Augmented and virtual reality in London
Here are five reasons why augmented reality (AR) and virtual reality (VR) in London are shaping the future:
1. Excellent investment opportunities
Experts predict that virtual reality (VR) and augmented reality (AR) could significantly boost the global economy, potentially adding $1.5 trillion by 2030. The UK, in particular, stands to gain a lot from this growth, with an expected increase of £62.5bn to its economy and the creation of more than 400,000 new jobs by 2030.[1]
London is the European leader for VC funding into immersive companies, with more than $1bn invested between 2016 and 2021.[2]
London-based VC firms that invest in immersive technologies include 7percent Ventures, Ada Ventures, FOV Ventures and Pi Labs. The British Film Institute (BFI) is investing more than £1m in 15 new animation projects, including immersive AR/VR projects.[3]
According to a survey by Immerse UK and Vive X, 64% of UK-based investors expect an increase in overall investment for AR/VR.[4]
2. An integrated ecosystem
A thriving ecosystem of innovators. London is home to 215 companies in the immersive technology sector – 48% of the UK total.[5]
Bodies such as Immerse UK promote cross-sector engagement by bridging the gap between VR/AR companies. This not-for-profit, self-sustaining network has a growing community of members.
The Digital Catapult is the UK’s leading advanced digital technology innovation centre, thanks to its world-class accelerator programmes.
The VR/AR Association is an international organisation designed to foster collaboration between solution providers and end-users, with a chapter in virtual reality and augmented reality in London.
3. Consumers of the future
Modern immersive technologies offer a new way to engage with audiences, particularly after the pandemic – and are a fantastic connection to digitally native younger generations.
Global brands, such as Adidas, Samsung and L’Oreal come to London to work with the likes of Pebbles Studio, which specialises in 360-degree VR, experimental advertising, AR experiences and 3D animation.
Shops are providing experiences that allow consumers to try their products virtually or experiment with technology. London is the perfect testbed for companies to trial new technologies, with a digitally savvy and diverse customer base.
Harrods launched AR-powered Christmas window displays in 2021, and Marks & Spencer launched an AR shopping app for its Westfield London store, which allows customers to find the product they're looking for in-store via a live navigation system.
One of the main reasons for selecting London was the fact that the talent is here. People want to be here – it's a place where people come from across Europe to work.Chris Scattergood
CRO and Founder, FundamentalVR
4. Top talent
Top London universities offer a range of courses and degrees related to immersive technologies to meet the demand for talent. From University College London’s Immersive Displays Lab to Ravensbourne University London’s leading curriculum on mixed reality and augmented reality.
World-class immersive training is also provided by StoryFutures Academy – a unique collaboration between the National Film and Television School (NFTS) and Royal Holloway, University of London. Its mentoring scheme is run by ILMxLAB – Lucasfilm’s immersive entertainment studio.
London is also home to the national centre for immersive storytelling, StoryFutures Academy.
5. Forward-thinking innovations
Immersive technology powers innovation across London’s core business sectors, including urban planning, education, media production and healthcare.
VU.CITY uses immersive 3D models to improve city planning, while FundamentalVR is a world-leading company that uses surgical simulation and training.
The metaverse, a virtual reality space in which users can interact with a computer-generated environment and other users, is booming in the UK capital. Selfridges launched the world’s first metaverse department store, while Meta has already brought its AR research programme to London to develop hardware for the metaverse.
Immersive technology companies that are exploring the metaverse can also access funding to support their innovation, including investment from VC firm FOV Ventures.
Whatever the future, London is not only ready for it, but ahead of the curve with its transformative technology and the increasing number of augmented and virtual reality companies in London.
London's immersive technology facts
A cloud-based virtual production studio.
Success stories
London's Creative Frontier: A Global Immersive Tech Leader [PDF 2.4 MB]
Discover why London is a thriving centre for immersive technologies with this report, created in partnership with Dealroom.
How we can help
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We can help you:
- Stay informed and access the latest developments, initiatives and incentives.
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