The global augmented reality & virtual reality in manufacturing market size was valued at USD 8.01 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 28.3% from 2023 to 2030. AR and VR are highly compatible technologies that provide an immersive 360-degree content view in a highly simulative environment and are driven by actionable analytical insights. The market experiences a rise in demand among manufacturers for AR VR devices for simulative applications. Furthermore, the rise in applications of AR VR for manufacturing plant improvisation, and workforce training, among others catalyzes the augmented reality and virtual reality in the manufacturing market growth.
Advancements in augmented reality and virtual reality headset technology for capturing images and sound have led to its adoption during the last few years. Further, the availability of various electronic products compatible with AR VR technology, such as tablets, headsets, and other smart devices, has led to a significant increase in the market opportunities. For instance, In January 2022, Microsoft Corporation Inc. launched its new and advanced AR HoloLens 2 headsets in India. The newly launched mixed reality headsets are expected to support the user tasks faster and more efficiently.
The rise in the trend for the application of industrial robots in manufacturing drives the demand for AR and VR technologies. Inducing AR in manufacturing and production processes provides various capabilities, such as identifying an error and offering virtual support in real-time, all of which reduce production downtime. Thereby creating demand in the manufacturing process.
The adoption of AR & VR to eliminate physical trials assists organizations in cutting down R&D costs. Furthermore, VR solutions help reduce training costs and help organizations redistribute resources for enhanced outputs. The capability mentioned above helped manufacturers during COVID-19 to address the problem related to the shortage of workforce, which also created demand for AR VR in the manufacturing industry.
Detailed Segmentation:
Component Insights
The hardware segment accounted for the largest revenue share of around 56.0% in 2022 and is expected to continue dominating the market over the forecast period. The growing adoption of AR & VR devices across various industries contributes to hardware in the market.
Technology Insights
The augmented reality (AR) technology segment accounted for the highest revenue share of around 71.0% in 2022. This growth is due to the preference for AR technology that enables manufacturers to access manual processes and automated data simultaneously.
Device Insights
The Head-mounted display (HMD) segment accounted for the highest revenue share of 60.0% in 2022. The increasing demand for head-mounted displays and smart glasses for industrial & enterprise applications. The HMD segment is expected to maintain its dominance in the device segment over the forecasted period.
Application Insights
The product design & development segment accounted for the largest revenue share of around 51.0% in 2022 and is expected to continue dominating the augmented reality and virtual reality in the manufacturing market over the forecast period.
Regional Insights
North America accounted for the largest revenue share of around 35.0% in 2022 and is anticipated to account for a significant market share over the forecast period. The U.S. has the largest market share of the North American augmented and virtual reality manufacturing market.
Key Players of Augmented Reality (AR) & Virtual Reality (VR) In Manufacturing Market
- Microsoft Corporation
- Google LLC
- Samsung Group
- Vuzix Corporation
- SkillReal
- Ediiie
- EON Realty, Inc.
- Kaon Interactive Inc.
- Worldviz, Inc.
- SoluLab
- ESI Group
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