The GCC region is well advanced in the adoption of virtual reality (VR) and augmented reality (AR), and as its member states continue along the path of economic diversification, the region is fast becoming a dynamic development and adoption hub for immersive tech. So much so that year-on-year growth in adoption is soon expected to hit around 40%.
And the best is yet to come. VR has potential way beyond its current use cases, potential that won’t be fully embraced until we reach the critical inflection point for mass adoption.
That potential is great news for entrepreneurs in Dubai and the GCC looking for use cases that can scale quickly. Entrepreneurs able to identify a business case and model that can monetise 3-D virtual worlds and effectively measure ROI from a digital 3-D metaverse are more likely to attract investment.
VR simulations beyond entertainment will become indispensable in the modern world, and we’ll soon wonder how or why we ever did things differently.
VR & AR: what are they?
VR has been around since the 1960s, but it wasn’t until the ‘80s that the tech gained momentum via its use in military applications. Facebook’s acquisition of VR startup Oculus in 2014 didn’t drastically move the dial on VR, but it has since developed into a virtual 360-degree 3D environment simulated by a combination of computer hardware, software, and body-worn devices such as headsets or bodysuits. VR sidelines the real world in favour of an immersive, computer-generated one and is seen as the primary access point to the metaverse.
AR, in contrast, replaces certain elements of the real world with digitalisation. Think real-time navigational aids in heads-up displays on modern aircraft, for example, that superimpose data onto a display for users’ immediate benefit. As such, AR offers users a kind of blended reality in which a digital layer is projected onto analogue environments, making it easier and more intuitive to access critical real-time information.
VR opportunities: current use cases and potential expansion
The crucial question for entrepreneurs to consider is this: are we just a step away from a hockey stick moment?
It’s certainly true that VR is widely used across a range of industries and sectors, from design to training and education. And where business use cases are robust and ROIs clearly demonstrable, opportunities for VR tech startups will only grow.
Today, many sectors are taking advantage of VR for the affordable training opportunities it offers. In controlled environments, surgeons can perform dry runs, designers and engineers can simulate the performance of machinery and systems, and structural engineers and architects can envisage and actually see various construction scenarios, all within a digitally created virtual world. Project risk can be designed out, raising productivity and saving time and money.
Healthcare
VR at Saudi Arabia’s SEHA Virtual Hospital (SVH) allows surgeons and trainees to plan and practice complex medical procedures before performing them on live patients. As such, VR is fast becoming a vital tool for clinicians and surgeons as they train for and hone their craft. Its potential is huge; remote telesurgery via VR means that in-demand, specialist surgical teams will no longer be restrained by the limitations of their physical location but will be able to control robotic surgical devices from anywhere in the world, carrying out real-world procedures on patients. VR also allows surgeons to perform delicate movements during microsurgery that would otherwise be extremely challenging, if not impossible, using their hands alone.
Use cases like this are propelling the GCC to the forefront of healthcare innovation, making the sector a rewarding field for entrepreneurs and startups in VR. And by 2026, the digital-healthcare market in the UAE and KSA alone will be worth around USD 4 billion within a year.
Travel, tourism and hospitality
Enabled by immersive VR, virtual tourism has two important aspects that are helping the region’s travel and tourism sector achieve its ambitious aims: firstly, an immersive foretaste lets would-be visitors get a flavour of a destination or hotel with a digital walkthrough before parting with their cash. Secondly, an interactive personalised experience of real-world attractions and heritage sites offers visitors a truly novel way of getting more out of what’s on offer in person.
Saudi Arabia has announced plans to attract 100 million visitors by 2030, but its efforts to leverage VR tech aren’t limited to attracting tourists – its virtual-pilgrimage experience allows virtual pilgrims from across the world to worship at the holy mosque at Makkah in Mecca and visit the cornerstone of the Kaaba, the venerated Black Stone. VR allows pilgrims who don’t like crowds, or are unable to stand for long periods in queues, to experience the sacred site from their homes.
Design, architecture and real estate
Detailed 3D plans and 360-degree walk-throughs offer significant advantages when it comes to designing, altering and showcasing residential and commercial real estate and construction projects. Potential buyers can tour virtual projects from the planning stages before a single foundation trench has been dug to see what alterations or remodelling changes would look like in real time. Engineers can tour entire building systems to design-out oversights or streamline designs for building systems, ironing out problems before they arise, saving time and money on the project.
The future of VR: How will it evolve?
The global VR market will be worth USD 90 billion by 2032, up from just USD 16 billion in 2024, according to industry insiders. And despite growing accessibility and affordability, as well as developments in multi-sense hyper-realistic experiences with wider development and adoption of devices like haptic gloves, suits and spatial-audio, the real breakthrough will come when there’s an experience or utility that consumers simply can’t do without and which only VR can enable.
Widespread talk of the absence of a “killer app” in VR slightly misses the point; metaphorically speaking, at least, we’re still in the era of black and white TV, at the point before we all realised we needed a colour screen to watch the shows all the networks were beginning to broadcast in colour. “The real inflection point happens when the experiences they create make any alternative unthinkable,” notes tech platform AIXR Unicorn. “Just as we would never consider buying a black and white TV today, it’s not far-fetched for us to think immersive experiences will be widely in demand and VR will be necessary to enable them”.
Entrepreneurs: don’t boil the ocean
What should would-be entrepreneurs in this space look out for? There’s plenty of advice available, but a few key points stand out: as Deloitte Digital advises, “don’t boil the ocean”; start and fail; choose use cases that solve user needs and have a strong business case.
In short, start small and move quickly to prove the business impact. And never forget that technological barriers aren’t what will hinder your startup – it’s always an organisational problem.
For entrepreneurs in the GCC, VR has a bright future as the tech further matures with improving bandwidth, processing and video quality. As we’ve seen already in sectors that have embraced the tech, areas of potential for new entrepreneurs in VR will also grow exponentially as we reach an inflection point beyond which VR becomes a must-have for consumers.
