Spatial computing companies are at the forefront of disruptive innovations that converge the physical world with the digital world.
Technological advancement may be defined as the "digitalization of items and their surrounding surroundings in order to facilitate and optimize activities and interactions."
Spatial computing uses the 3D space around an object to interact with the rest of the world regardless of its location.
Spatial computing is a type of computing that changes how we interact with technology. Although the term has been around for nearly two decades, some spatial computing applications are only now becoming a reality due to recent advances in artificial intelligence and sensor technology.
Simply put, spatial computing enables us to integrate digital activities into our surroundings.
Gaming, with products such as the Oculus Quest, has recently received much attention. With Facebook working on its Metaverse project, this virtual reality product that immerses the user in a virtual world could become a key component of social and leisure activities.
The technique of leveraging digital technology to let computers interact fluidly in a three-dimensional environment using augmented reality (AR), virtual reality (VR), and mixed reality is referred to as spatial computing (MR). Spatial computing uses physical space to send and receive input and output from a computer.
Because of spatial computing, most people no longer interact with computers in the way an outsider would. Instead, they taste what it's like to be in the digital realm by interacting with objects they can only find there. The concept enables the integration of the physical and digital worlds.
The Purpose of Spatial Computing
There are numerous other applications for spatial computing:
Self-driving cars employ spatial computing to find their way around. Although this technology is still in its infancy, it has the potential to be a game-changer.
Autonomous machines are already in use in some factories and may become more common. Tesla is a market leader in this space, thanks to its Gigafactory robots that manufacture car batteries.
There are a number of companies that might soon automate order fulfillment and warehouse management. Machines that employ spatial computing might choose and fill orders in place of people whom Amazon and other large retailers now depend on to perform their part...
Spatial computing may be used for medical research, virtual design, remote teaching, real estate tours, virtual shopping, and other purposes.
What Kinds of Spatial Computing Devices Exist?
While the concept has recently gained popularity, several spatial computing devices have been in use for quite some time. Here are a few examples:
1. Virtual Reality Headsets
VR headsets allow users to immerse themselves in a virtual world. In the past, players used them to interact with video game items and characters, and their use has recently expanded to include other applications such as training and simulation.
Many companies have been improving how they develop wearable VR headsets that allow users to interact with the digital world for several years. Oculus Rift, HTC Vive, and Samsung Gear VR are some of the most popular VR headsets.
2. Augmented Reality Glasses
Meanwhile, AR glasses allow users to delve deeper into the digital realm. These devices, which project data and imagery, are especially useful in industrial settings. Google Glass and Microsoft HoloLens are two special AR glasses on the market.
3. Hybrid Gear
Hybrid gear makes use of VR, AR, and MR technology. Because the user may completely integrate their senses, this program enables them to enjoy an immersive experience. FellReal's multi-sensory mask is an excellent example of such technology. You can watch their Kickstart video by clicking the link below.
While such products are still in the works, major tech companies such as Samsung, Google, Apple, and Microsoft invest in startups to create cutting-edge hybrid gear.
Why is spatial computing critical?
Rather than two-dimensional displays, the human brain has evolved to handle a three-dimensional world. It's not only words we use to express ourselves that are based on physical metaphors.
Spatial computing draws on this embodied knowledge.
Who can explore digital content (stories, data visualizations, mathematical concepts, impossibly large or small things like galaxies or molecular structures) in ways that align with human cognitive capabilities using spatial computing? A new naturalism that is true to your physical expectations while pushing you beyond human perception and physical ability limits.
Beyond Gaming, What Are the Advantages of Spatial Computing?
The ultimate benefit of spatial computing is the capacity to interact with digital stuff as if it were real. It has specific advantages that we could only dream of decades ago, and it has now become a "spatial" reality (pun intended). Listed below are a few examples.
More interactive employee training
Spatial computing's realistic three-dimensional (3D) depiction makes employee training more dynamic and engaging. It also enables employees to test a new feature, product, or service without waiting for development to be completed. This gives businesses an advantage because their employees will be well-versed in the product before it hits the market.
Reduced product development expenses
Employees can become acquainted with a new product or service in advance because they can interact with it using spatial computing. Companies can save money because they don't have to rush to develop a final product for staff training.
Real estate tours that are more easily accessible
Because AR is built into spatial computing, virtual 3D tours of any property are possible. This real estate tour provides potential customers with a thorough picture regardless of their location, whether it is for sale, under construction, or still being created. This capability is, of course, useful for interior designers, engineers, and construction contractors.
Assist retail stores in coping
Lockdown policies were prompted by an increase in the number of COVID-infected people.
In 2020, 19 illnesses will have a substantial impact on brick-and-mortar establishments. Some governments imposed reduced hours and occupancy limits, while others closed down non-essential businesses. On the other hand, spatial computing has the potential to turn things around by opening the virtual doors of retail stores to customers. The intricate design and branding of the stores will not be lost, as they can still be seen in the virtual world.
