If you’ve watched Ready Player One, then you’ve definitely marveled at holographic communication and interacting in a virtual world. We may be using these ourselves through the development of extended reality (XR), an umbrella term for augmented, virtual, and mixed reality. Immersing ourselves in a digital world as a personalized avatar where natural constraints do not apply, and where the natural world can be observed to a greater extent, has been a technological milestone decades in the making.

The first VR headset, The Sword of Damocles, was created in 1968 by American computer scientist, Ivan Sutherland and his student, Bob Sproull. In reference to the story of Damocles and king Dionysus, the headset was suspended from the ceiling and was too heavy for the user to wear. Despite it being an uncomfortable contraption and its primitive display, it paved the path to XR as we know it today.

Accessing extended realities is thankfully much easier than in the late 60’s. With the use of hardware such as the Oculus Rift (now Meta Quest), Microsoft’s Hololens, and even our smartphones, we are evolving the ways in which we interact with digital content and each other. XR technologies are shaping various sectors, some of which include: entertainment, healthcare, education and training, and military. A report from Precedence Research notes that “the global extended reality market size was exhibited at $35.15 billion in 2022 and is projected to hit around $345.9 billion by 2030”, which means it’ll grow at a compound annual growth rate (CAGR) of 33.09% from 2022 to 2030.

As part of the industry’s growth globally, Cyprus has some of its own leaders in the space making waves. From employing XR technology for educational purposes, to shaping the future of industries, and improving the islands’ processes and understanding of its utilities.

We’ve made a list of the island’s currently most impactful companies in the XR markets. They’ve received funding from academia, the public sector, and the private sector, and they have established themselves as leaders of the industry in Cyprus, making impacts both locally and globally.

Cyprus establishes itself as a leader in MR in education. Ascanio, founded by George Tziazas in 2015, and backed by Kinisis Ventures is a mixed reality software development company that provides training solutions for the military, law enforcement, and industrial training. It started in 2015 as a game development studio, Ascanio Entertainment and in 2021 Minas Kyriakou joined the fold of Ascanio as shareholder and CTO after the company pivoted to Mixed Reality. In 2022, Ascanio developed a maritime branch alongside industry giant Fameline Holding Group, that provides training for maritime personnel, as well as remote monitoring services in shipping. Not long after, Kinisis Ventures Fund I that focuses on Cypriot startups, made a follow-on investment on Ascanio. 

Mr. Tziazas comments that, “Mixed reality is poised to soar to new heights in the coming years. Its impact will be felt far and wide, transforming industries and revolutionizing the way we perceive and interact with the world around us. From entertainment and education to business and beyond, mixed reality will become an integral part of our lives, shaping the way we work, play, and connect. The applications of mixed reality are vast, and its potential is only beginning to unfold. Cyprus is starting to pick up the pace on the Mixed Reality race.”

Threedium, founded by Mike Charalmbous in July 2017, aims to transform how companies enable consumers to interact with their products, through the digitization of physical products that can be viewed through devices with the use of AR and MR. According to Crunchbase, Threedium has raised $3.3 million to date, which is a massive milestone. Last year, in 2022, Threedium employed their 3D engine in collaboration with Craft, a creative production agency, to launch a virtual shopping mall within Decentraland’s metaverse. 

Rachel Douglass, a fashion journalist, noted that “Threedium’s space includes stores by the likes of Paco Rabanne, Dolce & Gabbana and Casablanca, as well as web3 brands DeadFellaz and FangGang.” Douglass also highlighted Agustin Ferreira’s awe of Threedium, “Threedium’s groundbreaking work in e-commerce is truly setting the standard in the industry.”

We have also seen the rise of Silversky3D, a virtual reality company founded in 2014. It all started from the University of Cyprus’ Department of Psychology, receiving funding from the European Research Council, and the Ministry of Labour and Commerce of Cyprus. Through their years of expertise in psychology and VR and AR application development, they develop applications that are based on evidence and lab research. Their projects include VR architectural models, jet engine interactive lessons, and even help people conquer their fears of flying and public speaking by interacting with advanced visualization and virtual environments.

Cyprus’ Centre of Excellence, CYENS focuses on nurturing a culture of innovation shared by entrepreneurs, professionals, creatives, researchers, and academics. This large part of Cyprus’ creativity and technology ecosystem was founded by several academic institutions including, University College London and the University of Cyprus, among other reputable academic institutions. 

One of its divisions, iNicosia, is focused on creating a digital twin of Nicosia. Referring to the description of digital twins above, this is a phenomenal leap towards improving not only the infrastructure of Nicosia, but also developing a better understanding of how the capital can scale with growth. CYENS shares that iNicosia “aims to become a point of reference in quality-of-life improvements, creativity and progress for local authorities, policy makers, scholars, residents and visitors.” 

CYENS is also taking a lead in animation and storyboarding, after partnering with SONY Pictures Animation. Their partnership entails that the two will collaborate on the creation and improvement of technological advances for storyboarding, among other early production stages. Their partnership is attributed to the efforts of Yiotis Katsambas, who has worked extensively in visual effects and animation, including Spider-man: Into the Spider-verse, The Road to El Dorado, and more.

As we have observed, Cyprus has XR industry leaders paving the way for future projects and initiatives. With additional support from the European Union in terms of funding,  such as the EIC accelerator program, Cyprus SMEs perhaps have the potential to grow into a regional XR industry leader. Is the right level of funding enough, though?

Aside from needing a supportive infrastructure, XR technologies require input from experts across various sectors. Accenture, a leader in ICT services and consulting, states that “an ecosystem based on alliances and partnerships with diverse experts, from neuroscientists and psychologists to lawmakers and entrepreneurs, could provide the ideal structure for designing and deploying responsible XR solutions.”

According to Mike Charlambous, CEO & Co-founder of Threedium, the leading XR hubs are currently located in Paris, Los Angeles, and Berlin. To establish Cyprus as a competitive player in the XR industry, Charlambous argues that the government must provide more relevant incentives and infrastructure, such as high-end studios, to support the development of XR technology. Despite having a talented workforce that is exporting world-class XR solutions, as Threedium does, Charalambous notes that Cyprus needs to increase its efforts in order to retain and attract XR companies. 

Sadly, Threedium has yet to receive any local support in its growth, despite using Cyprus as a testbed for its technology. Though, Charlambous expresses hope for changes in the future, as immersive technology is rapidly scaling worldwide.