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TRANSCRIPT
TITLE OF
PRESENTATION
Augmented Reality & Virtual
Reality- Trends & opportunities
January 2019
2
Source : DRAUP
AGENDA
DRAUP viewpoint on AR/VR technology evolution patterns01
The current Landscape of AR/VR players and their critical technology spend areas
03
Potential applications and recommendations to build AR/VRcapability
04
Understanding the AR/VR core technology segments02
3
AR & VR technologies have immense potential to revitalize the global economy
~$22 Billion USDSize of global AR VR market in 2018
~65%Total AR VR spending is constituted by Consumer Electronics, Retail and
Manufacturing segments
~16 Billion# Worldwide spending on AR VR in 2018
2000+Startups in the AR VR space as of 2018
~80,000Engineers working on AR VR Technology as of financial year ending 2018
Source: DRAUP- The platform tracks engineering insights in the Augmented & Virtual Reality ecosystem using our proprietary machine learning algorithms along with human curation. The platform is updated
in real time and analysis is updated on a quarterly basis
4
Ontology of Augmented Reality, Virtual Reality and Mixed Reality
Augmented Reality (AR) Virtual Reality (VR)Mixed Reality (MR)
PHYSICAL REALITY
DIGITAL REALITY
Real world with digital
information overlay
Completely digital
environment
Merges the physical and
digital worlds
Fully enclosed, synthetic
experience with no sense of real
world
Interaction with and
manipulation of both the
physical and Virtual environment
Real world remains central to the
experience, enhanced by virtual
details but users cannot interact
with virtual objects PokeMonGO Microsoft HoloLens Google Cardboard
Source : DRAUP Analysis as well as primary inputs from interviews with digital stakeholders and DRAUP’s existing customers
5
AR/VR industry has seen high adoption in the consumer segment and has been gathering momentum for the enterprise applications…
Note: Timeline above illustrates landmark events in the Augmented & Virtual Reality ecosystem. The list above is non-exhaustive
Source: DRAUP Engineering Module: Consists of around 180 engineering organisations and nearly 100,000 start-ups working across Automotive, Software/ Internet and other Hi-Tech verticals
Harvard scientist Ivan Sutherlands in 1950s demonstrated the first display of AR allowing the users to project a cube on the
wall
Morton Heilig published first research paper on world’s first immersive VR
system that makes mechanical prototype
Virtual interactive Environment
Workstation (VIEW): Researchers at NASA’s Ames Research Center developed an immersive 3D VR system
for robot teleoperation and HMI research
Lack of development ecosystem :
Widespread use of the internet & Mobile distracts the public from the failed promises of consumer AR VR
Gaming giants such as Nintendo also failed to develop a successful VR product
after a number of R&D efforts
Technology giants started acquiring AR
VR based startups and investing in AR VR based ecosystem to drive innovation
Facebook acquired Oculus for $ 2 bn US,
and then Google, Microsoft, Sony, HTC, Samsung joined the VR movement
Companies like BMW & IKEA started exploring opportunities for industry use
cases
5
4
3
2
1
Early
Application
in industry
~50Players
~1000Players
~300Players
First use case:
Simulation of flight
cockpit
Dark period
for AR VR
Rise of consumer
HMDs
Potential industry
application
Researchers at NASA’s
Ames Research Center
work on a multisensory,
interactive, immersive 3D
VR system
2000-2010 2011-2014 2015-Present1990-2000
• Shift to internet/ mobile
based devices
• Lack of required capability
for AR/VR processing ,
networking and affordable
HMDs
Early Pioneers of
AR VR
Experimental
Period
The
Sensorama:
Mechanical
prototype of
AR VR
1930-1990
• Facebook acquired
Oculus VR for USD $2 bn.
• Google releases Google
cardboard
1 2 3 4 5
Traditional giants from
industries such as retail,
automotive, healthcare have
started exploring AR VR
solutions for better costumer
experience
“The Screen is a window through which one sees a virtual world.
The challenge is to make that world look real, act real, sound real, feel real”
-Ivan Sutherland, 1965
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
6
AR/VR has huge potential to implement solutions where business takes place and decisions are made; This enables the transition from web-based technologies to point-of-user-contact
The transition from client-server
based systems to smart screens was
enabled due to disruption in the
interface technology such as Touch-
enabled displays and Natural
language processing capabilities
Smart screens gave way to Intuitive
interaction which allowed users to
interact with the digital environment
without the need for any physical
device and components
AR and VR has taken this a step
further by offering experiences built
around natural modes of interaction
such as posture, gesture, and gaze,
thus shifting attention from a glass
screen in our hands to the real or
simulated world around us
Messengers
ClickPoint Type
Intermediate devices interact with interfaces; virtually all input
occurs through a mouse or
keyboard.
