Spatial Computing is redefining how we interact with technology and growing your expertise now will position you for success in the years to come.
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What is Spatial Computing?
Spatial Computing is a technology that allows users to interact with digital content in physical space. Unlike traditional computers which confine digital content to flat screens, Spatial computing blends digital content into the physical world and immerses users in virtual simulations.
The term Spatial Computing is often used alongside Extended Reality (XR), Mixed Reality, AR/VR, and Immersive Technologies. Today, Spatial Computing has become the industry's umbrella term, encompassing all of these technologies. With the launch of the Apple Vision Pro, Apple officially embraced Spatial Computing as the preferred category term for their Mixed Reality headset, helping to standardize a common terminology of the industry.
The Difference Between Spatial Computing, AR, VR, MR and XR
Before the adoption of the term Spatial Computing, the AR/VR industry used fragmented terms without a clear umbrella term to encompass both Augmented Reality (AR) and Virtual Reality (VR).
While AR and VR are closely related technologies, AR/VR was the most common umbrella term which always felt too technical for everyday conversation. The introduction of the term Spatial Computing helped unify these concepts under a single, accessible term.
Let’s dive into the main pillar technologies.
Virtual Reality vs Augmented Reality
Virtual Reality (VR) is a technology that fully immerses users in a digital simulation, enabling them to interact with their digital surroundings in a seemingly physical way.
Augmented Reality (AR) enhances physical space by overlaying digital content, creating an experience that blends physical and virtual elements in real time.
While Virtual Reality offers a fully immersive experience that transports the user’s sense of presence away from the physical environment, Augmented Reality enhances the physical space by integrating digital elements, amplifying physical interactions.
What About Mixed Reality?
Mixed Reality (MR) is a term used when combining physical and digital content to create new environments where physical and digital objects interact in real-time.
Mixed Reality, often portrayed as a continuum between Augmented Reality and Virtual Reality, represents a blend of these two concepts. It differentiates itself from simple Augmented Reality apps, such as overlaid data, by providing a more immersive interaction between physical context of digital elements. The term Mixed Reality encompasses experiences that range from completely virtual to those that offer simple digital augmented overlays.
Mixed Reality Spectrum
What’s the difference between Spatial Computing, Extended Reality (XR) and Immersive Technologies?
None. The definitions have slight variants but all three terms can be used interchangeably to describe AR/VR technologies:
Spatial Computing: A set of technologies that enable humans to interact with computers in three-dimensional spaces.
Extended Reality (XR): A technical term that encompasses Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR).
Immersive Technologies: A set of technologies that integrate digital content with the physical environment to create an immersive experience.
For practical purposes, these three terms are synonyms to describe AR/VR technologies.
For more details see: Difference Between AR/VR and Spatial Computing
What Is the Metaverse, Exactly?
The term Metaverse, originally coined in the 1992 sci-fi novel Snow Crash, was popularized by Facebook (Meta) during the company's rebranding in 2021. Today, the term Metaverse is ambiguous and is used by different technology sectors to refer to independent concepts that don't necessarily share a direct relationship. These independent concepts are:
Meta's Vision of the Immersive Internet: Meta’s vision of the future of technology presents the Metaverse as an abstract concept of social AR/VR, envisioning a future where humans interact with the internet with a feeling of presence.
NFTs and Digital Assets: The Crypto and NFT industry adopted the Metaverse term to refer to decentralized virtual land projects like Other Side and The Sandbox. These projects have no connection to Spatial Computing.
Multiplayer Video Games: Multiplayer gaming platforms like Roblox and Fortnite also use the term Metaverse to describe their virtual social worlds. These are essentially multiplayer video games, interacted with via standard 2D screens.
Metaverse
The term Metaverse, when used across these three independent and non related technology sectors, leads to ambiguity and confusion. Some experts envision the future of technology as a convergence of different aspects of these separate visions. However, when discussing our main topic of Spatial Computing, it's better to steer clear of the term 'Metaverse'.
Spatial Computing Sounds Nice
With the launch of Vision Pro in 2024, Apple has adopted Spatial Computing as the umbrella term for AR/VR. Apple has a reputation and history of defining industry terms and standards.
Just as Apple popularized the term ‘App’ for of software application, the tech giants’ influence and leadership in consumer technology give it the leverage to establish Spatial Computing as the official industry term for AR/VR technologies.
We've needed an official industry term, and Spatial Computing does have a nice ring to.
