AR/VR/XR Industry

Whenever someone talks about the top virtual world in which users are allowed to
technological trends that will shape the interact in real-time with virtual elements.
future, Augmented and Virtual Reality Lastly, XR or extended reality is more of an
always makes it to that list. VR is the use of umbrella term that accounts for all
computer modelling and simulation that immersive technologies that occur due to
enables people to interact with an artificial the blending of virtual and real worlds.
3-D visual or any other type of sensory
environment. However, the newest buzzword that is
pushing the use of these technologies to
On the other hand, AR provides a real-world even greater heights is the Metaverse.
interactive experience in which objects and Coined in 1992 by author Neal Stephenson
environments in the real world are in a science-fiction novel to describe a
enhanced by computer-generated image virtual-reality-based successor to the
features. Multiple modalities are a part of internet. In simple terms, the metaverse is a
this experience including auditory, visual, shared virtual environment that people can
haptic, olfactory, and somatosensory. To put access via the internet and one that uses a
it in simple layman's terms, augmented combination of AR and VR.
reality is the combination of the real and

02
Global Outlook for the AR/VR/XR Industry
According to a market research study, the As for the VR market, it is expected to reach
market size and share revenue for the $84.09 billion by 2028 with a CAGR of
global Augmented Reality market are 44.8%.2 When it comes to the metaverse,
estimated to grow to about $90 billion by VR is the gateway to its profit potential. The
2028, with a CAGR of approximately 31.5% global market for the Metaverse could
between 2022 and 2028.1 While the value reach $1.6 trillion by 2030 with a CAGR of
stood at $15.2 billion in 2021, it's only more than 45% over the next eight years
expected to grow more as some of the and a value of $62.1 billion in 2021.3
world’s biggest companies start adopting
AR Technology.

Global Virtual Reality Market Share, By Device Type, 20214

30.1% Head Mounted DiaplY (HMD)

VR Simulator
VR Glasses
Treadmills and Haptic Gloves
Others

www.fortunebusinessinsights.com

4
https://www.globenewswire.com/en/news-release/2022/06/28/2470583/0/en/Global-Opportunities-in-Augmented-Reality-
Market-Size-Will-Grow-Over-US-90-8-Billion-by-2028-at-31-5-CAGR-Growth-AR-Industry-Demand-Share-Trends-Statistics-Key-
Players-Segments-Ana.html
2
https://www.globenewswire.com/en/news-release/2022/04/18/2423750/0/en/With-44-8-CAGR-Virtual-Reality-Market-Size-W
orth-USD-84-09-Billion-in-2028.html
3
https://money.usnews.com/investing/stock-market-news/slideshows/virtual-reality-stocks-to-watch?slide=2
4
https://www.fortunebusinessinsights.com/industry-reports/virtual-reality-market-101378 03
 AR/VR/XR Industry

Drivers of growth
Growth in this sector is not only driven integration of AR/VR tech by allowing
purely by the entertainment value that consumers to virtually try on things
AR/VR/XR technology provides, but also without leaving the comfort of their
by its applications in a number of different homes. The growing popularity of VR can
sectors. Demand only continues to grow be easily gauged by the fact that the VR
for 3D imaging in the healthcare sector gaming industry earned $1.1 billion in
which has led to a significant increase in 2020 while 5.5 million AR and VR headsets
demand for AR devices. Besides the health were shipped by manufacturers in the
sector, other industries like retail, same year.5
automotive, and architecture are
increasing their reliance on AR software to As for the applications of the metaverse,
provide value-added services to their they’re endless if you think about it. Not
clients. only does it create a unique gaming
experience but it can help people with all
Gaming has become much more sorts of different experiences together.
interactive and immersive using AR and People can attend virtual concerts,
VR technology. Moreover, AR and VR are visit any place they want from the comfort
also being used to boost engagement of their home, and make money through
between digital content and viewers. This a virtual social economy via NFTs and
marketing method proved to be extremely cryptocurrencies. Moreover, the
useful during the pandemic as digital metaverse can be used for teaching,
connections took precedence in all training, and a myriad of other things.
avenues including personal, professional,
and entertainment.

