Global Extended Reality (XR) in Manufacturing Market size (2023 - 2030)

The global extended reality (XR) was valued at USD14.47 billion in 2022 and is projected to reach USD 39.29 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 13.3%.

The use of cutting-edge technologies like augmented reality (AR), virtual reality (VR), and mixed reality (MR) in manufacturing is referred to as extended reality (XR). Giving workers immersive, interactive experiences with these tools will enable them to work more quickly and accurately. While AR can be used to give workers real-time information and guidance on production processes, VR can be used for training and simulation reasons, enabling workers to practice tasks in a safe and controlled environment. The use of XR technologies in production has the potential to boost productivity, lower errors and waste, and improve worker safety.

XR enables workers to obtain information and direction in real-time using AR for maintenance and repair tasks. This can involve consulting technological manuals, locating components, and solving problems. With MR, employees can superimpose simulated data into the real world, improving the speed and accuracy of problem identification and diagnosis. A skilled workforce that can create, implement, and manage XR technologies is also required. This might call for more training and the hiring of specialist staff, both of which can be expensive. 

Global Extended Reality (XR) in Manufacturing Market Drivers:

Increasing Demand for Immersive Training and Education Experiences may boost market size for XR in the Manufacturing market.

The growing demand for immersive training and educational encounters is one of the main factors propelling the global extended reality (XR) in the manufacturing market. Particularly, when it comes to preparing employees to handle large machinery or other potentially dangerous equipment, traditional training methods can be expensive, time-consuming, and potentially dangerous. By providing a safe and controlled setting for workers to learn and practice complex manufacturing processes, XR technologies, like VR and AR, lower the risk of injury and equipment damage. Additionally, XR can offer a more interactive and interesting learning environment, improving knowledge retention and transfer. Also, manufacturers are increasingly relying on XR technologies to improve their training programs as they work to increase output and efficiency.

The growing need for Remote Assistance and Collaboration is fuelling market demand augmenting market size.

The rising demand for remote collaboration and help is another significant factor driving the global XR in the manufacturing market. Workers may require immediate direction and assistance from specialists who are not physically present on the factory floor as manufacturing processes become more complex. Workers can receive remote assistance from experts elsewhere using XR technologies like AR and MR, enabling them to receive feedback and instructions in real-time. The ability to solve issues more quickly and proficiently can considerably decrease downtime and boost productivity. Additionally, XR technologies can help teams collaborate remotely, allowing specialists in various places to collaborate on a project in real time. This could result in greater collaboration and communication, which would lead to more effective decision-making and quicker problem-solving. The demand for remote help and collaboration using XR technologies is anticipated to increase as manufacturers continue to look for ways to optimize their operations, fuelling the growth of the XR in the manufacturing market.

Global Extended Reality (XR) in Manufacturing Market Challenges:

The expensive implementation of XR technologies is one of the main issues the global extended reality (XR) in the manufacturing industry is facing. Deploying XR systems, like VR or AR headsets, can require a sizable   initial investment, and the ongoing costs of upkeep and software updates can also add up over time. The complexity of integrating XR systems with current manufacturing hardware and software further increases the expenses and difficulties of implementing XR. Small and mid-sized manufacturers may find it challenging to adopt XR technologies due to these high costs, which could limit the market's potential for development.

Global Extended Reality (XR) in Manufacturing Market Opportunities:

One important opportunity for global extended reality (XR) in the manufacturing sector is the increasing adoption of Industry 4.0 technologies. The internet of things, artificial intelligence, and big data analytics are among the digital technologies that manufacturers are increasingly depending on to streamline their operations. These technologies can be complemented by XR technologies to increase productivity and efficiency by providing employees with real-time information and immersive experiences. As Industry 4.0 adoption increases, there are more opportunities for market growth, which is likely to increase demand for XR technologies currently in development. 

