these glasses have a specific focus on being fashionable, light and comfortable to wear.??

Speaking of the return of Google Glass, Google is back in the consumer smart glasses game with an augmented reality glasses prototype it said it will begin testing in 2022. We saw a preview of this device back at its developer conference in May which looked like a “normal” pair of glasses focused on use cases like translation.?

One of the drivers behind a number of new smart glasses coming to the market is advancements in chip technology. Companies like Qualcomm released Snapdragon AR2 Gen 1, a purpose-built 4nm chip for augmented reality glasses. This new chip is said to be adopted in “various stages of development” with Lenovo, LG, Niantic, OPPO, Pico, QONOQ, Rokid, Sharp, TCL, Tencent, Vuzix, and Xiaomi.

#4 Tech giants ready VR devices which double as AR headsets as the next big consumer device

What I Thought Would Happen

If you have been reading my posts for the past couple of years you know that I am extremely bullish on mixed reality headsets which enable both VR and video passthrough AR. I expected that in 2022 we would see most of the major tech giants get ready to debut a consumer mixed reality headset capable of video passthrough AR but tempered my enthusiasm by expecting this year to only provide us with details and confirmation of devices to come rather than see a mixed reality headset ship.

What Really Happened

To my surprise, 2022 not only saw tech giants prepare for the launch of VR devices that could also function as AR headsets (most commonly referred to as Mixed Reality headsets), but also saw a number of these devices shipped to users.?

The Meta Quest Pro started to ship on October 25 at a cost of $1,499. XR startup. Lynx began shipping its promising mixed reality headset R-1 to select developers and backers. And ByteDance’s Pico 4 started to ship on October 18 to Europe, Japan & South Korea for €429. All three of these devices feature color video passthrough AR enabling mixed reality.??

Ahead of CES 2023, we also learned that HTC expected to announce a lightweight Meta Quest competitor capable of AR and VR. And Somnium Space teased that its Somnium VR1, a high-end PC VR headset which will have a mixed reality module, will be available for demos at the event in Vegas.

2022 was not lacking in rumors of Apple getting ready to launch an augmented reality device. This year, however, the rumors seemed to have a greater level of focus on mixed reality with job postings, past acquisitions, including content wins with NextVR, just a few hints of the direction Apple may be taking in this space. 2022 also saw reports of Google’s Project Iris, a mixed reality device which may be controlled by rings and bracelets, and Samsung’s re-entrance into the VR market with a “Metaverse” device capable of AR and VR.?

#5 Next-gen optical see-through AR glasses make their way to the enterprise to offer an even greater leap towards the future of work

What I Thought Would Happen

While optical see-through glasses are not yet ready for mass mainstream adoption, they are finding success in the enterprise. I expected 2022 would be a big year for AR glasses in the enterprise as next generation devices, in particular new devices from Magic Leap and possibly Microsoft, enable the future of work.

What Really Happened

Outside of Magic Leap, we didn’t see as much activity in advancements or new optical see-through AR devices for the enterprise as I had expected. We did however see more activity from video passthrough AR and heads-up display devices that were aimed at the enterprise.?

Magic Leap, which recently pivoted from consumer to enteprise, launched its Magic Leap 2 commercially in the U.S. for $3,299. The device is purpose-built for the enterprise with a key focus on comfort, battery life, and a wider FOV. Previous to the launch of the Magic Leap 2, Magic Leap had worked with companies like Cisco, SentiAR, NeuroSync, Heru, Taqtile, PTC and Brainlab to give them early access to ready software for the device.?

Despite the advancements in AR technology, the market wasn't without its challenges. In 2022, reports emerged that Microsoft's HoloLens 3 “was dead” as its mixed reality vision failed to meet expectations. This was followed by the departure of HoloLens chief Kipman which left many to wonder about the future of Microsoft's metaverse strategy. However, the year ended with Microsoft later announcing that they were still working on HoloLens 3, but stated that it had to be a "meaningful update" for its next-generation device to be released to the market.?

Lenovo launched a new enterprise device with its ThinkReality VRX Headset. The VR device features a slim and light design and color passthrough cameras for AR interactions all geared towards enterprise use. RealWear raised $23.5M to turn its successful industrial wearable into a high growth assisted intelligence platform business and also shipped the world’s first hands-free, voice-controlled thermal camera. And we also saw new devices from Epson, Canon and Vuzix.?

#6 Spatial audio becomes the default listening experience creating the necessary foundation for its use in AR

What I Thought Would Happen

Immersive experiences can not be fully immersive without being multi-sensory. While the main focus for augmented reality to date has been on visuals, the opportunity to elevate AR experiences by using more of our senses is right around the corner. And it will start with audio. In 2022, I expected spatial audio to become the new default audio experience for music and entertainment. I also expected to see more tools to equip developers with what they need to add spatial audio to their AR experiences, along with new AR content that features spatial audio. Finally, I also anticipated seeing next-gen hardware which would personalize the audio experience, making the spatial audio listening experience feel even more real.

What Really Happened

In 2022, spatial audio did indeed start to become the? default listening experience for many users, thanks to its growing popularity among streaming services and device manufacturers. Apple stated that spatial audio had become a hit and was drawing more listeners to Apple Music. Apple's new AirPods Pro featured a H2 chip and personalized spatial audio and an iOS 16 feature was also introduced that scanned users' ears to give them better spatial audio. Google, too, added spatial audio to its Android 13 operating system, which was shipped to Pixel devices. Netflix began using new Ambeo spatial audio technology from Sennheiser to enhance the viewing experience for its users. And Disney+ brought Dolby Atmos spatial audio to its programming.