AR/VR tech has also found applications in

the manufacturing sector with many
companies using the technology to
improve maintenance. AR-based head-
mounted displays and 360-degree
cameras offer views where there is
limited visual awareness. VR has also
proved to be helpful for training as
VR-based flight stimulators provide
realistic training to pilots.

Virtual trainings are seeing heavy

investments from a myriad of
different sectors including automotive,
education, healthcare, aerospace, and
military. Lastly, the retail sector has
already seen a huge transformation by the

https://dataprot.net/statistics/virtual-reality-statistics/
5

04
Who is leading the market?
While every company is trying to jump on technology in gaming and entertainment.6
the bandwagon by integrating AR/VR/XR The VR market is also dominated by North
in their offerings, the market has been America fueled by new startups entering
captured already by a few key players like the arena and offering industry-specific
Sony Corporation, Niantic, Inc., Google solutions. Growth is also being fueled by
LLC, Blippar Limited, Magic Leap, the US government investing heavily into
Incorporated, Apple, Inc, etc. If we look at virtual technology with the US army
a regional breakdown, North America committing $11 billion in AR/VR/MR
dominates the market because of the training sessions for government
increasing demand for AR in e-commerce workers. Key players operating in the VR
7

and retail stores in the region which has market include Google LLC, Oculus Rift
led to a growth in investments. (Facebook Inc), Sony Corporation, Unity
Technologies, and HTC Corporation.
However Asia Pacific seems to be catching
up by becoming the fastest-growing
region as more and more people adopt AR

Extended Reality (XR) Market - Growth Rate by Region (2022-2027)8

Source: Mordor Intelligence

6
https://www.verifiedmarketresearch.com/product/global-augmented-reality-software-market-size-and-forecast-to-2025/
7
https://www.globenewswire.com/en/news-release/2022/04/18/2423750/0/en/With-44-8-CAGR-Virtual-Reality-Market-
Size-Worth-USD-84-09-Billion-in-2028.html
8
https://www.mordorintelligence.com/industry-reports/extended-reality-xr-market

05
 AR/VR/XR Industry

You can’t talk about the Metaverse market

without talking about Meta formerly Facebook
which has invested more than $10 billion in the
sector. Besides the heavy investment, Meta also
bought the best-selling game Oculus in 2014 and
saw the profits reap in 2021 when the Oculus
Quest 2 headset became the best-selling VR
headset of 2021.9 Other companies in the arena
include Roblox Corporation which has
invested a significant amount of money in
manufacturing tools to be used in the
metaverse, Apple which will be
introducing glasses to enter the
virtual headset arena, and Nvidia
Corporation amongst others.10

In which industries if VR most useful?11

61%
41% 41%
23% 21% 20% 16%

Gaming Healthcare and Education Manufacturing Movies and Workforce Marketing and
Medical Devices and Automotive Television Development Advertising

Augmented Reality Unicorns

Name
CSPs Valuation
(Saa S, LaaS and PaaS) Country

Niantic $9 billion United States

Anduril $4.6 billion United States

Rec Room $3.5 billion United States

Magic Leap $2 billion United States

Hailo $1 billion Israel

9
https://money.usnews.com/investing/stock-market-news/slideshows/virtual-reality-stocks-to-watch?slide=2
10
https://www.thenews.com.pk/print/959168-metaverse-for-pakistan
11
https://financesonline.com/virtual-reality-statistics/

