Augmented and virtual reality (AR/VR) have been among the top technological trends in the world and in Russia for more than 10 years. However, there are still many misconceptions around them. As the head of an XR solutions company, I often hear questions: Isn’t it insanely expensive? Where can such technologies be applied at all? Do they work for us or remain exotic? In this article, I will answer frequent questions, analyze common myths, describe the real difficulties of implementation and share the current reality of the development of AR/VR in Russia.
Is AR/VR expensive to implement?
It is believed that projects in the field of AR/VR are prohibitively expensive, accessible to giants only with unlimited budgets. Indeed, a few years ago, specialized hardware for VR and especially AR (MR) was very expensive. For example, the Microsoft HoloLens mixed reality headset cost about half a million rubles. Individual content development also required significant investments.
Reality: the user’s AR/VR entry threshold has dropped markedly. Today there are autonomous VR/MR helmets of the price range of 30-40 thousand rubles, which are not inferior in capabilities to professional equipment of the previous generation. Mass production and competition have reduced the cost of devices and components. Moreover, for many scenarios, existing devices – a smartphone or tablet – are enough to immerse the user in augmented reality. For example, training using AR can be implemented through the camera of a regular phone, without buying expensive glasses.
When analyzing the development of XR content, it should be noted that high-quality development still requires investment: you need to create a 3D environment – landscape, premises, 3D models and animation, program the logic of content using the Unreal Engine and Unity game engines, and so on. Nevertheless, the costs of a typical AR/VR project today are comparable to the costs of developing a mobile application or complex training. In addition, many companies are convinced that the investment is paying off: a VR simulator can save millions in a matter of months by reducing errors and injuries, and an AR application can speed up processes and improve the quality of staff work. Thus, the myth of “prohibitive high cost” is gradually losing relevance: technologies are becoming more affordable, and the benefits from them are becoming more tangible due to the emergence of more and more examples where such solutions have become effective.
Where are AR/VR technologies used?
AR/VR has already moved beyond the gaming industry. They are successfully used in a wide variety of industries. Here are just the main areas of use:
- Industry and construction. Virtual reality helps train personnel in dangerous or complex operations in a safe simulation (for example, managing complex equipment, practicing actions in case of accidents, etc). Augmented reality is used to support engineers and technicians: through AR glasses, the specialist sees step-by-step instructions directly on top of the equipment, which facilitates repair and maintenance. Large enterprises use AR to control assembly and installation – digital prompts are superimposed on real objects, reducing the risk of errors.
- Education and training. Schools, universities and corporate universities are increasingly turning to VR and AR to improve learning efficiency. In VR, you can conduct an anatomy lesson by “plunging” inside the cell, or rehearse a public performance in front of a virtual audience. AR allows students to study physics or chemistry by observing interactive models through a smartphone camera. In the corporate sector, immersive training reduces employee training time: a new employee can virtually master safety techniques or learn how to work with equipment before entering a real workplace.
- Medicine. VR and AR technologies have opened up new opportunities in healthcare. Virtual simulators allow surgeons to practice operations without risk to the patient, to practice skills on virtual organs. AR navigation helps doctors during operations: special glasses can show “through” the patient’s body, highlighting the location of blood vessels or tumors based on tomography. VR is also used in therapy – for example, for rehabilitation after injuries or for the treatment of phobias by gradually immersing the patient in virtual stressful situations under the supervision of a doctor.
- Culture and tourism. Museums and tourist sites are actively implementing AR/VR to attract visitors with new experiences. With the help of VR, you can virtually transfer to other eras and places: visit an ancient city or walk through space. In augmented reality, excursionists see through the phone screen how ancient structures are “recreated” on the ruins or historical scenes come to life. In Russian museums, VR zones appear, where visitors can, for example, be in an art workshop of the past or view exhibits in 3D. AR guides have been developed for urban tourism: pointing the camera at the building, the tourist receives information and multimedia materials about the attraction.
- Marketing and retail. Immersive technology is changing the way we interact with customers. AR applications allow you to “try on” furniture in the interior of your room or virtually see how clothes look on your figure without going into the store. Advertising campaigns with AR make outdoor advertising interactive: point your smartphone at the poster and see additional digital content. In car showrooms, a VR helmet makes you feel like driving a new model without physically having it. Such solutions increase customer engagement and can significantly increase sales due to the effect of presence.
- Entertainment and media. Of course, gaming and entertainment remain an important area of VR/AR application. All over the world, there are VR parks and attractions where you can immerse yourself in virtual worlds with friends. On television and online broadcasts, AR graphics and virtual studios are increasingly used, giving the viewer the impression of fantastic scenery. On social networks, millions of users use AR masks and filters for photos and videos every day – this is the most massive example of augmented reality in action. The entertainment industry has traditionally stimulated the development of technology, making it more popular and widespread.