Spatial audio was touted as the “next revolution in audio” and “the soundtrack of the metaverse” in many reports. Meta's latest auditory AI promised a more immersive AR/VR experience. Niantic and Sony announced a collaboration in Audio AR, starting with Ingress. Google presented its new open media formats and made big investments in audio, hinting at its ambitious plans in this space. And Qualcomm also doubled down on augmented reality and spatial audio updates.?

New hardware was also adopting spatial audio as a core feature including LG's T90 true wireless earbuds deliver spatial audio using Atmos and Dolby Head Tracking at $230 and Mercedes-Benz was the first to roll out Apple Music's Spatial Audio in cars to name a few.

Infrastructure

#7 AR and VR finally get the connectivity it needs but newer devices will be needed to support it

What I Thought Would Happen

I expected 2022 to be a big year for new types of connectivity that will play a critical role in AR and VR adoption. In particular, I was keeping an eye on the C-Band flavor of 5G, especially its roll out in the USA. In addition to Wi-Fi 6E which also promises faster wireless speeds and lower latencies. One strong signal I was looking for in 2022 was new devices that supported these new connectivity options.

What Really Happened

2022 definitely saw major leaps in connectivity but we still have a ways to go for 5G to realize its promise in unlocking next level AR and VR. In the US, T-Mobile expanded its 5G coverage to 260 million people, while AT&T and Verizon used C-Band frequencies to catch up wading through issues with the FAA which caused a delay in plans for a roll-out.?

Companies such as Meta, Motorola, Verizon, Telstra, Google, Accenture, and Ericsson Emodo all showcased projects, such as AR wayfinding, AR advertising, and AR gaming, which featured the high-speed and low-latency provided by 5G networks.?

Telstra, Google, and Accenture developed 5G powered augmented reality wayfinding experiences at Marvel Stadium in Australia, which would allow visitors to navigate the stadium with ease and find the information they need quickly. Ericsson Emodo launched the first 5G-Powered augmented reality ads for mobile advertising, which allowed customers to interact with products in a more realistic way. UK’s EE brought a 5G enabled AR experience to its consumers called The Green Planet AR Experience, which allowed users to learn about the environment and the importance of conservation in a more engaging way. Verizon announced an interactive AR game for 5G, which would allow players to engage with the game in a more realistic and immersive way. And T-Mobile expanded its accelerator program, building 5G AR experiences for smart glasses.

We also saw new devices offer these new connectivity options including Wi-Fi 6E as expected. Notably Apple's M2-powered iPad Pro offers WiFi 6E to enable next level gaming on the device. Meanwhile, Qualcomm announced how it is revolutionizing home networking with its Wi-Fi 7 Immersive Home Platforms, which allowed for a more seamless and immersive gaming experience at home. And Motorola and Verizon demoed a "5G collar" for VR and AR devices such as the Lenovo ThinkReality A3 to enable XR streaming and local apps.??

Platforms and Tools

#8 WebAR content development will be in high demand this year driven by a need to spatialize 2D websites and usher in a brand new spatial web

What I Thought Would Happen

Browser-based augmented reality content has been growing steadily for the past couple of years but I expected development of web-based AR content would be in even higher demand in 2022. When it comes to AR on the web, I was eyeing two opportunities: the spatialization of 2D websites where 3D/AR web content is used alongside traditional media formats and the development of 3D/AR-first websites. I anticipated that this demand would be met by development platforms which offer a robust toolset to create interactive, cross-platform AR-enabled websites and a growing developer and designer ecosystem with the skills and experience to create meaningful content.?

What Really Happened

In 2022, browser-based augmented reality and virtual reality saw some significant advancements as several companies and platforms introduced new tools and features to improve the development and user experience.

One major development was the acquisition of WebAR development platform, 8th Wall, by Niantic. This acquisition allows Niantic to integrate its "Real-World Metaverse" into WebAR through 8th Wall's technology. In 2022, 8th Wall introduced a number of new features including Absolute Scale, a feature that allows for more accurate measurements of virtual objects in WebAR experiences, Sky Effects, a tool that turns the sky into a canvas for WebAR, Niantic Lightship Maps for Web, enabling the creation of detailed 3D maps of real-world locations for use in WebAR experiences as well as demonstrating the use of generative AI to create WebAR content. Additionally, 8th Wall expanded its developer ecosystem with new plans and monetization tools as well as introducing a new Modules capability to its Cloud Editor to accelerate the creation of web-based immersive experiences.??

Snap announced it will be using Camera Kit as a way to boost its AR offerings on the web. Zappar and echo3D partnered to optimize 3D asset streaming for WebAR experiences built in Unity, and Geenee AR and Stable Diffusion integrated AI to generate Web3 content for use in AR experiences. Blippar celebrated one year since the launch of its WebAR SDK by enhancing its GPU SLAM and marker tracking capabilities. The company also announced an integration of its WebAR SDK into Unity. RealityBLU introduced a portal builder that allows marketers to use WebAR and QR codes to take viewers to various locations.?

