Global Spending on Industrial Extended Reality Solutions for Utilities and the Energy Industry Are Expected to Reach $12 Billion by 2030

Barriers to adoption include cost, usability considerations, and regulatory compliance issues

Sep 14, 2021

A new report from Guidehouse Insights provides an overview of the settings in utilities and energy sectors in which extended reality (XR) technologies may provide substantial benefits. The report offers forecasts and the expected investment in each of these settings by global region through 2030.

In the energy industry, many operational factors have contributed to an uptick in industrial interest and expansion of industrial XR offerings that promote process efficiency, improved safety and compliance, and accelerated training. Recent investments are focused on XR wearables, XR-capable tablets and smartphones, software, and services. According to a new report from Guidehouse Insights, global spending on XR for energy and utilities is expected to grow from $4.7 billion in 2021 to $12.3 billion in 2030 at a compound annual growth rate (CAGR) of 11.2%.

“XR devices face significant headwinds to rapid growth, including a relatively mature mobile device market,” says Clay Killingsworth, research analyst with Guidehouse Insights. “However, software and services represent a small, emerging industry positioned to serve diverse customers and leverage all device types.”

Barriers to adoption include cost, usability, and regulatory compliance. Devices range from roughly $500 for a tablet to upward of $5,000 for a ruggedized AR headset, and most solutions entail an annual software as a service (SaaS) expenditure of approximately $1,000-$2,000 per user. While the industry is rapidly maturing, augmented reality wearables must address short battery life and suboptimal ergonomics. Security and regulatory compliance also hinder the technology's emergence in energy and utilities.

The report, Extended Reality for Critical Infrastructure, provides an overview of six industrial settings in which XR technologies may provide substantial benefits. This report describes XR applications in upstream oil & gas (O&G), mines, refineries, power plants, water treatment plants, and substations. It also provides information on key players in the industrial XR market with an emphasis on energy and utilities applications and forecasts the expected investment in each of these industrial segments by global region through 2030. The latest market trends in XR for energy production and utility applications are discussed, and potential applications for small- and large-scale utility deployment are explored. This report concludes by providing detailed and actionable recommendations on how customers and vendors can address the fast-changing market. An executive summary of the report is available for free download on the Guidehouse Insights website.


Lindsay Funicello-Paul

*The information contained in this press release concerning the report, Extended Reality for Critical Infrastructure, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.