5 Best Augmented Reality Use Cases

What is AR?

AR is the use of technology to add digital enhancements to real-life objects. Anytime you use software or a device to add new sights, sounds or sensory stimuli to something you see, that’s AR.

The Pokémon Go game is a famous example of AR in pop culture. Players try to find Pokémon in the wild using their smartphones. When they find one, the character appears on a smartphone screen overlaid in the nearby environment like this:

Finding a Pokémon in the AR+ mode of Pokémon Go. Source: Tumisu

Other widespread examples of AR are the filters people use on Instagram and other social media platforms to change their appearance and add effects to their photos or videos. Their most visible commercial use may be online opticians like Vision Express in the United Kingdom and EyeBuyDirect in the United States; both companies offer virtual try-on features that use your webcam.

What’s the difference between AR and virtual reality?

AR improves, enhances or expands real life by inserting virtual objects into the user’s real-world environment. In contrast, virtual reality (VR) creates an entirely virtual world that users interact with using devices that isolate them from the real world. VR is grabbing headlines, but researchers say AR will become a bigger market over time.

How does AR work?

AR may seem futuristic, but its underpinning technology is relatively familiar and straightforward. AR combines computer vision, mapping, localization and depth-tracking technology to allow a platform to capture, analyze and transmit data. This data underlies your augmented sensory experience.

Depth tracking and mapping are flagship artificial intelligence (AI) features:

• Depth tracking: Depth tracking uses the z-axis to represent depth. This practice is similar to how 3D movies create the illusion that objects are nearer or farther away than they actually are. This allows AR systems to place overlays correctly in 3D spaces. For example, let’s say you wanted to place a virtual chair in your room. It would be positioned accurately on the z-axis relative to the walls and floor, making it appear as if it exists in the real environment. Without this feature, AR applications like industrial field services and 3D online shopping wouldn’t work.
• Mapping: Mapping is potentially the most critical AR feature. It is the process AR uses to identify and interact meaningfully with real-world objects. This technology allows you to do things like apply AR glasses over your face on opticians’ websites.

How businesses are using AR

AR is already one of the technologies changing online advertising, marketing and other sectors. Here are five top ways today’s businesses are employing AR in various sectors.

1. Retail

AR helps retailers provide a way for shoppers to try products before buying them, increasing customer satisfaction and customer loyalty. Any smartphone or tablet can become an AR platform that creates unique shopping environments for customers ― in-store or online. Here are a few examples of current retail AR usage:

• Decathlon: Apparel retailer Decathlon’s AR shopping app, powered by Apple, lets consumers see how products would look and fit before buying them.
• Best Buy: Designed for Apple Vision Pro, Best Buy’s Envision app allows consumers to access its product catalog in an immersive AR environment. Shoppers can interact with and visualize products in a 3D space within their homes.
• Walmart: The retail giant is building an Adaptive Retail platform. Its aim is to hyperpersonalize shopping using AR, generative AI, and immersive content in-store, online, and via the firm’s mobile apps.

Sam Neblett, senior AR/VR software developer at international manufacturer Boeing, said these retailer projects are a natural next step for the technology because of the inherent challenges of online shopping. “Photos can mislead people on size, color or features, which leads to returns,” Neblett explained. “[This technology] means organizations can now bring realistic 3D representations of products into the real world via AR. This gives consumers a more accurate idea of what they’re purchasing, reducing returns and keeping customers happier.”

Martin Balaam, CEO of product information management app Pimberly, sees this trend as AR bridging the gap between imagination and reality. “It’s one thing to see a pair of jeans; it’s a game-changer for customers to see exactly how this pair of jeans will appear on them and share that experience on social platforms,” Balaam said.

Balaam also noted that AR in retail has unique social elements. “This social-sharing element has the power to create viral moments, drive customer loyalty and bring brands closer to their audiences,” Balaam explained. “Plus, this kind of interactivity fosters more confident purchasing decisions and offers a personalized shopping experience without visiting in person.”

2. Industry and maintenance

Matt Wyatt, vice president of Professional Services (EMEA & AMS) at TeamViewer, is excited about AR’s potential impact on industrial settings and repair and maintenance situations.

“AR in industry isn’t just about overlaying information; it creates an environment where remote experts see through the eyes of on-site technicians, annotating in real time while AI systems analyze problems and suggest solutions,” Wyatt explained. “This cuts downtime and streamlines problem-solving.”

Consider the following situations where AR helped improve product quality and production speed while increasing productivity and reducing downtime.