Meta also moved the needle in the browser in 2022. Websites now have the ability to add a link to launch a WebXR experience on the Oculus Quest. And Meta Quest’s video passthrough AR is available in the browser as demonstrated on the Quest Pro with the Spatial Fusion demo created by Nexus Studios and Lusion.

In other browser news, Apple is rumored to be considering dropping the requirement for iPhone web browsers to use WebKit, and there is also evidence that Apple is planning to support WebXR in its latest iOS beta. Chrome 106 Beta introduced new CSS features, WebCodecs and WebXR improvements, and more. Mozilla retired its VR version of Firefox, but Firefox Reality Browser moved under new stewardship and is now called Wolvic.

Demand for WebAR content was also at a new high in 2022, with 8th Wall reporting that its platform has now powered over 2,000 commercial branded experiences to date. 8th Wall’s Discovery Hub, the single largest destination of WebAR content on the Internet, also continues to grow with branded and first-party content added daily to the catalog.?

#9 Cross-platform development tools enable immersive content to be built once and deployed across smartphones, computers and headsets

What I Thought Would Happen

With headset adoption on the rise, and computers and smartphones continuing to become more powerful AR machines, developers have more devices than ever to reach and engage users with content. As such, developers will be looking for cross-platform solutions and tools that enable them to build once and deploy everywhere. I expected in 2022 we would see developers look to platforms that offer cross-platform content creation. In addition, I was keeping an eye out for new types of content launched that make use of these various device categories including multi-player content that allows users on different devices to play together.

What Really Happened

While we did see a number of VR apps feature cross-platform play (Among Us VR as an example) and solutions announced for making content available across various platforms, I would not say that this trend materialized exactly as I had envisioned in 2022.?

Perhaps one of the biggest cross-platform announcements was from HTC Vive with the announcement of the Viveverse. The Viveverse is an open-source VR metaverse composed of various interactive worlds, apps, and games which is accessible via a smartphone, PC, tablet, and the company’s new Vive Flow VR glasses.

Meta also recognized the importance of cross-platform development and inclusivity and updated their avatars accordingly. This included the introduction of new features that allowed avatars to be customized to better represent a wider range of users. It is also making its avatars available for third-party apps via an SDK.??

Meta also joined Unity, Epic Games, Microsoft, NVIDIA, Qualcomm and others joined the Metaverse Standards Forum, a group that is creating open standards for all things metaverse, including virtual reality, augmented reality, and 3D technology.

Neal Stephenson, who coined the term “Metaverse”, launched his startup, Lamina1, whose main focus is building an open metaverse. Lamina1 released a paper providing a roadmap for creating a virtual world that was accessible to all, regardless of the device or platform being used.

Lastly, Fortnite studio Epic Games developed a metaverse programming language, Verse, which allows for the creation of immersive experiences that could be deployed across multiple platforms. Epic’s move aims to encourage a more unified metaverse and make immersive content more accessible to a wider audience.

#10 Developers and creators get access to more advanced tools to create complex and contextual AR experiences that take AR to the next level

What I Thought Would Happen

In 2022, I was keeping an eye out for platforms equipping developers and creators with advanced tools such as spatial maps and anchors, semantic segmentation, and real-time APIs which could be used to create experiences that better use the environment, objects and people in the AR scene. I anticipated that we were on the brink of ushering in the next-generation of AR content which would mark a fundamental shift for AR, moving it from using any place, any face and any thing to requiring a specific place, specific face and specific thing. In turn, this would result in AR content that feels more personal, has a greater connection to the physical world making it feel more real and may also encourage AR to be shared between users making AR feel less lonely.?

What Really Happened

In 2022, developers and creators had access to more advanced tools to create complex and contextual AR experiences. Specifically, we saw major activity in tooling that anchors AR content to the physical world, enabling developers to create AR experiences that can only be engaged with at certain locations around the world.?

Google announced its ARCore Geospatial API for building Augmented Reality experiences in real-world locations in 87 countries. Niantic, the company behind the popular game Pokémon Go, also made significant strides in the AR space. They launched its VPS: Visual Positioning System for location-based, multi-user AR for its Lightship platform. This system allows for highly accurate and precise location tracking, making it possible to create AR experiences that are tightly connected to specific locations in the real world. Niantic also brought Lightship VPS to the Web via its web-based augmented reality platform, 8th Wall, allowing developers to create location-based WebAR experiences that work in the browser. Snapchat also introduced a new feature that let creators build AR experiences for landmarks in their communities.?

Beyond location, platforms were also updated to enable new and innovative AR experiences. Snap also announced new augmented reality tools and camera features including Lens Cloud, Snap offered back-end services for its developer platform, making it easier for developers to create even more robust AR experiences on the Snapchat platform. Meta also introduced new creative tools to Spark AR Studio, enabling more advanced effects. Meta also introduced a new suite of developer tools for its headset called the ‘Presence Platform’, which allows developers to create and publish AR experiences for the Meta Quest Pro. Niantic’s Lightship platform ARDK, also saw an update with features such as Playback Support, People Segmentation and more. While Niantic’s 8th Wall platform brought Sky Segmentation to the web—a first for the browser. And MediaPipe made two new highly optimized body segmentation models available in TensorFlow.js.?

In addition to all these advancements, Apple also integrated its U1 chip with ARKit in the iOS 16 update. This chip allows for more precise location tracking and makes it possible to create even more immersive and interactive AR experiences.?

