Global Extended Reality (XR) in Manufacturing Market Size (2024 - 2030)

The worldwide extended reality (XR) market attained a value of USD 16.39 billion in 2024 and is anticipated to achieve USD 39.29 billion by 2030. Projected growth over the 2024-2030 forecast period is pegged at a CAGR of 13.3%.

Extended Reality (XR) in the Manufacturing Overview

The utilization of advanced technologies such as augmented reality (AR), virtual reality (VR), and mixed reality (MR) within manufacturing contexts is defined as extended reality (XR). This affords employees immersive, interactive encounters, enhancing their efficiency and precision. Augmented reality (AR) can furnish real-time insights and guidance on production processes, whereas virtual reality (VR) serves as a tool for training and simulation, allowing employees to practice tasks within a secure, controlled environment. The integration of XR technologies in manufacturing holds the potential to elevate productivity levels, diminish errors and waste, and enhance employee safety.

Through AR, workers can access real-time information and guidance for maintenance and repair tasks, consulting technical manuals, locating components, and troubleshooting issues. Mixed reality (MR) empowers employees to overlay simulated data onto the physical world, facilitating rapid and accurate identification and diagnosis of problems. A proficient workforce capable of developing, implementing, and managing XR technologies is imperative, often necessitating additional training and the recruitment of specialized personnel, both of which may incur significant costs.

Global Extended Reality (XR) in Manufacturing Market Drivers:

Rising Demand for Immersive Training and Educational Experiences Set to Propel XR Market in Manufacturing.

The increasing need for immersive training and educational experiences stands as a principal driver of the global extended reality (XR) market within manufacturing. Especially relevant in preparing employees for the handling of large machinery or potentially hazardous equipment, traditional training methods prove costly, time-intensive, and potentially perilous. By offering a secure, controlled environment for employees to learn and rehearse intricate manufacturing processes, XR technologies, such as VR and AR, mitigate the risks of injury and equipment damage. Moreover, XR presents a more engaging, interactive learning environment, fostering improved knowledge retention and transfer. Manufacturers are progressively turning to XR technologies to enhance their training initiatives while striving for heightened output and efficiency.

Escalating Demand for Remote Assistance and Collaboration Amplifying XR Market Size.

The mounting requirement for remote collaboration and assistance represents another significant impetus behind the global XR market within manufacturing. With manufacturing processes growing in complexity, workers often necessitate immediate guidance from specialists who may not be physically present on the factory floor. XR technologies such as AR and MR enable workers to receive real-time feedback and instructions from remote experts, significantly reducing downtime and boosting productivity. Additionally, XR facilitates remote team collaboration, allowing specialists from diverse locations to collaborate on projects in real-time. This heightened collaboration and communication capacity augments decision-making effectiveness and expedites problem-solving processes. The demand for remote assistance and collaboration via XR technologies is poised to rise as manufacturers seek to optimize their operations, fueling the expansion of the XR market within manufacturing.

Global Extended Reality (XR) in Manufacturing Market Challenges:

Costly Implementation of XR Technologies Poses Key Challenge for Industry.

The substantial expense associated with deploying XR technologies stands as a primary challenge confronting the global extended reality (XR) market within manufacturing. Implementing XR systems such as VR or AR headsets necessitates a significant initial investment, with ongoing costs for maintenance and software updates further adding to the financial outlay. The intricacies of integrating XR systems with existing manufacturing hardware and software further compound the expenses and complexities of XR implementation. Small and mid-sized manufacturers may find the adoption of XR technologies challenging due to these elevated costs, potentially limiting the market's growth potential.

Global Extended Reality (XR) in Manufacturing Market Opportunities:

Industry 4.0 Adoption Presents Promising Opportunity for XR Market Growth.

A significant opportunity for the global extended reality (XR) market within manufacturing lies in the increasing adoption of Industry 4.0 technologies. Manufacturers are progressively relying on digital technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to streamline their operations. XR technologies can complement these advancements by providing employees with real-time information and immersive experiences, thereby enhancing productivity and efficiency. As the adoption of Industry 4.0 technologies continues to expand, the XR market stands to benefit from increased demand for developmental XR technologies.

COVID-19 Impact on Global Extended Reality (XR) in Manufacturing Market:

The COVID-19 pandemic has yielded both positive and negative effects on the global market for extended reality (XR) in manufacturing. On a positive note, the need for remote collaboration and training solutions surged as many manufacturing businesses operated with reduced on-site staff during the pandemic. XR technologies bridged this gap by granting employees remote access to training and real-time guidance, thereby enhancing productivity and reducing downtime. Conversely, the pandemic disrupted global supply networks, leading to delays in the manufacturing and distribution of XR hardware and software. Moreover, many manufacturers redirected their budgets away from XR technologies to focus on essential tasks. Despite these challenges, manufacturers persist in seeking avenues to streamline processes and enhance output in the post-pandemic era, signaling promising long-term potential for XR in manufacturing.

