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Top 40 XR/AR Use Cases / Applications with Examples in 2024

Top 40 XR/AR Use Cases / Applications with Examples in 2024Top 40 XR/AR Use Cases / Applications with Examples in 2024

Extended Reality (XR) is quickly becoming an integral part of the business world and its market revenue is expected to reach $1.4 trillion by 2030. From virtual training and educational experiences to interactive customer service solutions, extended reality can help organizations create immersive experiences that increase engagement among consumers and employees on multiple levels.

Despite XR’s potential, some managers from various departments and industries lack knowledge about XR/AR technologies. To close the information gap, we introduce the top 40 XR use cases from different industries and business units.  

What is XR?

XR is an umbrella term that captures the combination of immersive reality technologies such as augmented reality (AR), virtual reality (VR), and mixed reality (MR). It creates a state of immersive digital experience in which physical and digital objects coexist in real-time.

In this article, we will explore the applications of XR in various industries and how companies can leverage XR to increase efficiency and profitability.

Business-specific applications

HR

  1. Remote work

According to a study, 20% of remote workers’ biggest struggle is loneliness and 20% of remote workers identify communication and collaboration as their biggest effort.1 

While traditional 2D communication solutions such as video calls are effective and essential in communication, a study by BCG finds that 56% of people who transitioned to remote work following the pandemic are less productive in collaborative tasks.2

XR in remote work is especially rewarding for industries that involve cooperative design, product development, and simulations in their business operations. The visualization and spatial information immersive visual environments present boost remote collaboration and speed up development processes while reducing associated costs. You can learn more about this in our XR/AR case studies article.

A study on telework finds that %70 respondents are willing to use XR technology if provided by the employer (same source with (1)).

  1. Recruitment

Around %75 of large and mid-size US businesses intend to implement a hybrid/remote work model which raises the necessity for insightful digital recruiting processes.3 XR can be utilized to measure candidate performance in the recruitment process through simulations and gamified experiences that accurately mimic on-the-job scenarios. Companies can assess the candidate’s spatial skills and reasoning while tracking key performance indicators (KPIs) such as

  • Eye movement 
  • Dwell time 
  • Completion time, etc.

XR is also a beneficial tool in showcasing the business’ values, workplace, and business culture by enabling candidates to experience them firsthand without ever stepping foot inside the office. This creates flexibility, especially for businesses with remote working settings, and allows for a smooth recruitment process.

  1. Onboarding

According to a study, over 90% of employees decide to stay or resign within the first 6 months in an organization.4 An effective onboarding program is necessary to integrate new hires and direct them as they mature to become functioning employees. 

Accenture utilizes virtual environments and XR technology to create workplace experiences in their virtual campus called “Nth Floor”. Accenture created digital twins of its physical offices and a virtual campus called One Accenture Park solely for new employees to connect with the culture and teams. In 2022, 150,000 new hires worked from the metaverse on their first day at Accenture. Learning and collaboration are boosted by the Nth Floor via virtual events, presentations, gatherings, and gamified training experiences.5 

  1. Training

Employee training methods in the fast-paced and innovative business landscape of today can be outdated.6 A recent study by PwC quantifies the benefits of XR for training soft skills with comparison to current widespread methods such as classroom training or e-training (see Figure 1).

Figure 1: Comparison of employee training methods, Source: PwC

XR training has also proven itself in employee hard skill training in healthcare, construction, and various other industries. In addition to boosting training speed, engagement, and knowledge retention, XR training also offers:

  • reduced training costs at scale
  • unlimited repetition
  • a safe environment for trainers and trainees
  • additional tracking and analytics tools.

To learn more about top HR technology trends, check out our article.

Marketing & sales

  1. Interactive ads

Research by Neuro-Insight estimates that AR experiences are almost twice as effective in terms of memory encoding, engagement, attention, and emotional intensity compared to non-AR experiences.7 Utilizing AR in digital marketing can capture experience-centric consumers and lead to increases in brand awareness, conversion rates, and sales. Here are the potential advertisement mediums to implement AR:

  • Billboards
  • Filters
  • Product packages
  • Magazines, flyers, etc.