#11 More capture stages, advancements in software, and solutions aimed at the mainstream set volumetric video up for its best year yet

What I Thought Would Happen

I expected that in 2022 we would see continued growth in volumetric video with more capture stages appearing around the world, advancements in capture hardware and software, and a distinct focus on bringing volumetric video and 3D capture to the mainstream. I also anticipated a major increase in commercial use of volumetric capture stages as the entertainment and advertising industries return to normal and look to create content for campaigns.

What Really Happened

In 2022, the field of 3D scanning saw significant growth and investment. One notable example is the volumetric capture startup Tetavi, which raised $15 million and rebranded to meet the increasing demand for its technology. This funding will be used to expand the company's capabilities in creating high-quality volumetric video and holographic content. Arcturus also announced a raise in 2022 of $11 million to expand its HoloSuite volumetric video platform. This platform allows creators to capture and stream high-quality volumetric video content, which is expected to play a major role in the future of 3D content creation.

2022 saw an increase in the availability of volumetric capture stages worldwide with new capture stages in Canada and Finland to name a few. These stages are used for capturing 3D scans of people and objects, which can then be used in a variety of applications such as animation, special effects, and augmented reality and virtual reality.

With the advancements in mobile technology, the ability to create 3D models using smartphones is becoming more widely available. For example, Epic Games, a leading game development company, made a mobile app that turns photos into 3D models. This app makes it easy for anyone to create 3D models of objects, people, and even entire scenes using just a smartphone. Similarly, Apple also released the RoomPlan API, which allows users to empty a room of furniture, ready for augmented reality shopping.?

AI is also playing an important role in democratizing the 3D creation pipeline. Companies like NVIDIA and OpenAI are working on creating AI models that can automatically generate 3D models from 2D images and simple text prompts. NVIDIA's Magic3D and OpenAI's Point-E system can generate 3D models from text, with the aim to make it possible for anyone to create 3D models without any prior knowledge of 3D modeling.

Finally, 2022 was a big year for NeRF. NeRF (Neural Radiance Fields) is a machine learning model for 3D object reconstruction, developed by researchers at Google. It can take 2D images of an object from various viewpoints and use them to create a 3D representation of the object, which can be used in applications such as augmented reality and robotics. Popular scanning apps, Luma AI and Polycam both saw updates to support NeRF last year.?

#12 Platform players focus on creating value and nurturing success for developers and creators in addition to competitive toolsets

What I Thought Would Happen

Creators and developers are at the heart of the AR ecosystem. As the demand for AR rises, so too do the opportunities for creators and developers. With a variety of platforms now available for this community it has increasingly become important for major players in the space to focus as much on the growth, health and overall success of its developer and creator community as it is to provide quality tools and support to enable AR content creation. I expected that 2022 would be a major year for creator and developer value. In particular, I was keeping an eye out for programs that help developers and creators find business, direct to creator monetization tools and other ways to help AR creators and developers thrive.

What Really Happened

In 2022, platform players indeed put a consertive focus on creating value and nurturing success for developers and creators by offering new monetization tools, discovery capabilities and access to users.?

Niantic’s 8th Wall expanded its developer ecosystem with new plans and monetization tools geared towards enabling developers to build a business with its web-based augmented reality platform.?

Snapchat also added new monetization programs, including Spotlight Challenges, for its creators. This feature allows creators to participate in challenges and competitions set by brands, and be rewarded for their efforts through financial compensation or other incentives. Additionally, Snapchat introduced a marketplace for creators to connect with brands, providing new revenue streams for content creators. This marketplace allows brands to search for and connect with creators who align with their target demographic, and also allows creators to gain access to a wider audience. Snapchat is also testing a new feature that allows creators to monetize their content through in-app purchases.?

Meta rolled out new monetization tools on Instagram and Facebook, including a creator marketplace. This marketplace allows creators to connect with brands and monetize their content, including digital AR collectibles.

TikTok joined the AR creator party by launching its own AR development platform, Effect House. This platform allows creators to develop and share their own AR effects, providing new revenue streams and opportunities for creators to showcase their talents.

Consumer Solutions

#13 Display ads enter the next dimension with new formats that immediately engage consumers with personal and meaningful brand experiences

What I Thought Would Happen

In response to the sea change occurring in digital advertising and building off of the years of social AR and WebAR use in marketing, I expected that in 2022 we would see new opportunities for advertisers including new 3D and AR ad formats which engage users in new and meaningful experiences.

What Really Happened

While 3D/AR ads did see movement in 2022, display ads have yet to completely enter the next dimension. One of the key developments in this area was the growing use of AR in social media advertising. Instagram, for example, tested out new ad options that included placement in the Explore section and interactive AR displays. TikTok also introduced AR effects for brand ads, allowing companies to create more immersive and engaging experiences for users.?

Snapchat also made notable advancements in the use of AR for e-commerce ads. The platform introduced new features that allowed advertisers to create augmented-reality shopping experiences, and shared new data on how AR and camera ads could help boost campaign performance. Snap and Magna Media also conducted trials to study the role of AR ads in the consumer purchase journey.

Ericsson’s advertising arm, Emodo, announced a partnership with 8th Wall, now a part of Niantic, which would see the introduction of embeddable AR ad types offered to marketers and agencies without additional apps. The partnership equips advertisers and publishers with the capability to place WebAR content inside ad units directly alongside publisher content. The 8th Wall powered WebAR ad experiences are distributed through Emodo’s ad supply chain and audience targeting solutions.

