Jay Samit (Deloitte): Delivering ROI with Digital Reality

Delivering ROI with
Digital Reality
Jay Samit @jaysamit
6 / 1 / 2 0 1 7

Innovation
Trigger
Peak of Inflated
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
Smart Dust
4D Printing
General-Purpose Machine Intelligence
802.11ax
Context Brokering
Neuromorphic Hardware
Data Broker PaaS (dbrPaas)
Quantum Computing
Human Augmentation
Personal Analytics
Smart Workspace
Volumetric Displays
Conversational User Interfaces
Brain-Computer Interface
Virtual Personal Assistants
Smart Data Discovery
Affective Computing
Commercial UAVs (Drones)
IoT Platform
Gesture Control Devices
Micro Data Centers
Smart Robots
Blockchain
Connected Home
Cognitive Expert Advisors
Machine Learning
Software-Defined Security
Autonomous Vehicles
Nanotube Electronics
Software-Defined Anything (SDx)
Natural-language Question
Answering
Enterprise Taxonomy and
Ontology Management
Augmented Reality
Virtual Reality
Time
Expectations
• VR & AR in the Lead – Leading the exponentials (e.g. blockchain, cognitive,
connected home, IoT, commercial drones, autonomous vehicles, etc.). VR is the
only one to have left the “trough of disillusionment” & pushing to “slope of
enlightenment”
• Some Disillusionment Today – Because this is where we are in the hype
cycle – need to realize the potential is still there, just the previous wave set
expectations too high
• Now is the Opportunity – If we wait for the “plateau of productivity,” we will
be too late– this is the time when we can become the dominant player
Gartner Hype Cycle for Emerging Technologies, 2016
Left the Curve…
• Speech Recognition
• 3D Printing
• 3D Scanning
• Consumer Telematics
• Mobile Search
• Web Analytics
• Email Marketing
• Location Intelligence
The Fourth Transformation – PC | Web | Mobile | Digital Reality

Long-Term Multi-Trillion Market Outlook
0
500
1000
1500
2000
2500
2020 2025 2030 2035
Hardware/Content/ Services Commerce Market Size
($US, bn.)
2025
($US, bn.)
($163 bn.)
($276 bn.)
($130 bn,)
2035
The Digital Reality market is expected
to grow to $2.16 trillion by 2035
The Digital Reality market is expected
to expand to $569bn in 2025
• From 10 million units in 2017 to 30 million around 2020 and 40 million around
2025, long-term equilibrium will be 40 million annually, and the unit price will
ultimately fall to less than $200.
• The AR headset/hardware market will be $17.8 billion in 2020 and $120.2
billion in 2025.
• The VR game market projected to $49.4bn in 2025 (total for consoles, mobile,
arcade)
• The percentage of movies that are VR compatible will be 8% in 2020 and 35%
in 2025.
• AR grabs 25% of the m-commerce market equating to ~$1.3 trillion
• From 2025 onward, the majority of growth in the AR headset market will be
achieved at the expense of the smartphone market. Smartphone market
substitution by AR to rise from 0% to 48% in 2035.
• Growth in the market to be driven partly by the strong tailwind provided by VR
games through 2025
• AR-headsets will start to cannibalize mobile sales with annual smartphone unit
sales peaking in 2025, we forecast CAGRs for the AR-commerce market
of+66% in 2025–2030 and +22% in 2030–2035.
From 2025 onward, it is expected that the majority of growth in the AR headset market will be achieved at the expense of the smartphone market

Virtual Reality
will be
BIG
Augmented
Reality
will be
BIGGER
Digital Reality Market Opportunity
0
20
40
60
80
100
120
140
160
2016 2017 2018 2019 2020
$143B
combined market by 2020
RevenueForecast($B)
500
MILLION
headsets sold
by 2025
Digital Reality Revenue Forecast ($B) for 2020

Digital Reality Markets
Hardware
Ad Spend
eCommerce
Mobile (Data & Voice)
In-app Purchases
B2B Apps
Consumer Subs
Premium Apps
$75.6B
Digital Reality
End Market in 2022
(excludes Hardware & In-App Purchases)
2022 B2B
Software Market
Ad Sales: $18.4B
eCommerce: $18.4B
Mobility: $20.5B
B2B, Other: $18.3B
B2B Digital Realty Software Market Breakdown for 2022

