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According to Grand View Research’s “Extended Reality Market Size, Share & Trends Analysis Report, 2024–2030”, the global extended reality (XR) market was valued at USD 142.39 billion in 2023 and is expected to reach USD 1,069.27 billion by 2030, with a CAGR of 32.9% over 2024–2030.
XR is a term that brings together three technologies: augmented reality (AR), virtual reality (VR), and mixed reality (MR). These technologies are growing rapidly and are already being applied in many sectors. However, in many organizations, XR remains stuck at the proof-of-concept stage: impressive demos, low industrialization.
The question is no longer “Is XR interesting?” but rather:
“How do we turn XR into a real performance lever instead of another innovation showcase?”
1. What XR Really Delivers for the Business
When integrated into processes and systems, XR already creates value across four main dimensions:
A. Operational efficiency & safety
- AR assistance for field workers and technicians
- Step-by-step overlays, remote expert guidance
- Simulation of hazardous situations in VR, without real-world risk
B. Customer & marketing experience
- Virtual product try-on and “view in my environment” scenarios
- Virtual visits of sites, plants or showrooms
- Immersive brand experiences that stand out from traditional campaigns
C. Training & skills development
- Practice-based, repeatable, measurable training scenarios
- Reduction in errors, rework and incident rates
- Better engagement than traditional e-learning or slide-based sessions
D. Innovation & collaboration
- Co-design around 3D models from CAD/BIM/PLM
- Visualizing complex data and digital twins in context
- Collaborative reviews across geographies in shared virtual environments
2. Why XR Adoption Remains Slower Than the Market Hype
Despite strong market momentum, several structural barriers explain why many organizations struggle to go beyond pilots.
2.1 The “gadget syndrome”
Too many XR initiatives start as:
- a trade show attraction,
- an “innovation lab” demo,
- an isolated immersive experience.
Without a clearly defined business problem and KPIs, these projects are quickly labelled “nice but non-essential” and don’t progress beyond the pilot phase.
2.2 ROI that is real, but rarely demonstrated
XR often delivers very tangible benefits, fewer errors, faster training, reduced travel, higher conversion, fewer product returns – but:
- there is rarely a baseline “before / after” measurement,
- metrics are not aligned with what the business sponsors care about,
- results are not communicated in a structured way.
The result: leadership mostly sees costs and complexity, not recurring value.
2.3 Culture and change are underestimated
XR changes day-to-day routines:
- wearing a headset or smart glasses on the shop floor,
- learning in immersive simulations rather than in a classroom,
- selling via 3D and virtual walkthroughs instead of brochures.
If there is no clear “what’s in it for me?”, no time to practice, and no managerial support, users naturally push back: “It slows me down”, “I don’t see the point”.
2.4 Skills gaps and perceived complexity
XR combines several domains:
- 3D content and experience design,
- integration with core systems (LMS, CRM, PLM, MES, etc.),
- device management, security, connectivity, analytics.
Without identified internal owners and capabilities, organizations tend to become fully dependent on vendors or agencies, reinforcing the perception that XR is hard, fragile and expensive.
3. Key Pitfalls to Avoid When You Start an XR Journey
To move from prototypes to production, several recurring mistakes can be avoided.
Pitfall 1 – Starting from technology instead of a business pain
- “We want to do something in VR/AR.”
- “We want to reduce error rates / training time / travel by X%. Can XR help us do that better than alternatives?”
XR should be evaluated against a concrete, quantified problem, not as a goal in itself.
Pitfall 2 – Designing without the people who will actually use it
If innovation and IT design an XR solution alone, it usually ends up:
- impressive in demos,
- misaligned with real operational constraints.
From day one, bring in field technicians, trainers, sales teams and frontline managers, run short tests, collect feedback, and iterate. Adoption starts here.
Pitfall 3 – Ignoring the content pipeline
Technology without content is an empty shell. Typical issues include:
- outdated 3D models,
- heavy assets that don’t run smoothly on devices,
- every minor change requiring a custom agency intervention.
From the beginning, define how you will:
- source 3D assets (from CAD/BIM/PLM, existing libraries, etc.),
- update them when products, sites or procedures change,
- optimize them for XR performance.
Pitfall 4 – Having no plan beyond the POC
A successful POC without a clear path to scale remains a one-off. Early in the project, ask:
- Who owns this capability on the business side?
- What is the budget and roadmap for industrialization?
- Which sites, teams, or countries are in the first rollout wave?
- Which KPIs will trigger scaling up – or stopping?
Thinking in terms of “XR capability” rather than “one XR project” helps build reusable bricks instead of isolated demos.
4. From Showcase to Scaled Capability
Market forecasts are clear: XR is becoming a core building block of the digital transformation landscape, on track to cross the USD 1 trillion mark by 2030.
For enterprises, the real differentiator will be execution:
- Anchor XR initiatives in measurable business outcomes, not in technology curiosity.
- Co-design with end users and treat change management as critical from day one.
- Involve IT and security early so that architecture, devices and data are handled robustly.
- Industrialize the content pipeline and integration with core systems.
- Build a roadmap that turns pilots into a scalable, reusable XR capability.
Done this way, XR stops being a futuristic “demo for events” and becomes what the market numbers suggest it should be: a strategic lever for performance, safety and customer experience over the coming decade.