Another trend that emerged was the use of 3D advertising as a stepping stone towards the metaverse. Twitter and Meta both increased their use of 3D ads, with Twitter pilot testing new ad formats and brands like New Balance experimenting with the platform's first 3D product ads. Roblox also announced plans to expand its advertising efforts with the use of 3D portals to branded experiences. In addition, Meta inked a partnership with VNTANA to create 3D ads as a step towards the metaverse, highlighting that the trend of using 3D and AR advertising is not only limited to social media platforms but also in the gaming industry.

#14 The rise of always-on connected packaging creates a new relationship between users and products where AR is an expected added value

What I Thought Would Happen

In 2021, we also saw a number of brands take advantage of WebAR campaigns triggered by QR codes on packaging. I anticipated that we would continue to see more on-pack AR marketing from brands in 2022 but also expected to begin to see the rise of always-on connected packaging. This shift would make the QR to AR experience a core staple for products which, when scanned, will unlock a revolving series of AR content available at all times. This consistent offering would, in turn, establish a powerful new relationship between consumer and product where consumers will begin to expect an AR companion as part of any product experience.

What Really Happened

We saw many brands activate their packaging with AR to enhance the consumer experience and provide a unique form of engagement especially. Much of this always-on connected packaging experience was driven by web-based augmented reality which offers interactive AR for users without the need to download an app.?

Warner Bros Pictures brought the DC League of Super-Pets characters to life through Amazon boxes using 8th Wall. Specially marked Amazon boxes featured QR codes which triggered the WebAR experience and when the camera was pointed at the box itself, the stars of the film, Krypto and Ace, burst out of the box to showcase their superpowers.?

Dove also launched connected packaging experiences in 2022 with three different WebAR experiences for their three products tailoring each piece of 3D content to reflect the unique properties of each product.?

Coca-Cola used WebAR for a number of AR experiences which were activated directly from their products. Coca-Cola collaborated with Tomorrowland on an AR concert experience for the release of Coca-Cola Dreamworld. And also launched an out-of-this-world WebAR concert for the release of Coca-Cola Starlight with Ava Max.?

In addition to these campaigns, we also saw a number of wine, spirits and beer brands incorporate AR into their packaging. Tito's Vodka also used AR packaging to mark their 25th birthday, De Bortoli Wines' Sinister AR Collection was an innovative way of promoting their wines, Chronic Cellars introduced a new augmented reality experience, and 19 Crimes “uncorked a harmonious blend of AR and Martha Stewart” with its latest product. SingleCut Beersmiths Ernest Hemingway's Classic rum, Desperados and Corona Extra also debuted AR experiences connected to the product.?

#15 Live broadcast and connected TV use AR to bring the flat screen experience into the metaverse

What I Thought Would Happen

In 2022, I was keeping an eye on two major opportunities to create a bridge between television and the metaverse through the use of augmented reality. The first was the use of immersive video for live events, often called broadcast AR, which would transform the viewing experience into something out of this world. The second was the launch of companion AR experiences for programming which would bring the content viewers are watching beyond the screen and into their homes, potentially triggered by QR codes or in-app experiences.

What Really Happened

In 2022, live broadcast and connected TV continued to use augmented reality (or broadcast AR) to revolutionize the traditional flat screen experience. One of the major highlights of the year was when Fox NFL Sunday debuted a groundbreaking new XR/AR studio, which aims to bring a new level of immersion for viewers. The studio is equipped with state-of-the-art technology that allows for live AR integration during the broadcast, giving viewers a unique and interactive experience. Nickelodeon also joined the fun by creating an AR-infused special NFL Nickmas Game, which was a slime-filled good time for fans of all ages. The game featured slime-covered virtual players and slime cannons that shot virtual goo into the stands, making for a truly unique and entertaining experience. Gillette also jumped on the AR bandwagon during Monday Night Football. The company showcased a stadium renovation and their latest razor with a mixed reality segment, which gave viewers a glimpse of what the future of the stadium could look like and how their product could enhance the overall experience.

The MLB, NBA and FIFA also used AR as part of their games in 2022. For the MLB All-Star Game, the league honored Jackie Robinson with a special mixed reality segment, which featured a virtual replica of Robinson on the field, along with some of his historic moments. This gave fans a chance to relive some of the most iconic moments in baseball history and pay tribute to one of the sport's greatest players. The NBA used AR to add an extra layer of excitement to their 75th anniversary tribute. The league added AR diamonds to the broadcast, which appeared to float around the court during the game, creating a mesmerizing effect for viewers. And the FIFA World Cup Qatar 2022 introduced new broadcast AR features and an AR app to get the viewer closer to the game than ever before

Music festivals and concerts were also quite active in the use of AR to take the experience to the next level. Coachella and Flume embraced live concert AR, which allowed fans watching via YouTube to experience the concert in a whole new way. The concerts featured virtual characters and effects that appeared to be on stage alongside the real-life artists, creating an immersive and interactive experience for viewers.?

