VR and AR to add £62bn to UK economy by 2030
Virtual Reality (VR) and Augmented Reality (AR) could add £62.5bn to the UK economy, a 2.4 per cent boost to GDP, by 2030.
That is the forecast of a new report launched by PwC.
The majority of the contribution to the UK economy, £44.4bn, will come from AR with VR providing £18.1bn.
VR and AR will also have a significant impact on the UK workplace with 1.19 per cent of jobs or 400,663 people utilising the technologies by 2030.
Jeremy Dalton, head of virtual reality and augmented reality at PwC UK said: “VR and AR are finally coming of age and have the potential to provide a significant boost to the UK economy. They will also improve the way organisations operate, make processes faster and more effective, and create incredible new experiences.
Dalton said the technology would need the full support of key stakeholders in order to reach these figures.
“Government assistance through financial incentives and funding for research and development is required, as is support for forums that handle regulatory issues as the technologies mature.
“Research groups will need to provide the advancements that drive the technology forwards. And businesses will need to build a better understanding of the technology by getting started and using VR and AR to help solve business problems their organisations face.”
The new technologies are forecast to add a total £1.4trillion to the global economy by 2030. On a country by country basis, the US will see a boost of £484.2bn to its economy by 2030 as a result of VR and AR, representing a 2.83 per cent increase in GDP.
The major Asian economies of China (£165.3bn) and Japan (£129.bn) will see the next biggest boost representing 2.09 per cent and 2 per cent increases in GDP respectively.
In the European economies of Finland (£7bn), Germany (£93.4bn) and the UK (£62.5bn) that are forecast to see the biggest increases in percentage terms of GDP by 2030 with contributions of 2.64 per cent, 2.46 per cent, and 2.44 per cent respectively.
Out of the two technologies, AR will continue to provide the biggest benefits to global GDP through to 2030, accounting for £985bn of the £1.4 trillion overall, the report suggests.
Major sectors include healthcare, manufacturing, development and training, retail and gaming is one area where many people have already experienced VR and AR are expect to contribute to the growth.
Dalton concludes: “While many organisations might think VR and AR offer no major benefit to their business, our research has shown that’s not the case. Now is the time for them to think about how these technologies can improve their performance or they risk being left behind.
“The uptake and positive feedback of a VR or AR solution will be largely dependent on how comfortable and intuitive it is to use, so creating a seamless experience is crucial.
“There is no failure in being better informed.”