VR, AR, MR, and XR technology – the growing metaverse market

VR, AR, MR, and XR: The metaverse market and XR-related technologies

In 2021, the concept of a “metaverse”, a virtual space constructed in a computer-generated environment, gained significant global attention when major tech companies decided to enter the market. Along with the metaverse, the market for AR and VR devices is also evolving rapidly, especially in the gaming and industrial fields.

According to a study published by International Data Corporation (IDC) in June 2022, the VR headset market is expected to grow from 10 million units in 2021 to about 35 million units in 2026.

Until recently ‘VR’ and ‘AR’ were mainly used to describe virtual reality-related technologies. However, MR is now gaining attention in this growing market. This article will first briefly explain these terms and the concept of XR.

VR, Virtual Reality, uses computer technology to create an artificial environment, allowing users to feel as if they have entered a different world. In many recent games using head-mounted displays (HMDs), images are projected as if the player were actually on the game’s battlefield, in outer space, at a world heritage site, etc.

AR, Augmented Reality, is a technology that overlays computer graphics to display additional information to the real world. The user will be able to see additional information of the real world through a device, thus creating a new sensory experience for the user.

MR, Mixed Reality, is a technology that fuses the real and virtual environments by combining AR-projected reality with virtual objects created by VR. In the MR world, for example, it is possible to have virtual monsters appear on the real streets of Tokyo, where players are able to go up and fight them. A world in which objects in real and virtual spaces interact with each other is one feature of MR.

XR, Extended Reality, is a term that covers AR, VR, and MR. The term XR emerged with the introduction of MR. When a game using a VR device with HMD is combined with AR content, it is difficult to draw a boundary as to whether it is VR or AR. Hence, the term XR is used to refer to both collectively.

Smart glasses and HMDs

The following section will explain devices used for each technology. In AR, smart glasses are typically used. Since the release of a prototype by a major tech company in the early 2010s, it has been used primarily for B2B applications, including but not limited to, factory maintenance work and operations support, manufacturing and logistics sites, conferences, and exhibitions. By wearing smart glasses, workers can get information about equipment and other items without having to carry bulky paper manuals. As AR is used in many outdoor situations, further miniaturization and weight reduction are expected. AR is also expanding in the entertainment and other fields, such as games that can be played through smartphone cameras and apps, navigation apps that use map information, and apps that configure room layouts and interior design.

In VR, HMDs are widely used. They are becoming increasingly popular for VR games, with the release of a number of realistic horror games and first-person shooter games. In addition, HMDs are expected to be used not only for games and entertainment, but also for various virtual experiences such as concerts, forums/conferences, social gatherings, and medical care. Unlike smart glasses, these displays cover one’s entire field of vision and immerse the user in a virtual environment and are therefore primarily intended for indoor use. There is also a growing number of entertainment centers around the world where people can experience VR spaces and games using HMDs and goggles.

In MR, information from the real world (AR) captured by cameras and other devices is reflected in virtual spaces (VR). While VR immerses the user in a virtual space that differs from reality, MR has the potential to be used in various industries since the real world and virtual world are linked. Some applications of MR are in tourism and commercial fields, as well as in R&D and medical care.

The metaverse will soon be a part of our lives

As the XR technology continues to improve, the metaverse is expected to see significant market expansion worldwide. The term ‘metaverse’ was originally used by science fiction author Neal Stephenson in 1992 to refer to a virtual world in his novel “Snow Crash”. Later, the term metaverse was used again in Ernest Cline’s novel “Ready Player 1”, which was then made into a movie by Steven Spielberg. This led to its widespread use.

There are several possibilities of how the metaverse will be used. For example, creating virtual network environment to work with others and creating a virtual living space. However, even now there is no strict universal definition of the metaverse. It is said that it will be possible to realize an ‘ideal metaverse’ by connecting parts of real life such as conversations, shopping, concerts, and meetings to virtual living spaces.

Many metaverse games and apps have been developed around the world with over 300 million users, mostly in their teens and 20s. There are metaverse games that have over 50 million DAUs (daily active users). With the introduction of the metaverse, the way people communicate is also changing. For example, the following are already common in games that have exploded in popularity among young people in recent years:

• Linking VR headsets to smartphones and playing games on multiple platforms while chatting in-game with friends.
• Creating and publishing maps and games within a game and using them to play against others.
• Purchasing virtual currency to buy skins (clothes, shoes, etc.) for avatars.
• Watching performances and events with friends within a game.

It is expected that a variety of daily life and work-related activities will take place within the metaverse for people of all ages and genders. The growth of the metaverse is currently attracting significant global attention. A diverse company, not just major tech companies, continue to invest money and develop products to enable the growth of the metaverse.