In addition to using broadcast AR to take the live viewing experience to new heights. We also saw many networks and TV shows pair AR as a powerful AR companion. Disney+ also released its first AR-enabled short film, "Remembering," starring Brie Larson. The film used AR to create a truly immersive experience, allowing viewers to see the story unfold in a new and unique way. NBC and Verizon also brought fans into the series "La Brea" with an augmented reality experience that was triggered from a QR code on screen. The AR feature allowed viewers to see the characters and locations in a whole new way, making for an even more engaging and immersive viewing experience. Finally, adidas delivered Messi to fans' living rooms ahead of the World Cup Final. The brand used WebAR to create a virtual version of the soccer star, which appeared in fans' living rooms, allowing them to interact with him and even play virtual soccer together.

#16 AR experiences anchored in space incentivize users to safely return to parks, stadiums, malls, museums and more

What I Thought Would Happen

With the world opening back up in 2022, I expected there would be a growing focus on AR consumer experiences that encourage people to safely return to places. I was specifically keeping an eye out for shared, persistent, AR experiences anchored in parks, stadiums, museums, and malls which would showcase what has been referred to as ""the real world metaverse"". These contextual experiences make greater use of the environment, people and things at the location they take place in which will make them feel more rooted in reality and therefore more meaningful and real.

What Really Happened

In 2022, we did see many augmented reality experiences anchored to spaces which transformed everyday locations into extraordinary destinations.?

Snapchat’s custom landmark capability enabled spaces at Cannes Lions Festival, Disney, LEGO, and at music festivals this past year. Vogue and Snap teamed up at the Cannes Lions Festival with a custom fashion AR exhibition. Snap and Disney teamed up to create an AR Cinderella Castle mural at Disney World. Snap also partnered with Live Nation to launch AR experiences at select concerts and festivals including launching four augmented reality lenses at EDC. Other Snap custom landmark partnerships included a LEGO AR Lens in central London, and a location-based AR Lens for the premiere of ‘House of the Dragon’ with HBO.

The Gorillaz turned the world into a stage with augmented reality powered by Google’s Geospatial API. This AR experience allowed users to witness a virtual performance of the band in New York and in London.?

Coca-Cola transformed USC campus vending machines into spooky phygital treat centers for Halloween with Niantic’s Lightship VPS for Web. "The Coca-Cola Halloween Collection" was a WebAR experience that transformed actual vending machines around the campus into virtual treat dispensers. This web-based experience enabled students to fill their trick-or-treaters bags with digital and physical items found in select vending machines including AR masks, NFTs, apparel, concert tickets and more.

#17 Scalable AR solutions transform e-commerce across a wide cross-section of industries

What I Thought Would Happen

I expected that in 2022 we would see significant adoption of AR for e-commerce as more retailers integrate AR as part of their online retail offering. I anticipated that the rise in AR-commerce in 2022 would be facilitated by new development tools, especially those that enable a scalable, production-grade AR commerce solution. While I expected most of the AR activity in commerce would be spatializing existing e-commerce sites with 3D/AR content, I was also anticipating some brands to create spatial-first stores, either in existing virtual worlds or on their own.

What Really Happened

As expected, we saw many new retailers adopt AR as a compelling way to engage shoppers online as they make their way through the purchasing funnel including Amazon, Walmart, H&M, Pinterest, Society6, Puma, Avon to name just a few. This will position these retailers well for the demand for AR in shopping as demonstrated by a report from which saw 92% of Gen Z consumers want to use augmented reality tools for e-commerce.

In addition, we saw a number of platforms make significant launch announcements to equip developers and retailers with the tools they need to make AR a core offering of their e-commerce destination. Avataar launched an AR e-commerce integration for online retailers, Snap expanded its e-commerce solution for brands with new AR tech, Perfect Corp launched a new NFT solutions with its AR virtual try-on capabilities, QReal Launches TRYO Virtual Try-On Platform, and Threekit Launches its Immersive Shopping Suite. Niantic also showcased how its web-based augmented reality platform, 8th Wall, can be used to integrate with existing e-commerce websites to take the shopping experience into the next dimension.?

Many brands also created spatial-first stores, either in existing virtual worlds or on their own. A study showed that 70% of consumers who have visited a virtual store have made a purchase, according to a survey by Obsess. Bloomingdale's went “all-in on the metaverse” with its own virtual store. Tommy Hilfiger opened a 'Tommy Play' store in Roblox. Coach, Crocs, Lindt, Laura Mercier, Lacoste, Walmart, Claires and Samsung were among other brands which created virtual stores in virtual worlds such as Roblox and others in 2022.?

#18 The avatar wars heat up as consumers choose to embody their online identity with digital characters and look for ways to personalize them

What I Thought Would Happen

The avatar wars have begun. The race to have you create and invest in a digital self is already underway. I expected avatars to be a serious trend in 2022, especially as more metaverse experiences become available for us to use them in. I anticipated we would see a growing importance to create a digital double and new ways to use it including spending money on goods and experiences for our digital self and AR experiences. I specifically was keeping an eye on the use of PFPs, the use of avatars in virtual worlds and the other 3D/AR experiences which require our digital self in 2022.

What Really Happened

The avatar wars did indeed heat up in 2022. We saw significant avatar activity from a number of major players last year including Meta, Snapchat, TikTok, Zoom, and Microsoft, as well as leading cross-platform avatar startup, Ready Player Me.

