[HelloT] Mixed Reality (MR) - What is the current state of the US market?

[Advanced HelloT]
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What is Mixed Reality?

Mixed Reality (ML) is a technology that implements an evolved virtual world by mixing real and virtual information against the background of the real world. Users are characterized by being able to experience the virtual world as if it were real. The term was first used by Dr. Thomas Codel, who worked at Boeing in 1992, when he began calling it 'Mixed Reality (MR)' after overlapping a virtual image onto a real screen to assist with aircraft wiring assembly. Paul Milgram of the University of Toronto later explained this specifically in a paper titled 'Milgram's Reality-Virtuality Continuum' in 1994. This is composed of four stages, and it was argued that mixed reality exists at the intermediate point between the two extremes of virtual continuity.
Virtual Reality VS Augmented Reality
Virtual Reality (VR) is a technology that overlays virtual information or images onto reality and can be applied in fields such as education, medicine, video, broadcasting, and manufacturing industries where immersion is required. It is particularly gaining attention in the entertainment market. The disadvantage of VR is that because one experiences virtual reality only through a small screen from a fixed position, it focuses only on what is visible to the eye. Furthermore, because one keeps their eyes close to the screen, there is an easy exposure to electromagnetic waves and blue light harmful to vision, which can accelerate the aging of visual cells.
Augmented Reality (AR) is a technology that synthesizes virtual objects or information onto a real environment so that they appear as if they exist in the original environment. In other words, it is one of the modified forms created when virtual reality merges with actual reality. The disadvantage of AR is that because it utilizes the internet and GPS in real time, security-related issues such as personal information leakage can occur.
Mixed Reality, a composite of the disadvantages of VR and AR
Mixed Reality was developed to alleviate the artificial feeling given by VR and improve the low immersion of AR, allowing for smooth interaction with reality so that virtual images feel like part of reality. Research is being conducted in the direction of combining reality and virtuality in a balanced way.
Unlike VR devices, Mixed Reality devices are equipped with two cameras that can recognize the user's exact location. Furthermore, they can recognize actual physical spaces, which is an advantage because it allows for free use and supports various contents. Moreover, since the focus also moves when the user's gaze shifts from a near object to a far object, vivid real-life experiences are possible.
Representative Mixed Reality product from the United States
• Microsoft's 'HoloLens'
HoloLens was first unveiled at the Windows 10 event held at the Microsoft Redmond headquarters in Washington State on January 21, 2015, and was selected as 'Time Magazine's Best Gadget of 2015.' It works by creating new images by emitting millions of lights per second using two light engines, and it solves the problem of focus according to distance that occurs when these images are reflected on a transparent display and reach the eye. Currently, HoloLens is only available as an expensive developer version combining a PC and HMD.
• Magic Leap's 'One Creator Edition'
Magic Leap is an augmented reality startup founded by Rony Abovitz in 2010. It garnered attention in the industry after receiving approximately $5 billion (about 6.18 trillion won) in investment from Google, Alibaba, JP Morgan, Morgan Stanley, Qualcomm, and KPCB.
Magic Leap drew attention by releasing the developer mixed reality headset 'One Creator Edition' on August 8, 2018, according to US time. This product consisted of a 500g smart glasses form factor, a pocket computer and battery pack worn on a waist belt, and controllers. The computing pack was equipped with Nvidia's Tegra X2 chipset as the CPU. Additionally, an Nvidia Pascal architecture-based graphics card was installed for graphic output. The Sensory wear AR glasses, which are equipped with self-developed photonics technology, obtained patents from the US Patent Office. Magic Leap stated that by integrating computer holographics, it can be used in various areas such as app stores, web surfing, email management, YouTube video viewing, shopping, virtual applications, monitoring, and telepresence.

▲ Magic Leap's 'One Creator Edition'
• ODG's Smart Glasses 'R8 and R9'
Osterhout Design Group (ODG) is a smart glasses startup established in San Francisco by Ralph Osterhout in 1999. It garnered attention at CES 2017 for showcasing the mixed reality glasses 'R8 and R9,' which were equipped with Qualcomm's next-generation chipset, Snapdragon 835.
This product is characterized by its small size, making it easy to carry, featuring a design similar to sports goggles, with the camera located on the bridge of the nose, and incorporating Bluetooth 5.0, Wi-Fi 802.11ac, GPS, dual microphones, and dual HD cameras. The R8 is equipped with a 720p display with a 40-degree field of view, while the R-9 is equipped with a 1080p display with a 50-degree field of view, and both have a storage capacity of 64GB. Furthermore, HD cameras and semi-transparent lenses applied to the glasses allow for simultaneous use of AR and VR.

