Augmented Reality (AR) in 2025: how to make your business competitive

Augmented reality (AR), along with spatial computing devices and platforms, represents the future of digital interaction, enabling shared spaces where digital data can overlay the real world. Let’s find out what the major trends for 2025 will be based on international articles and reports.

Human by Design: augmented reality at the center

Accenture’s “Technology Vision 2024” report focuses on the growing importance of “Human by Design” technology, that is, technology designed to be intuitive, collaborative and increasingly human-like, with the goal of enhancing human capabilities. Among emerging technologies, augmented reality (AR) and spatial computing are central: they enable bridging the gap between the physical and digital worlds, creating immersive environments that make complex interactions between users and machines possible in a natural and collaborative way. This not only enriches the user experience, but also provides new opportunities for companies to develop advanced applications and innovative business practices. The report points out that to capitalize on these technologies, companies must develop high-impact practical applications (so-called “killer apps”) to make augmented reality a valuable tool in daily life and work activities. Pioneering companies, such as those in the healthcare and manufacturing sectors, are already using augmented reality to improve productivity and simplify complex processes. For example, technologies such as Microsoft Mesh enable immersive spaces that facilitate collaboration, while other AR solutions help employees better manage information and digital workflows, reducing errors and improving efficiency.  

Microsoft Mesh enables immersive spaces that facilitate collaboration, while other AR solutions help employees better manage information and digital workflows, reducing errors and improving efficiency. Click on the image to watch the introductory video on the official website.

Why invest in AR

Here are some data extracted from the Accenture report that underscore the urgency of adopting innovative technologies such as augmented reality:

  1. Investment in AR/VR: Meta has invested more than $13.7 billion in its Reality Labs in 2022 alone, highlighting its strong commitment to promoting augmented and virtual reality technologies despite market challenges.
  2. The importance of “digital Twins” or digital twins*: Unity and Vancouver Airport Authority have collaborated to leverage digital twins, emphasizing the value of detailed AR environments for operational management and user interaction in the air transportation industry.
  3. Market growth and future projections: It is estimated that by 2030 the gaming market will be dominated by immersive virtual and augmented reality experiences, a forecast that reflects the growing demand for immersive and interactive digital experiences.
  4. Strategic Collaborations-Apple, Nvidia, Adobe and other leading companies have formed the OpenUSD alliance to establish open standards for 3D content, facilitating the creation of interoperable and advanced digital worlds.
  5. Applications in health care and industry: AR is already being successfully used in the health care sector, for example, in complex surgical procedures, through devices such as Microsoft HoloLens that improve the effectiveness of operations and training.

The report suggests that companies should explore these technologies now to develop concrete, beneficial applications to create digital experiences that transform both business interaction and industrial productivity.

*How does a digital twin work?

“The object studied, such as a wind turbine, is equipped with various sensors related to vital areas of functionality. These sensors produce data on various aspects of the physical object’s performance, such as power generation, temperature, weather conditions, and more. The processing system receives this information and actively applies it to the digital copy .” “After receiving the relevant data, the digital model can be used to conduct various simulations, analyze performance problems and create potential improvements. The ultimate goal is to gain valuable knowledge that can be used to improve the original physical entity.” (Source: ibm.com)

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Why every organization needs an augmented reality strategy

In the publication Why Every Organization Needs an Augmented Reality Strategy by Michael E. Porter, an economist and professor at Harvard Business School, the “three-dimensionality” of the physical world is highlighted, even though it is, most data, confined to two-dimensional pages and screens. The gap between reality and digital limits our ability to take full advantage of available information. Augmented reality, which overlays digital data and images onto physical objects and environments, is bridging this gap. By integrating information into the context in which it will be used, AR makes it easier to understand and act on the same data. According to Michael E. Porter of Harvard and James E. Heppelmann, CEO of PTC, AR will become the new interface between man and machine. Many are familiar with AR applications for entertainment, such as Snapchat’s filters, but AR is already finding far more important uses in the corporate world. Forward-thinking organizations are using it in product development, manufacturing, logistics, marketing, services and training, achieving significant improvements in quality and productivity. AR helps users better visualize information, follow instructions, and interact with products.

Examples of success through AR implementations:

AccuVein uses AR to transform the thermal signature of patients’ veins into an image superimposed on the skin, making it easier to detect them. Boeing* employs AR to show trainees how to assemble an airplane wing, reducing time by 35 percent. Workers at GE have also achieved similar efficiency gains by using voice commands in AR environments to manage complex wiring.

Boeing employs AR to show trainees how to assemble an airplane wing, reducing time by 35 percent. Source: boeing.com
AR will have a broad impact on the competitiveness of companies. Proper integration of it into business strategies requires asking the right questions. Here, then, are the essential points about the role of augmented reality (AR) in bridging the gap between the physical and digital worlds:

  1. Gap between physical and digital: Most data is on two-dimensional screens, limiting the full use of available information.
  2. Functionality of AR: AR overlays digital data and images on physical objects and environments, enhancing understanding and interaction.
  3. New human-machine interface: AR will become the main interface between humans and machines, according to experts such as Michael E. Porter and James E. Heppelmann.
  4. Business applications: AR is used in product development, production, logistics, marketing, services and training, bringing improvements in quality and productivity.
  5. Impact on competitiveness: AR has the potential to revolutionize business competitiveness and requires a focused strategy for effective integration.

AR, an evolving area

The McKinsey 2024 “Technology Trends Outlook 2024” report flags augmented reality (AR) as an evolving area with growing industrial applications, from training to maintenance. AR is seen as strategic for increasing productivity and improving interactions in physical-digital contexts, especially in the manufacturing and healthcare sectors. The report points to the growing adoption of AR in areas such as training and logistics as key data, positively impacting employee performance and reducing operational errors. Investments in AR are seen as strategic for optimizing field work and increasing the interaction between the physical and digital worlds.

What it means to rely on Intelligent Assisted Reality technologies.

With Fastbrain and RealWear, customer satisfaction can be increased by making work more efficient and easier. Experts can, through smart glasses, guide, train and assist technicians in the field hands-free as they do their work. RealWear solutions support companies in every industry with the best AR smart glasses on the market, under the banner of continuous innovation and sustainability.



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Glossary

*Digital Twin/Digital Twin: A digital twin is a virtual representation of an object or system designed to accurately reflect a physical object. It covers the object’s life cycle, is updated by real-time data, and uses simulation, machine learning, and reasoning to help make decisions. (Definition extracted from: www.ibm.com/it-it/topics/what-is-a-digital-twin) Sources: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-top-trends-in-tech Porter, Michael E., and James E. Heppelmann. “Why Every Organization Needs an Augmented Reality Strategy.” Harvard Business Review 95, no. 6 (November-December 2017): 46-57. https://www.hbs.edu/faculty/Pages/item.aspx?num=53458 Cover image source: freepik.com

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