One of the biggest moves was from Meta which launched its Avatar Store introducing a wide variety of avatars for consumers to choose from. These avatars were designed to be highly customizable including the use of digital outfits to purchase from Balenciaga, Prada and Thom Browne, along with our existing free outfit options. Meta also added 3D avatars to Instagram Stories, with updates for Messenger and Facebook. In VR, Meta updated Horizon Worlds with new monetization tools that will allow select creators to sell virtual items and effects within their custom worlds including digital clothing and accessories for avatars. But perhaps the biggest announcement from Meta in 2022 was that the avatars in Horizons were getting legs in addition to an SDK so that its avatars can be used in third-party virtual reality experiences and other apps.?

Snapchat also joined the trend, adding new assistive devices for Bitmoji avatars, including hearing aids and more. They even partnered with Adidas for an exclusive Bitmoji Fashion Drop. Other companies like Lensa AI climbed the App Store charts as its magic AI avatars went viral on TikTok and other social feeds. TikTok itself launched custom avatars to rival Snapchat’s Bitmoji. While Zoom took on Apple’s Memoji with a new virtual avatar feature for video calls. Additionally, Microsoft introduced Mesh avatars for Microsoft Teams in private preview, which gave users even more options for personalization.

The trend of digital avatars was not limited to just social media and communication platforms. Brands and companies saw the potential for avatars in the metaverse and how they could be used for branding and communication. Prada even launched a collection of virtual fashion for avatars, showing how avatars could be used in the fashion industry. And L’Oréal premiered virtual beauty looks on its first ever multi-brand beauty partnership with metaverse avatar platform, Ready Player Me.?

Ready Player Me, a platform to build dynamic cross-game avatars for virtual worlds, raised $56M led by a16z. Ready Player Me also launched an API for avatar interoperability, making it easy for users to use their avatars across different platforms. 8th Wall and Ready Player Me also partnered to bring custom, interactive avatars into web-based Augmented Reality experiences.

#19 AR brings virtual goods and NFTs into the physical world giving them value outside of the digital world

What I Thought Would Happen

We saw a virtual economy surge in 2021 thanks to the rise of NFTs. While these purchases were made for use in the digital world, AR can be used to give these virtual goods tangibility and use in the physical world. In 2022, I was keeping an eye out for the use of AR to bring your NFT into the real world whether that was placing your NFT on your wall or bringing your NFT into your world space for you to take selfies and interact with. I was also anticipating that AR would be used as part of the roadmap for NFT collections to entice collectors. Finally, I anticipated the rise of digital-only fashion as a key category in virtual goods which can only be experienced using AR including AR activated from physical apparel.

What Really Happened

As expected, AR did indeed bring tangibility to NFTs in 2022 in a variety of ways. Notably, RTFKT and Nike launched an AR-enabled hoodie which was purchased as an NFT and unlocked an AR effect triggered from a QR code found directly on the physical hoodie. Theta Labs partnered with Sony to also use an innovative way to bring NFTs into the real world. Together they launched 3D NFTs that were compatible with Sony’s Spatial Reality Displays, to bring digital collectibles to life in a physical space. And an exhibition in San Francisco, VERSES, used AR to let attendees explore the "art of the future" by showcasing NFTs in the physical location using mobile AR and Microsoft HoloLens 2.?

A number of NFT collections featured AR as a major benefit. Warner Bros. launched a limited edition NFT collection for the? "Lord of the Rings: The Fellowship of the Ring'', a first for the studio. NBCUniversal and VARIENT3D’s limited-edition clothes come with a minted NFT of a chosen character, collectable patches, an augmented reality (AR) try-on lens for Snapchat, and a wearable digital twin of their item for metaverse platforms powered by Ready Player Me. Deadmau5's Pixelynx launched its NFT scavenger hunt game, Elynxir, with a kick-off in Miami, challenging players to collect fractionalized NFTs which can help shape the future of a virtual musician. Geenee AR launched a web3 AR game "NFT All Stars”, which enables play from a variety of select NFT avatar collections. And Jadu prepared for its AR metaverse by launching over 10,000 NFT avatars it calls AVAs.?

Meanwhile, platform players were also enabling AR-enabled NFTs. Snap began testing turning NFTs into AR Snapchat lenses, bringing digital collectibles to a whole new level of interactivity. Perfect Corp launched a new NFT solution with AR virtual try-on capabilities. Meta introduced its digital collectibles capabilities. And Dropp GG raised $8 million to develop a platform that allowed users to mint, view, and purchase NFTs in the real world using AR.?

Enterprise Solutions

#20 AR continues to transform remote work solutions by enhancing and enabling meetings and collaboration

What I Thought Would Happen

Full or hybrid remote work has become the new normal for many organizations. This has increased demand for solutions which can keep teams connected and productive. While existing technologies may be sufficient in helping us do work, digital tools have yet to replicate the in-person connection, team building and collaboration that occurs when in the office. In 2022 I expected we would see an increased adoption of cross-platform meeting and collaboration software which make use of VR and AR devices to bring people together and help them feel more present. I was also keeping an eye out for AR use in 2D video conferencing calls, anticipating major video conferencing solutions will give users even more AR tools to modify their video feed, including the use of avatars in lieu of our real world selves, in an effort to make users feel more comfortable and present on video calls.

What Really Happened

In 2022, AR and VR technologies continued to transform remote work solutions by enhancing and enabling meetings and collaboration. Companies like Microsoft, Cisco, Google, Meta, and Alibaba, among others, made significant strides in this area.

Google's 3D chat booth, Starline, provided users with a futuristic look at making virtual meetings feel more like in-person interactions with the use of a light field display. Cisco also shone a light on its hologram capabilities in Webex in 2022 featuring the use of its hologram solution for the Magic Leap 2 and Microsoft HoloLens 2 by The McLaren Formula 1 team.

