This document discusses virtual reality (VR) and augmented reality (AR) technologies. It provides definitions and comparisons of VR, AR, and augmented virtuality. The summary is: VR immerses users in a completely digital environment, while AR overlays digital elements on the real world. The document outlines the history and growth of VR hardware from 2012 to 2017. It also discusses the potential applications of VR/AR in various industries like gaming, retail, and healthcare. Major Japanese tech companies involved in VR/AR components are analyzed, including their revenues and products in areas like displays, sensors and motors.

2. What is VR/AR?
1

3. CG
Virtual
Reality
(VR)
Augmented
Virtuality
(AV)
Augmented
Reality
(AR)
Real
Environment
(Mixed Reality)
Reality
The difference between VR and AR:
the degree of fusion between CG and reality
2

4. VR
AR/AV
Vision-
based
Location-
based
Marker
Type
Markerless
Type
CG technology
Recognising set
patterns
Recognising
space and objects
through image
analysis in 3D
Projecting
GPS position
Pokémon GO projected images based on
current GPS position data.
The markerless type is harder to realise, but
has more potential scalability.
3

5. History of VR
4

6. Microsoft
HoloLens
Oculus Rift
(prototype)
HTC Vive
2012 2013 2014 2015 2016 2017
Google
Cardboard
Samsung
Gear VR
Oculus Rift
Google
Daydream View
Sony
PlayStation VRGoogle Glass
(for developers)
VR boom
？
5
2016 was the first year of VR, with companies
releasing HMDs one after another.
But what about 2017?

7. Potential of VR/AR
6

8. Games and
Entertainment
HMD (immersive)
7
Current applications are centred on
gaming

9. Retail
Industry
Games and
Entertainment
Education
Healthcare
Real Estate
HMD
(immersive)
Smart Glasses
(Optical HMDs)
Contact Lenses,
Retinal Projection,
etc.
8
However, true potential lies in the
business field

10. 30
90
0
20
40
60
80
100
2016 2020F
USDbillion
AR/VR Revenue
Source: Digi-Capital
The expansion of AR (excluding VR)
is also due to demand from business
applications
VR
AR
9

11. Who will hold the
keys to success?
10

12. Global majors developing hardware
HoloLens
HTC Vive Oculus Rift
Daydream View
PlayStation VR
Gear VR
11

13. Products supporting VR/AR
hardware
12
HMD Displays
Cameras
Semiconductors
Haptics
Motion
Sensors
Smart
Glasses

14. Where do Japanese companies
stand?
13
HMD
Panel
Displays
CamerasSemiconductors
Haptics
Microdisplay
Motion
Sensors
Smart
Glasses

15. -300%
-150%
0%
150%
300%
-50% 0% 50% 100% 150% 200%
Notable companies
14
Key figures of related companies (2005–15）
Revenue
growth
Operating profit growth
Murata Mfg
Nidec
TDK
Sony
Toshiba
(semiconductors)
Seiko Epson
Large
expansion
due to
M&As
Note: Bubble size = revenue

16. -30%
-20%
-10%
0%
10%
20%
30%
-200% 0% 200% 400%
Notable companies
15
Operating profit
growth per employee
Employee
salary growth
Seiko Epson
Murata Mfg
Nidec
Sony
Improved
employee
treatment
Note: Non-consolidated data
Bubble size = consolidated revenue
Key figures of related companies (2005–15）

17. 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
JPY100million
Notable companies
16
Three
companies
with high
growth

18. Murata Manufacturing
Brief Introduction
17
Filters, sensors
Bluetooth and
Wi-Fi modules
 Engaged in sensors used for VR
 Holds top global share in laminated ceramic
capacitors and Wi-Fi modules
Motion
sensors
Capacitors
31%
Piezoelectric
Products
13%
Other Components
19%
Communications
Modules
33%
Other Power Modules
4%

19. 18
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2010 2015
JPY100million
Communications
AV
PC and
Peripherals
Car
Electronics
Revenue by Product Application Consumer
electronics
and other
 Current main application is smartphones
 Aiming for in-vehicle devices next

20. 19
Nidec
 Precision motors are mainstay
 Top global market share in electric motors for
HDDs and electric power steering
Haptics
Brief Introduction
HDD
motors
18%
Other small-sized
motors
21%
In-Vehicle
Devices
23%
Home Electronics,
Commercial,
Industrial
24%
Machinery
9%
Electronic And
Optical
Components
5%

21. 20
 In-Vehicle Device, Home Electronics,
Commercial, and Industrial businesses
expanding
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2010 2015
JPY100million
HDD motors
Other small-
sized motors
In-Vehicle Devices
Home Electronics,
Commercial, Industrial
Machinery
Electronic and
Optical Components

22. 21
 The VR-related market is
still small
 Will VR/AR be another flop,
or will it create a new trend?

23. Services Worth
Following Now
22

24. AR gaming content appearing in
Japan
23
meleap
 Leader in AR gaming
 Detects arm movement via a special sensor,
creating appropriate actions

25. Technology used in 360° videos
and social networking globally
24
 Streaming 360° video
from sporting events
 Communicating in a virtual
space via 3D avatars

26. Services Worth
Following in Future
25

27. Anticipated Applications in Various
Fields
26
Virtual Laboratory
Work
Training
Retail
Educa-
tion
Real
Estate
Design, Viewing
Design, Simulation,
Test Drive
Virtual Dressing Room
Remote
Guidance
Simulation
Health
care Industry

28. 27
 Remote navigation
 Surgery simulation
 Design simulation
 Test drives
IndustryHealth
care

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