The global extended reality (XR) market has skyrocketed from $18.96 billion in 2021 to over $54 billion in 2024—and it's on track to exceed $100 billion by 2026.
This rapid growth demonstrates how quickly immersive technologies are being adopted, and businesses (like yours) are leading the charge. These organizations enjoy impressive results like enhanced training outcomes, improved marketing strategies, and increased investor buy-in.
If you're considering hopping on the XR train, now’s the perfect time—and in this ArborXR guide, we’re here to help you get up to speed.
To better understand how these technologies work, let's break them down.
What is Extended Reality?
Extended reality (XR) is a catch-all term for immersive technologies like virtual reality (VR), augmented reality (AR), and mixed reality (MR).
But how do these technologies work? Let’s break it down:
Types of Extended Reality
Virtual Reality (VR)
Virtual reality (VR) technology immerses you in a fully simulated digital world that feels remarkably real. By putting on a VR headset, you can effectively block out your actual surroundings and explore a digital environment as if you were physically present.
VR typically utilizes head-mounted displays (HMDs) with high-resolution screens and sophisticated motion-tracking systems to create a sense of presence in the virtual world. Advanced VR systems may also incorporate haptic feedback and spatial audio to enhance the immersive experience.
This technology is being used in numerous incredible ways across various industries, from healthcare to construction and beyond. For example, Harvard MedTech developed a VR experience that helps patients manage physical and emotional trauma by guiding them through immersive meditation and calming exercises.
Augmented Reality (AR)
Augmented Reality (AR) is a technology that uses devices such as smartphones, tablets, or AR headsets to overlay virtual elements—including images, text, or 3D models—onto the real world. AR systems typically employ computer vision and simultaneous localization and mapping (SLAM) algorithms to understand the user's environment and accurately place digital content.
One compelling example of this is virtual try-ons for retail brands. For instance, Barner uses AR to let customers see how different glasses look on their faces before buying, helping them choose the perfect pair for their facial structure and style.
Mixed Reality (MR)
Mixed reality is precisely what its name implies — a mix of AR and VR elements. But what specific aspects does it incorporate from both?
Like VR, it lets users create highly interactive and immersive digital environments and elements. But instead of fully immersing you in a digital world, MR overlays these digital elements onto your actual surroundings, similar to AR. The key difference between MR and AR is that MR allows you to interact with these digital objects as if they were part of your physical space.
MR also has many exciting applications. For example, the video above from Cape Henry Associates shows how they use mixed reality to train people to replace a filter cartridge. As you can see, the trainee can interact with the overlaid instructions and complete the task step by step.
Applications & Benefits of Extended Reality for Your Business
Improved Training Experiences
Businesses using XR for training are seeing remarkable results. For example, Pfizer has cut training time by over 50% with VR, and 97% of Bank of America’s trainees feel very confident in applying what they’ve learned.
"If we had done traditional onboarding, people would have gotten the information but not remembered it the next day," said Michael. "I promise you, I could call up some of those folks six months later and they will absolutely remember their onboarding."
Michael Wynn, Senior Vice President, Innovations and Learning Technology, Executive for The Academy
The key is providing hands-on experience. Instead of just reading about theories, trainees get to interact with the subject matter firsthand. For example, surgical trainees can practice procedures in VR using a virtual patient. Similarly, using MR, engineers can learn how to assemble a car with a virtual model in a simulated garage. They can also repeat these tasks as often as needed.
This practical approach improves recall, retention, and facilitates faster skill acquisition. It also ensures trainees are better prepared to handle real-world situations they might face.
More Effective Marketing
Research shows that 61% of customers prefer buying from brands that offer AR experiences, and businesses that use AR in their marketing can increase their sales by up to 200%. Similarly, 53% of adults would choose a brand offering VR over one that doesn’t. These statistics clearly illustrate how valuable XR can be for your marketing mix.
For marketing, consider virtual try-ons or immersive virtual showrooms and product demos. For example, BMW allows potential customers to explore and interact with BMW cars in a fully immersive environment without needing to visit a physical dealership. Furthermore, colleges can leverage XR technology to offer virtual tours to attract and convince prospective students.
Better Presentation and Visualization
You can use XR to make your presentations more engaging and realistic. Specifically, XR allows you to showcase products, layouts, or strategies dynamically, helping your audience better understand your message. Children’s Healthcare of Atlanta (CHOA) is a great example of this. They’re using VR to boost their fundraising efforts for a new campus. Working with XR development company Futurus, CHOA created a digital twin of their planned campus.
During presentations, they immerse investors in this virtual environment, giving them a clear picture of how their contributions will be used and encouraging their support. This approach helped CHOA get closer to its $1 billion fundraising goal, including a generous $200 million donation from the Arthur M. Blank Family Foundation.
Challenges with Implementing Extended Reality Solutions
Managing Devices at Scale
When you’re managing one or two devices for your XR initiatives, things might be a bit straightforward—you can easily track their locations, check their status, update them, and handle WiFi connections manually. However, once you have a substantial number of devices, this process becomes extremely time-consuming and inefficient.
This challenge is common among businesses we've worked with to implement XR solutions. For instance, Erik Brown, an associate creative director at Stanford, also cites it as a significant hurdle in their XR projects.
"We're using ArborXR specifically so that we can track those headsets. The students go away on winter break and then you discover that they're like, "Oh, I'm in Singapore right now visiting my family, I brought my headset with me." And you're like, "Oh my goodness, how do I account for that?"
Erik Brown, Associate Creative Director Stanford Digital Education
The good news? A robust XR MDM (device management) platform like ArborXR can solve this problem.
With ArborXR, you'll gain a bird's-eye view of all your devices, regardless of fleet size. You can track locations, manage settings and status, and even monitor who's using your devices (including what they're seeing within them).
Content Installation and Update
Managing deployment is just the beginning—you also need a solid plan for handling content and updates.
Without one, you might find yourself:
- Plugging cables into each device to install apps and updates or downloading apps on individual headsets from app stores.
- Struggling with messy Google Drive links to get and install content from vendors.
- Stuck with outdated MDMs that limit file sizes and make large-scale content installation difficult.
These scenarios present a hassle you'd probably want to avoid.
That's where ArborXR steps in. With ArborXR, you can remotely install apps and manage updates for all your VR headsets from a single dashboard. We also offer a content library that keeps your installed content organized and ready when you need it.
Security and Access Control
Sensitive user information is constantly transmitted and processed in XR environments, so you must be prepared for data security risks.
First, we recommend setting up a strong internal data protection policy. For example, if you operate in the EU, you'll need to comply rigorously with GDPR (General Data Protection Regulation).
You should also work with tools that prioritize security. At ArborXR, we take this really seriously. We’re ISO 27001 certified and offer enterprise-grade security to protect user data.
We also provide additional features to enhance your security like SSO (Single Sign-On), 2FA (Two-Factor Authentication), user access control, and the ability to remotely wipe sensitive data from headsets in case of theft.
Deliver Immersive Experiences with ArborXR
Extended reality (XR) holds great promise with many exciting applications, but implementing it comes with its own set of challenges—managing devices at scale, content installation and update, security, and access control.
You need a reliable XR device management (MDM) platform to tackle these issues effectively. ArborXR empowers organizations to unlock the full potential of extended reality (XR) by giving you the tools to manage huge XR fleets remotely, source and install content at scale, control how users experience immersive content, and secure your devices and data.Why wait? Sign up for a free trial today.