The extended reality (XR) market was valued at $131.54 billion, with projections reaching to $1.7 trillion by 2032. This reflects an average annual growth rate of 20% to 40%.
In 2022, hardware accounted for about 40% of the XR market, making it the largest segment due to the early-stage nature of the technology. Software and services made up the remaining 60%, with both segments growing rapidly at around 30% annually. By 2030, as the market matures, we’re likely to see software and services overtake hardware as the dominant segments.
So, what’s driving this rapid growth?
-Higher adoption rates across multiple industries. For example, XR is making waves in healthcare, manufacturing, and education, with each sector seeing growing demand.
-Increased sales of XR hardware such as headsets and haptic suits, which are still in their early stages but growing rapidly.
XR changes how manufacturers approach efficiency, safety, and collaboration. However, the full potential of XR can't be realized just with off-the-shelf solutions. Manufacturing environments are complex, with unique workflows, systems, and demands that generic tools are unable to fully meet.
Here's where custom software comes in. Manufacturers can unlock seamless integrations, real-time insights, and unrivaled precision by tailoring XR applications to their facility's specific needs.
In this article, we’ll explore the role of XR in manufacturing and how custom software solutions can amplify its impact.
Different Types of XR in Manufacturing
Extended reality (XR) can play a valuable role in manufacturing environments. But first, let’s break down the types of XR options available and how they differ.
First, there’s virtual reality (VR). VR creates a fully immersive digital experience, typically accessed through a headset. In this environment, you don’t see the real world at all—you’re entirely in a virtual space. VR is particularly useful when you need to simulate environments or scenarios that aren’t accessible in the real world, whether due to distance, cost, or feasibility.
Next, we have augmented reality (AR). AR overlays digital elements onto the real world. You still see your surroundings, but virtual objects or information are added on top, allowing for interaction and enhanced functionality. Think of it as a way to combine real-life views with useful digital tools or visual aids.
Finally, there’s mixed reality. Unlike AR, mixed reality doesn’t overlay digital content onto the real world. Instead, it provides additional information through a separate display, often positioned in your peripheral vision. This approach is ideal when workers need to stay fully focused on their physical tasks while still having quick access to relevant information. This balance of real-world immersion and accessible information makes it a powerful tool for improving productivity and safety on the factory floor.
How Extended Reality Can Be Used in Manufacturing
Prototyping and design are great starting points for integrating XR into manufacturing. They provide immediate benefits in efficiency, creativity, and sustainability while laying the groundwork for wider adoption of XR throughout your manufacturing processes.
Historically, prototyping required the creation of physical models; designs were sketched on paper, sometimes in dozens of iterations, before deciding to become a physical model. This process was slow, resource-intensive, and expensive. Because of these constraints, manufacturers frequently had to compromise on the number of prototypes or variations they could test.
Why Shift to Extended Reality for Prototyping?
XR allows you to create any design you can think of, including variations in color, texture, structure, and more. You are no longer restricted by physical constraints or the costs of producing multiple prototypes. Instead, you can investigate a wide range of options and quickly eliminate designs that are impractical or prohibitively expensive to produce.
Multiple designs can be created and reviewed in a fraction of the time required to produce a physical prototype. With 3D modeling and immersive tools, you can walk around your design, inspect it from all angles, and test its compatibility with other equipment or components—all without having to wait weeks for a physical model.
By doing the majority of your prototyping in XR, you eliminate the need for physical materials, resulting in fewer resources wasted on unnecessary prototypes. Only after a design has been finalized in XR do you proceed to create a physical version, saving time and materials. This change also aligns with sustainability goals by reducing the environmental impact of the prototyping process.
XR enables teams to collaborate from any location in the world. Designers no longer need to be in the same room, let alone the same country. Talent from all over the world can collaborate in a shared virtual space, reviewing, modifying, and finalizing designs without the need for relocation. This flexibility not only boosts productivity, but also helps employees achieve a better work-life balance.
Optimizing Manufacturing Processes with XR
Aside from the design and prototyping phases, Extended Reality (XR) has potential for optimizing manufacturing processes. From worker training to equipment maintenance, XR can significantly improve efficiency, accuracy, and safety throughout the entire manufacturing process.
Worker Training with Virtual Reality
VR offers a safe, immersive training environment for new factories and inexperienced workers. Rather than relying solely on on-the-job training, which can be risky and inefficient, employees can practice their tasks in a virtual environment, becoming acquainted with their roles without the pressure of real-world consequences. This allows employees to gain confidence in their tasks before stepping onto the factory floor, thereby shortening the learning curve. Furthermore, VR training reduces exposure to workplace hazards, avoiding costly mistakes and mitigating the risks associated with hands-on training.