06
 Zooming in on Pakistan
Though immersive technology is gaining Besides EdTech, the XR industry is also
traction in Pakistan at a steady rate, the making leaps and bounds in the healthtech
country has been a little slower compared to sector. In November 2021, Ziauddin
its counterparts in wholly embracing this University introduced Pakistan’s 1st VR
new wave of technology. The country saw its dental simulator known as Virteasy Dental.
first brush with a VR startup when Aiyin, an The tool was installed at the digital dental lab
Islamabad-based ed-tech startup became at the School of Dentistry.16 VR was also
the runner-up in the GlobalMakerChallenge used in a study by Pakistani scientists to
and won Rs.1.65 million. show how the technology could be used to
control or slow down the decline in brain
The startup allowed students to access functions of dementia patients. They
science labs using their tech. While the idea harnessed the power of virtual reality to
was a great one that could have achieved a lot make virtual surroundings more complex,
of traction had it been formulated today, in dynamic and challenging than the actual
2020 it did not achieve the results it environments of dementia patients in order
wanted.12 With the overall community much to simulate their brains.17
more receptive to AR/VR tech now,
companies using this technology have been
flourishing with 2022 seeing two AR/VR
companies raise impressive rounds of
funding. The first Orbit-Ed, a female-led
venture started by using AR to redefine
classroom learning. To that effect, they
recreated school curriculums in interactive
smartphone applications.

However, they soon pivoted from using AR to

teach children to use the same technology to
conduct training when their own poor
training protocols were pinpointed as the
reason behind falling sales. Now with a new
round of fundraising that brings their total
funds to $800K, they aim to use their
learning technology to revolutionize the
world of training and learning.1314 The second
called EuphoriaXR, an extended-reality 2022 also saw Foodpanda using virtual
development studio recently raised funding reality to introduce a new system for
for its product InterApp which aims to bring onboarding talent in Pakistan. The delivery
mass adoption of AR to Pakistan.15 giant used VR glasses to give students a feel

12
https://www.techjuice.pk/mit-backs-pakistani-virtual-reality-startup-aiyin/
13
https://educations.pk/blog/2020/07/10/orbit-is-here-with-the-best-interactive-study-method-to-keep-your-kids-learning-in-the-lock-down/
14
https://founderpakistan.com/orbit-ed-raises-500k-pre-seed-round-led-by-boost-vc/
15
https://www.linkedin.com/posts/euphoriaxr_ar-interapp-metaverse-activity-6960206576179642368-aT69?utm_source=linkedin_share&u
tm_medium=member_desktop_web
16
https://www.dentalnewspk.com/27-Nov-2021/ziauddin-university-introduces-pakistan-s-first-vr-dental-simulators
17
https://www.arabnews.pk/node/1930426/pakistan
07
 AR/VR/XR Industry

of the Foodpanda workplace during its many The concept of metaverse has also been
job fairs held in numerous universities in picking up in Pakistan, with the country
Karachi.18 The VR market saw another uptick entering one of the most famous
in Pakistan when Digisol announced its decentralised metaverse platforms through
partnership with Zero Density as a channel the aid of Mudassir Ali and Umair Mustafa
partner. Zero Density which has a who created a 3D view of Faisal Masjid in the
cutting-edge virtual studio and AR solutions Decentraland Metaverse. Decentraland
will give an edge to TV Broadcasters, media which allows users to buy virtual properties
production houses, content generators, and as NFTs is considered to be one of the biggest
other institutions in Pakistan. metaverse platforms and the currency used
there ranks as the biggest metaverse
Tourism has also been a sweet spot for the currency with a market cap of around $4.5
VR industry with many using virtual reality to billion.22 Gaming and software houses are
give their customers a feel of different also increasingly getting into the creation of
locations before they make the trip in person. Metaverse games.
Companies like Virtual Pakistan are selling
interactive aerial tours while HD360 creates
virtual tours on demand.1920 The tours are not
relegated to broad views of cities only
though. HD360 has also created dozens of
virtual tours for factories, educational
institutions, housing societies, etc.21

EdTech WonderTree, OrbitEd, Digipint

PropTech mimiAR, Mapalytics, Homevism

Software Houses Euphoria XR, DigiTrends, GroCode, Origami Studios,

Elytra Studios, Naisky, RenderLounge, PIXARCH,
TechoStudios, MangoTech, HD360, Haider Solutions 360,
Darul Solutions

