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The global virtual reality in manufacturing industry stood at USD 924.7 million in 2018 and is projected to reach USD 14,887.0 million by 2026, exhibiting a CAGR of 39.2% during the forecast period
Manufacturing is known as a single wide-area for errors and risks. From prototype to production, there is a high probability of errors or risks. Moreover, the manufacturing industry is highly prone to hazards or fatal accidents. To optimize the errors and uncertainty, there is a growing demand for advanced solutions in the manufacturing industry.
Due to the advances in the technology, manufacturing industry has gone through a drastic transformation over the years. The emergence of industry 4.0, digital twin, AI has given a wide space for virtual reality applications in the manufacturing industry. Product designing, workers’ safety, and quality control have been positively influenced by virtual reality.
Since the last few years, manufacturers have been facing lack of skilled labor force and overproduction time. Factors such as economic expansion, globalization, and increasing need to strengthen the market value have forced manufacturers to adopt efficient and advanced technological solutions. In recent years, a growing trend of digitization has been observed among the manufacturers.
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The adoption of virtual reality in manufacturing has given lucrative market opportunities to the key players. The rising popularity of smart factories, industrial IoT, industrial robots have offered a comprehensive platform for the application of VR in manufacturing industry. Technical positions such as control engineers, technicians, skilled operators, and others have been specially trained to use VR applications with the aim of improving productivity.
Furthermore, the ability of VR to provide immersive experiences, 360-degree content view, high simulation environment, and actionable analytical insights have driven the interest of manufacturers to adopt virtual reality in manufacturing industry.
“Growing Demand for Minimizing Operational Cost, Increase Automation, and Quality Control is Expected to Drive the Market Growth”
There is a growing demand from manufacturers for minimizing operational cost, increase automation, predictive maintenance, and quality control. This drives the demand for VR applications in manufacturing industry. Many manufacturers are leveraging the benefits of virtual reality applications in the manufacturing processes. For instance, Boeing uses the VR smart glasses and skylight platform which gives the technicians right instructions they need in their viewfinder. It has helped Boeing to reduce wiring construction time by 25%.
Also, Thyssenkrupp integrated Hololens solutions to make a customized design process for the customers and reduce their turnaround time. Similarly, economically established manufacturers in the market are making substantial investments in advanced solutions in the manufacturing industry.
“Emergence of Advanced Technologies is likely to boost the demand for VR in Manufacturing”
The emergence of advanced technologies such as Industry 4.0, digital twin, virtual reality, artificial intelligence, and others. are leading innovations in the manufacturing industry. Digital twin technology integrated with VR will provide actionable insights about the product manufacturing process.
The advent of industrial robots is also one of the major applications of VR in the manufacturing industry. VR in manufacturing industry enables the designers to simulate their design prototype or model on advanced VR software. This helps them to rectify errors at the primary stage and reduce production time and cost.
“VR Hardware Segment is Projected to Propel the Market Growth”
Based on the component, the market is segmented as hardware, software and content. The VR hardware comprising of HMD’s, headsets, controllers, sensors is projected to propel the market growth during the forecast period. With the rapid adoption of VR technology across industries, there is an inflating demand for VR hardware. Other factors that drive the demand for VR hardware are affordability and less maintenance.
VR content segment is expected to exhibit an exponential CAGR during the forecast period. VR offers a fully immersive simulation environment, 360-degree view of the prototype which helps the designers to identify the risk and errors in the design and modify the design as per the insights. These factors are likely to drive the demand for more advanced VR content in the manufacturing industry.
“VR Applications in Safety and Training Would Ensure to Generate the Highest Revenue in the Coming Years”
By application the market is bifurcated into product design and development, safety and training, maintenance and repair, and communication & collaboration.
The rapid adoption of virtual reality in safety and training is likely to bridge the skill gap among the engineers and workers. Adoption of virtual reality is expected to transform the traditional way of training into a more enhanced and efficient way to deliver quality training to the engineers by sharing knowledge and intellectual property. For instance, a global manufacturer of technology products leveraged AR and VR solutions to establish communication between engineers and the experts instead of providing telephone or any other traditional service.
The adoption of VR in product design and development is likely to propel the market growth. VR offers a seamless ability to simulate the prototype or the product design at the primary stage. The advanced simulation provides useful insights regarding the product design which are helpful for the engineers to identify the errors and bugs in the design. Eventually, this reduces the production cost and time as well.
