Augmented Reality & Virtual Reality In Manufacturing Market (2023 - 2030) Size, Share & Trends Analysis Report by Component (Hardware, Software, services), By Technology, By Device, By Application, By Region, And Segment Forecasts

Augmented Reality & Virtual Reality In Manufacturing Market Summary

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.

Technological adoptions due to the onset of Industrial Revolution 4.0 have increased the penetration of augmented and virtual reality in manufacturing. The harmonious integration of VR, AR, and mixed reality (MR) is expected to make several experiences more engaging and interactive. The narrowing supply-demand gap of raw materials and components between suppliers and manufacturers is expected to overwhelm the market with new AR, VR, and MR products. Hence, the availability of new products is expected to grow augmented reality and virtual reality in the manufacturing market.

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. Technological developments, networking, and connectivity advancements are expected to fuel the market demand for augmented reality & virtual reality headsets over the forecasted period.

The services segment is expected to grow at the highest CAGR of around 29.0% over the forecast period. The significant growth observed in the services segment is due to an increase in immersive technology-related consulting and service offerings like maintenance, training, and security services, which will continue to grow in the forecasted period. The service segment is a new market with many key augmented and virtual reality technology companies investing in service firms. For instance, in February 2022, ESI Group and CIMPA consulting and services, a significant player in product life cycle management, collaborated to provide manufacturers with integrated VR solutions with existing product lifecycle management processes.

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. Further, the application of AR technology for production training, enhancing process efficiency, and the well-being of employees drive AR in manufacturing market growth. Furthermore, using AR for maintenance in manufacturing plants contributes to the surge in market growth.

The virtual reality technology segment is anticipated to grow at the highest CAGR of around 31.0% from 2023 to 2030. This growth can be attributed to the widespread adoption of virtual reality and the rising popularity of industrial IoT, industrial robots, and smart factories that have offered a primary platform for VR applications in the manufacturing industry. The ability of VR to provide a 360-degree content view experience in a highly stimulating environment and analytical in modern production creates many opportunities for market growth.

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. The use of HMD devices for product enhancement drives market growth.

The handheld devices segment is anticipated to grow at the highest CAGR of 29.0% from 2023 to 2030. The segment is projected to gain traction due to the emerging demand for high-quality immersive technology. Hand-held AR & VR devices allow users to freely enjoy technological advances while roaming without having to mount devices on their heads or sit next to any project or display terminal. The growing popularity and increase in user base numbers are expected to further the market drive demand.

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. Manufacturers have increased market competition by using AR and VR technology in product design and development applications. Therefore, the convenience of using AR VR technology for product design & development application drive the market growth.

The safety & training segment is expected to grow significantly with a CAGR of around 27.0% over the forecast period. The need for effective enterprise maintenance & repair tools across organizations is the driving force of the maintenance & repair segment. AR & VR in security & training has been gaining momentum due to the adoption of advanced technologies in training programs.

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. The surge in penetration of Industrial Revolution 4.0 in the U.S. manufacturing market drives the market growth in the region.

The Asia Pacific is predicted to emerge as the fastest-growing regional augmented and virtual reality segment in the manufacturing market over the forecast period, with the highest CAGR of 31.0% from 2022-2030. Countries such as Japan and China have dominated the Asia-Pacific market, leveraging a large customer base. Further, the continued rollout of 5G networks in the Asia Pacific is also expected to catalyze the growth of augmented and virtual reality technology in the manufacturing sector.

Key Companies & Market Share Insights

Augmented reality and virtual reality in manufacturing market players have adopted market strategies such as product launches, product development, partnerships, strategic alliances, acquisitions & mergers to advance technological developments despite the competition. For instance, In July 2023, Vuzix Corporation announced a purchase order for engineering services and waveguide and display engine products. With this order, the company intended to design a new customized head-mounted display solution for multi-discipline applications. Some key companies operating in the global augmented reality and virtual reality in manufacturing market are:

• Microsoft Corporation

• Google LLC

• Samsung Group

• Vuzix Corporation

• SkillReal

• Ediiie

• EON Realty, Inc.

• Kaon Interactive Inc.

• Worldviz, Inc.

• SoluLab

• ESI Group

Augmented Reality & Virtual Reality In Manufacturing Market Report Scope

Global Augmented Reality & Virtual Reality In Manufacturing Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global augmented reality & virtual reality in manufacturing market report based on component, technology, device, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Augmented Reality

  • Virtual Reality

• Device Outlook (Revenue, USD Million, 2018 - 2030)

  • Head-mounted Display

  • Head-up Display

  • Handheld Devices

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Product Design & Development

  • Safety & Training

  • Maintenance & Repair

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

  • U.S.

  • Canada

  • Mexico

  • Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

  • Latin America

  • Brazil

  • Argentina

  • Middle East & Africa

  • South Africa