State of Phygital. The Next Big Thing.

Anna Belova
3 min readOct 10, 2021

Let’s talk serious now.

Without a doubt you’ve heard about AR/VR, AI, IoT, 5G, human-computer interfaces, etc. You’ve been hearing about startups, new products and solutions and programs in big corporations featuring such technologies more and more often lately.

And no doubt, many have read about the ways and consumption patterns of the modern generation. But do you know what field evolutionally consolidates all that? Phygital. It’s not just a new economy, it’s a philosophy of a new global order.

Did you ever consider what’s going to happen when the digital economy reaches its limit? Do you think it will take many generations for it to happen? You’re wrong. The trend of the cannibalization of digital economy is obvious.

A bridge will be built between the physical world and the Internet, making these entities integral parts of each other. The existing boundaries will be wiped and new rules will come into effect. We know it because we are already doing it at DEVAR.

Don’t think that it won’t reach you. The revolution has already begun. Have doubts? Just look at the numbers. You can find them in the first industry report we prepared together with the Leta Capital.

Anna Belova, CEO and Founder at DEVAR: “The digital world is closely intertwined with the physical and vice versa, today you can hardly imagine any physical object working without a digital component. Using our company as an example, from day one we chose to combine the world of physical objects and digital content, producing state-of-the-art children’s books and augmented reality toys in millions of copies worldwide. Phygital is the lifeblood of Devar and all of its products and services.”

Alexander Zemlyak, Associate at Leta Capital: “Phygital is an evolution of everything that has been developed in computing, AR and VR, which will radically change the way we live, work, communicate, travel, study, and entertain. As a result, all physical objects in the nearest future will become Phygital, i.e. powered by a set of breakthrough technologies (AR, IoT, M2M and others). Online environments — social networks, e-commerce, and so on — that today exist only in digital form, will merge with physical objects not just as a supplement, but rather as an integral part of them.”

In addition, the report cites some major economic sectors where Phygital has the most applications, presents real-life use cases, and allows readers to try out Phygital themselves using the smartphone camera and a WebAR technology powered by Devar’s own product

In the end, the authors list some of the major challenges related to hardware and software components of Phygital, as well as share their own market predictions for the next 2 years, which will be commented on in the next annual State of Phygital Report to be published later in 2022.



Anna Belova

Founder & CEO DEVAR - canva for Augmented Reality. Forbes U30