Smart Screens
SwipeTouch Speak
Screens manipulated based on environment facilitated, direct
physical or spoken interactions
with displays
Intuitive Interaction
Mood Gesture Gaze
Devices respond to ambient cues and intentional movements
to create empathetic,
personalized experiences
Evolution of Digital interfaces
Hardware
Interface Interface
Server
Client
Server Client
Potential Digital
interactions enabled by
AR/VR
Web based Mobility based Simulation based
Digital
Input
Methods
Source : DRAUP Analysis as well as primary inputs from interviews with digital stakeholders and DRAUP’s existing customers
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
7
Reduced network latency, robust network infrastructure and widespread mobility adoption is accelerating the AR/VR technology adoption
Cloud
computing
Fog
computing
Edge computing
ParametersCloud
computing
Fog
computing
Edge
computing
Data Traffic on
cloud
Response time
Data analysis CloudGateway
/RouterDevice
High Medium Low-Medium Low
Reduced Latency for seamless Experience High wireless capacity for 3D visual content
Bandwidth
1 MbpsImage & workflow
downloading
2 to 20 Mbps3D model & Data
visualization
10 to 50 MbpsCurrent-gen 360
degree video (4K)
200 to 5000 Mbps6 DoF Video of free
viewpoint
2 MbpsVideo Conferencing
5 to 25 MbpsTwo-way telepresence
50 to 200 MbpsNext gen 360 degree (8K,
90+ FPS, HDR,
stereoscopic)
Critical for Immersive
experience
Mobility based solutions to enhance AR adoption
Limited by:• Hardware
development
• Privacy & safety
• Lack of
compelling
content
2015 2017 2020 2023 2025
Accelerated UptakeBase CaseDelayed Uptake
Enabled by mobility• Cellular
Advances
• Increased
battery life
$ 175 bn
$ 95 bn
$ 35 bn
AR/VR technology drivers
AR/VR requires processing of rich visual content:
• High resolution, High frame rate
• Stereoscopic, High dynamic range (HDR),
360 degree spherical content, 6DoF
Total addressable market
Smart phone disruption is accelerating AR VR adoption:
• Consumers will not want to be physically tethered to a
PC
• Mobile enabled AR will be viable for field operations
Analysis with primary interview insights from industry digital stakeholders and DRAUP’s existing customers
Source: DRAUP
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
8
What makes up the technology stack?
ProcessorsImmersive VR
GPU
Physical world
input
Sensors Haptics3D lenses3D AudioDisplay
User
Mobile AR/VR Platforms 3D Audio, Video processing SLAM
AutomotiveHealthcareGames Retail/E-Commerce
Hardware
Applications
Processors for immersive VR experiences and for simplifying VR content creation
Industry applications of augmented and virtual reality
Components to capture physical world, provide user interaction, and present digital content in context
AR/VR Foundational technologies
AR/VR Content
Distributers
Platform
AR –VR middleware (enabling software) and native operating system
Memory
(DRAM/SSD)
Processors Components
Computer Vision
Gaming & entertainment verticals have
seen higher adoption of AR VR
technology
Successful inventions such as GO-PRO
Camera and Pokémon Go have reached
10mn+ users within a month of inception
Applications
3D Audio and Haptics sensor
technology helps create an immersive
experience to engage the user deeply
into the AR VR environment
Custom built GPU processor analyses
rich visual content such as 3D graphics
and virtually simulated environment
Platforms help create VR content and
analyse 3D inputs through Image
stitching, Object recognition and tracking
Mobile AR/VR Platforms build on top of
iOS and Android to deploy applications.
They also enable development of
customized user experiences for the end
user
Provide Integration frameworks, Instant
Tracking technology (SLAM), Object
Recognition, Geo-location etc
Platforms
Hardware
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
Note : The list above is non-exhaustive
Analysis with primary interview insights from industry digital stakeholders and DRAUP’s existing customers
Source: DRAUP
Media
9
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
Content Distribution*
Hardware
GPUs/ Processors
Platforms
Sensors: Position/Gesture Tracking Mobile & Hardware Enablement
Video processing/Engine Computer Vision
AR/VR Content Distributors
Head Mount Display (HMD) Mobile based HMD
Mobile AR Platforms SLAM*
*Simultaneous Localization & Mapping
Applications
Full Stack Solutions
Game & Content Content platforms Heavy industry Retail/Ecom Ads
Social
Education
Healthcare
Intensity of players
Dominated by the startups who build verticalized applications for various use cases.
Applications – The Startups Zone
Efforts are focused on building platforms that can then be leveraged by the ecosystem
Full stack solutions – Software internet & Consumer
Electronics giants Domination
The AR VR focused companies can be found providing the infrastructure that enables the rest of the landscape.