How Does Spatial Computing Work?
In recent years, we've seen major advancements in Spatial Computing hardware capabilities, leading to more immersive, accessible and interactive digital experiences. This is achieved today by using head-mounted display(HMD) with advanced display technology, cameras and sensors, different types of user inputs, and graphical rendering capabilities.
Let’s cover the key components that enable how this technology works.
Displays
There are two primary display approaches that make Spatial Computing work: see-through glass technology and screen pass-through technology.
1. Optical see-through technology, available in products like Magic Leap and Microsoft Hololens. This display technology lets users see their physical environment and 3D holograms through glass. These glasses are equipped with advanced technology that enables the device to render 3D holograms projected onto the environment, creating a realistic overlay of digital content in the users’ physical environment.
2. Screen pass-through technology, available in devices such as Apple Vision Pro and Meta Quest. This hardware approach presents the user's environment through a high-resolution camera and screen. With enough resolution, this technique can achieve high realism, making it feel as if the user is looking directly at the physical world.
Each display technique has its strengths and weaknesses, and determining which one is "better" ultimately depends on the specific use-case.
Interaction Mechanisms
To enable natural interactions with digital content, Spatial Computing leverages various input systems. These include: controller input, hand tracking input and eye tracking input.
Controller Input
Controllers simulate the physical presence of objects in our hands, such as a whiteboard marker or a light saber, offering a physical interface for interaction. Additionally, these controllers feature self-tracking capabilities that ensure precise virtual tracking.
Stylus Input
Stylus input devices like the Logitech MX Ink, available for Meta Quest and Apple Vision Pro, introduce a familiar input method in a spatial context. The stylus unlocks new use cases such as note-taking, writing, and designing in spatial environments.
Hand Tracking Input
Hand tracking provides another natural way of interacting with the spatial computing environment. The main challenge with hand input lies in the lack of physical feedback when interacting with virtual objects.
Eye Tracking Input
Eye tracking has become the primary input for devices like the Apple Vision Pro. It allows users to control focus with their eyes, enabling a more intuitive experience than traditional point-and-click methods. Eye tracking makes sense, as it mirrors how we naturally direct attention to objects in the physical world.
3D Rendering Capabilities
The foundation of Spatial Computing lies in seeing digital objects that are physically not there. To achieve this, HMDs need to render virtual objects within a three-dimensional space using real-time 3D rendering. This requires the devices to redraw all visible virtual objects up to 72 times per second. As the industry pushes toward smaller and lighter devices, this level of processing becomes a big challenge. Spatial Computing developers must continually optimize visuals to achieve high levels of realism.
The rendering capabilities of Spatial Computing devices can be extended with external high-end gaming PCs. These systems offer superior graphics and rendering performance but require a nearby gaming PC, making portability and setup difficult. On the other hand, standalone headsets integrate all processing components within the device and require no external systems, making them low friction and hassle-free.
With higher connection speeds and broader access to 5G networks, a new solution is emerging: remote rendering. This allows heavy rendering processes to be handled in the cloud and then streamed to the device. Prominent players offering solutions in this space include Nvidia with their Cloud XR solution, Microsoft with Azure Remote Rendering, and Holo-Light with ISAR SDK.
What is Spatial Computing Used For?
Spatial Computing is being actively deployed across a broad spectrum of use cases in various sectors and industries. Below is a compilation of high impact examples showcasing the use of Spatial Computing today.
Remote Collaboration
Remote collaboration skyrocketed during the COVID-19 pandemic as companies rapidly adopted tools and best practices to enable remote work. Remote work opened doors to new lifestyles previously incompatible with traditional office life, such as digital nomadism and active parenting. However, it also made evident that video chat platforms like Zoom do not fully satisfy the need for creative and effective collaboration in a remote setting.
This is where Spatial Computing comes into play, providing a bridge between traditional video conferencing and fully present physical office interactions by introducing presence in the digital world.
Remote work is here to stay. By adopting Spatial Computing as part of their collaboration toolkit, organizations are enjoying the best of both worlds: the flexibility of remote work combined with the sense of presence and collaboration benefits previously exclusive to the traditional office environment.
Training
Industries are experiencing profound transformation through the deployment of virtual training. Studies conducted within multiple industries reveal exceptional performance improvements in virtual training compared to traditional training methodologies.
Industry leaders like Transfr are transforming the training sector by harnessing the power of virtual reality to deliver more effective, efficient, and scalable learning experiences.