▲ ODG's Smart Glasses 'R9'
• Samsung's 'HMD Odyssey'
Samsung Electronics launched the VR headset 'Samsung HMD Odyssey' in September 2017, which was equipped with Windows mixed reality. This product adopted a 3.5-inch dual AMOLED display, providing a resolution of up to 2880 x 1600 and a field of view of 110 degrees. It also applied Windows MR software and features 360-degree spatial sound by incorporating AKG, an audio brand from Harman. Samsung is reportedly developing the next model, 'Odyssey Plus,' which boasts a wider field of view and anti-fog functionality.

▲ Samsung's 'HMD Odyssey'
• Google's 'Google Glass'
Google Glass was first introduced by the Project Google X research team in April 2012, and a demo version was presented at Google I/O in San Francisco on June 27 of the same year. It was even selected as 'Time Magazine's Best Gadget of 2012.'
Google Glass consisted of hardware such as a camera, an interface device capable of receiving voice commands, and a device that transmits images viewed through human eyes. It featured Android 4.0.4 or later, a 640 x 360 pixel prism display, a 5MP/702p camera, a camera capable of video recording, Wi-Fi 802.11b/g, Bluetooth, and 16GB of storage capacity. Although Google Glass initially drew attention as an innovative product that could display information hands-free and interact with the internet through natural language voice commands, it received harsh criticism due to issues such as a poorly established application ecosystem, unnatural feel, privacy concerns, and safety issues.
However, Google Glass is being utilized in various fields. Notably, Google Glass is used in the work of Boeing aircraft design engineers and is scheduled for use in the International Space Station later. In the medical field, it is being used during surgical procedures, and Augmedix, a digital medical startup based in San Francisco, provides Google Glass-based medical record services for patient examinations. Furthermore, Stanford University is using Google Glass for research on treatments for autistic patients, and it is also known that they are developing an app to train patients on how to understand the emotions of themselves and others and how to communicate and interact with other people. In Chitwan National Park in Nepal, a project is underway to stop poachers and study endangered rhinos using drones and Google Glass.
Currently, Google has announced that it is developing a new product called the Glass Enterprise Edition. This product reportedly has a larger screen and is easy to carry because hinges are attached to the arm of the glasses, allowing it to fold conveniently.
Mixed Reality Global Market Size and Future Outlook
Mixed Reality (MR) is expected to see rapid demand in various fields such as entertainment, science, medicine, education, and film. This is because it is rapidly being utilized in diverse areas, shifting from a hardware-centric market to a content-centric one.
Brian Blau, Vice President of the market research firm Gartner, mentioned that in 2020, only Mixed Reality (MR) devices capable of implementing both VR and AR would remain, while dedicated VR and AR devices would disappear. Global Communication Group Cision PR Newswire projected a Compound Annual Growth Rate (CAGR) of 75% for mixed reality, and according to the Korea Institute of Science and Technology and the Korea Creative Content Agency, the global mixed reality market predicted explosive growth from 43.3 billion KRW in 2015 to 2.101 trillion KRW in 2022.
For ML devices to become mainstream, they must have a reasonable price point and a smart design that is comfortable to wear and carry. The biggest problems with existing mixed reality products were their high prices, weight, and designs that felt unnatural. Most mixed reality products released on the market are priced between $1900 and $3000 for developers. For reference, Microsoft's HoloLens Developer Edition is $3000, Magic Leap's Magic Leap One Creator Edition is $2295, and ODG's Smart Glass R9 is $1999.
Furthermore, it has been pointed out as a problem that wearing it for long periods can cause discomfort, along with pain in the neck and shoulders. Engadget, a US IT specialized media outlet, previously reported that Microsoft's successor to HoloLens was scheduled to release a new product in 2019 that would compensate for these problems. It is also expected to be equipped with an affordable, mainstream AI chip and a high-quality display on a lightweight body.
Mixed reality requires not only device improvement but also related content development. Magic Leap's 'One Creator Edition' has revealed the LuminOS independent operating system function, providing users and developers with the ability to create and share various types of content. Through this, users can convey their line of sight and experience screens with various aspect ratios. Additionally, it offers functions such as drawing directly or editing photos to send to others. Microsoft launched various mixed reality hardware through partners under the brand name Windows MR, but there is a shortage of high-quality specialized mixed reality content.
The domestic mixed reality market is just starting
Korea's share in the global mixed reality market is at about 3.6%. The mixed reality startup 'Dotmil' began to draw attention as a specialized mixed reality startup by showcasing projection mapping techniques, which change the shape of objects using a projector, at the Pyeongchang Winter Olympics opening ceremony in 2018. In addition, there are a total of 8 companies domestically, including the mixed reality content development startup 'Emotionwave', 'Altinco', 'TectonSpace', the mixed reality artificial intelligence hardware startup 'CoodInteractive', the mixed reality-based solution startup 'Vutic', the mixed reality service development company 'Tina3D', and the mixed reality game and content development company 'Corico'.
Government-level support and infrastructure building are necessary for domestic companies to create global competitiveness in mixed reality. According to KISTEP's data, while Korea possesses international competitive advantages in display functions and tracking software technology related to mixed reality, it is known that over 90% of tracking sensor components and commercialized finished hardware products rely on imports. Therefore, financial and institutional support at the government level is desperately needed so that domestic companies can actively engage in AR technology development, finished product manufacturing, and commercialization, and in particular, it is necessary to support various content development startups by creating a startup ecosystem.
Overseas IT leading companies such as Microsoft, Facebook, and Google are securing core technologies and recruiting talent through active M&A and large-scale investments. Domestic companies should also be able to take the lead in the global market by actively engaging in industry-academia cooperation with leading domestic and international research institutions and universities, as well as by acquiring technology through bold investments, not only through self-development.