Digital Reality
Safety
Design
Construction
Security
Travel
Retail

B2B Digital Reality Sectors
1 Think. Enabling companies to determine how to evaluate solutions, devise best practices, build a business
case for adoption and leadership buy-in and determine a long term vision for digital reality
2 Connect. Collaborating without colocation - connecting professionals remotely, communicating via “See
what I see” tools and enabling individuals in different locations to view/interact with the same data
3 Know. Augmenting data and resources to give professionals, engineers, and designers a new way to do
their jobs more effectively
4 Learn. Leverage digital reality technologies to support training and research, effectively lowering the time,
risk & cost traditionally required
5 Explore. Bring consumers on a journey of exploration across time and geography
6 Consume. Delivering digital reality experiences through content creation, enablement and integration

Training
AR Lego instruction is 20% faster than
2D Lego instruction

Quick Service Restaurants
Menu complexity and
ingredients per item (10+),
preference for premium items
Overall average speed
of service
(8 seconds YTD)
&

40% of Global 1000 will use
gamification as primary mechanism
for improving operations
Gamification

Safety
75% chance
of a disabling injury in a 45 year career

Augmented Knowledge
34% faster
complex task completion
wiring insertions for wind turbine

Design
30% reduced
Prototype production
time using VR

Construction
50% cost savings
with Building Information Modeling

Security
75%
facial recognition accuracy
in 1 million subjects

Travel
30% more engagement
with 360° video
than 2D advertising

Retail
&
29%
increased likelihood
to buy
30%
higher price point
acceptance

This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu
Limited, its member firms, or their related entities (collective, the “Deloitte Network”) is, by means of this
publication, rendering professional advice or services. Before making any decision or taking any action that may
affect your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall
be responsible for any loss whatsoever sustained by any person who relies on this publication.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see
www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and
their respective subsidiaries. Certain services may not be available to attest clients under the rules and
regulations of public accounting.
Copyright © 2016 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited
THANK YOU!
Contact us.
www.deloittedigital.com
Jay Samit
jsamit@deloitte.com
@jaysamit

Appendix: References
Slide 6 – http://www.gartner.com/newsroom/id/3412017
Slide 9 – https://www.citi.com/commercialbank/insights/assets/docs/virtual-and-augmented-reality.pdf
Slide 10
• https://techcrunch.com/2016/07/09/the-reality-of-arvr-survival/?platform=hootsuite
• http://www.cioandleader.com/article/2017/02/28/worldwide-spending-augmented-and-virtual-reality-will-reach-usd139-billion-2017
• https://techcrunch.com/2017/01/11/the-reality-of-vrar-growth/
Slide 11 – https://www.idc.com/getdoc.jsp?containerId=prUS42331217
Slide 14 – https://next.reality.news/news/good-news-ar-devs-research-shows-people-learn-better-3d-0174092/
Slide 15 – https://www.qsrmagazine.com/reports/drive-thru-performance-study-2014
Slide 16 – https://elearningindustry.com/top-gamification-statistics-and-facts-for-2015
Slide 17 – https://www.designblendz.com/blog/virtual-reality-to-revolutionize-construction-training
Slide 18 – https://hbr.org/2017/03/augmented-reality-is-already-improving-worker-performance
Slide 19 – https://haptic.al/virtual-reality-reduces-the-production-time-for-car-manufacturers-9778d7a48733
Slide 20 – https://www.raconteur.net/business/virtual-reality-and-big-data-disrupting-digital-construction
Slide 23 – http://www.washington.edu/news/2016/06/23/how-well-do-facial-recognition-algorithms-cope-with-a-million-strangers/
Slide 24 – Based on information gathered from client
Slide 25 – https://blogit.realwire.com/Research-Shows-The-Power-Of-Augmented-Reality-As-A-Sales-Tool

Jay Samit (Deloitte): Delivering ROI with Digital Reality

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Jay Samit (Deloitte): Delivering ROI with Digital Reality

Similar to Jay Samit (Deloitte): Delivering ROI with Digital Reality (20)

More from AugmentedWorldExpo

More from AugmentedWorldExpo (20)

Recently uploaded

Recently uploaded (20)

Jay Samit (Deloitte): Delivering ROI with Digital Reality

Editor's Notes