VR/AR Industry of Finland survey

104 Pages·2017·16.35 MB·English

X INDEX
E
D
N
I 3 | Introduction 14 | Platforms
5 | Terminology 15 | Companies in the XR Ecosystem
7 | Company sizes 19 | VR solutions for businesses
8 | Company founding years 52 | AR solutions for businesses
9 | Company locations 60 | Consumer entertainment products
11 | Revenue 77 | Consumer entertainment services
12 | Bracketed revenue 82 | Tech development
13 | Funding stage 95 | Support • Networks • Education
2
INTRODUCTION and the potential of these immersive IN
technologies for these and other sectors is T
A NEW WAVE of virtual reality growing. In the meantime, the consumer R
O
technology saw its launch early in 2016 VR market is slowly maturing, slowly
D
with the release of HTC Vive and Oculus gaining momentum and anticipating
U
Rift. The technology that in the past had lower entry price levels, while consumer
C
been incredibly expensive and meant AR applications for smartphones and T
only for professional use finally entered tablets are ready to make a larger impact IO
the public mass market, ready to take in the near future. The popularity of N
it by storm. The notion of virtual reality face modification filters in Snapchat
has spread in the public consciousness and Facebook and the AR gaming
like wildfire, inciting hyped up futuristic phenomenon Pokemon Go have already
visions of technologies that could shown a glimpse of the potential AR
decisively change our everyday lives. content possesses.
Most of these visions require a long time
to materialize, some might never become FINLAND, with its excellence in
true, and many have become reality engineering and design, has been fertile
already. Virtual reality (VR), augmented ground for adopting and developing
reality (AR) and mixed reality (MR) innovative technologies and creating
applications already create significant business opportunities, which can be seen
business benefits in industry sectors in the impressive amount of local XR (XR
such as heavy industry, architecture, = VR, AR and MR) activities within the
engineering & construction (AEC) and past few years. The Finnish XR scene is a
real estate, healthcare and education, tightly-knit developer community of tech
3
N enthusiasts, which has drawn its power current business, research and education
O from hackathons, game development initiatives and network groups of the VR,
TI and visual computing expertise, high AR and MR technology field. It serves
C quality education and academic research. as a database and contact point for all
U
In recent years the Finnish XR scene individuals interested in the opportunities
D
has moved on from experimentation that immersive technologies have to offer
O
into establishing solid businesses. The in Finland today. All research materials
R
T developer community desires to share for this report were gathered during the
N knowledge and best practices locally in summer of 2017 through a questionnaire
I order to reach a common goal: a healthy and verbal interviews. A total of 60
development ecosystem in Finland. A companies out of 94 targets in FIVR’s
healthy development ecosystem is capable growing XR company database responded
of providing complementary services to our survey and in effect became a part
and form partnerships with other players of this report. We kindly thank all involved
within the field in order to develop an parties for their help and support in
early domestic market and compete making this report, with special thanks
globally. It thrives on fair competition, going to Tekes as the enabler. We wish
reducing early risks of startups through success and best of luck to every developer
networks and community support and VR/AR enthusiast in Finland!
and encourages companies to develop
distinctive business profiles. Team FIVR:
Santeri Suominen, lead author
THIS is an overview of the Finnish XR Tuukka Takala, co-author
Olli Sinerma, co-author
ecosystem in 2017, with information of
4
TERMINOLOGY OF VR, AR, MR AND XR T
E
R
THE TERMINOLOGY of VR, AR and MR AR and MR. However, terminology M
can be confusing. What are these R-things regarding immersive technologies still I
N
exactly? Those new to the field often remains elusive for the public at large.
O
find themselves unable to distinguish Eventually, everyday use of XR devices
L
between VR, AR, MR and 360 video. This and applications will create a language O
makes communication of ideas between for itself. Many in the industry are using G
developers and clients difficult. Umbrella existing definitions borrowed from the Y
terms, such as extended, or “X” reality scientific world: the most clear and
(XR) or “immersive technologies”, have widely adopted taxonomy is Paul Milgram
great use in general discussion, as they and Fumio Kishino’s reality-virtuality
provide cohesion and an easy alternative continuum, which has played a major part
to always separately mentioning VR, in defining many of VR’s core concepts.