The below video shows how AR is used by Coca-Cola in experiential selling:

  1. XR-assisted research

XR enables analysis of user interaction with objects and eye movements to present realistic insights into human behavior. Companies can leverage XR in research for

  • workspace layout
  • store layout
  • shelf layout
  • categorization.

XR-assisted research improves visibility while offering unlimited trials and increased traffic which is more cost-effective compared to physical research methods. Using XR in research is proven to increase efficiency and drive sales.

  1. Increase brand/product recall

Gamification and visual exposure offered by XR lead to more memorable experiences for customers. A study on AR finds that AR-assisted brand/product experiences significantly increase

  • customer engagement
  • brand recognition
  • product recall.
  1. Delivering product insights

XR can serve as an immersive visual storytelling tool to deliver product information. XR helps companies in delivering their value propositions to consumers by visualizing:

  • unique selling points
  • unseen interior features
  • complex features.

Mercedes Benz is an example of companies that utilizes XR technology to deliver product insights.

Customer Experience

  1. AR manuals

AR manuals improve user experience by replacing paper manuals with immersive visual experiences accessible via mobile devices. AR manuals provide value for the entire lifecycle of the product by assisting

  • introduction
  • installation
  • troubleshooting.
  1. XR-assisted customer service

Customers prefer digital channels as they are convenient and easily accessible. However, research reveals that almost 80% of customers prefer to call customer service when they face difficulties or challenges.8 AR-assisted customer support is driven by the “Show, don’t tell” principle which leads to

  • ~40% increased first-time fix rates
  • ~30% reduced number of errors
  • ~25% improved customer satisfaction
  • ~15% extended expert reach.

Industry-specific applications

Architecture, Engineering & Construction (AEC)

  1. Immersive project visualization

XR enhances Building Information Modeling (BIM) solutions by providing an immersive experience for all stakeholders to increase communication and collaboration among them.9

BIM project models can be integrated into output devices via translator software which enables the models to be viewed in AR/VR (see Figure 2).

Figure 2: BIM to XR workflow, Source: AEC Business

  1. Worker safety training 

Safety has the utmost importance in the AEC industry as injury rates in construction are 70% higher than injury rates across other industries.10 XR is proven to deliver superior training outcomes compared to traditional training methods.

  1. Client engagement

XR can be utilized to involve the clients in the project and offer them insights on

  • different design options
  • the finished product.

Obtaining client feedback and involving them in the project leads to decreased revision costs and redesign endeavors

  1. Construction site layout

XR can be utilized in designing the construction site to overcome efficiency and safety issues. A study finds that VR-assisted site plans offer better analysis and understanding of different job site scenarios.  

  1. Urban planning

XR offers realistic scenarios and design-testing capabilities which makes it a useful tool in landscape architecture and urban planning. 

For more, check out our article on XR/AR in construction.

Education

  1. Immersive learning experiences

Students can utilize XR to investigate and analyze their subject matter in an immersive 3D environment. XR eases the understanding of complex concepts by visualizing them and gamifying the student experience with complete control and safety. Research concludes that utilizing XR in education stimulates more senses which leads to higher student involvement and knowledge retention.11

The case study below finds that VR-trained surgeons were superior compared to the non-VR group in technical skill and safety when performing the trained operation on cadavers.

Delivering Surgical Training 5x Faster with VR | Spotlight | Unreal Engine

  1. AR/VR field trips

Immersive XR technology can be utilized to create field trips so that students can better understand real-life work environments and applications of their studies, incentivizing their education with interactive experiences. 

  1. Virtual labs & experiments

XR technology can be utilized to conduct experiments virtually which offers:

  • safety
  • unlimited repetition
  • cost-effectiveness
  • experiment accessibility and variety
  • supportive visual material to enhance learning.
  1. Virtual classrooms

Video conference platforms are currently the most used remote education realms. However, XR-assisted classrooms offer more immersive experiences compared to them. Virtual classrooms increase sensory engagement for students and teachers, increasing involvement for all parties.

