VR, MR, XR in 2035: My Predictions as a Technology Futurist
Opening Summary
According to a comprehensive report by PwC, the global VR and AR market is projected to contribute a staggering $1.5 trillion to the global economy by 2030. I’ve watched this space evolve from clunky headsets and niche applications to a burgeoning ecosystem that is fundamentally reshaping how we work, learn, and connect. Today, we stand at a pivotal moment where the lines between our physical reality and digital worlds are not just blurring—they are actively merging. In my consulting work with global enterprises, I’ve seen firsthand the shift from cautious experimentation to strategic implementation. The current state is one of explosive potential, but it’s also fraught with significant hurdles that organizations must overcome to harness the true power of immersive technologies. We are moving beyond gaming and entertainment into a future where VR, MR, and XR become as integral to business operations as the internet is today. This isn’t just about new gadgets; it’s about a fundamental rewiring of human-computer interaction.
Main Content: Top Three Business Challenges
Challenge 1: The Integration and Interoperability Quagmire
The single biggest obstacle I encounter in boardrooms is the sheer complexity of integrating these immersive technologies into existing enterprise systems. Companies are not greenfield projects; they have decades of legacy software, proprietary databases, and established workflows. As noted by Accenture in their Tech Vision report, “the biggest barrier to scale is not the technology itself, but the ability to integrate it seamlessly into the human experience and existing business processes.” I was recently working with a major automotive manufacturer that wanted to use MR for collaborative design. The challenge wasn’t the headset software, but making it talk to their legacy CAD systems and supply chain management platforms. This creates data silos and limits the ROI, turning a potentially transformative tool into just another piece of disconnected software. The business impact is massive: delayed projects, bloated budgets, and frustrated teams.
Challenge 2: The Immersive Skills Gap and Talent Shortage
We are facing a critical shortage of professionals who can bridge the gap between creative design, software development, and strategic business application. Gartner predicts that through 2027, over 50% of large enterprises’ AR/VR strategies will fail due to a lack of in-house expertise and a clear roadmap. This isn’t just about finding Unity or Unreal Engine developers. It’s about finding people who understand spatial computing, user experience in 3D environments, and how to apply these concepts to solve real-world business problems like logistics optimization or remote assistance. I’ve seen companies invest millions in hardware, only to have it gather dust because no one internally had the skills to build meaningful content or applications. This talent gap is slowing down adoption and innovation at an alarming rate.
Challenge 3: Defining and Measuring Tangible ROI
Many leaders I speak with are still struggling to move beyond the “wow” factor to concrete, measurable business outcomes. The Harvard Business Review highlighted that while 82% of companies currently implementing AR and VR say the benefits are meeting or exceeding expectations, only a fraction have robust metrics in place to prove it. Is the value in reduced travel costs from virtual meetings? In faster training times for technicians? In fewer errors on the assembly line? Without clear KPIs tied to business objectives, VR/XR projects are often the first to be cut during budget reviews. I advise my clients to start with a pilot project tied to a single, critical business metric. For instance, a client in the energy sector used VR for safety training and measured a 25% reduction in onsite incidents within six months—that’s a return on investment any CFO can understand.
Solutions and Innovations
The good news is that the industry is rapidly evolving to address these very challenges. I’m seeing several key innovations creating pathways to success.
No-Code and Low-Code XR Platforms
First, the rise of no-code and low-code XR platforms is a game-changer. Tools like Microsoft’s Mesh and emerging cloud-based services are allowing subject matter experts—not just developers—to create immersive experiences. This directly tackles the skills gap, empowering engineers, trainers, and designers to build what they need.
Digital Twin Technology
Second, we’re seeing the maturation of the “Digital Twin.” Companies like Siemens and GE Digital are leading the charge, creating virtual replicas of physical assets, processes, and systems. This isn’t just a 3D model; it’s a live, data-driven simulation. I recently consulted for a logistics company that used a digital twin of their entire supply chain in VR to simulate disruptions and optimize routes, resulting in a 15% efficiency gain. This provides the clear, data-backed ROI that executives demand.