Hardware – Semiconductor Domination
Platforms – Software/Internet giants & Start-ups Playground
Large number of Software internet giants are investing in different AR VR technologies
SPACES VOID
Three types of players are accelerating AR/VR innovations: The Tech Mafias, Consumer Electronics companies and Start-ups
Software/
internet
Consumer
electronics
Semicond
uctorStartups
Note: The illustrated list of companies is not-exhaustive
Source: DRAUP Engineering Module: The platform tracks real-time insights and developments in the AR VR Ecosystem such as global engineering footprint, product
launch, Leadership Announcements, M&A, among other essential insights
* Content Distribution companies are not considered in the analysis
10
Currently, more than 2000 organisations are working on AR/VR technology, cumulatively investing nearly $16 Bn to develop and acquire capabilities in emerging areas
2000+Global Organisations
working on Augmented Reality & Virtual Reality related technologies including incumbents, start-ups
START-UPS*
INCUMBENTS
~50
From verticals such as Consumer Electronics
Internet/Software, &Semiconductor
2000+
Start-ups working on AR VR and related technologies
~$5.5 bnTotal VC Fundingreceived by Start-Ups
working on AR VR
technologies as of Aug,
2018
~$16 bnIncludes AR VR technology
spend on In-house1
engineering, Acquisitions and
Corporate VC investment
globally on as of Aug, 2018
*Including start-ups founded after 2005
Source: DRAUP Engineering Module – Includes AR VR companies across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions
1-In-house technology spend: Analysis has been done for organizations till Aug, 2018
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
11
Tech Giants are spending heavily to develop full stack devices such as HMD and Mobile VR platforms to enable the application development ecosystem
USD
~16Billion
Full stack
HMD
Mobile
platforms
Mobile VR
headset
Industry split
Full stack
HMD
Displays/ 3D
Lenses
Gaming VR
headset
Processors Graphics 3D Audio
Incumbents1
(Total technology spend)
Incumbents Startups
45% 40% 10%45%
26%
18%
11%
Consumer
electronics
Semicon-
ductor
Others
Software/
Internet
50% 40% 5%
50%35% 10%
Focussed Spend Areas
Tech mafias led by Microsoft and
Facebook have acquired scaled
startups to build strong capabilities in
this space. Some of the largest
acquisitions are Oculus and Kinect by
Facebook and Microsoft respectively
Microsoft Hololens sold nearly
50000 headsets in the financial year
ending 2018. It is strengthening its
position in the Mixed Reality segment
with an ~1000 member R&D team at
its Washington-based facility
Companies like Samsung with
Samsung Gear VR and HTC with
HTC Vive have capitalised over
mobile VR segment and display
technologies
NVIDIA and INTEL are the largest
players creating specialised CPUs
and GPUs such as Intel Xeon and
NVIDIA Titan X, to enable immersive
experiences
1 Includes investments on In-house R&D, External technology acquisitions, Partnerships and Corporate VC investments in AR VR and related technology areas.Source: DRAUP Engineering Module – Includes AR VR companies across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions
Note: The numbers above are rounded-off, so they might not add up to 100%
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
12
FinTech
Documentation
Retail / Sales
Live Shows / Media
Sales & Marketing
Key Activities and workloads
Working on a VR technology to develop a digital financial advisor that people can interact with using a VR headset, to see the stock performance, financial graph, etc.
Use-Cases Partnership
To support a new AR file format called USDZ (Universal Scene Description) for Apple's ARKit platform. Adobe's Creative Cloud suite of graphic design & image editing software will support the new format.
Ford uses HoloLens system to overlay holographic vehicle designs onto existing clay models to visualize and experiment with design changes in minutes, speeding up design and production processes. Ford has been using the system for the past 2 years at its Dearborn design studios, Michigan.
The duo to build an original VR content, enabling Virtual Reality experiences on YouTube-based shows from NBC Universal and its affiliates. The experiences are produced using Jump, Google's platform for VR video capture that combines high-quality VR cameras and automated stitching.
To create a technology which provides Augmented Reality experiences in makeup try kit using Facebook's camera products. The kit will be the world's first makeup kit powered by AR technology.
Design, Engineering
& Production
BMW uses Google's 3D scanning, depth-sensing technology 'Tango' enabling car shoppers to use their smartphones to view lifelike 3D models of BMW cars against a backdrop of real world, picture it parked in a driveway or garage. They can also customize the virtual car's colour, trim and other options.
Mixed RealityDeveloping a wireless headset that will deliver both AR and VR experiences with Samsung's OLED displays, sensors, and processors & Microsoft's software technology to drive the experience. This partnership is in line with the Apple's secret work to make a MR wearable device.
Industry players are partnering with tech-giants like Microsoft and Apple to deploy vertical specific use-cases
13
45%
31%
16%
8%
Start-ups that provide End-to-End Solutions attract maximum funding from the investors
Nearly 75% of the funding has been
obtained by startups developing full
stack solutions and Applications
Magic Leap has envisioned to create
an AR experience with the most
miniature version of AR screen placed
right in front of the human eye.
It has already raised funding of $2.4
bn from tech giants such as Google
and Alibaba among others
Applications is the most funded
segment among startups. Out of the
110 funded startups, nearly 70%
operate in the Applications space,
and the rest in Platforms and
Hardware
Top funded platform providers such
as Unity, with funding of $ 0.7bn have
developed frameworks and
processing engines to analyse 3D
content for immersive VR experience
AR VR devices are also reliant on
content creators, and have been
rapidly collaborating with content
providers and services
Incumbents Startups
USD 2350 mn
Top funded startups
USD 58 mn
Applications
Platforms
Hardware
Full stack
Solutions
USD
~5.5Billion
Startups
(Total funding)
USD 57 mn
Spend Distribution across the segments
Source: DRAUP Startups Module – Includes AR VR startups across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
USD 46 mn
14
Most funding in Start ups application layer is directed toward Consumer AR/VR with ~56% of funding directed to Gaming and 3D Content Creation Platforms
Incumbents Startups
Consumer Applications
Industry Applications70%30%
Consumer Applications
Enterprise Applications
45%
35%
15%
5%
Games
Content
Platform
Education
Social
Retail/
E-Commerce
Healthcare
Industrial
Advertisement
Funding of start-ups in Application layer Consumer segment has gained higher
traction for VR applications, basis higher use
case scalability by mobile penetration and
relatively less complex technology constraints
Pokémon GO delivered $600 million in
mobile AR revenue in its first three months
alone, making more money than the entire VR
games software market in FY 2016
Media corporates are actively investing in
content platform space. Companies like
Within, which creates VR films, has 6 media
giants including the Live Nation
Entertainment, Vice Media, Legendary
Entertainment among others
Startups in education space are using mobile
VR for interactive lessons in classrooms
MindMaze, a Unicorn focused on AR/VR
applications for neuroscience is developing
HMDs, motion capture, and gesture control
technology (for both AR and VR). The
company aims to help rehabilitation after
stroke, spinal cord injury, and
amputation. Psious uses VR for exposure
therapy to overcome phobias.
