The Asia-Pacific, which has come to be known as a hub for VR innovation, is embracing this moniker with gusto! Recent advancements in VR hardware and software, have overcome challenges that prevented it from entering the mainstream for several years, and countries like Japan and China are now leading the way with their innovation in immersive virtual reality experiences.
Statista predicted the VR software market in Asia to generate a revenue of US$1.6 billion by 2024, with a compound annual growth rate (CAGR) of 8.9% from 2024 to 2028. VR hardware projections indicate that the revenue in this market will reach US$4.7 billion by 2024, with a CAGR of 10.9% from 2024 to 2028 and a projected market volume of US$7 billion by 2028.
From a marketing perspective, VR provides a unique platform for immersive brand storytelling. Advertisers can transport users into different worlds and narratives, allowing them to engage with brands on a personal level. Interactive storytelling captures attention and creates a lasting impression on the viewer.
One notable sector in the APAC region that has accelerated the adoption of VR for immersive storytelling is tourism. This region is home to some of the world’s most awe-inspiring tourist destinations, and VR allows consumers to virtually experience these locations. By donning a VR headset, potential tourists can navigate, explore, and familiarize themselves with destinations in a safe and controlled environment. This empowers them to make more informed choices regarding their travel plans and activities.
There are a multitude of opportunities for advertisers to integrate themselves into this space and effectively reach target audiences. Travel agencies and governments are among the entities benefiting most from using VR to promote tourism. For instance, visitors can virtually explore renowned sites in Rajasthan and four prominent tourism destinations in Thailand: Phuket, Bangkok, Surat Thani, and Chiang Mai through tours put together by governmental tourist authorities. And the computer-generated Virtual Osaka, which incorporates the city’s famous castle and other major tourist sites, is being used to promote the 2025 World Exposition.
Another promising application of VR in Asia Pacific is in e-commerce and retail. It has demonstrated great potential in facilitating commerce to drive purchase decisions. By utilizing virtual showrooms and product demonstrations, customers get firsthand experience with products before making a purchase. This helps alleviate the uncertainties of online shopping. Fashion brands like Charles & Keith have moved beyond augmented reality to virtual reality. The Charles & Keith Virtual Store Experience enables customers to immerse themselves in their virtual stores, which are “located” in renowned cities across Asia. This immersive experience provides a comprehensive, 360-degree view of store interiors as well as the retailer’s latest collection of bags, shoes, and accessories.
It’s no wonder that key e-commerce players in the region are already embracing VR technology to enhance the shopping experience. In Singapore, Procter & Gamble collaborated with Shopee for their Regional Super Brand Day, during which it introduced an enhanced virtual home shopping experience. Users could explore different virtual rooms and discover P&G products, which were categorized according to their respective rooms. This immersive and interactive online shopping journey transformed the way consumers discovered and browsed products, going beyond the limitations of traditional product pages.
With the rapid advancement of VR in Asia Pacific, what does the future hold for this technology? Welcome to the world of mixed reality (MR)! VR creates a fully immersive digital environment best experienced through a headset or head-mounted display, but MR takes it a step further by seamlessly blending digital and real-world settings. This allows users to witness the coexistence and interaction of physical and virtual objects in real time.
We are already seeing glimpses of this technology. Hospitals and medical institutions in Singapore, for instance, have been actively exploring MR applications. As reported in The Straits Times, Singapore’s first successful holography-guided heart surgery was performed by a team of surgeons from the National University Heart Centre, Singapore in 2022. Since then, four other patients have been treated with this technology-assisted heart surgery. Surgeons utilized MR technology in the form of the HoloLens 2 for presurgical planning. This enabled them to visualize and practice procedures in a simulated environment, resulting in more precise surgeries.
In today’s ever-evolving digital landscape, we are continuously witnessing remarkable advancements in technology. With its ability to create immersive experiences, VR has the power to transport consumers into different worlds and narratives, fostering a deeper connection with brands. As the technology continues to evolve and merge with mixed reality, we will see even greater real-world, real-time brand applications of this technology that seamlessly blend the digital and physical realms, to deliver captivating and transformative audience experiences.
The brands that embrace this potential and stay at the forefront of advancements, will unlock the potential for new avenues for growth, innovation, and engagement. The best is yet to come.
This thought leadership piece is written by Abygayle Brani, Regional Marketing & Communications Strategist, UM APAC
