AR and VR in Manufacturing Market to Witness Impressive Growth 24.62% Through 2032

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19 Apr 2023

Table of Content

The global augmented reality (AR) and virtual reality (VR) in manufacturing market size was valued at USD 8.2 in 2022 and is predicted to reach USD 74.1 by 2032, growing at a CAGR of 24.62% between 2023 and 2032. 

The augmented reality & virtual reality in manufacturing market growth is driven by the advent of industry 4.0, increasing government initiatives, growing investment for R&D, and Innovative product launches.

Market Overview:

Manufacturing that uses augmented reality and virtual reality is a sophisticated type of automation that integrates digital technology into the manufacturing process. It creates an enhanced reality by fusing the actual world with data, interactive elements, and computer-generated graphics. Both augmented reality (AR) and virtual reality (VR) are emerging technologies that provide a fully immersive 360-degree experience in an artificial setting. 

The use of AR and VR by manufacturers for simulative applications, as well as for improving plants and training workers, has further fueled industry development. Significant market possibilities have been produced by recent developments in image and sound capture AR and VR technologies, as well as the accessibility of electronic products like tablets and headsets.

Augmented Reality (AR) and Virtual Reality (VR) in Manufacturing Market Report Scope:

Report Highlights:

• By component, the hardware segment is expected to dominate the market during the forecast period. The segment's development is influenced by the increasing use of AR and VR devices across a variety of industries. Moreover, the growing technological advancements, networking, and connectivity advancements favor segment growth. On the other hand, the service segment is expected to grow at the highest CAGR during the forecast period. The major investment by the key player further influences the market. For instance, the ESI Group and CIMPA, a significant player in product lifecycle management consulting and services, partnered in February 2022 to give manufacturers integrated VR solutions with current product lifecycle management processes.
• By technology, the augmented reality segment is expected to dominate the market during the forecast period. The growth is owing to the growing manufacturers' adoption of AR, which gives them access to both automated and manual processes at once. Moreover, the use of AR technology for production training, improving process efficiency, and employee well-being is expected to drive this technology. Besides, the virtual reality segment is expected to grow significantly over the forecast period. This development can be credited to the widespread adoption of virtual reality applications in the manufacturing industry as well as the rising demand for industrial IoT, industrial robots, and smart factories, which have given these applications a crucial platform.

Regional Insights:

North America is expected to dominate the market over the forecast period. Data is heavily utilised for production in the 4.0 industrial revolution, which is just getting started in the United States, and has connections with various manufacturing systems throughout the supply chain. In addition to having one of the largest car markets in the world, the country is also home to about 13 important automakers. The manufacture of cars is one of the primary revenue generators for the American industrial sector. However, the Asia Pacific is growing at the highest CAGR over the forecast period. The growth in the region is owing to the large consumer base. Furthermore, the rapid rollout of 5G network infrastructure is one of the vital aspects that penetrate the market expansion during the forecast period.

Market Dynamics:

Drivers

Adoption of AR and VR in manufacturing for training workforce

Users can communicate with virtual interactive settings or overlay virtual components within their real-world environments using VR and augmented reality (AR) in manufacturing. This has sparked creativity and advancements in manufacturing training. Training sessions that use VR and AR are frequently safer as well as more successful. New factory employees must receive thorough instruction on hazardous substances and large industrial machinery, but training can be risky given the nature of these things. 

Participants in virtual training benefit from a safer learning setting while still feeling like they are receiving hands-on instruction. Workers will gain confidence in and understanding of the equipment by learning to handle or operate industrial machinery in a virtual environment, even though it may not be the same as in a physical environment. This reduces concerns about safety during training and generally inside the building. Using AR and VR can also improve the way new manufacturing employees are trained. 

Extended reality training can offer interactive visuals that accurately depict the space and equipment that new employees will use. Reading instructions or packets is frequently less effective than this "hands-on" training. It aids in the quicker and better retention of new employees' learning. Thus, the adoption of AR/VR in manufacturing to train the workforce is expected to drive market growth during the forecast period.

Restraint:

Security & privacy issues with augmented reality

The crucial problem is that there are no regulations outlining what is appropriate and inappropriate in an augmented reality setting. It is similar to a free pass that could lead to a serious security problem. Even though technology can amuse people, some people may use it for evil purposes. For instance, the ability to try on clothing before purchasing is a feature that is very popular in both offline and online stores. Just in case someone decides to use it to extort money or harm the image. It is one of the potential technological misuses. Other possible abuses include taking control of accounts through data mining and spying by modifying or superimposing AR content, similar to how it is done in ad stacking and fraud schemes. Thus, security concern is the major issue that hampers market expansion. 

Opportunities:

Increasing government initiatives

Emerging technologies must be taken into consideration when designing manufacturing facilities, and augmented reality can be used to increase worker efficiency and safety. To promote the adoption of AR and VR on a global basis, many developing countries are taking the lead and establishing industry standards. Government support is growing, and there are also positive efforts to encourage automation and innovation in the sector. To create international standards for digital reality, augmented reality, virtual reality, human augmentation, and similar fields—all of which are fostering market expansion—the IEEE Standards Association has created several IT and business practices standards in Europe.

Recent Developments:

• In August 2022, the third generation of Blade smart glasses was introduced by Vuzix Corporation. This Blade 2 is an augmented reality workforce solution built on the well-liked Blade form factor. It would offer a plethora of better features and high performance designed particularly to meet the needs of connected workers.
• In May 2022, Microsoft and the Kawasaki group of racing cars entered a collaboration. As a result of this collaboration, Kawasaki joined the tech giant's "industrial metaverse," which is just a fancy way of saying that factory floor employees will wear a HoloLens headset to help with production, repairs, and supply chain management.
• In January 2022, Microsoft partnered with American multinational company Qualcomm Technologies. The goal of this partnership was to broaden and accelerate the use of augmented reality (AR) in both the market and business sectors. A new generation of lightweight, power-efficient AR glasses will be able to provide rich, immersive experiences thanks to this partnership between Qualcomm Technologies and Microsoft. Qualcomm Technologies will also work on integrating software like Microsoft Mesh and the Snapdragon Spaces XR Developer Platform.

Major key Players:

• Microsoft Corporation
• Google LLC
• Samsung Group
• Vuzix Corporation
• SkillReal
• Ediiie
• EON Realty, Inc.
• Kaon Interactive Inc.
• Worldviz, Inc.
• SoluLab
• ESI Group

Market Segmentation:

By Component

• Hardware
• Software
• Services

By Technology

• Augmented Reality
• Virtual Reality

By Device

• Head-mounted Display
• Head-up Display
• Handheld Devices

By Application

• Product Design & Development
• Safety & Training
• Maintenance & Repair

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