Metaverse-enabling technologies and product lines

In order for the metaverse to become available to the general public, AR, VR, MR, and XR devices need to improve. The limited types of content that can be used in the metaverse is also a hindrance to its widespread adoption.

Dexerials is committed to solving the technical issues of these devices with its products and technologies. Below is a list of products that are currently used in many XR devices.

• Anisotropic Conductive Film (ACF)
  Dexerials’ ACF is widely used in OLED, LCD, LCOS and silicon OLED displays of VR and MR devices. ACFs are used for the electrical connection of circuit boards and driver ICs, which control images.
  The fundamentals of anisotropic conductive film (ACF) | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Particle-Arrayed Anisotropic Conductive Film, ArrayFIX
  OLED and silicon OLED displays in particular are being used in VR and MR devices, which require high-definition and highly responsive displays. These cutting-edge displays utilize Dexerials’ proprietary technology, ArrayFIX.
  Basic Knowledge of “ArrayFIX” PaIntroduction to ArrayFIX®, a particle-arrayed ACF | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Anti-Reflection Film (ARF)
  Displays used in VR and MR devices must minimize glare to enhance image quality and the immersive experience. Anti-reflection film manufactured with Dexerials’ sputtering technology can achieve the level of minimal reflection required for HMDs. In addition, this technology enhances anti-fingerprint and scratch-resistance capabilities.
  Anti-reflection film using roll-to-roll sputtering technology | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Inorganic diffusers and inorganic waveplates
  When an AR display uses a laser light source, it requires heat resistance for components in the optical path. Dexerials’ inorganic diffusers and inorganic waveplates improve heat resistance. Also, inorganic waveplates can improve the contrast of reflective liquid crystal on silicon (LCOS) displays, which are being used in AR devices.
  
  Pancake lenses are being used to make VR devices thinner. In some cases, multiple polarizers and waveplates of organic materials are laminated together in these devices, but there is concern that the lamination process may cause wavefront aberrations, which could compromise the immersive experience. Dexerials has been developing inorganic waveplates that do not cause wavefront aberrations and can contribute to thinner devices.
  Enhancing Projector Brightness: Inorganic Optical Components | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Surface-mount fuses: Self Control Protector (SCP)
  VR/MR devices such as HMDs and other stand-alone devices that are not connected to an external power source always contain lithium-ion batteries. The longer operating time for stand-alone terminals requires the use of high-capacity lithium-ion batteries. Dexerials’ surface-mount fuse, SCP, is expected to be used to ensure the safety of charging and discharging lithium-ion batteries. Dexerials’ SCPs for lithium-ion batteries are highly reliable as they have been installed in more than 2.5 billion electronic devices over the past 25 years.
  Secondary protection technology for fast-charging smartphones| TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• High-performance thermal conductive sheets
  HMDs will require high processing power from CPUs and GPUs in order to create an immersive virtual world with high pixel count. As high-performance CPUs and GPUs become smaller, it is important to dissipate the generated heat. Dexerials’ produces a unique product, high-performance thermal conductive sheets, which greatly contributes to heat dissipation in VR/MR devices. The carbon fiber type thermal conductive sheets help dissipate heat in the chips and ensure stable performance.
  Heat Dissipation Principle of TIM (Thermal Interface Material) | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Adhesives for sensors and cameras
  AR, VR, and MR devices use multiple sensors and cameras to sense, quantify, and visualize the external environment. Dexerials’ UV and thermosetting resins are already used to fix lenses to smartphone cameras, while ACFs are used to electrically connect flexible printed circuit boards (FPC) and circuit boards in numerous applications. These adhesives are expected to be adopted in AR, VR, and MR devices.
  New ACF applications – from displays to camera modules | TECH TIMES | Technical Information Media for Engineers (dexerials.jp)
• Materials for eye-tracking sensors
  In VR and MR devices, eye-tracking sensors that utilize infrared light detect the user’s line of sight and focus the image according to the user’s gaze, which can be combined with blinking to control games and devices. Such eye-tracking sensors consist of a substrate with pads wired to a transparent film, which is placed near the user’s eyes. Dexerials’ anti-reflection film may be able to help suppress the reflection of light from the eye-tracking sensor itself. In addition, Dexerials’ ACFs are expected to be used in applications where electrical connections are made with flexible printed circuit boards (FPCs) to transmit signals from eye-tracking sensors.

AR, VR, MR, XR, and the metaverse environment will continue to evolve and grow. Dexerials is committed improving and developing products that that will contribute to the advancement of XR-related technologies.