Fashion & cosmetics

  1. Apparel design and development

XR-assisted virtual models can be utilized during apparel design and development phases which can lower a brand’s carbon footprint by up to 30% while improving communication and collaboration between designers.12

  1. Virtual fashion shows

Virtual shows allow participants to experience events from the comfort of their homes. Virtual shows can be utilized to improve customer engagement and brand association. XR also facilitates new forms of engagement such as virtual backstage visits which can increase satisfaction and improve customer experience. 

  1. Virtual fitting room/try-on

AR-assisted solutions clarify uncertainties and questions for customers by allowing them to try products realistically prior to purchase. This improves the customer experience while reducing return rates, which is a win-win scenario for both parties.

British shirt maker Thomas Pink launched a virtual fitting room to gain a competitive advantage over its e-commerce competitors. Business results were very satisfying:

  • Gained customer insight to drive personalization
  • Improved customer satisfaction and engagement
  • Increased likelihood of sale in virtual fitting room users

You can find more about the case study in our “31 Digital Transformation Case Studies & Success Stories” article.

Healthcare

  1. Patient education & self-care

XR-assisted solutions simplify complicated medical procedures and treatment possibilities by delivering information in easy-to-digest and immersive environments. Patients can utilize XR to

  • Track and improve treatment outcomes
  • Get assistance from the nearest medical professionals
  • View their medical data
  • Explain their symptoms with the help of visualization tools
  • Get informed about healthy lifestyle choices
  1. Augmented surgeries 

XR can help surgeons as an assistant tool in surgeries. AR glasses or head-mounted devices enable surgeons to

  • Visualize the surgery step-by-step
  • Monitor patient vitals in real-time
  • View visual scans (MRI, CT, etc.) imposed on the patient’s body
  • Identify abnormal surgical encounters
  • Obtain remote assistance from professionals

while keeping their hands free.   

  1. Medical school

XR overcomes the space and resource necessities of physical education, which is a pain point for medical schools and training. XR has the capability to improve the quality and delivery of knowledge and allow students to learn better through visualization and repetition. 

HoloAnatomy, developed by Microsoft, is currently used by many institutions to teach medical students about anatomy. 

For more, check out our article on XR/AR in healthcare.

Hospitality

  1. Virtual travel experiences

Combining VR technology and 360-degree videos lets users experience a destination realistically before deciding to take a physical trip. VR travel experiences are especially rewarding for people unable to physically take trips, or for experiencing immersive environments that are extreme and unsafe.

  1. Virtual hotel tours

VR tours allow hotels to showcase their facilities and programs in an immersive manner while potential customers get the chance to experience the facility before making the final decision. VR can be a strong marketing tool for companies to ensure modernity and digitalization.

Manufacturing

  1. Product development & design

According to PwC research, utilizing XR in product development can boost global GDP by ~360$ billion in 2030.13 XR enhances development and design processes by eliminating the need for physical prototypes and increasing collaboration which speeds up processes while reducing costs.

Many industry giants such as Mercedes Benz, Airbus, Lockheed Martin, and Ford are currently utilizing XR in product development and design.

  1. Equipment maintenance

XR eases equipment maintenance by enabling quality remote assistance which leads to

  • Reduced downtimes
  • ~30% increase in expert work efficiency
  • ~75% decrease in travel for maintenance

XR enables on-site workers to receive detailed visual assistance from remote specialists while keeping their hands free to work. XR also eases the usage of digital twins and AR manuals to understand machinery, potential defects, and solutions.

  1. Training & guidance 

Workers have to operate complex machinery with high learning curves and participate in procedures like assembly with many steps. AR solutions ease worker tasks by providing more satisfactory training outcomes and real-time instructions to understand and complete tasks. Head-mounted displays or AR glasses provide seamless data access for documents and procedures while employees are hands-free to work. 