Spatial Computing's Future in Augmented Reality
Companies will need to invest heavily in edge computing frameworks that allow them to deliver content to end-users with minimal latency to deliver quality AR experiences. While 5G technology will help to improve AR functionality, the interactive nature of augmented reality devices will force many businesses to reconsider their overly centralized cloud computing networks to deliver content faster and gather data more efficiently.
Approximately 89 percent of businesses already expect vendors to assist them in meeting AR/VR requirements, ranging from developing plans to full manufacturing capabilities. Companies can concentrate on their core capabilities while simultaneously providing an immersive experience by employing outside AR/VR expertise and technology.
Spatial computing is augmented reality and has a bright future.
Spatial computing will have virtually limitless computing power for big data storage, sharing, and processing. Our reality will soon merge with digital reality, allowing for observation, data, models, problems, and real-world scenarios.
Before we know it, these products will be standard in all businesses, and they will alter the way we think, collaborate, and work.
Microsoft (MSFT)
Microsoft is a pioneer in spatial computing, with products such as the HoloLens. This virtual reality headset is designed for business and industrial applications, and the hardhat-compatible version could revolutionize construction and engineering projects in the future.
Microsoft is a great addition to your portfolio because it is a blue-chip stock with a low-risk profile. Furthermore, Microsoft is a good candidate for acquiring smaller spatial computing companies to expand its intellectual property portfolio.
Another advantage of purchasing Microsoft stock is that you will gain exposure to other tech industries such as software, gaming, and personal computers.
Tesla (TSLA)
Because of its patents, Tesla is one of the best spatial computing stocks companies to invest in. Tesla currently holds over 3,000 patents:
The vast majority of these patents are for battery technology and energy storage because one of the benefits of spatial computing is the potential for remote applications that could use this technology to power autonomous robots.
Tesla has 132 patents related to autonomous vehicles and is already a leader in the rollout of self-driving features for its vehicles.
Tesla also has 58 patents for manufacturing automation, making it a key player in the autonomous factory market. These factories may become the norm in the future.
Furthermore, Tesla released its third-quarter earnings report at the end of October. Total revenue increased 57 percent year on year to $13.76 billion. Non-GAAP net income increased 139 percent year over year to $2.09 billion, or $1.86 per non-GAAP diluted share, from $874 million, or 76 cents per non-GAAP diluted share, a year ago. The company also generated $1.3 billion in free cash flow, with cash and equivalents closing the period at $16.1 billion.
According to the results, the "third quarter of 2021 was a record quarter in many respects." We achieved our highest net income, operating income, and gross profit."
TSLA's stock is currently trading around $930, up 32% year to date (YTD). Furthermore, stocks are trading at 24.7 times lagging sales, and the average 12-month price forecast for TSLA stock is $924.50. Nonetheless, potential investors may be interested in purchasing for as little as $900.
Apple (AAPL)
Apple recently released AirTags. These are small beacons that you can use to track your devices.
Apple's U1 processor for this device is groundbreaking, despite the fact that it seems to be simply another gadget. Using this chip, devices may exchange spatial and directional data through a protocol.
Because it is more precise than GPS and Bluetooth, the U1 chip has the potential to transform how IoT devices communicate.
Apple, too, is pushing the limits of sensor innovation. Sensors with depth-sensing capabilities have been added to the latest generation of iPads. These gadgets can keep tabs on their users' movements, which is critical when engaging with a virtual or augmented reality world.
Amazon (AMZN)
When it comes to cloud computing service providers, Amazon and Google are two of the most prominent names in the industry. Amazon already has a solid portfolio of cloud-based services to pick from, and it will keep coming up with new ways to enhance the performance of its AWS service.
With autonomous delivery, Amazon might become a key participant in the worldwide spatial computing business. Amazon has already started using drones to deliver packages via Prime Air, and the company is considering using IoT technology to simplify warehouse order fulfillment.
Deere (BY)
Moline, Illinois-based Deere, is a world-renowned manufacturer of heavy agricultural equipment. AI, robotics, the Internet of Things (IoT), genetic engineering, quantum computing, and more have been identified as one of the most prominent names in the Fourth Industrial Revolution (IIR) (fourth industrial revolution).
Deere is even utilizing machine learning, AI, and computer vision applications to increase yields, reduce costs, and improve overall sustainability in agriculture. For example, the company recently announced an affiliated distribution agreement with Smart Guided Systems to sell its Smart-Apply Intelligent Spray Control System. Tractors then use it in high-value crops.
Remote sensing technology is known as LiDAR, which stands for "Light Detection and Ranging, which is a distant sensing approach that utilizes light in the form of a pulsed laser to determine distances (varying distances) from Earth," forms the foundation of this system. In order to reduce the number of pesticides used on crops, Deere's technology aids farmers.
