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Virtual Reality (VR) has gone from being science fiction, to being realized in the research lab, to being treated as a toy, to being used in practical applications, including shipbuilding. This paper examines the history of VR technology as well as its current state. It then predicts the future of VR by analysing the forces that have either hindered or promoted the implementation of Virtual Reality in the ship design and construction industry. Challenges are identified as well as possible solutions, in the context of technology, economics and organizational culture.