In the waning days of the 118th Congress, members took an essential step forward in U.S. leadership in innovation and technology. With the introduction of the bipartisan United States Leadership in Immersive Technology Act of 2024, Congress planted the flag, acknowledging the U.S. role in propelling immersive technology forward, fostering innovation, and ensuring societal progress.
As we look ahead to a new administration and the 119th Congress, one thing is certain: Technology will undoubtedly remain a top priority. Technology and innovation are the lifeblood of our economy, powering how we work, play, learn, create, and communicate.
Immersive technology, in particular, is at a pivotal moment. The convergence of artificial intelligence (AI) and immersive technology has accelerated the industry’s growth and unlocked new and greater potential for using virtual, augmented, and mixed reality – collectively XR. Whether in hardware like headsets and smart glasses or the creation and utilization of digital twins, we are inexorably marching toward the day when we can seamlessly move from 2D to 3D devices and experiences, maximizing our human talent and imagination. This will have enormous implications for a wide range of applications, from entertainment and education to healthcare, manufacturing, and national security.
This rapid acceleration is already reflected in the industry’s performance, with significant revenue growth and widespread optimism for future applications. A recent survey of industry stakeholders found that 76% of respondents reported revenue growth in the past year, with 31% seeing an impressive boost of up to 50%. Looking ahead, businesses see the greatest opportunities for growth within enterprise and mid-market companies, with particular optimism surrounding the potential of immersive technology in training and education, gaming, and healthcare. As these industries evolve, XR is poised to become a transformative force across multiple domains.
But it’s not just optimism and adoption in the private sector fueling immersive tech’s growth. A recent GAO report found that 17 of the 23 civilian agencies reported using immersive technologies in fiscal years 2022 and 2023.
Virtual reality technology continues to improve, both in terms of form and content, largely thanks to the pairing of AI and XR, as well as powerful chipsets, improved battery power, and streamlined displays. Nevertheless, we believe the continued advancements of AR and MR could lead to the greatest adoption of immersive technology in the near term, allowing users to interact with digital content while continuing to view and interact with the physical environment. Some smart glasses already offer AI-enabled experiences that have language translation, provide location services, and facilitate digital queries.
One sector experiencing increased productivity due to the use of AR is warehouse logistics. Companies like Vuzix have developed AR and smart glasses hardware comparable to conventional eyeglasses, enabling workers to seamlessly move between real and virtual environments, from the manufacturing floor to outdoor construction and machine repair. These systems enhance employee accuracy, streamline workflows, and optimize inventory processes by providing direct instructions within workers’ line of sight without obstruction.
Beyond the current glasses on the market, Meta’s Orion AR glasses prototype represents the next big step forward in AR/MR development. Although Orion is still years away from market availability, the prototype previews the future of AR/MR. Users will be able to do everything they currently do on their smartphones, but with greater assistance from AI, in 3D, and without looking down at a screen or tapping buttons.
In order for this vision of an immersive future to become a reality, the U.S. must take a position of leadership and foster a policy environment that supports innovation and competitiveness. Other countries around the world—including, perhaps most prominently, China—have created strategies for developing and leveraging XR. They understand the economic advantage immersive technology will provide.
The XR Association (XRA) worked closely with Representatives Suzan DelBene and August Pfluger and Senators Marsha Blackburn and Mark Warner to introduce the U.S. Leadership in Immersive Technology Act of 2024, which would establish an XR advisory panel under the Department of Commerce. The panel would conduct an in-depth assessment of the steps the U.S. should take to ensure it remains the world’s leader in immersive technology development, production, policy, and use.
This newly introduced bipartisan bill will be an important step toward strengthening the United States’ position as a global leader in immersive technology. Nevertheless, other nations such as China, Germany and Japan are significant producers of key components such as semiconductors, displays, optics technology, and sensors. To remain competitive and advance this technology, the United States must ensure supply chain diversification and resiliency. Industry leaders and policymakers must explore avenues for strengthening domestic manufacturing, securing access to necessary materials and components, and fostering a favorable policy environment that supports innovation and competitiveness.
Additionally, it remains critical that the industry continues to engage with lawmakers, public interest groups, and consumers as they grapple with broader challenges, including data privacy, age-appropriate use, and cybersecurity.
Immersive technology is still an emerging technology. We must take every opportunity to foster innovation through smart public policy and regulation and continued investment in R&D. We must also continue developing consumer tools that increase their comfort, safety, and trust in immersive technology. From robust user privacy controls to intentionally building immersive technology with cybersecurity in mind, the XR industry is going to great lengths to learn lessons from past technologies. But how we build the technology only goes so far. As with any new technology, broad education on the appropriate use of immersive tech is necessary. Education will be key to adoption, from cybersecurity hygiene to basic digital etiquette.
Immersive technology’s future remains bright. As the Trump Administration explores ways to supercharge our economy, XRA is committed to working with the Administration and the new Congress to ensure the development and use of immersive technology and to solidify the U.S. as a global leader in innovation.
Elizabeth Hyman is CEO of the XR Association.
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