Newer startups are coming into the industrial
sector. Daqri and Atheer are top funded
headset makers which focus on AR
applications for industrial automation
Consumer
Enterprise
47%
29%
22%
2%
Note : The list above is non-exhaustive
Source: DRAUP Startups Module – Includes AR VR startups across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
15
In the 6 major building blocks of AR/VR platform sub-segments, start ups in SLAM & Motion Sensing have attracted maximum funding
Funding distribution of start-ups in Platform & Hardware layer
25%
15%Allowing application to recognize image targets through a cloud database, giving you the ability to update
targets dynamically, integrate with existing CMS
Cloud recognition
Motion Sensing: Object Recognition, Tracking & Registration20% Identifying a specific object in a digital image or video. Object recognition algorithms rely on
matching, learning, or pattern recognition algorithms.
3D Reconstruction
10%Using passive + active cameras, along with
advanced computer vision & machine learning algorithms
Visual Inertial Odometry (VIO) Estimating the 3D pose (translation + orientation) of a
moving camera relative to its starting position, using visual features.
10%
Simultaneous Localization and Mapping (SLAM)Computational problem of constructing or updating a map of an unknown environment while
simultaneously keeping track of an agent's location within it.
All the tech giants especially Apple,
Google, and Facebook are
investing heavily in SLAM
technology. The company that
dominates SLAM tech will most
likely end up on top.
SLAM is a technology used in
computer vision technologies
which gets the visual data from the
physical world in shape of points to
make an understanding for the
machine. SLAM makes it possible
for machines to have an eye and
understand what’s around them
through visual input
Augmented reality is the
enhancement of the view of the real
world with CG overlays such as
graphics, text, videos or sounds.
Across all AR applications, object
recognition is particularly critical.
Most of these apps are marker-rich,
which means they use special
images, pictures, or objects to
trigger pre-defined 3D visualization,
animation, video, or soundtrack
Geo-Location
20%Converting the GPS coordinate to Navigation coordinate, then transfer Navigation coordinate to Camera
coordinate
Incumbents Startups% Start-ups funding share on different layers of AR/VR Platform
Note : The list above is non-exhaustive
Source: DRAUP Startups Module – Includes AR VR startups across major geographies such as US, Canada, Israel, Europe, China and India. Coverage may be limited in China and other south east APAC regions
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
16
Wearables3D Mapping & Eye
TrackingFacial Recognition
Platform/Software solutions
Display/Hardware
Acquisition Investment
.
Oculus VR
Technology company majorly focused on developing Virtual
Reality/Augmented Reality devices and headsets.
A computer vision/hand tracking specialist which develops hardware
and software that facilitate 3D gesture interaction in computing
and electronic devices
Pebbles Interfaces
Develops facial analysis software for mobile applications to help
Facebook compete against Snapchat by bringing more fun
effects to photos and videos
FacioMetrics Fayteq AG
Develops software add-ons which specializes in adding or removing objects from videos by tracking
data/content. Intended to add FB live video effects, object tracking
InfiniLED
Develops low powered LED modules based on µLED
technology to be applied to Oculus Virtual Reality devices
Vrvana
Develops AR headset Totem, an 'extended reality' device utilizing key technologies from both AR
and VR to allow both experiences on a single headset
RealFace specializes in facial recognition technology, first employed in the iPhone X;
PrimeSense makes 3D sensors to power facial recognition features
RealFace, PrimeSense
Develops next-generation AR mobile apps with capabilities in the areas of large-scale SLAM, indoor navigation, sensor fusion, image
recognition and 3D tracking
FlyBy Media SMI, Akonia Holographics
SMI (SensoMotoric Instruments) is specialized in developing
hardware & software apps on Eye tracking technology; Akonia develops lenses for AR glasses
Metaio, Faceshift
Metaio to develop AR software technology solutions; Faceshift
provides motion capture platform for users to design virtual avatars in real-time
Magic Leap
Wearable technology start-up working on a head-mounted virtual
retinal display called Magic Leap One, which superimposes 3D
components over real world objects
Develops Eye-interaction technology for AR/VR/MR devices
which transforms intent into action through eyes; intended to boost VR
capabilities in Daydream headset
EyeFluence Skillman & Hackett
A VR studio focused on rapid prototyping, VR, & Future-Facing
technology to develop apps letting people in VR headset to perform actions like painting in a 3D space
AltspaceVR
A social platform for Virtual Reality, that allows users across
headset and web platforms to join 3D chat rooms to play games,
watch videos and attend events
Primitive
Primitive offers collaborative graphical programming services in VR, which turns complex software
analyses into 3D structures that are displayed in immersive VR
Red Pill Lab
Combines VR, AI, motion capture technology to optimize
the workflow of real-time character animation and control
Sixdof Space
Offers light-based optical sensor and algorithm that can
accurately determine location & positioning at ultra high speeds
Apple and Facebook have acquired multiple startups to build full stack AR/VR capabilities
Source: DRAUP Engineering Module: The platform tracks real-time insights and developments in the AR VR Ecosystem such as global engineering
footprint, product launch, Leadership Announcements, M&A, among other essential insights
17
AR/VR has huge adoption potential in the consumer sector in near future; Enterprise applications are slowly catching up
Low High
