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How does VR add $1.5 Trillion in Economic Value?

Dec 1, 2020 / SkillsVR

VR and AR will add US $1.5 Trillion to Global GDP within the next 10 years

VR and AR will add US $1.5 Trillion to Global GDP within the next 10 years. To give that some context, Russia's nominal GDP was 1.57 Trillion in 2017. So you could say that within 10 years time, this technology would contribute the same savings and gains globally as Russias economy, the 11th most economically-rich government in the world. Another perspective is that the monetary value generated from VR and AR in this timeframe would fund New Zealand for 7.5 years. The point here in case you missed it, is that the value of VR, is incomprehensibly massive. The standard follow up questions to a statement like this are Why and How?

Only 12% of people are able to effectively apply learnings into their core roles

To answer the Why, one must take into consideration the state of the functions that this technology is disrupting. For example In 2019, companies spent US $570 Billion on corporate Learning and Development and only 12% of people are able to effectively apply these learnings into their core roles. This excludes what people learn in schools, universities and personal development. Education is greatly ineffective, you do not need to travel far to find someone who isn't satisfied with their tertiary education, or someone who has completed a masters degree with no relevance to their current career. Compare this to compliance training for health and safety; these are the basic skills required to competently and safely do our jobs. The International Labour Organisation predicts that 500 million women and men succumb to workplace accidents and illnesses every year. That is 1.4 million accidents each day.

500 million people. If we take away the potential benefits for learning and expanding the minds of the next generation and only focus on the core fundamentals of doing our jobs safely and effectively; by improving situational awareness and workplace safety, VR opens up an untapped workforce 1.5x the size of the United States every year.

The International Labour Organisation predicts that 500 million women and men succumb to workplace accidents and illnesses every year

To get into the How, we have 2 considerations: The first is effectiveness - In the report mentioned about, it states: "The use of VR and AR in training boosts engagement and knowledge retention and enables organisations to enforce consistent, measurable standards at scale". SkillsVR works with the Smithsonian Museum in the US. Through their extensive school and museum partnerships, the Smithsonian is able to effectively engage with millions of students and museum goers in a format that is fun, immensely engaging and consistent.

The second consideration is technology enablement, we're at a point in time where the cost of VR technology is affordable enough for government and industry to invest and enable their people effectively. Another quote from the above mentioned report: "The technology also provides a way to train employees where it is not always practical - or safe - to do so in the real world. For example, to simulate emergency situations or asset maintenance in dangerous environments." SkillsVR works with the New Zealand Security Association (NZSA) to improve the standards of training as they work to meet a growing demand for guarding services and a rising crime rate. The SkillsVR Conflict Management module allows new entrants to the security industry to practice working in dangerous situations before they're put in harm's way.

As businesses start to pilot VR, they're faced with new challenges around logistics, roles and responsibilities. However the upside means that training is delivered faster and more effectively.

PWC Report: Seeing is Believing - Report Available Here

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