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Other VR applications in manufacturing include maintenance and repair, collaboration, and communication. A recent market trend of adoption of real-time repair and maintenance has been observed among the manufacturers. Advancements in IoT and smart factory has made real-time repair and maintenance possible. Also, real-time communication and collaboration among the on-site and offsite workers using VR solutions have been observed as a continuous trend in the manufacturing industry.
“North America is Projected to Emerge Dominant Region in the Market During the Forecast Period”
Geographically the market is analyzed across five major regions, including North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America.
North America is forecasted to emerge dominant in the global Virtual Reality in Manufacturing Industry. In 2018, North America generated a revenue of USD 359.5 million and is likely to hold an outstanding market share during the forecast period. Established IT infrastructure has given traction to the early adoption of advanced technologies in the region and has contributed to market growth.
Asia Pacific is estimated to exhibit a remarkable growth rate during the forecast period. As manufacturing is one of the significant businesses in countries like China, India, and Japan, it demands advanced manufacturing solutions. This factor will drive the need for virtual reality applications in the manufacturing industry across the region. China is expected to hold the largest market share in virtual reality in manufacturing industry.
North America Virtual Reality in Manufacturing Industry Size, 2018 (USD Million)
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Europe is projected to hold a significant position in VR in Manufacturing Industry, followed by North America and Asia Pacific. Substantial industrial base and digitalization of services are likely to drive the market growth across the region. UK is expected to contribute to a major share in VR in manufacturing industry. Italy is recognized as the second-largest manufacturer after Germany this creates an opportunity for VR in manufacturing industry in the region.
The Middle East and Africa is expected to have steady growth in the market. However, Latin America is projected to witness moderate growth in the VR in the manufacturing industry during the forecast period. Lack of familiarity with the VR applications in manufacturing, lack of expertise, lack of content are some of the factors that are likely to restrict the market growth in the coming years.
“Key Players in Virtual Reality in Manufacturing Industry Are Likely to Focus on VR Based Research and Development Projects”
Many manufacturers are leveraging VR benefits in the industrial environment. For instance, in recent years, Thyssenkrupp, an elevator manufacturer, announced that its technician would be using Microsoft Hololens technology as a tool to improve in service operations. Hololens enables service technicians to visualize and identify problems with elevators. They also have remote access to technical and remote information.
On the other hand, Toyota arrayed a pilot project with Reality Matters, a pilot company, to train the assembly workers using the HTC Vive to teach hand movements and IT systems operation. This has encouraged the workers to work and gain advanced knowledge.
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The report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global Virtual Reality in Manufacturing Industry.
Value (USD million)
Fortune Business Insights says that the value of the global Virtual Reality in Manufacturing Industry was USD 924.7 million in 2018
As per our study, the market is projected to reach USD 14,887.0 million by 2026.
The market will grow at a rate of 39.2% CAGR. Manufacturers are more inclined towards leveraging benefits of advanced technologies in automation processes.
North America is projected to hold the largest market share in the Virtual Reality in Manufacturing Industry. The rapid adoption of advanced technologies and substantial investments of organizations in R&D would expand the market size across the region
In the Virtual Reality in Manufacturing Industry, VR hardware is the leading segment. Fully immersive experience and high simulation capabilities demand advanced hardware components
Some of the driving factors for the Virtual Reality in Manufacturing Industry are growing demand from manufacturers for minimizing operational cost, increase automation, predictive maintenance, and quality control and emergence of advanced technologies such as Industry 4.0, digital twin, artificial intelligence and IoT.
In the virtual reality in manufacturing industry, some of the key players are Facebook, Google, Microsoft, HTC. These players are focusing on acquisition and partnership with domestic players to provide virtual reality applications in manufacturing.
North America is expected to hold the highest market share in the Virtual Reality in Manufacturing Industry. Established IT infrastructure has given traction to the early adoption of advanced technologies in the region and has contributed to boost market growth.
The Asia Pacific is projected to witness a fast growth rate in the Virtual Reality in Manufacturing Industry. China is expected to hold the largest market share in virtual reality in manufacturing industry.
By application safety and training is expected to show a high adoption of virtual reality. Many manufacturers are using VR modules to train their technicians and engineers.
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