‘SA Photonics’ from Silicon Valley - Shannon Norrell, SA Photonics Consultant ▲ SA Photonics’ ‘SA-83S’ Q. What is Mixed Reality (MR)? A. If AR (Augmented Reality) simply adds a virtual image video to a real video, mixed reality measures the depth and shape of objects visible in the real video and superimposes virtual images in 3D form, allowing for a more realistic experience of virtual images. For example, you can see a 360-degree view of the virtual image in holographic form. Q. Could you explain the size and trends of the US market for Mixed Reality (MR)? A. Currently, major players in the US market include Microsoft, Magic Leap, etc. In particular, Magic Leap is attracting attention in the market due to significant funding from large investors such as Google and Alibaba. However, in the case of Magic Leap, one has to carry a palm-sized computer connected by wires on the belt for the headset that processes videos, and controlling the video of the headset also requires a controller held in hand. It is expected that as 5G becomes commercialized, mixed reality headsets will evolve in a direction where data is transmitted without needing to carry a computer and displayed directly on the mixed reality headset. Q. Are there any examples of Mixed Reality (MR) applied in real life? A. It is difficult to say that it has been commercialized yet, and it is mainly introduced to the general public through games where game characters appear in the real world. However, in the future, it is expected that one can watch virtual TV through mixed reality, talk with a hologram of someone far away as if they were right in front of you, collaborate on work, and for complex machinery, one can perform tasks more easily and conveniently while viewing a virtual manual spread out before their eyes. Q. What is the outlook for Mixed Reality (MR)? A. It is expected that mixed reality will develop into glasses form, and this is expected to have a much larger market size than virtual reality. The various information shown in mixed reality—for example, video content or music, phone calls, and smart hub systems connected with IoT—could become a device that replaces smartphones or TVs. Stores and shops seen while passing by the street might issue virtual coupons visible to people wearing mixed reality glasses to attract customers, and diverse and creative forms of advertising through mixed reality are also possible. Therefore, the development potential of mixed reality is considered limitless. Q. What advice do you have for Korean SMEs? A. As seen in the case of Magic Leap, mixed reality is an industry that requires large-scale investment and personnel for R&D. It will be difficult for SMEs with weak capital to develop hardware directly. Therefore, I think it would be better for SMEs to focus on software or content rather than hardware. In the case of Magic Leap, they are opening a development tool where developers from around the world can create various content and software, focusing on discovering more killer content like an App Store or Google Play. Therefore, it would be good to collaborate with large device companies leading the mixed reality market, such as Magic Leap or Microsoft, to jointly develop high-quality content and create an environment where more users can enter and consume in the mixed reality market. If a virtuous cycle is created where various contents are developed again through this, the mixed reality market will grow faster, and SMEs will gain global competitiveness.

Source: KOTRA Overseas Market News (news.kotra.or.kr)
Author: Yoo Ju-kyung Trade Officer at the U.S. Silicon Valley
Original Article: http://www.hellot.net/new_hellot/magazine/magazine_read.html?code=202&sub=002&idx=43955