Executive Summary
The widespread deployment of 5G devices in the United States will spur increased use of augmented reality, virtual reality, and mixed reality applications—collectively known as extended reality (XR)—and they will become accessible through a single, or set of, metaverse(s). These metaverses will be a collection of virtual ecosystems that allow users to interact with each other and their surroundings in a creative and collaborative manner in virtual spaces or physical environments that are digitally manipulated by static or mobile devices.
The global XR market could be $476 billion in 2025, compared to $46.4 billion in 2019. One prediction estimates that over 23 million jobs could be created globally. While these numbers may seem a bit fantastical, future XR apps could become easily deployable and the amount of users would be significant. One estimate projects that the metaverse will increase the data usage of each internet user by 20 times.
The benefits of XR technologies could be numerous, including advanced telehealth, improved training for emergency responders, and better digital government services. For example, since 2017 a water utility in Australia has used virtual reality (VR) to allow users to walk through a virtual model of their treatment plant, helping them identify more design problems than traditional walk-throughs. More consequentially is how militaries will use XR technologies and metaverses. The U.S. military has used XR technology for decades, starting in the 1950s in which the Air Force used simulations to replicate cockpit experiences for pilots. Since then, the importance of XR technology across all U.S. military branches has only grown.
While these applications and devices will bring significant benefits, they will be accompanied by numerous cybersecurity challenges. VR headsets will introduce a host of new vulnerabilities that could allow hackers to record speech and steal sensitive information. Malicious actors could exploit XR software to look at a user’s screen, turn on their microphone, and install a virus on their computer. Further, bad actors could penetrate a data-hosting provider and launch a traditional ransomware attack that encrypts data necessary for XR applications to function.
The United States must also contend with how other governments are developing policies to incentivize or regulate the XR market. The European Union published a strategic paper to detail how it will incentivize its XR market on one hand, while simultaneously initiating processes to decide how to regulate this market on the other. South Korea and Japan are investing millions to provide government services in the metaverse. More consequentially, China has created a five-year plan that details how it will become a global leader in supplying the XR technology supply chain and is taking steps to lead in international standards conversations and integrate XR technology into their military operations.
Compared to China and other countries, the United States is woefully behind in establishing any policies to incorporate XR technologies into society, let alone dealing with its cybersecurity concerns.
The U.S. government has issued several strategies on national security, emerging technology, and cybersecurity that could impact the security of XR technologies. However, they do not explicitly mention XR or the metaverse nor are there any major government or congressional activities underway to address this risk.
The U.S. government must work closely with industry, academia, nonprofits, and international partners to begin thinking about these consequential issues. This should include: encouraging XR companies to adopt security frameworks and standards; becoming involved in developing international standards; examining existing and new regulations that could apply to XR; and determining how, if at all, the U.S. XR market should receive financial incentives, among other things.