Microsoft Teams and Zoom support was added to a number of headsets in 2022 demonstrating a focus on cross-platform support. Microsoft brought full Teams integration to its HoloLens 2, allowing for more seamless meetings and collaboration in a virtual environment. RealWear also announced integration of Microsoft Teams into its HMT-1 Augmented Reality headsets for frontline workers. Meta added both Zoom and Teams support to its Horizon Workrooms. And Vuzix launched support for Zooms as part of an app in the Zoom App Marketplace. Zoom also launched avatars, allowing users to take on the form of a virtual animal in meetings.?

Both Webex and Microsoft Teams added 3D content creation to the mix of capabilities for its solution. Webex featured its integration of Vection Technologies' 3DFrame with its teleconferencing solution to allow for the creation of 3D virtual environments in Webex meetings. While Blippar announced its integration with Microsoft Teams to allow users to create AR content.?

Meta also introduced Meta Accounts and Meta Horizon Profiles for VR, allowing users to access Workrooms without the need for a Facebook account. Meta also updated Horizon Workrooms to offer users the ability to work on the beach or other exotic locations.

Finally, Alibaba was reported to be launching AR glasses for its DingTalk messaging app, whose user numbers exceeded 500 million, which aims to make the workspace more immersive.?

#21 Military, manufacturing and healthcare continue to be key targets for optical see-through AR glasses

What I Thought Would Happen

Smart glasses have been busy at work for a number of years now. While the majority of these rollouts are using monocular heads-up displays enabling what is often called "assisted reality", some industries are also using more robust augmented reality glasses to upskill their team. In 2022, I was keeping watch on the AR enterprise space, specifically looking out for activity in the military, manufacturing and healthcare industries.?

What Really Happened

In 2022, the military, manufacturing and healthcare industries continued to actively invest and experiment with the use of optical see-through AR glasses in various ways. As always with the enterprise space, most of the activity is behind closed doors but here are just a few of the major announcements reported last year.?

In the military sector, most of the focus was on the Microsoft HoloLens contract which would see Microsoft produce and deliver approximately 120,000 IVAS devices under the contract, worth approximately $22 billion. Reports early in the year suggest that the device was not sufficient enough for use from early tests. But the year ended with a small batch of IVAS (Integrated Visual Augmentation System) devices expected to go on a mission in 2023. Additionally, the US Military was reported to be building its own metaverse.

In the manufacturing industry, Lowe's partnered with NVIDIA and Magic Leap to create digital twins and implement AR in its stores. And TeamViewer and SAP joined forces to digitize warehouse operations with augmented reality.?

In the healthcare industry, Apprentice.io, a company that provides augmented reality tech for the pharmaceutical space, received $100M in funding. Magic Leap granted access to its new AR headset to healthcare startups prior to its mid-2022 release. ThirdEye brought mixed reality technology to first responders through a partnership with Crozer Health. NuEyes and Samsung collaborated to create an AR solution for healthcare. Novarad announced a strategic alliance with a network of neurosurgical and spine distribution partners across the US. Additionally, the FDA cleared an AR system to assist in navigating spine surgeries, and GE Healthcare aimed to bring MediView's AR headsets to X-ray-guided surgeries.

Ethics & Human Impact

#22 As AR gets more contextual, concerns around privacy and safety become an even greater priority to address

What I Thought Would Happen

As AR gets more contextual, using more spatial data to root itself in the people, places and things in the scene, the need for frameworks, regulations and social contracts become an even greater priority. As the adoption of these technologies proliferates and as we get closer to the metaverse, it will become increasingly important for efforts in this area to move from awareness to activation including instituting regulations and guidelines to ensure the privacy, security, and ethics are in place for the immersive scenarios.

What Really Happened

As the metaverse continues to expand and evolve, it's important to consider the impact it could have on our privacy and safety. In 2022, experts and news sources continued to raise red flags, questioning whether privacy and safety can even exist in a virtual world where users are constantly connected and data is constantly being collected. And with the potential for surveillance to follow users into the metaverse, the idea of our virtual bodies being used as data sources is something that needs to be addressed. It's critical that privacy and safety be top of mind as we move into this next wave of computing.?

But it's not just privacy that's at risk in the metaverse. Cyber security threats are a growing concern, as hackers look for new ways to infiltrate virtual worlds and steal sensitive information. Companies are being urged to take steps to address these potential risks as some critics argue that current metaverse platforms lack adequate safety precautions.

It's also worth noting that the negative effects of social media can be amplified in the metaverse. As virtual reality and augmented reality technology become more advanced, the line between virtual and the physical becomes increasingly blurred, making it all the more important to implement safety measures to protect users.

While 2022 was filled with a lot of discourse, we did see some metaverse players take steps to ensure that the metaverse remains a safe and secure place for all users. Some examples include Meta updated Horizon World and Venues to allow users to turn on a personal safety boundary and Rec Room removing access to its limited junior accounts to users 12 and under.?And HTC Vive’s “Vive Guardian”, a new privacy and safety tool for parents and kids to use while exploring the metaverse.

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Thank you for reading!?

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This article was written as an independent piece. The ideas and opinions expressed in this article are mine alone and do not represent any past, present or future organization which I may be affiliated with.?