ABI research director Eric Abbruzzese spoke to Manufacturers Monthly about the rising adoption of Extended Reality (XR) technology among manufacturers.
Described as an all-encompassing term for Augmented Reality (AR) and Virtual Reality (VR), XR technologies are becoming a source of value among many manufacturers.
Implementing XR technologies in manufacturing would utilise AR smart glasses, which overlay digital information onto the real world, and VR headsets which fully immerse users in a virtual environment.
“Augmented Reality uses transparent screens to overlay digital data, maintaining user vision. Virtual reality fully obscures user vision with displays, using cameras to pass through a live video feed into the device,” said research director with ABI Research, Eric Abbruzzese.
“The value of XR to organisations has been known for years, in training, remote workforce enablement, and collaboration.”
Aligned with XR’s potential value, the Industrial and Manufacturing Survey 1H 2024: Extended Reality (XR) Report explores the increasing number of manufacturers beginning to evaluate product suppliers.
The survey, from ABI Research, found that 30 per cent of global respondents are deploying XR technologies, with two per cent already completing integration.
Working closely with the survey, Abbruzzese said aside from those implementing, there is a larger number of manufacturers considering XR technologies.
“If most [manufacturers considering XR technologies] is simply over 50 per cent, it can be argued most already are considering it,” said Abbruzzese.
Similar to other digitally transformative technologies, XR is also rapidly rising within the Asian-Pacific (APAC) region.
“We expect 4.5 million smart glasses, and 1 million VR headsets shipped in manufacturing in the APAC Region in 2030,” said Abbruzzese.
The practical realities of XR technologies
The rising popularity of these XR technologies is due to their potential to improve upon a different array of manufacturing processes.
“Workflow instruction, training, virtual collaboration, and 3D data visualisation are common and proven use cases for XR,” said Abbruzzese.
“Things like IoT (Internet of Things), PLM (Product Lifecycle Management), ERP (Enterprise Resource Planning), digital twins, and simulation solutions are integrated and used as data sources for XR devices to visualise.”
These benefits vary depending on the device selected, with AR smart glasses and VR headsets excelling in different areas.
“AR smart glasses excel in hands-free workflow assistance. This can include step-by-step guidance, step verification, training hands free, and voice access for notes and hands-free service calls, with a live point of view camera feed available to a remote user,” said Abbruzzese.
“VR excels in data visualisation and content interaction, which is beneficial in training, design, and virtual collaboration.”
In addition, XR can utilise machine learning to help create an accurate and automated quality control system.
“You can also use machine vision with the point of view camera to automate, or assist in, quality control/verification steps. Logging data hands free is also valuable here,” he said.
Above quality control and workplace processes, the systems also offer sustainability enhancements through reduced scrapped material and worker travel.
“Reducing downtime often reduces scrap rates as they are correlated. Reduced planned and unplanned downtime does have that sustainability knock on effect,” said Abbruzzese.
“By leveraging remote expertise and virtual training, a company can reduce the number of flights in a given period.”
Despite XR technology’s applicability in many manufacturing contexts, Abbruzzese said the products can be beneficial in complex industries.
“Those with complex processes and access to operational data often recognise XR value most easily. Downtime reduction is a key performance indicator for XR solutions, and both automotive and aerospace have incredibly high downtime costs,” he said.
Barriers to awareness and integration
Despite potential advantages to manufacturing processes and workflow, there are still numerous well-known barriers.
“Device cost, integration concerns, and confusion around offerings are the most common barriers,” said Abbruzzese.
The report detailed that among these, people and process barriers are most common.
“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 holds back potential adoption,” said Abbruzzese.
“The biggest challenges XR faces are around user knowledge and awareness, device selection, and tolerance for new technology investment.”
While not extensive, Abbruzzese said that training must be undertaken prior to the implementation of these systems. The necessary training depends on the complexity of a situation.
“When a solution is properly integrated, such as with proper enterprise sign-on, security and privacy settings, device usage should be as streamlined,” said Abbruzzese.
“Depending on the complexity of the application or environment, anywhere from a few hours to a few days is common.”
Anticipating a future of XR technology
While barriers exist, Abbruzzese remains optimistic on a future where they can be overcome. He said that these barriers at small to mid-scale are already starting to fall.
“Within the past few years, the level of complexity for integration and content creation has come down considerably,” he said.
“As public knowledge increases for XR hardware and what it is capable of, by default enterprises become more knowledgeable and confident in investing.”
Abbruzzese insisted that the usability and cost of these devices should improve for businesses going forward, with exceptions.
“Large companies are getting much better in the user experience department, with an expectation for easy use out of the box. This isn’t universally true specifically in enterprise, but it is also getting better,” he said.
“Cost comes down over time, although it’s of course more complex than that. New device launches will add features, capability, and price compared to earlier generations. With high-end AR smart glasses, however, expect even new devices to cost less on average than older ones.”
Abbruzzese envisions a future where manufacturing businesses will see XR products improving exponentially as they keep utilising digitally transformative technologies.
“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,” he said.
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