Imagine being able to escape the real world and enter a realm where anything is possible, a world limited only by your imagination. Well, this is much easier than you might think. Discover the key differences between Augmented Reality (AR) and Virtual Reality (VR), their real-world applications, and how they shape industries like gaming, healthcare, and education. Learn which technology suits your needs best.
Virtual reality, VR, and augmented reality, AR, are two exciting new technologies that have created new ways to interact with digital content. Let’s break down what each technology does and how AR and VR are different.
History of Augmented Reality and Virtual Reality
The first virtual simulator called The Sensorama was developed in 1957 by an American filmmaker and inventor Morgan Heilig. It was a mechanical device that included a stereoscopic 3D display, fans to imitate wind, a motional chair, and even odor emitters. The first VR-AR helmet in history was developed by a Harvard Professor Ivan Sutherland and his student Bob Sproull in 1968. It was called “The Sword of Damocles.” It was a bulky device that was attached to the ceiling. In 1987, Jaron Lanier (the one who coined the term ‘virtual reality’) created EyePhone glasses and a DataGlove.
What is Virtual Reality (VR)?
Simply put, virtual reality is computer-generated content that you can experience through a special headset that covers your eyes, immersing you in a virtual environment as though you are actually there.
There are quite a number of devices and special VR content needed to fully immerse yourself in a VR world, including a high-spec computer, a VR headset, and in some cases, handheld controllers that help you to control the virtual world through triggers on the handset. Once you put on the VR headset, a digital display can be seen in front of your eyes. You can no longer see the real world as your entire vision is retained inside the virtual display, inside your headset. There is no limit to what the immersive world might show, as this is only limited by the imagination of the digital creator.

How Does Virtual Reality Works?
So you might find yourself in the space station, an instructional workshop for pilot training, a tourism scene from a European city, or even a roller coaster ride. But virtual reality isn’t just about what you see. VR headsets also have built-in sensors that track your movements. So when you move your head or your body, the virtual environment moves 360 degrees around you, too. This VR digital content is built-in software that uses 3D modeling, animation, and physics simulation applications to generate realistic and immersive worlds that make you feel like you’re really in that environment.
Virtual Reality Software Examples and Possiblities
Examples of VR software include Google Earth VR, social media platforms like VRChat, and games such as Beat saver.
The possibilities with VR are endless. You can play games, watch movies, attend virtual concerts and events, explore new worlds, and even create your own content.
Key Features of Virtual Reality (VR)
- Creates a completely immersive digital environment
- Requires VR headsets and controllers
- Offers a 360-degree experience
- Primarily used for simulations and entertainment
What is Augmented Reality (AR)?
Augmented reality is quite a different experience as it is an overlay that enhances our perception of the real world. Augmented Reality enhances the real-world environment by overlaying digital elements such as images, sounds, and interactive data. AR is commonly experienced through smartphones, tablets, and AR glasses.

How Does Augmented Reality Works?
AR works by using the built-in camera you find on mobile devices such as phones and tablets. The AR software recognizes certain images or markers in the real world, which then triggers an image or an action.
This is not dissimilar to a QR code you might scan on a booklet or poster that triggers a link to a website. AR takes the user one step further to showcase images and animations rather than just website addresses. It sounds complicated, and in many ways it is. However, creating AR triggers is now something that even children can do using simple software that is removing to the complexity. At the heart of it, AR software uses a combination of advanced tech, including computer vision, image recognition, and sensor data that analyzes your surroundings and then overlays the digital content in real-time.
What is Augmented Reality Used For?
You may even have used AR without knowing it. Pokémon Go and Snapchat filters are both examples of how AR is used in entertainment. You might ask, how would a business use AR technology? Perhaps you have a physical retail store that people walk past. Through creating AR content and a trigger on your shop window, people walking by your store could scan the code on their phone, and on their screen, they would see promotional videos or interactive content that promotes your business, even when it’s closed. If you operate a tourist attraction, a motel, a café, or anywhere people come to buy, you might add VR content on your website that allows visitors to access additional information and content to showcase what your business offers through 3D or 360-degree video content.
