XR technologies in early adoption phase as ABI Research reveals barriers to progress

According to a recent State of Technology in Manufacturing survey by global technology intelligence firm ABI Research, Extended Reality (XR) technologies, such as smart glasses and VR headsets, are at a similar stage of development as digital twins, machine vision, and Artificial Intelligence (AI)-enhanced devices among industrial and manufacturing operators.

Of the over 460 respondents from various roles in discrete and process manufacturing, 68% indicated some level of XR consideration, while 32% were at different stages of actual implementation.

“The value of XR to organizations has been known for years, especially in areas like training, remote workforce enablement, and collaboration. However, the barriers to that value have also been well-known and remain. Device cost, integration concerns, and confusion around offerings are most common,” says Eric Abbruzzese, research director with ABI Research.

The survey revealed that many companies are currently evaluating XR suppliers, with 30% already at some stage of deployment, ranging from creating implementation programs (10%) to having completed XR integration across all relevant areas (2%). This pattern mirrors other digital transformation technologies, particularly during the evaluation stages. However, XR is more frequently considered for adoption over the next 12-24 months rather than being actively implemented in Proofs of Concept (PoC) or undergoing supplier evaluation compared to other technologies.

Challenges

Improving equipment performance and quality levels was another key priority for respondents. While XR is still in the early stages of adoption, it has demonstrated benefits in areas such as remote maintenance, interactive training, and knowledge capture and sharing. Nevertheless, significant barriers around people and processes remain. The survey identified a lack of time for planning and a general lack of expertise in XR as key obstacles, alongside difficulties in articulating needs from solutions and a lack of clear Return on Investment (ROI). These issues are further complicated by fragmented platform offerings and a rapidly changing XR landscape.

“The XR market has seen plenty of ups and downs over the past decade, which has hindered trust and understanding in the market despite proven value. A lack of clarity among available platforms and paths to market hold back potential adoption. However, the growth of related digital transformation technologies, especially digital twins and machine vision, is a boon for XR and vice versa. Over time, a more holistic view of visual workforce enablement will take hold, rather than a focus on individual technologies, and XR will be an increasing portion of that offering,” concludes Abbruzzese.

These insights come from ABI Research’s Industrial and Manufacturing Survey 1H 2024: Extended Reality (XR) report, which is part of the company’s Extended Reality (XR) Technologies research service, including research, data, and ABI Insights.