Furthermore, Deere reported fourth-quarter results that exceeded expectations at the end of November. Revenue increased by 16% year on year (YOY) to $11.33 billion. Net income was $1.28 billion, or $4.12 per diluted share, up 70% year on year from $757 million, or $2.39 per diluted share, in the previous quarter. Cash and equivalents totaled $8.13 billion at the end of the quarter.
"Our results reflect strong end-market demand and our ability to continue serving customers while managing supply chain issues and negotiating contract negotiations with our largest union," said CEO John May.
In 2021, most manufacturers will face challenges from inflation and supply chain bottlenecks, and Deere is no exception. However, management anticipates that demand for agricultural and construction equipment will continue to benefit from economic growth and infrastructure investment.
In 2021, DE shares were presently trading at $348, a gain of 29% from the start of the year. A 12-month price prediction of $415 for Deere shares is now trading at 2.6 times trailing revenues.
Alphabet Inc. (GOOGL)
Alphabet is a technology behemoth with a strong background in artificial intelligence, machine learning, and algorithms. These technologies serve as building blocks for spatial computing. Alphabet Inc. (GOOGL) provides services such as performance and brand advertising, among other things. Google Maps is one of the company's widely used services, and it has been focusing on opportunities to bring more spatial computing to the masses. Meanwhile, Google's ARCore includes light detection, surface and edge detection, and six degrees of freedom in user motion.
Google is already working on projects like Google Lens, which uses spatial computing. Because of Google's strong adoption rate and the potential for Google Lens to become one of the most popular platforms for spatial computing, this is a fascinating endeavor to watch.
Also, working on self-driving automobiles, the need for data storage and processing capacity will expand as more firms adopt spatial computation. Investing in Alphabet provides another good incentive to use Google's cloud computing service. Because it makes its maps available for other organizations to utilize, Google Maps has an important role in spatial computing.
The company's expected earnings growth rate for the current year is 18.2 percent, compared to the Zacks Internet – Services industry's projected earnings growth rate of 7.2 percent.
Facebook (FB)
Facebook is another tech behemoth that you should include in your portfolio. It is a key platform for online advertising, with 2.89 billion monthly active users.
As a result of the Oculus Quest and its subsequent rebranding around Metaverse development, Facebook is already creating ripples in the worldwide space computing business. Because of the potential success of this initiative, Facebook may soon be one of the most popular virtual reality platforms for anything from entertainment to retail.
Matterport (MTTR)
Sunnyvale, California-based Matterport is a spatial data company that specializes in digitizing and indexing physical spaces such as real estate, factories, and travel and leisure destinations. Individuals may use the 3D data platform to convert actual settings into accurate and immersive digital twins.
Matterport released its third-quarter earnings report in early November. Total revenue increased by 10% year on year to $27.7 million. The company reported a non-GAAP net loss of $14 million, or 6 cents per share, compared to a non-GAAP net income of $1.5 million the previous year. Cash and equivalents totaled just under $149 million at the end of the quarter.
If you've been looking at real estate listings online recently, you might have noticed a Matterport digital twin of a home. Millions of users have also downloaded the free Matterport for mobile app.
Over 6 million digital twins were posted to the site in the third quarter. In addition, the number of subscribers increased by 116 percent year on year. Readers of InvestorPlace.com will recall that Matterport has strategic partnerships with Meta platforms (NASDAQ: FB) and Amazon (NASDAQ: AMZN).
MTTR stock is currently trading at $22.30 per share, up more than 50% in the last six months. Furthermore, stocks are trading at 66 times lagging sales, and the average 12-month price forecast for Matterport stock is $28. As a result, interested investors should consider buying the dips.
Qualcomm (QCOM)
Qualcomm is collaborating with other technology companies to imagine what future mixed reality interfaces might look like.
The business is gearing up to take the lead in spatial computing with a new generation of extended reality headsets. E-commerce, gaming, and other activities may be done using these headsets.
Brands and content producers may use Qualcomm's AR and VR developer tools, which the company is also creating.
IBM (IBM)
When it comes to data science, IBM has always been at the top of the heap. Businesses will encounter new issues with spatial computing because of the vast amount of data points that sensors and visual tools may gather.
IBM is already working on geospatial analytics solutions. These solutions will enable users to create systems that can work with visual data and other types of data points in real-time.
There are numerous applications, ranging from working with satellite maps for weather forecasting to creating more accurate databases for insurance companies.
Ambarella (AMBA)
Ambarella is a small but promising company that creates innovative imaging solutions. The majority of Ambarella's products are found in smart camera systems.
This company employs proprietary technology to develop AI-powered systems that can extract visual information from images or videos in real-time. These systems are distinguished by the use of low-power consumption chips, which are ideal for portable applications.
Final Thoughts
According to forecasts, the global spatial computing industry will be worth at least $196.2 billion by 2026. This is an increase of 883.8 percent over a seven-year period. Spatial computing bridges the gap between the physical and digital worlds, allowing anyone to do anything from scheduling an Uber ride to carrying out complex procedures.
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