Tools like Microsoft's Hololens Guides deploy augmented reality training, providing on-site, hands-on virtual guidance for employees. These virtual guides supply information and detailed instructions on performing real-world tasks.
Healthcare
Spatial Computing is adding high value to the healthcare industry in several ways and has seen high adoption and retention of this technology. One of the most promising applications of spatial computing in healthcare is in surgical training. The technology is used to create realistic simulations of surgical procedures, allowing surgeons to practice their skills in a safe and controlled environment. This can help to reduce the risk of errors and complications during real-world surgeries.
With the ability to overlay digital information and content on the physical world, Spatial Computing can also provide healthcare professionals with visualization capacities and hand-free access to critical information during surgery.
Art
Spatial Computing has opened a new medium for artists, providing a new canvas for idea exploration. This technology unlocks unique forms of expression, including its ability to explore unprecedented levels of empathy by allowing viewers to perceive the world as others do. This medium can offer full immersion into fully simulated 3D scenarios, enveloping the senses in dreamlike landscapes.
Projects like the Museum of Other Realities open a new frontier for the arts, enabling ideas that were previously not possible.
Leading artists in this space worth following include: Lucas Rizzotto, Maxim Zhestkov and Universal Everything.
Fitness
Virtual Reality is transforming the fitness industry by making workouts more engaging, accessible, and immersive. VR fitness platforms combine exercise with interactive gaming elements, helping users stay motivated and build consistent habits. VR apps offer high-energy workouts that rival traditional exercises like boxing and cycling, all within virtual environments. By adding elements of play, competition, and exploration, VR fitness is redefining how people approach physical activity and is opening new possibilities for home workouts and wellness routines.
The VR Institute of Health and Exercise, has conducted studies providing comparisons between popular VR fitness platforms and traditional workouts. Platforms such as Supernatural, Thrill of the Fight and FitXR have been compared with standard exercise routines like boxing, biking, and tennis.
Data in METs (Metabolic Equivalent of Task) Image Credits: Washington Post
Agriculture
Contrary to its reputation as a technology laggard, the agriculture industry has seen significant innovation, especially with the application of Spatial Computing. This advanced technology is being used to address key challenges within the sector.
Bridging communication gaps between the agriculture sector and the public, who often lack an understanding of where our food comes from. Spatial computing thrives as a channel for empathy creating powerful storytelling to take users on journeys from the farm to the table.
Improving access to critical knowledge for agricultural professionals, such as identifying animal diseases. A recent industry tool launched by the Department of Primary Industries and Regions South Australia, enables farmers to be educated on identifying emergency animal diseases.
Industry-leading solutions providers Think.Digital are at the forefront of creating innovative spatial solutions for the agriculture sector. The company is a leader in developing AR/VR solutions for government agencies and large industry corporations in Australia’s largest industry, agriculture.
Remote Assistance
Spatial Computing introduces a new era in telepresence, transforming remote assistance by empowering technicians such as mechanics, electricians or IT specialists to literally see through the eyes of their on-site counterparts. The introduction of this technology is unlocking key applications, such as remote technical assistance, where experts can gain a first-hand access from those on-site.
Mercedes Benz is a prime example of an organization unlocking the benefits of Spatial Computing. The company uses Microsoft HoloLens 2 for remote assistance, delivering an industry-leading customer experience in service. This approach allows them to scale the deployment of their top experts to assist dealerships globally. As a result, service technician efficiency is improved, problem resolution time is reduced, and there's a decrease in the cost and environmental impact of service-related travel.
Gaming
Much like the adoption of computing in the 80s, gaming has been at the forefront of technological evolution. Spatial Computing now provides game designers with a new medium to unlock new levels of entertainment and fun.
In 2022 alone, the virtual reality game market surpassed $1.8 billion in revenue, according to a report from analyst firm Newzoo. Notable success stories include:
Beat Saber: Generated over $255 million in lifetime sales.
Pokemon GO: Has accumulated over $5 Billion in revenue within five years.
Valve’s Half Life Alyx: The title is estimated to have sold over 3.5 million copies, generating sales of over $210 million, in addition to the estimated $100 million Valve Index Pro headsets sold bundled with the title.
The spatial computing gaming sector has emerged as one of the most lucrative in the industry over the past few years.This upward trend shows no signs of slowing down.
