The State of XR 2025: Mainstream Adoption and Industrial Impact

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Ori Inbar, co-founder and CEO of AWE XR, delivered one of the keynotes at Industrial IMMERSIVE 2025, setting the tone with a bold declaration: "XR is not the future, it's the present." For decades, extended reality (XR) has been on the cusp of mass adoption, but 2024 marked a true breakthrough. From major advancements in hardware to widespread enterprise adoption, the momentum is undeniable—XR is going mainstream.

The XR Revolution: Decades in the Making

Inbar traced XR’s journey from its early beginnings in 1968—when Ivan Sutherland demonstrated the first head-mounted display—to today’s landscape, where spatial computing is reshaping industries. While computing historically took a 2D path, a persistent group of pioneers pushed XR forward. In recognition of their efforts, AWE established the XR Hall of Fame, inducting 101 pioneers who laid the foundation for today’s innovations.

"These pioneers believed that spatial computing is more natural than flat computing," Inbar explained. "They believed that the inflection point would come—that one day, more XR devices would be sold than computers or smartphones."

A High-Stakes XR Race

A defining theme of 2024 was the explosive pace of innovation in XR hardware. Major players—including Apple, Meta, Samsung, Sony, and HTC—have ignited a technological arms race. Apple’s Vision Pro set a new standard for mixed reality, while Meta responded with the Quest 3 and Orion AR glasses. Meanwhile, AI-powered smart glasses have surged in popularity, signaling a shift toward lightweight, consumer-friendly XR devices.

As Inbar put it: "The wait is over—XR is going mainstream."

XR in Industrial Sectors: A Game Changer

While XR’s consumer appeal is rising, its enterprise adoption is even more striking. Inbar highlighted a key industry statistic: 70% of XR revenue now comes from the enterprise market.

  • Energy and Utilities: XR is transforming workforce training, asset inspections, and remote assistance. Immersive training simulations improve safety outcomes, while augmented reality overlays help field workers troubleshoot equipment in real time.

  • Manufacturing and Construction: Companies are leveraging XR for digital twins, predictive maintenance, and real-time collaboration.

  • Healthcare and Defense: From surgical simulations to mission planning, XR is becoming an essential tool for high-stakes industries.

"Almost every single Fortune 1000 company has adopted XR," Inbar noted. "Most businesses are beyond the initial stage of, ‘What is this technology good for?’ They're seeing proven ROI and are now looking at scaling it across the enterprise."

The Role of AI in XR’s Future

One of the most exciting trends shaping XR’s future is its intersection with artificial intelligence (AI). AI is making XR content creation faster and more efficient, while XR provides AI with a more intuitive interface to interact with the physical world.

"AI makes XR better. XR makes AI better," Inbar stated. "I would go as far as to say that XR will save AI because it integrates more real data to continue to train its models and make them smarter."

What’s Next for XR?

The final question Inbar posed was: How do we know XR has truly gone mainstream?

  • XR hardware is widely available and improving rapidly.

  • Enterprise adoption is at an all-time high, with proven ROI.

  • AI-powered smart glasses are becoming a consumer hit.

  • Public awareness is surging, from courtroom VR demonstrations to Super Bowl ads for AI-enhanced smart glasses.

With mainstream adoption in motion, the focus now shifts to content creators and industry innovators. "This is the year of the builder," Inbar concluded. "We need builders of all kinds to create content that is relevant to every single person on earth."

Final Thoughts

From the energy sector to enterprise training, XR is no longer a technology of the future—it’s transforming industries today. And as AI and XR continue to evolve together, their impact will only deepen. If 2024 was the breakout year, 2025 is the year XR cements itself as an indispensable tool for businesses and consumers alike.

As Inbar reminded the audience in Houston at Industrial IMMERSIVE: "Houston, we have a solution. It’s XR."

Watch this and other Industrial IMMERSIVE 2025 sessions on demand here.

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