Global Extended Reality (XR) in Manufacturing Market Recent Developments:

• July 2022 witnessed Microsoft announcing the availability of its HoloLens 2 mixed reality headset in the UAE. This headset delivers a comfortable, intuitive, and immersive experience, complemented by Dynamics 365 business applications and ISV solutions. Supported by the reliability, security, and scalability of Microsoft Azure, HoloLens 2 offers enterprise value across key sectors.
• In December 2022, EON Reality, Inc., a trailblazer in virtual and augmented reality (XR) solutions driven by artificial intelligence (AI), unveiled a new collaboration with Thailand's Defense Technology Institute (DTI). This collaboration grants DTI staff members and instructors access to EON Reality's XR tools, unlocking a wealth of new possibilities. Serving as a pivotal component of the Thai government's strategy to bolster domestic manufacturing of critical weaponry, the institute has developed drones for combating pollution in recent years and oversees diverse tasks ranging from aircraft maintenance to creative pursuits. EON Reality's AI-powered XR solutions align seamlessly with this innovative mindset, promising substantial benefits.

Global Extended Reality (XR) in Manufacturing Market Segmentation: By Application

• Augmented Reality
• Virtual Reality
• Others

Of these options, Augmented Reality (AR) holds the largest share within this category. AR integrates digital content into the physical environment, providing employees with contextual information, instructions, and real-time data during assembly, maintenance, and quality control procedures. This hands-free access to information boosts worker efficiency and minimizes errors within the manufacturing workflow.

Virtual Reality (VR) emerges as the fastest-growing application in the XR manufacturing market. VR technology immerses users in entirely digital environments, allowing for realistic and interactive simulations for training, design visualization, and virtual prototyping purposes. Manufacturers are adopting VR applications to create immersive learning modules for employees, decrease production lead times, and refine product designs prior to physical prototyping.

Global Extended Reality (XR) in Manufacturing Market Segmentation: By User

• Single user
• Multi-user

Within this category, Single User represents the largest share. XR technology enables individual users to interact with virtual environments and simulations tailored to their specific requirements. Single-user applications are utilized in personalized training, virtual prototyping, and digital twin simulations.

During the forecast period, the Multi-user XR experiences are anticipated to demonstrate the most rapid growth in the manufacturing sector. Multi-user XR solutions promote collaboration among teams and departments, facilitating real-time interactions and communication within virtual settings. This user segment is invaluable for remote team collaborations, design evaluations, and issue resolution, thereby fostering efficient and streamlined manufacturing processes.

Global Extended Reality (XR) in Manufacturing Market Segmentation: By Component

• Software
• Hardware
• Others

Hardware holds the largest share within this segment. XR hardware devices, including head-mounted displays and motion sensors, offer users immersive experiences, enabling effective and hands-on training, remote collaboration, and real-time data visualization during manufacturing operations.

Conversely, Software emerges as the fastest-growing component in the XR manufacturing market. The advancement of sophisticated XR software applications has enhanced user interactions, rendering XR experiences more interactive and user-friendly. Advanced XR software supports intuitive gesture recognition, lifelike simulations, and improved user interfaces, thereby propelling its rapid growth within the manufacturing sector.

Global Extended Reality (XR) in Manufacturing Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East
• Latin America

Among these regions, North America stands as the largest market for Extended Reality (XR) in Manufacturing. The region's prominence can be attributed to its robust technological infrastructure, a strong focus on innovation, and a high level of industrial automation. North American manufacturing industries, spanning aerospace, automotive, healthcare, and electronics, widely adopt XR technology. The demand for XR applications such as virtual prototyping, remote collaboration, and training simulations drives North America's leadership in the XR market for manufacturing.

Conversely, Asia-Pacific emerges as the fastest-growing region during the forecast period. The region's rapid economic expansion, increasing industrialization, and the proliferation of advanced technologies contribute to the substantial adoption of XR within manufacturing. As Asia-Pacific nations intensify their efforts to modernize manufacturing processes and enhance workforce skills, XR technology emerges as a compelling solution for improving productivity and efficiency. XR's capacity to streamline production, decrease downtime, and enable remote collaboration aligns with the region's industrial objectives, positioning Asia-Pacific as a prominent player in the XR manufacturing market.

Global Extended Reality (XR) in Manufacturing Market Key Players:

1. PTC, Inc.
2. Microsoft Corporation
3. Unity Technologies
4. EON Reality Inc.
5. NVIDIA Corporation
6. Upskill
7. Magic Leap, Inc.
8. RE'FLEKT GmbH
9. Atheer, Inc.
10. Scope AR.