Entertainment Vrhere, Transfinity, Moshpit

Gaming Kiwi Creations, Naisky, Portsea Games, Mixeal, Narsun Studios

HealthTech Haptech

E-commerce Brandverse

Tourism Virtual Pakistan

Metaverse Metaverse Pakistan, AurLab, Exarta, CloudCity Metaverse,

18
https://propakistani.pk/2022/03/22/virtual-reality-catalyzing-the-future-of-how-talent-is-onboarded/
19
https://virtualpakistan.pk/tourism-vr/
20
https://www.hd360.pk/
21
https://www.haidersolutions360.com/index.php
22
https://propakistani.pk/2022/03/24/pakistans-first-complete-3d-view-of-faisal-masjid-has-been-placed-in-decentraland-
08 metaverse/
WonderTree
WonderTree is an Augmented-Reality startup aimed at
children that require special education. They produce
games that help enhance children's motor, cognitive, and
educational skills. They have a user base of more than
6500 children and their gaming solutions are being used
in 19 hospitals, 57 schools, and 187 houses.23 The startup
was a recipient of the UNICEF Innovation Fund 2020 for
its inclusive and unique approach to using motion-based
games as an assistive tool for children with health
impairments. Besides the Innovation Fund, WonderTree
was also selected by Google for its accelerator program
which focused on sustainable development goals.24

Orbit-Ed
Orbit-Ed provides enterprises with a VR platform to
optimise the learning and training of their employees.
From effective training sessions, to evaluating
performances, and predicting learning outcomes,
Orbit-ed has it all. They create close-to-life
immersive experiences for enhancing
employee engagement. Their
data-driven training results in
increased productivity and
organisational agility.25 Besides
enterprises their gamified
learning platform is also used
for K-12. The startup recently
announced its pre-seed round
in August 2022 led by Boost VC
which brings up its total funding
to $800,000. They previously
raised funding from the Learn
Launch Fund+Accelerator as well as
Startup Bootcamp.26

23
https://wondertree.co/
24
https://tribune.com.pk/story/2258899/pakistani-startup-wondertree-picked-by-google-unicef-for-investment
25
https://www.orbit-ed.com/
26
https://www.crunchbase.com/organization/orbit-ed/company_financials 09
 AR/VR/XR Industry

mimAR
mimAR specialises in all aspects of 3d
architectural visualisation rendering services
through augmented reality and virtual reality.
Besides providing architectural design RenderLounge
services, the company’s marketing experts Renderlounge is a firm focusing on
also help with the selling and branding of the photo-realistic architectural visualisations
real estate project. They use AR and VR and the incorporation of Virtual Reality into
technology to help visualise buildings before their projects. They aim to be the top
they are built. The added features include rendering and visualisation company in
mixed reality that allows the design to be Pakistan with ambitions to make a mark in
viewed on the actual site with real-time the international market as well. The
context and interactions that let clients company focuses on interior and exterior
choose amongst furniture and fixtures visualisations including landscape and
making it a customer-centric design.27 large-scale industrial visualisation.
Renderlounge incorporates Real-time
iterative design utilising the latest in
simulation engine technologies. They have
been the recipients of numerous awards
and grants including the EPIC mega grant,
the APAC Insider ‘Most innovative
experience provider’ award, and the best
Euphoria XR ‘Architectural Visualisation Studio’ award.30

Euphoria XR is a creative technology

company that produces next-generation
experiences for world-class brands. They are
best known for their award-winning work in
AR (Augmented Reality), VR (Virtual Reality),
and AI (Artificial Intelligence) application
Elytra Studios
development. Their clientele list includes Elytra Studios is an Interactive AR/VR and
Hasbro, Qatar Airways, TXDOT, TTEC, Gaming studio. Their list of clients includes
Ducati, NFL, Total, Nestle, and Pepsi amongst some pretty big names in the industry like
others. They not only develop AR VR apps but Marvel, DC, Pepsi, Doctor Who, Midas
have also created 360 VR commercials and Safety, Total, and Ambani amongst others.
CG environments for numerous brands.28 They leverage immersive technologies (AR,
Euphoria product InterApp recently raised a VR, MR) to present content engagingly
$1.2 million funding round in August 2022. design novel hardware supporting extended
The funding is going to be used for the mass reality, and provide VR and AR development
adoption of AR technology in Pakistan.29 services to consumer electronics brands
looking to fine-tune distributed systems’
performance.31