Retail and E-commerce
Spatial computing revolutionizes retail by transforming how consumers interact with products and brands. Retailers implement augmented reality solutions that allow shoppers to visualize furniture in their homes before purchasing, significantly reducing return rates. Beauty brands like Ulta Beauty leverage spatial computing to create immersive, memorable brand experiences, enabling customers to connect with brands in powerful new ways.
The retail sector has embraced spatial computing with major players like IKEA, Warby Parker, and Ulta Beauty leading adoption. Their implementations show how merging physical and digital shopping environments creates new customer journeys while collecting valuable spatial data on consumer behavior.
Education
Since the introduction of David Kolb's Experiential Learning Model in 1984, the approach of learning through hands-on experiences has gained substantial popularity. Experiential learning, which emphasizes the process of learning through doing and reflecting, represents a significant shift from traditional, more passive forms of education.
Spatial computing has emerged as a game-changing tool in the realm of experiential learning, offering an immersive, interactive environment for learners. According to studies conducted by Microsoft, the use of spatial computing has led to a 22% improvement in test scores and a 35% increase in student engagement and retention when learning with immersive and 3D technologies. This indicates the transformative potential of spatial computing in fostering active learning and enhancing students' understanding.
Spatial computing elevates the role of social and emotional learning by creating a more engaging and immersive educational experience. It allows students to experiment, explore, and learn in a dynamic, virtual environment, fostering a deeper understanding of complex concepts.
A best examples of spatial learning applied to education include: Mondly, Newton's Room and Transfr Trek
Construction
Spatial computing is transforming the construction industry as well. Construction professionals can now visualize architectural designs in an immersive 3D environment before construction begins. This helps identify potential issues and make necessary changes, thereby reducing costly errors and delays. Spatial Computing enables workers to see 3D models overlaid on the physical environment, promoting better collaboration and efficiency on construction sites.
Industrial Design
Spatial computing is revolutionizing industrial design by providing designers and engineers an immersive, interactive platform. It brings a new dimension to design processes, enhancing visualization, collaboration, and prototyping.
Airbus has embraced spatial computing in its design and manufacturing processes. Using technologies like Microsoft Hololens, designers and engineers at Airbus can visualize and interact with holographic aircraft parts, systems, and cabin layouts. This has enabled them to better understand the complexities of their designs and make more informed decisions, resulting in enhanced efficiency and accuracy in aircraft production.
These case studies illustrate how spatial computing is pushing the boundaries of industrial design, providing new tools and possibilities for innovation and efficiency. As spatial computing technology continues to evolve, it promises to reshape the way we design and interact with our physical world. For more examples see our list of Top Examples of Spatial Computing.
Challenges in Spatial Computing
The two main challenges the industry faces are achieving mass adoption and retention.
One might think that the main challenge in the industry is hardware cost, but this is no longer the case. For example, the Meta Quest 3 is priced at $299. One might also think it’s a lack of quality software, but that is no longer true, as we’ve seen in the many high-value use cases mentioned above. While niche applications bring high industry value, they do not drive mass adoption of the technology.
The key to overcoming the challenges of mass adoption and retention will be the discovery of a universal software suite. A piece of software that can be used across all industries and use cases. The spatial computing equivalent of the personal computer’s office suite: Word, Excel, and PowerPoint. A toolset flexible enough to serve infinite use cases for everyone.
As in the 1980s, when personal computing first emerged in enterprise and gaming, the launch of Microsoft Office in 1989 marked the beginning of a universal software toolset that enabled computers to be used by everyone. This ushered in mass adoption during the 1990s. We can expect a similar breakthrough in Spatial Computing in the years to come.
We’re beginning to see a glimpse of this idea taking shape in the intersection of AI and Spatial Computing. In the meantime, there is incredible industry value being created in enterprise, education, and entertainment.
Companies Leading in Spatial Computing
There are two verticals driving the Spatial Computing industry: the hardware platforms building devices and the software developers creating applications for use cases that deliver value to users and businesses. Both sides play a key role in the ecosystem.
Leaders in Spatial Computing Hardware
All major tech companies have a strong presence in the industry and are competing to define who will emerge as the owners of the hardware and operating systems of this computing generation. The equivalent of Apple’s iOS and Google’s Android in the mobile era, or Apple’s macOS and Microsoft’s Windows in the personal computing age.
The key players in the industry are:
Apple
In 2024, Apple launched the Vision Pro, the most advanced spatial computing headset on the market, featuring the most powerful hardware capabilities on a standalone HMD to date. Apple’s strategy of delivering the best user experience at a premium price positions it to capture enterprise use cases and early tech adopters as it continues to evolve this technology over the coming decades.