Another great option is to create location-based triggers that promote special promotions or discounts to customers who are nearby to your business. Like VR, AR is becoming more embedded into everyday products and promotions. You might be surprised how often you might see a code on products you buy from pizza boxes to label tags. If you are up to giving the creation of your own AR content a go, you might want to start with one of these great options.
Key Features of Augmented Reality (AR)
- Enhances the real world with digital overlays
- Works on smartphones, tablets, and AR glasses
- Interactive and responsive to user movements
- Used for real-time data visualization
Key Differences between AR and VR
Feature | Augmented Reality (AR) | Virtual Reality (VR) |
Environment | Enhances the real world | Fully immersive digital world |
Device Required | Smartphones, AR glasses | VR headsets and controllers |
Interaction | Adds digital elements to real surroundings | Completely replaces real surroundings |
Application | Retail, healthcare, education | Gaming, training, simulations |
User Engagement | Users remain aware of the real world | Users are completely immersed |
Applications of AR and VR in Different Industries
Healthcare
- AR: Assists in surgery, medical training, and patient diagnostics.
- VR: Used for pain management, therapy, and immersive medical training.
Education
- AR: Enhances interactive learning with real-time overlays.
- VR: Provides immersive virtual classrooms and hands-on learning experiences.
Gaming and Entertainment
- AR: Games like Pokémon Go blend digital elements with the real world.
- VR: Offers fully immersive gaming experiences through headsets.
Retail and E-commerce
- AR: Enables virtual try-ons and product visualization.
- VR: Provides immersive shopping experiences and virtual showrooms.
Read More: Operator by OpenAI: Your Personal AI for Everyday Tasks
Future Predictions: Where AR and VR Are Headed
- Enhanced Wearable Technology: Advancements in AR glasses and VR headsets will drive further adoption.
- Integration with AI: AI-powered AR and VR applications will offer smarter, real-time interactions.
- Expansion into More Industries: Beyond gaming and education, AR and VR will play a crucial role in real estate, remote work, and manufacturing.
Extended Reality and Mixed Reality
eXtended Reality (XR) is a term for technologies that enrich or replace our view of the world. This is often done by overlaying or immersing digital information and graphics into real-world and virtual environments, or even a combination of both, a process also known as spatial computing.
XR encompasses augmented reality (AR), virtual reality (VR), and mixed reality (MR). While all three ‘realities’ share overlapping features and requirements, each technology has diverse purposes and underlying technologies.
MR sits somewhere between AR and VR, as it combines the real and virtual worlds. This technology allows VR users to be superimposed into video games, creating a seamless blend of physical and digital worlds. As a result, real-world personalities can now interact within the game itself, enhancing the immersive experience for both players and viewers.
Conclusion
Both Augmented Reality and Virtual Reality have their own unique advantages and applications. While AR enhances the real world, VR creates a new one. As technology continues to evolve, both will play a significant role in shaping the future of digital experiences.
FAQ’S
What is Virtual Reality?
Virtual reality is computer-generated content that you can experience through a special headset that covers your eyes, immersing you in a virtual environment as though you are actually there.
What is Augmented Reality (AR)?
Augmented reality is quite a different experience as it is an overlay that enhances our perception of the real world. Augmented Reality enhances the real-world environment by overlaying digital elements such as images, sounds, and interactive data. AR is commonly experienced through smartphones, tablets, and AR glasses.
What is Mixed Reality (MR)?
Mixed reality (MR), combines real and digital objects in a hybrid environment. MR merges real and virtual environments so you can interact with both real and virtual items using a headset or eyewear. Users interact with both virtual and real items. Therefore, companies have a choice in their level of virtual.
What is Extended Reality (XR)?
Extended reality (XR) is an industry descriptor. In other words, this is a catch-all term for all of the different reality terms used today.
What are Virtual Web Applications? Are they Virtual Reality?
No. People often confuse anything virtual with VR because virtual reality always consist of a device to immerse users in a different world.
What Industries Use AR/VR?
Technology repeats across many services and products. Therefore, industry applications are limitless. ARS has extensive experience in Architecture, Engineering, Construction (AEC), Healthcare, Arts & Education, Training and many other Specialty industries whilw VRS are experienced in Gaming, training, simulations.