27
https://mim.archi/
28
https://euphoriaxr.com/
29
https://www.linkedin.com/feed/update/urn:li:activity:6960210032260976640/
30
https://www.renderlounge.com/
10 31
https://www.elytrastudios.com/
 Moshpit
Moshpit Studios is an Immersive software
Darul Solutions developer designing solutions for virtual
concerts and events. With offices in both
Darul Solutions is an IT Solution company Lahore and LA, Moshpit’s mission is to make
which excels in web designing and VR concerts as realistic and enjoyable as
development, software development, real concerts. Moshpit’s breakthrough
E-Commerce, graphics designing, enterprise innovations include a huge crowd of
solution services, Online Media planning and intelligent fans driven by Artificial
other IT Solutions, which are the core Intelligence(AI) who interact with human
requirements of today's business industries avatars and respond to the music.34
around the world. Their services include
real-time walkthrough visualisations,
Interactives sales points, 3-D floor plans,
3-D modelling, Virtual Reality Content,
Augmented Reality, Photo-realistic
renderings and real-estate 3-D
visualisations. Some of their notable clients
include Hyundai, LNG Studios, Shaikhani
Group, Elsa, Suzuki, Proton and ARY
Laguna.32
Mapalytics
Mapalytics is a technology company that
provides smart 3D solutions for multiple
industries. Mapalyitcs utilises its 3D
scanning technology to generate
high-resolution scaled 3D models.
Mapalytics generates VR, AR, and
Kiwi Creations holographic projection content using these
models. The uses include digital heritage
Kiwi Creations is a trusted AR, VR, and game preservation, digital tourism, e-learning,
development company. They have created real estate marketing, digital exhibitions,
eminent game solutions for entrepreneurs, etc.35
startups, and Fortune 50+ companies alike.
With a 99% job success ratio, they have
delivered over 100 projects. Their specialty
is the creation of metaverse games.33

32
https://www.darulsolutions.com/
33
https://kiwicreations.io/
34
https://www.moshpit.live/
35
http://www.mapalytics.org

11
 AR/VR/XR Industry

Digipint
Digipint produces interactive augmented reality books for children. Their unique XR learning
technique helps children reduce unproductive screen time and replaces it with learning.
Users can use the accompanying app to interact with digital content, sounds, and animations
created by the digibook.36

Homevism PIXARCH
Homevism is the next generation of Pixarch provides exclusive services of
construction. They are working to enhance Architectural Visualisations, 360 Degree
Pakistan's Development Sector through Virtual Walk-through, Photo-Realistic
Augmented Virtual Reality using state of Views, 3D Rendering, 3D Floor Plans,
the Art A.I algorithms and 3D technology to Augmented Reality, Touch Screen
turn dream houses into reality. They offer a Presentation Solutions & Visual Designs.
wide range of services from renderings to They have delivered over 1000 projects
interactive designs to marketing strategies and more than 2000 rendering cores.38
for B2B clients and B2C Clients.37

HD360
Haider-Solutions-360° provides a wide range
VRHERE of I.T, Multimedia, Virtual Reality, and
Vrhere is a virtual reality simulation arcade Website Application Solutions and Services.
that was a recipient of the USAID Some of the key solutions which they offer
SMEA-SMEDA growth grant. They are the include 360-degree panoramic virtual tours,
first in Pakistan to develop Edutainment static and dynamic website design and
Arcades that deliver Entertainment, development, and e-commerce business
Educational, and Tourism experiences solutions amongst others. They have created
under one roof. Their venture which virtual tours for apartment complexes,
started in 2018 has now established universities, famous monuments,
arcades in different provinces.39 restaurants, and heritage sites40

36
https://digipint.com/
37
https://homevism.com/
38
https://www.pixarch.net/
39
https://vrhere.pk/
12 40
https://www.hd360.pk/index.php
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