AR & VR in Manufacturing Market Size to Reach USD 65.93 Billion in 2031

AR & VR in Manufacturing Market Size to Reach USD 65.93 Billion in 2031

The AR & VR in manufacturing market size reached USD 9.86 billion in 2023 and is expected to register a revenue CAGR of 27.4% during the forecast period

December 04, 2024 – The Global AR & VR in manufacturing market size reached USD 9.86 billion in 2023 and is expected to register a revenue CAGR of 27.4% during the forecast period. Increasing adoption of industry 4.0 is the key factor driving market revenue growth.

Industry 4.0 promotes the use of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML) in combination with AR and VR to create smart factories. These technologies provide real-time monitoring, predictive maintenance, and strong collaboration within global manufacturing networks. AR and VR solutions are very crucial in this transformation. They offer immersive training, virtual prototyping, and streamlined maintenance processes, which reduce downtime and operational costs.

Manufacturers are adopting AR and VR to visualize data from IoT-connected devices, optimize workflows, and improve quality assurance. The demand for AR and VR applications has surged in recent years as companies strive to stay competitive in a digitally driven landscape. In December 2024, for instance, U.S.-based leading innovator in Augmented and Virtual Reality (AR/VR) technology zSpace, Inc., announced the expansion of its Career and Technical Education (CTE) and workforce training programs. The initiative aims to equip learners with hands-on skills tailored for high-demand careers in various fields such as advanced manufacturing and robotics, agriculture and food, health sciences, and more.

However, the complexity of integrating AR and VR technologies with legacy systems in the manufacturing sector is restraining revenue growth of the market. Many manufacturers rely on outdated infrastructure and equipment that are not designed to support advanced digital solutions. It makes the integration of AR and VR challenging and costly. This requires substantial customization, retrofitting, and compatibility testing, leading to increased implementation times and expenses. These integration hurdles slow down adoption rates and restrain revenue growth of the market.

Key Highlights:

• Virtual Reality (VR) segment is expected to register a fast revenue growth rate over the forecast period due to the rising adoption of VR technologies owing to its transformative impact on various industrial processes. VR is being employed for applications such as training, prototyping, and design validation. It allows a simulation of real-life life situations in an exciting way without risk. Manufacturers are using VR technologies to enhance workforce training. It allows employees to practice complex tasks in a virtual environment. In addition, governments and private organizations worldwide are investing in VR research and development. These factors are expected to boosts revenue of this segment.
• Automotive segment is expected to account for a significant revenue share over the forecast period due to the increasing adoption of AR and VR technologies owing to increasing efficiency, precision, and innovation of automotive components. For example, Mercedes-Benz utilizes VR technology throughout the process of vehicle design and production. In 2023, the company initiated a collaboration with Nvidia to use the Omniverse platform. This platform offers a VR-enabled digital twin environment. It allows collaboration for 3D design among designers, engineers, and manufacturers.
• Asia Pacific is expected to register a fast revenue growth rate in the AR & VR in manufacturing market during the forecast period due to the rapid industrialization and technological advancements in the region, especially in China, Japan and India. China’s Ministry of Industry and Information Technology (MIIT) reported that funding for the virtual reality (VR) industry across the country experienced a 100% year-on-year growth in 2021. The ministry also announced plans to establish a national-level manufacturing center for further advancement. The MIIT collaborated with four other top central government departments and released a development roadmap for the application of VR technology spanning 2022 to 2026. It aims to establish 100 leading VR enterprises by the end of the period.
• Some major companies in the global market report include Microsoft Corporation, Google (Alphabet Inc), Apple Inc., Meta Platforms, Inc., Magic Leap, Samsung, Vuzix Corporation, SkillReal, Siemens, Varjo Technologies, ESI Group, Worldviz, Inc., GridRaster Inc., and DigiLens.
• On 20 May 2024, Siemens announced a partnership with Sony to launch an innovative solution aimed at enhancing immersive design and collaborative product engineering. The integration of Siemens’ Xcelerator open digital business platform with Sony’s new spatial headset will enable businesses to harness mixed reality, AI, and other advanced technologies to revolutionize manufacturing and design workflows. Unlike consumer-focused devices such as Apple Vision Pro or Meta’s Quest Pro, the head-mounted display developed by Sony and Siemens is specifically tailored to meet the needs of industrial product engineering and design applications.

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Navistrat Analytics has segmented AR & VR in manufacturing market on the basis of component, technology, application, end-use, and region:

• Component Outlook (Revenue, USD Billion; 2021-2031)
  • Hardware
    • Head-Mounted Display
    • Head-Up Display
    • Handheld Devices
    • Smart Glasses
    • VR Gloves
    • Sensors
    • Others
  • Software
    • AR Software Development Kits (SDKs)
    • VR Content Management Software
    • Design and Simulation Tools
    • Others
  • Services
    • Consulting and Integration
    • Maintenance and Support

• • Technology Outlook (Revenue, USD Billion; 2021-2031)
    • Augmented Reality (AR)
    • Virtual Reality (VR)

• • Application (Revenue, USD Billion; 2021-2031)
    • Product Design and Development
    • Maintenance and Repair
    • Quality Control and Inspection
    • Training and Simulation
    • Logistics and Supply Chain Management
    • Assembly and Production
    • Others

• • End-Use Outlook (Revenue, USD Billion; 2021-2031)
    • Automotive
    • Aerospace and Defense
    • Consumer Electronics
    • Industrial Machinery
    • Others

• • Regional Outlook (Revenue, USD Billion; 2021-2031)
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • France
      • U.K.
      • Italy
      • Spain
      • Benelux
      • Nordic Countries
      • Rest of Europe
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Oceania
      • ASEAN Countries
      • Rest of APAC
    • Latin America
      • Brazil
      • Rest of LATAM
    • Middle East & Africa
      • GCC Countries
      • South Africa
      • Israel
      • Turkey
      • Rest of MEA