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How Industrial Machinery Manufacturers Should Migrate to XR

How Industrial Machinery Manufacturers Should Migrate to XR

January 13, 2025

Industrial machinery suppliers are faced with the tall task of pushing the innovation envelope, while keeping production costs at bay. Customers require machines that unlock new use cases, but at the same time don’t necessitate significant training time for employees. To strike this balance, suppliers should strongly consider the adoption of immersive engineering solutions powered by Extended Reality (XR) hardware. As ABI Research already pointed in a recent blog post, cloud-based XR platforms foster greater collaboration between engineering and design teams, reduce error rates, and accelerate the design review process.

These use cases enable suppliers to bring innovative products to market in a faster and sustainable manner. However, with XR being a new technology to many companies, it’s essential to understand the optimal migration path.

Why XR Is Needed

From team disconnect to product recalls, there are several key reasons why XR is a fitting technology for industrial machinery manufacturers. These market drivers are outlined below.

Improve Machine Performance and Quality: In the industrial machinery sector, enhancing machine performance and quality is a top priority. With smart, connected machines, manufacturers can achieve better automation, operational visibility, and support. This shift requires embracing XR-enabled digital twins and cross-team collaboration to meet evolving customer needs.

Break Down Team Silos: Remote and distributed teams—which are commonplace in a post-pandemic world—often struggle with collaboration. Cloud-based and Software-as-a-Service (SaaS) engineering tools offer a unified workspace, enabling real-time collaboration regardless of location. However, traditional Two-Dimensional (2D) design workflows still face challenges, such as small screen sizes and the inability to conduct large-scale reviews without physical prototypes.

Reduce Errors and Costs: Design mistakes can be costly—up to US$80,000 for issues found in later stages of production. XR technology helps mitigate these risks by offering realistic, immersive mock-ups early in the design phase. This enables design and engineering teams to identify and fix errors before physical assembly. On that account, XR helps manufacturers avoid costly and brand-damaging product recalls.

Accelerate Prototyping: Traditional prototyping can be time-consuming and expensive. XR allows for virtual prototyping, reducing the process from months to weeks or even days. This speeds up product development and saves valuable resources, while improving the accuracy of designs.

Three Steps to Successfully Deploy XR

Migrating to XR is not a matter of flipping a switch. It requires a monumental shift in strategic thinking and organization-wide buy-in, which are things that don’t happen overnight. In this regard, ABI Research offers the following key steps to industrial machinery suppliers for a smooth transition to XR deployment:

  1. Adopt XR in Phases: The transition to XR should be gradual, allowing for a smooth integration into existing workflows. Instead of an immediate overhaul, this more conservative approach encourages employees to work alongside traditional desktop setups during the initial adoption phase. Our analysts recommend that manufacturers start piloting XR applications with a small group before expanding and fully integrating the technology into workflows.
  2. Incorporate XR for Task-Focused Use Cases: Manufacturing design teams are best served using XR in shorter, task-based increments as opposed to prolonged use. In this regard, it should complement existing methods, offering flexibility to integrate different techniques and workflows.
  3. Foster XR Advocates: Begin with a select group of users who can act as internal champions for XR adoption. These early adopters will demonstrate the technology’s value, offer insightful feedback, and drive the culture shift needed for wider acceptance of the new tools.

For a more comprehensive overview of how XR is revolutionizing the industrial machinery space, download the whitepaper: Industrial Machinery Immersive Engineering.

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Tags: Industrial & Manufacturing Technologies, Industrial & Manufacturing Markets, Extended Reality (XR) Markets, Extended Reality (XR) Technologies

Ryan Martin

Written by Ryan Martin

Senior Research Director

Ryan Martin is a Senior Research Director at ABI Research covering new and emerging transformative technologies, including Industry 4.0, digital transformation, and the Internet of Things (IoT). He leads the firm's manufacturing, industrial, and enterprise IoT research efforts.