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

COVID-19 has had both good and negative effects on the global market for manufacturing with extended reality (XR). On the plus side, because many manufacturing businesses had to work with fewer staff on-site due to the pandemic, the demand for remote collaboration and training solutions increased. By giving employees remote access to training and real-time guidance, XR technologies have aided in bridging this divide, increasing productivity and decreasing downtime. On the downside, the pandemic has seriously disrupted global supply networks, which has caused delays in the manufacturing and distribution of XR hardware and software. Additionally, a lot of makers have had to reduce their investment in XR technologies to focus their budgets on necessary tasks. Despite these obstacles, manufacturers continue to look for ways to streamline their processes and boost output in the post-pandemic era, which bodes well for the long-term potential of XR in manufacturing.

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

• In July 2022, Microsoft announced that its HoloLens 2 mixed reality headset is now available in the UAE as well. This headset provides a comfortable, intuitive and immersive experience along with Dynamics 365 business applications and ISV solutions. HoloLens 2 is backed by the reliability, security and scalability of Microsoft Azure, providing enterprise value across key sectors.
• In December 2022, EON Reality, Inc., a pioneer in virtual and augmented reality (XR) solutions fuelled by artificial intelligence (AI), has announced a new collaboration with Thailand's Defense Technology Institute. (DTI). Access to EON Reality's XR tools will be available to DTI staff members and instructors, creating a practically limitless amount of new possibilities. The institute is a key component of the Thai government's strategy to increase domestic manufacturing of critical weapons. It has developed drones to combat pollution in recent years and is in charge of everything from aircraft maintenance. For this creative mind set, EON Reality's AI-powered XR solutions will be ideal

EXTENDED REALITY IN MANUFACTURING MARKET REPORT COVERAGE:

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

• Augmented Reality
• Virtual Reality
• Others

Among these, Augmented Reality claims the largest share in this segment. AR overlays digital content onto the real-world environment, empowering workers with contextual information, instructions, and real-time data during assembly, maintenance, and quality control processes. The hands-free access to information enhances worker productivity and reduces errors in the manufacturing workflow.

Virtual Reality (VR) emerges as the fastest-growing application in the XR manufacturing market. VR technology immerses users in a fully digital environment, enabling realistic and interactive simulations for training, design visualization, and virtual prototyping. Manufacturers embrace VR applications to create immersive learning experiences for employees, reduce production lead times, and optimize product designs before physical prototypes are developed

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

• Single user
• Multi-user

Among these, Single User accounts for the largest share in this segment. XR technology enables individual users to engage with virtual environments and simulations tailored to their specific needs. Single User applications find application in personalized training, virtual prototyping, and digital twin simulations.

During the forecast period, Multi-user XR experiences are expected to exhibit the fastest growth in the manufacturing sector. Multi-user XR solutions enable collaboration among teams and departments, facilitating real-time interactions and communication within virtual environments. This user segment proves invaluable in remote team collaborations, design reviews, and troubleshooting, fostering efficient and streamlined manufacturing processes

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

• Software
• Hardware
• Others

Among these, Hardware claims the largest share in this segment. XR hardware devices, such as head-mounted displays and motion sensors, provide users with immersive experiences, enabling efficient and hands-on training, remote collaboration, and real-time data visualization in manufacturing processes.

On the other hand, Software emerges as the fastest-growing component in the XR manufacturing market. The development of sophisticated XR software applications has augmented user interactions, making XR experiences more interactive and user-friendly. Advanced XR software facilitates intuitive gesture recognition, realistic simulations, and enhanced user interfaces, thereby fueling its rapid growth in 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. XR technology is widely embraced in North American manufacturing industries, ranging from aerospace and automotive to healthcare and electronics. 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.

On the other hand, Asia-Pacific emerges as the fastest-growing region during the forecast period. The region's rapid economic growth, increasing industrialization, and the proliferation of advanced technologies contribute to the significant adoption of XR in manufacturing. As Asia-Pacific nations ramp up their efforts to modernize manufacturing processes and improve workforce skills, XR technology presents a compelling solution for enhancing productivity and efficiency. XR's potential to streamline production, reduce downtime, and facilitate remote collaboration aligns well with the region's industrial goals, 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.