*Function of current In-house technology spend, external acquisitions, partnerships and leadership outlook across AR/VR technology segments
Consumer sector
Enterprise sector
Potential AR VR technology adoption across industries
Technology adoption Index*
EducationReal Estate
Video
entertainmentRetail
Live eventsEngineering
Design
VideogamesHealthcare
Military
After Gaming and Entertainment,
the next few industries to
implement niche AR VR solutions
into their value chain are
Healthcare, Real estate and
Retail
Sotheby’s, a Realty company, is
beginning to show luxury homes in
VR. This has the potential to
disrupt a $52 bn US real estate
commissions market
The Retail store Lowe's, has
equipped 6 of its stores with
“Holorooms” to help customers
envision their home remodelling
plans
IKEA has invested in an AR
solution to make virtual catalogues
that will provide better customer
experience
Doctors and medical
professionals are experimenting
with AR as a hands-free medical
tool, feeding into a $16 bn patient
monitoring devices market
Source : DRAUP Analysis as well as primary inputs from interviews with digital stakeholders and DRAUP’s existing customers
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
18
Description Key PlayersUse Case
Provides a collaborative, immersive training experience that employs
AR VR technology to connect operators, maintenance, and field
personnel in a single realistic learning environment..
Immersive Training
Risk Assessment
Inspection & Quality
Assurance
Maintenance, Repair
& Operations (MRO)
Design & Assembly
Key Industry adopters
Energy & Utilities
Industrial
Aerospace
Automotive
AR/VR technology will provide real time information about the
machinery and equipment for engineers to minimize environmental &
safety risks, make equipment inspection a safer and faster task for
workers
Smart helmets / AR headsets will give engineers a live feed of the
MRO needs - virtual visits to plant areas, documenting existing
physical spaces, pre-job briefing, preparing for outages, assuring
high productivity
Energy & Utilities
Energy & Utilities
Aerospace
Energy & Utilities
Industrial
Aerospace
Automotive
Industrial
Aerospace
Enable faster, thorough monitoring & inspection through visualization
and information. Typically, an AR application capture images and
videos of a task, transmit these back to a content management
system for review, where an office-based QA specialist signs off on
the installation
From interior design to architecture and construction, AR is helping
professionals visualize their final products during the creative
process. Use of headsets enables architects, engineers, and design
professionals step directly into their buildings and spaces to see how
their designs might look, and even make virtual on the spot changes.
Training, MRO and Design are key use cases adopted across industry verticals
19
Enterprise giants have been exploring co-innovation models with native AR players to enhance customer experience: CASE STUDY - IKEA
3D image sensors from Infineon
Released on Valve platform , developer of technologies such as Source game engine and Steam
Graphics processing hardware from NVIDIA
The app was made in collaboration with the Allegorithmic, using Unreal Engine 4
Physical world
User
Currently Support
HTC Vive
headset
IKEA in collaboration with HTC
launched a VR application for virtual
kitchen experience in May, 2016
Using an HTC Vive headset,
consumers can use the app to
explore one of three differently-styled
kitchen room settings
IKEA’s AR Platform Partners
Hardware
Applications
Platform
Processors
Components
Source: DRAUP, IKEA’s recent news announcement
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
20
Organisations should invest in an external platform strategy for orchestration of specialist skills and hire new age skills to develop AR/VR capability
Organisations can leverage open
source VR libraries and
frameworks developed by Tech
Mafias, such as Apple ARKit and
Google Tango for app
development on iOS and Android
platforms respectively
Unity and Autodesk’s 3DS Max
are the widely used platforms for 3D
content design and digital
simulation
Niche component providers such as
Gesto and Leap Motion provide
hardware for motion sensing and
environment perception
These VR component makers also
provide APIs to detect the position,
topology, and expression of the
object, making it easy to apply live
object effects or features to drive a
3D character
Nvidia and AMD have custom-built
the VR GPUs enabling robust
processing for immersive
experience
HMI & Content Design: Digital
3D Content Design platforms
AI/ Cognition/ Analytics: Personalisation using ML, analytics,
heatmaps and performance monitoring
Critical Skills RequiredAR/VR Sub-Segments Tools/ Platform Providers
UI/UX Design
Data Science
Mobile App Development
Components: Perception, Sensing
and Motion Control components Digital Signal Processing (DSP)
AR/VR Frameworks: Mobile, Web
and console based application
development libraries
VLSI
Data-set: Open Source libraries
and learning platformsNA
C++/C# JavaScript
PythonBig Data
VFX
Python
Graphic Processors APIs : Image/ Sound/ Video Processing
hardware
ML
PCB Design
Developer Platform
Source: DRAUP Engineering Module: The platform tracks real-time insights and developments in the AR VR Ecosystem such as global engineering footprint, product launch,
Leadership Announcements, M&A, among other essential insights
01. Evolution Patterns 02. Core technology segments 03. Current Landscape 04. Potential applications
21
Key partners
Key Activities
Application Development and Maintenance is highly outsourced segment with ~50% of the total outsourcing size
Major workloads across Application Development and Maintenance is around the below listed areas
Development of platforms (PaaS) and development kits for the platform to provide an application layer to build AR VR
software applications
AR VR solutions simulators for different verticals like Automotive, Gaming, Industrial, Aerospace etc. for MRO
(Maintenance, Repair & Operations), Prototyping, and designing.
