Although adoption and investment in VR/AR remain relatively low, companies that have embraced these technologies are beginning to report more positive outcomes than in previous years. While widespread adoption may still be on the horizon, enterprises are actively exploring these tools, creating the potential for growing interest and broader implementation in the future.
As shown in Figure 1 from our full report, Virtual and Augmented Reality Adoption Trends and Customer Experience , VR /AR technologies currently show low adoption and investment but high ROI success, TCO success, and satisfaction rates . It should be noted that this is not an indication of low, absolute adoption and investment but that the rates are low relative to other technologies in our full study.
AR/VR are immersive technologies that simulate digital environments in different ways. VR creates a fully immersive experience by blocking out the real world and placing users in a computer-generated environment, typically through a headset. In contrast, AR overlays digital elements onto the real world, allowing users to interact with both simultaneously. But while VR offers deep immersion, it often requires expensive equipment and limits mobility, making it less practical for enterprise use. AR, being more mobile and accessible, is often usable through smartphones or smart glasses and has gained traction in industries like manufacturing and maintenance, where real-time guidance and remote assistance are valuable.
VR/AR technologies have been widely embraced by the gaming and entertainment industries, and now their applications have rapidly expanded into professional and technical fields. VR is now used in therapy, pain management, and immersive training, while AR is transforming healthcare with tools for remote surgery and real-time procedural guidance. Beyond healthcare, industries such as architecture, engineering, retail, and government are adopting these technologies for design visualization, hands-free operations, and emergency response training. As devices become more user-friendly and affordable, and as more practical use cases emerge, AR and VR are becoming essential tools across a growing number of sectors.
“Adoption of VR and AR is still limited, but early adopters report exceptionally high satisfaction,” said Waynelle John, research analyst for Avasant, based in Los Angeles. “As more use cases emerge and ROI becomes clearer, IT leaders are likely to accelerate investment in these technologies.”
But there is one major challenge with VR/AR technologies. The lack of standardization has led to each application being developed as a unique, one-off solution, creating inefficiencies and compatibility issues. Generative AI is poised to address this challenge by enabling the creation of standardized frameworks and templates. By analyzing vast amounts of data and identifying common patterns, generative AI can create reusable components and design guidelines, streamlining the development process. This not only reduces the time and cost associated with creating VR/AR applications but also ensures greater interoperability and consistency across different platforms and devices.
Our full report quantifies the current adoption and investment trends for VR and AR, as well as the benefits driving companies to expand their VR and AR implementations. We assess these trends by organization size, sector, and geography and look at the ROI and TCO experiences of organizations that have adopted this technology. We conclude with practical advice for those planning new investments in VR and AR.
This Research Byte is a brief overview of our report on this subject, Virtual and Augmented Reality Adoption and Customer Experience. The full report is available at no charge for subscribers.