"WHAT ARE THESE R-THINGS EXACTLY? THOSE NEW
TO THE FIELD OFTEN FIND THEMSELVES UNABLE TO
DISTINGUISH BETWEEN VR, AR, MR AND 360 VIDEO"
5
Y THIS CONTINUUM has fully because the distinction between mixed
G
immersive virtual environments and reality and augmented reality has become
O
real environments at its extremes. An a branding strategy between competing
L
O application mixing real world elements companies.
N and virtual elements together is an MR
MI application. AR is a smaller subset of MR, "ON A CONCEPTUAL
with less virtual elements than real ones.
R On a conceptual level, the continuum LEVEL, THE CONTINUUM
E
T is a great tool for understanding how IS A GREAT TOOL FOR
interrelated VR, AR and MR are. In
UNDERSTANDING HOW
current practice, AR devices are generally
regarded as head-worn, see-through INTERRELATED VR, AR
displays, but the term can also include
AND MR ARE."
smartphone or tablet based AR.
The terminology is partially muddled
Mixed Reality (MR)
Real Augmented Augmented Virtual
Environment Reality (AR) Virtuality (AV) Environment
Virtuality Continuum (VC)
6
COMPANY SIZES The remaining 7% are large digital C
O
service providers and consultation
M
AT THE MOMENT Finnish immersive companies with over 50 or 100 employees,
technology companies are currently that are expanding into the field of P
A
quite small on average, with 68% having immersive technologies. These big players
N
a headcount of less than 10. These are are building their XR capabilities in
Y
mostly startups that have emerged in great order to prepare for future demand from
S
numbers during recent years, quickly customers. I
Z
developing capabilities and capitalizing on E
new business opportunities. However, this S
group also contains seasoned companies Number of employees in
that over the years have focused on R&D Finnish XR companies (2017)
or indie game development instead of
company growth.
15% of the companies are somewhere
between 10 and 20 employees and an
additional 10% have grown over 20
employees. These are companies with
several years of business experience in
3D graphics and modeling, visual design,
games, films or various tech endeavors,
which has eased their adoption of
XR technologies when compared to
newcomers.
7
S COMPANY FOUNDING YEARS
R
A
E THE NUMBER of newly found XR 2017 7
Y companies has peaked in the recent
G years: 40% of the companies involved 2016 14
N in this study were founded after the 2015 5
I beginning of 2016, and 77% since 2010. 2014 3
D
N Many of the newer startups are founded 2013 4
U strictly for VR/AR development and 2012 3
O services, as passionate early adopters
F and enthusiasts desire to experiment 2011 1
Y with new technology and explore 2010 6
N its business potential. Various IT 2008 4
A companies have pivoted towards XR
2007 1
P business since 2015 with ever growing
M 2006 1
intensity and this number will likely
O grow in the future, as immersive 2005 2
C
technologies gain more foothold in 2004 1
different industry sectors. 2002 2
2000 1
1998 1
1997 1
8
COMPANY LOCATIONS C
O
M
P
Regional A
company hotspots N
Y
100+ L
O
13 % C
XR Companies A
in Finland T
I
O
N
Oulu
S
10 % Kuopio
20 %
9 %
Tampere
Turku 48 % Helsinki
9
E REVENUE
U
N
THE NUMBERS shown here represent some companies were unable to give a
E
V total combined and bracketed revenue fair estimate of revenue generated from
E of all companies participating in this XR business. Especially in the case of
R
study that were active during 2015 and/ large companies that are transitioning
or 2016. They are not absolute, but towards XR business, the XR revenue
accurate enough to give an idea of the can be just a small portion of the overall
revenue situation from the past two revenue. For this reason, some companies
years. The ratio between overall revenue had to be omitted from the revenue chart
and revenue resulting from XR business altogether to help it reflect the current
ventures is still difficult to determine, as situation better.
Combined revenue of companies in the Finnish XR ecosystem
€ 6,528,200.00 Total revenue
2015
€ 1,310,800.00 XR-specific revenue
€ 12,695,700.00
2016
€ 6,137,600.00
10