Augmented Reality for Real-Time Guidance
Once workers are on the job, augmented reality becomes an essential tool for providing real-time support. AR can superimpose step-by-step instructions or task-specific details directly in the worker's field of view, making it easier to navigate complex workflows or diverse product lines. This capability ensures that workers have the necessary information to complete tasks correctly, reducing the likelihood of errors. Furthermore, AR can help with quality control by highlighting potential flaws or confirming that components meet standards, providing immediate feedback, and encouraging greater consistency in production.
Streamlining Logistics with AR
Modern factories frequently have real-time data on the location of parts, materials, and equipment. AR can use this data to efficiently guide workers through the production process. Instead of wasting time looking for parts or double-checking assembly instructions, workers can use AR-based directions to find specific components and complete tasks with precision. This not only improves accuracy but also saves valuable time and resources, resulting in a more efficient and streamlined workflow.
Maintenance and Repairs Made Easier
XR is also an extremely useful tool for equipment maintenance and repair. When machinery fails, VR allows maintenance teams to review issues remotely, allowing them to plan for repairs before they arrive on-site. This advanced preparation helps to avoid unnecessary delays and ensures that the appropriate parts and tools are available when needed. Once on the factory floor, AR can help technicians navigate the repair process by providing step-by-step visuals for disassembling and reassembling equipment. This process is especially useful when dealing with complex machinery, where the chances of error are higher.
Building an Integrated XR System
The true value of XR comes from its ability to integrate various aspects of the manufacturing process into a unified system. Training, quality assurance, logistics, prototyping, and maintenance can all benefit from XR, but the key is to integrate these processes smoothly over time. Rather than trying to implement XR throughout the entire operation at once, manufacturers should begin by focusing on specific areas where the technology will have the greatest impact. As XR solutions mature, they can be gradually expanded and integrated into all aspects of the manufacturing process, resulting in a more efficient, connected, and innovative environment.
The Role of Custom Software in XR for Manufacturing
Custom software is the bridge that connects XR devices to the specific needs of a manufacturing environment. While off-the-shelf XR solutions can be a good starting point for businesses looking for an affordable, easy-to-deploy XR solution with a proven track record they often miss the mark in terms of workflow integration and industry-specific functionality.
By working with a custom development team, manufacturers can ensure their XR applications are not only tailored to specific processes but also designed to meet long-term operational goals. Whether it's training simulations, user interfaces, or real-time data integration, custom software allows these elements to be built exactly to specification, improving both the user experience and the end results.
Custom solutions also offer the flexibility needed to integrate XR devices seamlessly into existing systems, such as ERP and IoT platforms. This integration ensures that XR doesn’t operate as a standalone tool but becomes part of a broader operational ecosystem, optimizing efficiency across the board. Additionally, custom software allows for the development of advanced features, such as adaptive training programs or real-time predictive maintenance, enhancing the value of XR beyond its initial use.
Working with a specialized agency can be an ideal route for manufacturers. Agencies bring expert knowledge of both XR technology and industry-specific needs, offering guidance through the development process and ensuring a smooth implementation. This approach is especially beneficial for large-scale projects or when internal resources are limited. With expert support, manufacturers can quickly scale XR solutions, ensuring they meet both current and future demands.
What’s Next for XR?
The future of XR depends on factors like mass adoption across industries, advancements in hardware and software, and the development of more robust use cases. As the market matures, we’ll likely see a shift from hardware-driven growth to services and software taking center stage.
How Solwey Consulting Can Help your Business
At Solwey, we have a strong background in custom software development, and we bring industry expertise to every project, delivering software that not only works, but works for you. Whether you work in finance, healthcare, retail, or manufacturing, our industry-specific solutions are tailored to the specifics of your field.
If you’re unsure where to start, we can help you formulate a plan. Just tell us about your challenges and what’s holding you back. We can guide you through finding a solution, whether that means optimizing existing tools or building something new.
Additionally, with Solwey you don't have to sacrifice price to get exceptional service. Our competitive pricing structure ensures that you receive high-quality custom software without breaking the bank. With our agile processes, we can deliver results faster, allowing you to respond quickly to market demands or operational changes.
We place a high value on dependability and customer support. We will be there for you from start to finish, and beyond. Our team is committed to providing seamless support, ensuring that your software runs smoothly and your business runs more efficiently.
Allow us to be your trusted partner in driving your digital transformation. Choose Solwey for quick, adaptable, and dependable software solutions that will keep you ahead of the competition.
