The need for immersive technologies will reshape business strategies and drive seamless integration across industries
LONDON, Jan. 31, 2025 /PRNewswire/ -- The global energy industry is undergoing a transformation driven by decarbonisation and decentralisation, leading to increased digitalisation and the utilisation of extended reality (ER) technologies.
Over the past three years, the foundations of the virtual reality (VR) and augmented/mixed reality (AR-MR) markets have become stronger, with major companies investing billions of dollars to stimulate the growth of these technologies.
Extended reality plays a crucial role in the energy sector's digital transformation, offering users immersive experiences within intricately designed 3D virtual environments. This integration of immersive technology is changing how industry professionals interact with complex data and processes, ultimately leading to innovative solutions and improved efficiency in energy management and operations.
A Growing Market with Extensive Potential for Partnerships and Collaboration
Frost & Sullivan forecasts an impressive compound annual growth rate (CAGR) of 49.4% in global VR/AR-MR market revenues from 2023 to 2028. This growth is fuelled by continuous advancements in immersive technologies and the increase in both consumer and business interest.
The full potential of industrial extended reality (XR) hardware lies in its adaptability to diverse applications. Unlike consumer solutions, industrial XR often requires customisation for specific sectors, such as energy.
Collaboration across the industry is essential to unlocking this potential. By developing specialised software development kits (SDKs) and advanced functionalities, stakeholders can ensure seamless integration of XR technologies into existing workflows and infrastructure, driving innovation and efficiency across industrial domains.
Seamless Integration of Cross-Industry Solutions
Integrating cross-industry solutions is crucial for successful XR implementations in the power and energy sectors. Leveraging advanced technologies such as AI analytics, digital twins, process simulations, and XR platforms enables companies to simulate asset operations in real time. This approach supports informed decision-making, enhances operational efficiency, and mitigates risks.
For instance, digital twins can facilitate the integration of distributed energy resources (DER) into the grid, enhancing the operation of generation and storage assets, and delivering enhanced customer experiences. By adopting these innovative tools, the power and energy sectors can drive greater resilience, sustainability, and performance.
Lucrecia Gomez, Global Power & Energy Research Director at Frost & Sullivan, comments: "Our annual survey of IT decision-makers revealed that 58% of respondents possess a high or moderate level of expertise in immersive digital services within the energy sector. As the industry matures and the demand for ER continues to rise, the visibility and adoption of these technologies will quickly increase across organisations worldwide."
Gomez adds: "The majority of organisations (62%) are actively engaged in small, medium, or large-scale trials and proof-of-concept projects involving immersive digital services. Among these technologies, mixed reality (MR) stands out, capturing the highest level of interest, with 20% of respondents expressing that they are very or extremely interested in its applications."
Looking ahead, augmented reality (AR) and mixed reality (MR) are expected to gain significant traction across various business use cases, including data centres, oil and gas, solar photovoltaics, and nuclear power, among others. These technologies hold immense potential to drive innovation and efficiency in the energy sector.
To stay ahead in the fast-expanding global VR/AR-MR landscape, find out more about the growth opportunities here.
Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation, and leadership. The company's Growth Pipeline as a Service provides the CEO and the CEO's Growth Team with transformational strategies and best-practice models to drive the generation, evaluation, and implementation of powerful growth initiatives. Frost & Sullivan leverages over 60 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 40 offices on six continents.
Contact:
Kristina Menzefricke
Marketing & Communications
Global Customer Experience, Frost & Sullivan
kristina.menzefricke@frost.com