Do these technologies work for in our conditions?
Skeptics ask: do AR/VR really function in Russian realities? The answer is unambiguous: yes, surely. Today, dozens of domestic companies in various industries have already implemented solutions based on AR and VR. Moreover, we are talking not about startups only: on the contrary flagships have become, the largest players. A few years ago, corporations such as Russian Railways, Sibur, Rosneft, Gazprom Neft, R-Pharm, Дом.РФ, the Moscow government and others launched pilot projects with immersive technologies and began to scale successful cases. These projects have proven effective: VR simulators help train thousands of employees faster and safer, and AR systems support workflows right at the factory sites and in the fields.
It is important to note that the implementation of AR/VR is supported at the state level. Since 2019, augmented and virtual reality have been officially classified as priority “end-to-end” digital technologies within the framework of the national Digital Economy program. This meant not only recognizing the importance of the direction, but also the emergence of development roadmaps, grants and other support measures. The Russian VR/AR Association (AVRA) unites market participants and promotes the exchange of experience. Profile conferences are held annually (for example, AVRA Days), where domestic developers and customers discuss new solutions. In other words, a full-fledged community and ecosystem around AR/VR is being formed, which confirms that this is not a one-time fashion, but one that develops seriously and for a long time.
Of course, the mass consumer is still familiar with VR/AR mainly for entertainment products – games, filters on social networks, mobile AR games like the sensational Pokemon Go. However, this fact also indicates that technology has already taken root in everyday life. Millions of Russians have tried out augmented reality elements without noticing it, for example, by applying animated masks on Instagram (owned by Meta Corporation, a recognized extremist organization and banned in the Russian Federation) or using AR lenses in applications. There is a steady interest from business and the state: immersive solutions are increasingly appearing in tenders and digital transformation projects. We can safely say that AR/VR work with us – and bring real benefits where they are implemented competently and with an understanding of the tasks.
Real difficulties of AR/VR implementation in Russia
With all the successes, you should not idealize the situation: there are objective difficulties on the way to introducing AR/VR technologies. It is important to know about them in advance in order to measure expectations with reality.
- Cost of equipment and development. Although the entry threshold has decreased, quality equipment still requires investment. This is especially true for highly specialized devices: the aforementioned high-end AR glasses are expensive, as are powerful VR stations for multiplayer simulations. In addition, creating content for specific business tasks is an individual project that costs money. Companies have to budget not only for the purchase of devices, but also for the development of software, 3D graphics, integration with existing systems. For small businesses, such costs are still usually too high, so distribution comes from large enterprises down the chain. Perhaps, over time, more ready-made standard subscription solutions will appear, which will reduce the cost of implementation, but now the market is still forming.
- Lack of content and software in the Russian market. Many AR/VR solutions require localization or development from scratch for our realities. There are more ready-made libraries and platforms, but specific tasks – for example, a training simulator for specific Russian equipment – are almost always unique. This means that you cannot do without a development team. In addition, interfaces and voice commands should be in Russian for the convenience of staff, which is sometimes missed in foreign products. Hence the need to develop their own competencies: the market meets the growth of the number of studios and teams specializing in immersive development.
- Personnel issue. AR/VR projects combine several areas at once: programming, design, 3D modeling, animation, usability, sometimes knowledge of industry specifics (be it medicine or mechanical engineering). Finding specialists who understand all this is not easy. Narrow Unity/Unreal experts (popular VR/AR engines) and 3D artists are in demand around the world, and competition for talent is high. In Russia, the personnel potential is growing – many come from gamedev, there are strong graduates of technical universities. Nevertheless, to implement a serious project, you often need to train specialists within the company, teach them new tools. This is time and money, which should also be taken into account as complexity.
- Technical limitations and user comfort. Virtual reality still has some drawbacks in terms of user experience. Helmets are quite bulky and can cause discomfort when worn for a long time. There is a problem of cyber disease: some people after 15-20 minutes in VR have dizziness or nausea due to the desynchronization of vision signals and the vestibular apparatus. The developers are already minimizing these effects (improving the frame rate, optimizing control), but the problem has not been completely solved and narrows the list of tasks for which VR is suitable (for example, in training pilots or drivers, you need to work very carefully through the simulation so as not to cause motion sickness). With AR solutions, too, not everything is simple: cameras of smartphones and tablets have restrictions on viewing angle and positioning accuracy, so virtual prompts do not always perfectly “stick” to real objects, especially in difficult conditions. Also, AR applications on phones quickly consume battery power and require sufficient computing power. All these technical nuances mean that the implementation must be accompanied by testing on end users and, possibly, the gradual adaptation of staff to new tools.