Media and entertainment

  1. XR broadcasts/streaming

XR enables consumers to experience events from the comfort of their homes with views and perspectives that were not possible before. 360-degree videos and XR technology enable remote participants to experience events as if they are at the venue. Some streaming targets include

  • sports events 
  • concerts
  • exhibitions.

The Louvre offers VR tours to experience and learn about an artwork without limitations of physical content and space. The example below is from the “Mona Lisa: Beyond the Glass” project accessible via smartphone. 

  1. AR filters

Research shows that 60% of Americans and 37% of the world population have access to AR tech offered by Meta, Snapchat, and other social sites.14 Deloitte predicts that 75% of the global population and smartphone users will be frequent AR users by 2025, which is why brands are investing in AR advertising and AR filters. Utilizing AR in product and brand experiences can lead to:

  • Increased levels of visual attention compared to non-AR equivalent
  • 40% increase in the likelihood of purchase
  • More confidence in product quality
  • ~94% higher conversion rates
  1. Virtual socialization

XR is already embedded in social media realms, mostly in the form of AR filters. While most current social media platforms offer content in text, photo, or video formats, XR has the potential to offer more immersive experiences. 

The metaverse revenue opportunity is expected to be ~800$ billion in 2024, as tech giants such as Apple, Google, and Meta invest in what is believed to be the next big technology platform.15 The combined power of XR and metaverse worlds (m-worlds) will allow users to interact and explore a large variety of immersive experiences.

Meta’s Horizon Worlds is an example of an m-world that utilizes XR, which is viewed by many as the next iteration of social media platforms. 

  1. VR venues

VR can empower users to experience venues from their homes. VR can be utilized to enrich experiences with physically or realistically inaccessible components. Viable applications include

  • amusement parks
  • zoos
  • museums.

VR can take these experiences to another level with audio and visuals that surround the customers while allowing content creation beyond the limitations of the physical world.

Military

  1. Military training

XR enables the military to conduct training exercises that are too costly or dangerous to handle physically while allowing people in remote locations to train together. Some practical training applications include

  • vehicle training
  • medical training
  • maintenance and assembly training
  • equipment training.
  1. Tactical augmented reality (TAR)

AR solutions are utilized to ease soldiers’ access to crucial information during operations, similar to heads-up displays (HUDs) in fighter planes. Utilizing TAR facilitates

  • enhanced situational awareness
  • increased safety
  • quick and accurate decision-making.
https://www.youtube.com/watch?v=x4MmIJytGJQ

Real Estate

  1. Virtual tours 

Property tours are time-consuming and costly for realtors and potential buyers. VR-powered solutions help buyers virtually visit locations from the comfort of their space while both parties save time. Virtual tours enable realtors to operate with unlimited global reach. 

  1. Virtual staging

AR/VR solutions enable realtors to design empty or unfinished property based on client interests and requests. Virtual staging enables buyers to see what the house will be like after it is finished. . Customizing the interior design for the target population increases client interest and the likelihood of sale. Virtual staging can also reduce the cost of staging by up to %90.16 

Retail & consumer goods

  1. Try before you buy experience

XR solutions enable consumers to try products virtually before buying them. Applications range from easy-to-access mobile AR solutions to more immersive VR solutions. Consumers have the ability to experiment with product features (shape, size, etc.) to make well-informed choices.

For instance, the IKEA Place app lets customers place true-to-scale 3D furniture models so they can visualize how the product will look before purchase. 

According to a survey, 70% of consumers would shop more often if they used AR, while 40% of consumers say they would pay more for a product that they could experience and personalize with AR.17

  1. Enhanced in-store experiences

AI-powered AR can enhance in-store experiences by functioning as a shopping assistant. Companies can offer a personalized shopping experience for their consumers with promotions and information they can access through their mobile devices. 

Consumers value AR experiences and there is a notable potential upside to implementing AR in retail consumer experience (see Figure 3).

Figure 3: Survey on retail AR, Source: IBM 

If you have further questions about XR use cases, don’t hesitate to contact us:

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This article was drafted by former AIMultiple industry analyst Berke Can Agagündüz.

Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
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Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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