Virtual Reality (VR) applications require an immersive experience. Panoramic or 360° camera systems are needed to realize this type of environment. But panoramic and 360° cameras have their own challenges in making sure image quality is not sacrificed. Wide field of view lenses have resolving power limitations, introduce image distortion and lens shading across the field of view. This needs to be compensated for, sometimes with lens design, sometimes with image processing and sometimes both together.

The choice of using a single sensor with panoramic lens versus multiple sensors and lenses and stitching the video together can add another layer to the camera system complexity. It pushes additional challenges to image processing, especially if the system requires real-time functionality.