- Infrastructure and import substitution. Immersive technologies are closely related to the overall IT infrastructure. Their efficient operation requires reliable data networks, large amounts of memory and graphics processing power. For example, if an enterprise wants to broadcast AR instructions to a remote site online, a high-speed communication channel is required. Launching multi-user VR training requires a local network without delays or separate servers. In Russian realities, not everywhere yet there is high-speed Internet at production sites, and network equipment may need to be modernized. A separate point is the availability of the devices themselves: a significant part of AR/VR headsets are produced abroad. With logistics and deliveries of complex electronics complicated, companies are forced to look for alternatives. This should stimulate the development of domestic devices, but so far, there have been no significant successes in this direction. Nevertheless, import difficulties encourage businesses to master more actively what is available and rely on internal resources.
- Organisational barriers and scepticism. Any innovation opposes a human element. Often within organizations, new things are perceived with alertness: employees are afraid that VR/AR will “complicate life,” and managers are afraid of unjustified spending. If the company does not have a culture of innovation, the implementation may be delayed or take on a formal nature not using it in practice. For AR/VR to work really, it is important to change processes and educate people. It will take time to convince staff that the new tool is meant to make their jobs easier, not to control or replace. The role of management is critically important here: successful cases show that where top management itself believes in technology and promotes its use, resistance is overcome. Gradual scaling (from a pilot project to the entire plant or network of branches) helps to accumulate internal expertise and prove effectiveness for skeptics.
AR/VR market status and outlook
The AR/VR technology market in Russia is still at an early stage of development, but the dynamics are impressive. According to analytical studies, the volume of the Russian AR/VR market in 2020 was estimated at about 1.4 billion rubles, showing an increase of about 16% compared to the previous year. For comparison, this is a rather modest figure against the background of the global market, but the trend is significantly ahead of the average growth rate of the IT sector. Forecasts inspire optimism: it is expected that by 2025 the market volume will grow to 6-7 billion rubles. Such a jump means an average annual growth rate of about 30-40%. In other words, the industry is growing almost one and a half times annually.
The structure of the market is also evolving. In 2020, the lion’s share was accounted for by virtual reality solutions (about 80% of the total volume), primarily due to sales of VR headsets and gaming services. But the augmented reality segment is growing faster: spending on AR grew by about 40% per year versus 10% for the VR segment. The massive spread of smartphones played a role – mobile AR applications and filters became commonplace, their development was almost not hampered by pandemic restrictions or external factors. It is expected that in the coming years it is corporate AR solutions that will become the locomotive of market growth. Industrial enterprises and retail plan to increase investments in augmented reality, seeing a specific return (as in cases above). The VR sector will also grow – due to the emergence of new entertainment, educational products, as well as the use of VR in remote work and communications.
Separately, it is worth noting the possible impact of new infrastructure projects on the market. The development of 5G networks and high-speed Internet in Russia can give AR/VR a new impetus. For example, fifth-generation networks will allow streaming heavy VR/AR content to mobile devices with minimal latency. Telecom operators and IT companies are already considering immersive services (virtual concerts, remote presence, cloud VR gaming) as one of the promising areas for monetization after the launch of 5G. Thus, infrastructure improvements can significantly expand the AR/VR audience and create new application scenarios that are now technically difficult.
In general, the AR/VR market in Russia is emerging from the experimental stage and entering a phase of growth and maturity. If a few years ago this was the lot of enthusiasts, now immersive technologies are on the agenda of digital development directors, industry ministers and company business strategies. The reality is that AR/VR is gradually turning from a curiosity into a working tool – albeit not everywhere yet, but in many places where it is really rational.
Summing up, we can confidently say: the development of AR/VR in Russia has moved from the field of myths to the plane of real affairs. Yes, there are still stereotypes (“expensive, meaningless, not for us”), but they are disproved by facts: technologies are used in various fields, and they also bring benefits and economic effect. There are difficulties – with equipment, and with personnel, and with the perception of the new – but these problems are solved as experience is gained. The market is gaining momentum, the competence of domestic teams is growing, successful implementation histories appear. All this forms the basis for further growth. Already today, Russia has many talented developers and brave customers in the field of AR/VR. This means that new innovative projects, scaling of existing solutions and, possibly, our own breakthrough products on the global stage await us. Myths are debunked – the immersive reality in Russia has taken place, and its future looks reassuringly confident.
By Konstantin Negachev, head and co-founder of VRT