Open Standards and Interoperability
Third, the push for open standards and interoperability is gaining momentum. The Metaverse Standards Forum, backed by companies like Meta, Microsoft, and NVIDIA, is a crucial step toward ensuring that assets and experiences can move fluidly across different platforms. This will break down the walled gardens and make integration significantly less painful.
AI-Driven XR Enhancement
Finally, AI is becoming the invisible engine of XR. AI-driven avatars can provide real-time language translation in virtual meetings, while generative AI can create realistic 3D environments on the fly, drastically reducing development time and cost.
The Future: Projections and Forecasts
Looking ahead, the data paints a picture of explosive growth and profound transformation. IDC forecasts that worldwide spending on AR/VR will grow from $12.0 billion in 2020 to $72.8 billion in 2024, representing a compound annual growth rate of 54%. By 2035, I believe we will see this market easily surpass the $500 billion mark.
2024-2027: Enterprise Adoption and Integration
- $1.5T contribution to global economy by 2030 (PwC)
- 50% AR/VR strategy failure rate due to skills gaps (Gartner)
- 82% companies reporting benefits but lacking robust metrics (Harvard Business Review)
- $72.8B global AR/VR spending by 2024 (IDC)
2028-2032: Mass Consumer Adoption and Platform Maturity
- $500B+ market size by 2035
- Widespread enterprise adoption across industries
- Contact-lens-based displays eliminating bulky headsets
- Haptic feedback suits providing genuine sense of touch
2033-2035: Phygital Integration and Brain-Computer Interfaces
- VR, MR, XR ceasing to be distinct categories becoming standard interfaces
- Rise of the Spatial Web creating 3D layer over physical world
- Brain-computer interfaces enabling control through thought
- Seamless digital-physical integration in daily life and business
2035+: Immersive Reality as Standard Interface
- Immersive technologies becoming the primary way we interface with digital information
- Devices fading into background with experience becoming paramount
- New revenue streams, operational efficiencies, and customer engagement models
- Organizations embracing immersive future gaining competitive advantages
Final Take: 10-Year Outlook
In the next decade, VR, MR, and XR will cease to be distinct categories and will simply become the way we interface with digital information. The device will fade into the background, and the experience will become paramount. We will see the rise of the “Spatial Web,” a 3D layer over our physical world that will revolutionize everything from retail and real estate to education and social interaction. The opportunities for businesses that adapt early are monumental—new revenue streams, unprecedented operational efficiencies, and deeper customer engagement. The primary risk is inaction. Organizations that dismiss this as a passing trend will find themselves disrupted by nimbler competitors who embraced the immersive future.
Ian Khan’s Closing
The future is not a distant destination; it is being built today by the choices we make and the technologies we embrace. In the realm of VR, MR, and XR, we are not just creating new tools—we are architecting new realities. As I often say, “The greatest risk is not taking one.” The immersive future is inevitable; our readiness for it is a choice.
To dive deeper into the future of VR, MR, XR and gain actionable insights for your organization, I invite you to:
- Read my bestselling books on digital transformation and future readiness
- Watch my Amazon Prime series ‘The Futurist’ for cutting-edge insights
- Book me for a keynote presentation, workshop, or strategic leadership intervention to prepare your team for what’s ahead
About Ian Khan
Ian Khan is a globally recognized keynote speaker, bestselling author, and prolific thinker and thought leader on emerging technologies and future readiness. Shortlisted for the prestigious Thinkers50 Future Readiness Award, Ian has advised Fortune 500 companies, government organizations, and global leaders on navigating digital transformation and building future-ready organizations. Through his keynote presentations, bestselling books, and Amazon Prime series “The Futurist,” Ian helps organizations worldwide understand and prepare for the technologies shaping our tomorrow.
