When it comes to the digital economy, Europe is lagging behind the US and China. The technological revolution stemming from XR technologies, AI, blockchain, the cloud is transforming the internet into the metaverse.
CNXR and Kantar Group carried out a market study to better understand the XR market in France, across the entire value chain. An online questionnaire was sent out to over 200 companies, 25% of which were not member of CNXR.
The XR market compromises different markets and business sectors, albeit driven by content creation. The appeal of XR is recent and the majority of companies surveyed, devote all major part of their business to it. Half of the companies also have projects or investments underway on the subject of Metaverse and 1/3 are planning to develop them.
Whatever the sector of activity VR is the technology most widely used, through the many existing headsets and they are latest generations, which are regularly released to the general public.
National or International Opportunities
While opportunities are currently more national and mainly B2B, companies are confident in the future and are also planning international opportunities. They are forecasting strong sales growth over the next few years, with XR accounting for the ever increasing share of sales and our recruiting to support this growth.
(Lack of ) Investments
However, a majority of the companies surveyed feel they need financial support- almost half of them say they have limited equity to enable them to finance their investments. Their investment priorities aim to compensate for the lack of the sources and the challenges of structuring the company and to enable them to continue to innovate and thus remain competitive in a highly competitive and constantly changing environment.
HR challenges
It should be noted that in addition to a lack of the sources for the recruitment, many companies are finding it difficult to find suitable qualified people for XR jobs. Against this backdrop of a shortage of profiles to the closed and a lack of sufficient levers for action, it is currently difficult for companies to make a strong coming month to societal and environmental ethics.
Opportunities
- By drawing on their strengths based on the wealth of experience, expertise in cutting-edge and innovative technologies and an extensive network, French XR companies have a large number of opportunities to develop fully in the future.
- A booming market with a huge scope for XR applications, the democratization of these technologies, both in business and among the general public, are generating a multitude of growth opportunities in different sectors: entertainment and show business, industry education, corporate training, and even global events such as the Rugby World Cup or the Paris Olympic Games in 2024.
- There are also opportunities abroad, particularly on the European market, which is open with frequent calls for tenders. The Metaverse market which is also booming, also offers opportunities for XR companies who are already positioning themselves in this market.
Challenges that need to be met in order to support the development of XR companies:
Raise the profile of the sector in order to help companies promote their solution and expertise, and support their marketing initiatives
Provide financial support to market players to fund their investments and enable them to face up to better-armed foreign competition
To compensate recruitment difficulties due to both a lack of resources and a lack of training specific to the XR business
Raising awareness of the difficulties in applying legislative and regulatory tools, which are struggling to adapt to the constantly evolving Metaverse
The study was carried out by CNXR with the support from BPI, VR connection, Orange, Louis Vuitton, BNP Paribas Real Estate, Audiens & Pictanovo, Qualcommm & Meta.
The Entire Study: Here
Source of Information: CNXR