Key Opportunity Areas SPs like Wipro have developed exclusive AR/VR platforms that enable faster solution deployment for clients.
UI/UX design & ADM are key areas that involve high partnership opportunities
Infosys, Wipro, and Tech Mahindra are the major vendors for Augmented Reality and Virtual Reality technologies
working majorly in Application Development and Digital Segment.
SPs that develop exclusive AR/VR platforms are deal winners
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in January, 2019.
Note - CSI – Consulting & System Integration, ADM – Application Development & Maintenance, IMS – Infrastructure Management Services, R&A – Reporting and Analytics, PES – Product Engineering
Services, DS – Digital Service
22
1200 - 1500 Workforce split across
Outsourcing Partners30+ Active Outsourcing Partners
Top Outsourcing Partners
Key Provider LocationsKey Buying Locations Outsourcing Intensity by Sub vertical
ADM50% DS
30%
IMS12%
CSI8%
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in January, 2019.
Note - CSI – Consulting & System Integration, ADM – Application Development & Maintenance, IMS – Infrastructure Management Services, R&A – Reporting and Analytics, PES – Product Engineering
Services, DS – Digital Service
Greater Los Angeles Area, United States
London, United Kingdom
Greater New York City Area, United
States
Pune Area, India
Greater Atlanta Area, United States
San Francisco Bay Area, United States
Bengaluru Area, India
Dublin, Ireland
Frankfurt Am Main Area, Germany
Greater Chicago Area, United States
Greater Detroit Area, United States
Paris Area, France
Greater Atlanta Area, United States
Hyderabad Area, India
Paris Area, France
San Francisco Bay Area, United States
Pune Area, India
Greater Los Angeles Area, United States
Bengaluru Area, India
Application development and Digital services are key partnership priorities
23
Service Provider Solutions / IP Description
Wipro IMAGINEProvides near-human abilities of multi-modal interactions through voice, vision and haptic, leading to
personalized experiences that are accurate and efficient
Wipro HOLMESIt’s a machine learning and artificial intelligence powered platform that offers cognitive services that
accelerate business processes through automation
Wipro TechPubsOffers next-gen technology solutions that leverage cutting-edge technologies such as AI, ML and AR to
deliver innovative enterprise solutions around technical support and knowledge transfer automation
Augmented Reality
Framework
Aricent has developed AR software framework for developing different implementations of Augmented
Reality (AR) such as visual overlay applications, independent solutions for 3D image reconstruction and
extended frameworks for image processing on popular mobile platforms
Plant.io and Flight 360Plant.io is an open source, plant-growing platform that incorporates AR to transport the plant growth cycle
into a mixed physical/VR. Flight 360 uses VR to create immersive experiences for airline customers
Mobile AR Solutions - Home
Improvement Application
AR based iPhone app enables smart and convenient shopping experience through the use of simulation
and virtual reality features. The customer can select a product, and through a camera can get a virtual
perspective of how the product looks, even before buying it
Mobile AR Solutions –
Location based Application
Helps users locate local businesses within the given radius, based on direction. It uses a combination of
the smartphone’s GPS and compass to pinpoint exactly where a user is and the direction he/she is
facing.
Major SPs have developed platforms and vertical based application solutions
Source : DRAUP
24
24
Key Vendor Engagements Snapshot (1/2)
ADM :
• Design and development of AR VR platforms for manufacturing, and flight simulation applications for Aerospace industries
• Testing of Google Daydream Virtual Reality (VR) devices
DS :
• Development of next gen integrated AI Platform Infosys Nia which helps to learn about the health, maintenance and
functioning of complex machinery and equipments
Split of Workforce by Sub Segment
Key Delivery Locations
Pune Area, Hyderabad Area,
Bengaluru Area, San
Francisco Bay Area
ADM :
• Develop tools & technology to provide 'VR Experience Prototyping’ for Industrial designers to test & validate development
processes virtually
DS :
• Wipro IMAGINE platform for enabling next-generation HMIs where virtual SMEs are ingested with knowledge bases
ADM, 76% DS, 24%
Split of Workforce by Sub Segment
Key Delivery Locations
Hyderabad Area
ADM :
• Developing AR web technologies using AngularJS, weblogic
• Design and development of AR-based Service Technician app and training tool
IMS :
• IT Infrastructure management for AR VR platforms and applications
Split of Workforce by Sub Segment
Key Delivery Locations
Greater Atlanta Area,
Bengaluru
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in January, 2019.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.
Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then
tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources
DS, 55% ADM, 45%
ADM, 80% IMS, 20%
Source : DRAUP
25
25
Key Vendor Engagements Snapshot (2/2)
ADM :
• Testification of the modules of transaction manager like 3D Secure Portal; Development of virtualization test environments for
backend applications based on HTTP
• Content design, development, & curation services for Digital HR portfolio services
DS :
• Integration of solution in the client company's information system, installation of connectors with PLM and ERP solutions,
development and configuration of back-office servers
Split of Workforce by Sub Segment
Key Delivery Locations
Bengaluru Area
ADM :
• Development of application for interactive advertising, gamification prototypes, and virtual product catalog through QR scanning
Split of Workforce by Sub Segment
Key Delivery Locations
Bengaluru Area
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in January, 2019.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.
Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then
tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources
ADM, 100%
ADM, 90% IMS, 10%
Source : DRAUP
26
26
www.draup.com
27
AR/VR Foundational Technologies (1/2)
2
Components
Sensors
Haptics
3D lenses &
Cameras
Display
• AR-VR requires high-quality sensors better than those used in smartphones.
• Sensors are of different types, including acceleration sensors, angular velocity sensors, electronic compasses, image sensors , and
others
• The displays currently used in VR/AR do not fully satisfy requirements.
• For VR, LCDs or OLED displays are used.
• In AR, Google Glass used a prism
• HMD wearer has a 360-degree viewing angle, which creates a real world experience.
• Many cameras that can handle this kind of content have been released..
• Haptics is a technology that produces the sense of touch through physical stimulation.
• It is fundamental to creating a credible immersion in VR during manipulation tasks.
1
Hardware
Graphics
Memory
(DRAM/SSD)
3D Audio
Processors
• GPUs improve the visual quality of graphics, increase frame rate, and improve realism in gaming through the utilization of 3D software
and algorithms.
• 3D audio to immerse people more deeply into virtual environment.
• It engages the listener by offering a spatial bearing that enables them to sense where they are relative to the noises around them.
• AR VR will have a significant impact on digital storage requirements for movies and other video content.
• It is estimated that the average user will generate about 7.5 GB of data per day by 2020.
• CPUs can no longer handle such heavy workloads
• Companies are moving major processing loads onto GPUs, programmable chips called FPGAs, and even custom-built chips,
such as the AI processor
Source: DRAUP Engineering Module: The platform tracks real-time insights and developments in the AR VR Ecosystem such as global engineering footprint, product launch,
Leadership Announcements, M&A, among other essential insights
28
AR/VR Foundational Technologies (2/2)
4
Applications
3
Development
Platform
Mobile AR-VR
platforms
Video processing
& Engine
Development
tools
• Image stitching, processing and game engines for VR.
• Game engines like Unity have vast applications outside of AR/VR in gaming, but are increasingly being applied to VR.
• Tools that aid the development and computing behind AR/VR applications.
• Fish Bowl VR provides usability testing, and Sixa, a high-performance cloud computing company, is aiming to make the VR
experience wireless
• Platforms that empowers iOS and android applications with different AR-VR technologies like Instant Tracking technology
(SLAM), Object Recognition, Geo-location etc
Industry
applications
Consumer
applications
Automotive
Healthcare
Games
Video
Social
Retail/E-
Commerce
• Large number of companies are producing AR/VR games.
• Pokémon GO is one such game with over 650 million downloads.
• Companies are now providing various movies & live coverage of events across the world over Virtual
reality.
• Social networking platforms allow one to meet anyone across the world over its AR VR platform.
• Automotive companies have started transforming 3D designs into interactive, virtual reality experiences.
• There are a number of ways in which Augmented reality & Virtual reality can be used to aid the healer’s craft, from
training to surgery.
• AR VR is transforming the E-commerce & retail industry by superimposing their products on top of the real world.
Source: DRAUP Engineering Module: The platform tracks real-time insights and developments in the AR VR Ecosystem such as global engineering footprint, product launch,
Leadership Announcements, M&A, among other essential insights
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in January, 2019.
Application Development & Maintenance (ADM)
Application DevelopmentInvolves Defining, designing, and building applications tailored to meet client business requirements.
Services include Solution development, application whitelisting, application control, application security,
risk mitigation
Testing Services
Software testing involves the execution of a software component or system component and evaluate it
against one or more properties of interest to ensure its smooth functioning and capability of seamless
integration across various technologies. Services include Software testing, Mobile testing, Cloud based
testing, functional testing, engineering testing, user acceptance testing (UAT), non-functional testing,
Model testing
Application ModernizationModernization services help modernize legacy systems to enhance flexibility, mitigate risk, minimize
disruption, and lower costs. Application Rationalization, Re-hosting, application re-engineering, Field
Remediation, Data migration, Re-structuring of applications
Application Maintenance
Application Maintenance helps clients with proper maintenance of the existing applications across areas
of application operations management, support, updation and availability. Services include Pro-active
maintenance, TCO Reduction, Alignment with industry standards, corrective maintenance, SLA
Management, Knowledge management
Custom Application Development Custom build application development services for an end client
Mobile ServicesUse of Mobile medium by enterprises through building innovation mobile solutions to target customers by
offering bundled services. End-to-end solutions and services to help companies capture insight from
mobile devices to fuel innovation.
