XR adoption remains slow despite Apple & Meta's efforts

The latest Forrester report has found that Extended Reality (XR) technology is not yet poised for widespread adoption, despite significant investment from major technology companies including Apple and Meta.

The report, titled "The State of Extended Reality", indicates that many business and technology leaders remain only partially informed about their organisation's plans regarding XR. Among those who are informed, just 35%, representing 17% of the total surveyed, have begun deploying the technology, primarily focused on use cases like enterprise training and onboarding.

Extended Reality is defined by Forrester as technology that superimposes computer-generated imagery over a user's real-world view. This encompasses augmented reality (AR), mixed reality (MR), and virtual reality (VR), utilizing shared developer tools and hardware such as sensors and cameras.

The report identifies several obstacles to XR adoption. High costs of hardware, user fatigue from prolonged use, and a relative lack of engaging content are cited as primary barriers to wider usage, particularly affecting devices like Apple's Vision Pro, priced at USD $3,499, and Meta's headsets. While Meta's devices have hit a lifetime sales mark of 25 million, actual consumer use remains limited, especially in application areas like AR-assisted shopping tools.

James McQuivey, Ph.D., VP and Principal Analyst at Forrester, stated, "While XR advances like Apple's compelling but low-selling Apple Vision Pro or Meta's surprise hit Ray Ban smart glasses suggest a potential revolution in how we will one day interact with information, current adoption remains slow due to high costs and a lack of compelling use cases." He advised organisations to temper expectations and invest in well-defined areas where XR has shown a return on investment, such as in enterprise training scenarios.

The report suggests that while the current utility of XR remains confined mainly to enterprise settings, there is an emerging potential for more diverse applications. Sectors such as smart manufacturing, retail, and healthcare are beginning to integrate XR to enhance operational efficiency and outcomes, offering examples such as improved precision in manufacturing, enriched retail experiences, and supportive tools for surgical training.

Generative AI (genAI) is identified as a future technology that could enhance the capabilities of XR, potentially facilitating more interactive and intelligent user experiences. However, the full benefits of this integration are not expected to be realised until at least 2025 or beyond.

"Organisations should approach XR investments with measured expectations, focusing on niche use cases, such as enterprise training, where the technology has already demonstrated clear ROI. With generative AI added to these tools, XR will improve, keeping it on a path to eventually transform business and consumer experiences—just not in 2025," added McQuivey.

The study concludes that although there is significant optimism about the future of XR, the present condition of the technology keeps it as an evolving field rather than a mainstream staple. Many companies remain cautious, focusing on specific areas where XR has shown to provide value.