Meta
Meta has been leading the space since its acquisition of Oculus in 2014. Today, the Meta Quest 3, a fully integrated mixed reality headset, is available at an accessible mass-market price of $299. The device offers much of the same core functionality as the Vision Pro, but at a fraction of the cost. With this price point and impressive feature set, it may represent the ideal product-market fit for a new generation of first-time spatial computing users.
Microsoft
Microsoft launched the HoloLens in 2016 and has since been a dominant player in the Mixed Reality space for enterprise, offering a suite of solutions that includes Dynamics 365 Remote Assist and Dynamics 356 Guides.
In addition, Microsoft has integrated its complete Teams and Microsoft 365 Suite software solutions into the Meta Quest and Apple Vision Pro ecosystem. By providing their software solutions to external hardware manufacturers, Microsoft has followed a strategy that has proven successful for them in the past.
Magic Leap
Magic Leap currently secures an impressive portfolio of over 4,000 patents and leads the industry in glass display technology. While tech giants like Meta and Apple are targeting the consumer market, Magic Leap is well-positioned to serve as a component provider for optical passthrough devices, which are expected to experience significant growth in the coming years.
AndroidXR marks Google’s latest strategic move into the spatial computing industry, aiming to establish a unified, open-source platform following the same strategy as Android. Their first deployment will be a collaboration with Samsung to launch the code named “Moohan” and a consumer optical passthrough glass powered by Magic Leap’s technology.
ByteDance
In 2021, ByteDance, the parent company of TikTok, acquired the headset manufacturer, PICO, marking its official entry into the spatial computing space. Since this acquisition, PICO has launched its latest spatial computing device, the PICO 4, which stands as a direct competitor to Meta and Apple products.
Leaders in Spatial Computing Software Development
The success of the Spatial Computing industry will depend on the availability of world-class software for these platforms. The following developers are leading the way in Spatial Computing software development.
Treeview
Treeview is an XR studio that builds spatial computing software for the world’s most innovative enterprises. Since 2016, Treeview has partnered to deliver world-class XR apps for the worlds most high impact organizations. The company is driven by a vision to help shape the next technological and cultural revolution and believes spatial computing will become the ultimate bridge between humanity and technology.
Capgemini
Capgemini is a global consulting services company that supports enterprise clients in adopting innovative digital solutions. With experience across industries, Capgemini helps organizations integrate emerging technologies, including Spatial Computing.
Accenture
Accenture is a global professional services company that provides strategy, technology, and consulting solutions to large enterprises. Accenture works with clients across sectors to develop and implement digital strategies, including the use of Spatial Computing technologies, to support enterprise innovation and improve business outcomes.
Check out more Top Spatial Computing Development Companies.
The Future of Spatial Computing
Ranging from fitness and healthcare to education and gaming, Spatial Computing is revolutionizing industries with digital experiences that engage users with technology like never before. The boundaries between the physical and digital are becoming increasingly blurred, and this is just the beginning.
Looking ahead, the future of Spatial Computing holds immense potential. As these technologies continue to develop, they will play a key role in our everyday lives, transforming the way we live.
Apple's entry into Spatial Computing in 2024 is a key milestone in the history of technology. With a legacy of redefining consumer technology, the launch of the Apple Vision Pro feels like the launch of the iPhone in 2007 and the Macintosh in 1984, signaling the start of a new computing generation.
Having been fully dedicated to developing world-class spatial computing software since 2016, Treeview has witnessed the industry advancements over the last decade happen in phases. Each new generation of hardware has opened the door to new software use cases, which in turn have enabled new use cases for new business value propositions.
With the launch of this current generation of hardware, we are seeing a new wave of startups and enterprise innovation teams developing a new set of value propositions enabled by this technology. We can expect strong years ahead of innovation in this space as entrepreneurs, intrapreneurs, and innovators build the next generation of digital products.
Parting Words
We hope this complete guide on Spatial Computing has been insightful and informative. We’ve covered in detail what Spatial Computing is, the differences among various industry terms, how the technology works, how it is being used across different industries, and the companies leading this space.
The business opportunities in this new industry are endless. If you’re looking for a world-class development team to help you build your next idea, Treeview is here to help. As a specialized spatial computing studio, we partner with enterprise companies to build world-class XR software that drives business impact. If you’re ready to build XR, Let's talk.