Product Engineering Services (PES)
Product Engineering ServicesServices to design and deliver a new wave of intelligent products with an aim to undergo process of
innovation, re-engineering, process optimization, localization, customization and cost rationalization
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in January, 2019.
Consulting & System Integration (CSI)
Advisory Services
Consulting and advisory services that enables an organization to across business process transformation
to improve performance, increase effectiveness, reduce costs and improve resilience. Services mainly
involve business advisory, business and functional transformation, IT consulting and risk and compliance
services
Package Software ConsultingIT Consulting and Advisory services across enterprise level package software solutions. Services to
evaluate which package solutions would solve an enterprise wide work area and also evaluating its
integration capabilities across the current application stack used by an organization
System Integration Services
Integration, implementation or deployment of a software solution/hardware for an enterprise and ensuring
its proper functioning in line with its integration with various other solutions or hardware currently in use
by the enterprise. Services include Cloud Integration, Data Integration, EAI (enterprise application
integration), Integrated Communication, Network Integration, Integrated Security Software, Service-
oriented architecture, etc.
Application Portfolio Optimization
Application Portfolio Optimization services help companies ensure that their portfolio of IT projects,
applications and infrastructure are providing cost-effective benefits to the organization. Aim is to identify
disparate applications and ensure ways to integrate them into a core enterprise solution. Services include
mapping application to business functions and its importance, cost management analysis, dependency
mapping of an application, etc.
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in January, 2019.
Infrastructure Management Services (IMS)
Server, Network, Desktop
Management
IT Infrastructure Management Services (IMS) offers a suite of reliable, responsive, flexible and proven
infrastructure services and solutions that deliver differentiated value across management of an enterprise
hardware components such as Servers, Network, Desktops. Its aims to maintain and manage a client's IT
applications and systems and ensure 24/7 availability
Datacenter ManagementDesign and management of data centers across heterogeneous platforms. Services include Server / OS
management, Database Management, Middleware management, Storage and Backup management,
Production Operations, Mainframe Services, Hosting, etc.
Disaster ManagementUse of services and solutions to ensure the presence of a holistic, proactive and technology-driven
strategy for multi-disaster management. Services can be across enterprise data, backup, IT systems, Real
time monitoring of IT solutions and hardware, etc.
Remote Infrastructure ManagementRemotely managing information technology (IT) infrastructure such as workstations (desktops, laptops,
notebooks, etc.), servers, network devices, storage devices, IT security devices, etc. of a company
High End Technical SupportHigh level product and services support provided by qualified engineers. Services Tech support services,
Remote Diagnostic Services, Set-up and Configuration, Patch Management, Service pack and Database
Upgrades, Warranty Management/ RMA, Engineer Dispatch Management
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in January, 2019.
Reporting & Analytics
Reporting & DashboardApplications enabling tracking and monitoring the health of an organization or department by reporting
on certain KPIs, business metrics, and analytics. Reporting & dashboards are majorly used to
summarize information thereby providing a glance into enterprise's business performance
BI / Analytics
BI / Analytics encompasses a wide variety of tools, applications and methodologies that enable
organizations to collect data from internal systems and external sources, prepare it for analysis, develop
and run queries against the data. It enables discovery, interpretation, and communication of meaningful
patterns in data to help relevant stakeholders to make more informed business decisions.
Data QualityData Quality services enables delivery of clean, trusted data to ensure enterprises meet their projects
and business objectives. Such applications and services enable effective data extraction, transformation
and loading along with superior data management.
Digital Services
SocialEnd-to-end solutions and services to help companies capture insight from social media engagements to
fuel innovation.
Advanced AnalyticsHigh-end Advance Analytics solutions being leveraged which enable an organization to run analysis on
their customer data and enables Predictive and Prescriptive analysis. Such solutions can be SAS
Analytics, SAP, etc.
Internet-of-Things (IoT)Solutions and platforms which enable an enterprise to transfer and run data over a network through web
of inter-connected devices and technologies such as mobile, sensors, database, CRM etc.
Machine Learning (ML) / Cognitive
Computing (CC) / Artificial
Intelligence (AI)
Use of Artificial Intelligence solutions and services by an enterprise solving a particular business function.
Example might be use of IBM Watson by an enterprise. Also includes Enterprises leveraging solutions
which studies various patterns and computational learning and processes a particular task based on the
identification of a particular pattern. Enables a particular task to be done without any human intervention
Robotics Process Automation (RPA)
Robotic process automation (RPA) is the application of technology that allows employees in a company
to configure computer software or a “robot” to capture and interpret existing applications for processing a
transaction, manipulating data, triggering responses and communicating with other digital systems
automatically