• TeamViewer: TeamViewer, best known for its remote PC access product, implemented its Frontline AR product in Volvo distribution centers. Staff wore smart glasses that gave them task-critical information, resulting in a 25 percent improvement in picking quality and faster fulfillment.
• Peterbilt: Peterbilt, which makes commercial vehicles, faced a shortage of skilled engineers. In response, it deployed a tablet-based AR tool that provided technicians with clear, step-by-step digital instructions overlaid onto physical components. “In large-scale manufacturing, overlaying digital content and step-by-step instructions helps workers navigate complex assemblies, reducing errors and speeding up production,” Neblett explained. “When mistakes come with high costs, that efficiency is immensely valuable.”
• Solomon Technology Corporation: Firms like Solomon Technology Corporation are melding computer vision (a type of AI that helps computers interpret visual data) with AR to spot defects and anomalies in real time. This technology directly displays inspection data on physical components, helping operators spot and classify errors quickly. Solomon’s solution has already been deployed in various industries, from mechanical equipment suppliers to cookie production.

Emerging use cases in these sectors include the following:

• Visualizing future setups: Balaam expects this technology to help employees and customers plan and visualize complex machinery installations — such as conveyor systems or robotic assembly lines — before committing to a significant capital investment.
• Streamlining troubleshooting: Balaam used the example of fixing faulty self-checkout systems or interactive kiosks. “The on-site engineer’s ability to see the relevant information in real time alongside the system itself will reduce time spent on troubleshooting by a large margin.”

With AR, there are no physical boundaries; the technology can inform and guide a mobile workforce worldwide. This practice improves safety and educates engineers on performing tasks with technologies they’re not experts in.

3. Design and modeling

Businesses often use AR for 3D modeling during the design process for items as diverse as cars and industrial machinery. AR-enhanced product packaging is also gaining popularity, impressing customers with videos, 3D models, audio and linked text.

Here are examples of how AR is impacting design and modeling:

• Spatial visualization: Interior designers are using AR apps like Augment to help clients visualize items like furniture and décor in their potential future environment before they commit to buying. In addition, the technology is a great way for online stores to showcase specific products.
• Product creation: Creating product prototypes used to be costly and time-consuming. However, today’s companies can build AR prototypes and test them instantly in a virtual environment, complete with real-world physics. This process provides crucial data and insights to guide product adjustments and refinements, saving time and money. Philips, the Dutch electronics conglomerate, has cleverly repurposed this technology in its Hue app. Customers can visualize how smart light bulbs in different colors, brightness levels and locations would look in their homes before deciding which to buy.
• Custom auto purchases: Many car manufacturers, especially higher-end ones, have used AR for years. It lets people visualize a car they want to buy with customized features such as paint colors, wheel designs and interior finishes — all in real time.

4. Training and education

AR-based training initiatives provide an immersive, multisensory experience that’s often more effective than traditional lectures, flashcards and textbooks. The result is a greater depth of training, quicker mastery and an improved transfer of learning.

“The level of detail in many AR training models is difficult to replicate with legacy approaches,” Balaam noted. “AR can simulate operating heavy machinery or performing safety drills, allowing workers to gain critical skills in a controlled, risk-free environment that closely mirrors real-world scenarios.”

Recent examples include the following:

• XR Lab: West Suffolk College’s state-of-the-art XR Lab in Bury St. Edmunds, England, integrates VR, AR and mixed reality technologies for education and training purposes. Its first AR application allows students to explore the physiology and anatomy of the human body in an immersive and interactive way.
• Royal Air Force: Staying in the U.K., the Royal Air Force, in conjunction with the U.S. firm Red 6, is trialing AR-based training to increase the number of fighter pilots. This approach will dramatically cut fuel costs while increasing the number of flying hours each trainee receives.

Neblett, who also co-chairs the research committee at the AREA (Augmented Reality for Enterprise Alliance), emphasized that AR-based training minimizes errors. In fact, an AREA study revealed that AR-based instruction:

• Reduced failure rates by approximately 70 percent
• Reduced rework time by nearly 80 percent
• Improved procedure speeds by over 40 percent compared to traditional, paper-based instruction

“The impact of the research and testing we supported is clear,” Neblett said. “AR increased the efficacy and speed of training for complex tasks.”

5. Emerging AR sectors

As the technology develops, expect AR to become part of everyday business in the following emerging sectors.

AR in the luxury marketing mix

Luxury brands are leaders in AR innovation, partly because their high-end customers expect immersive, tech-forward experiences. In fact, according to a Snapchat-Ipsos survey of global luxury shoppers, 68 percent expressed the desire for AR experiences online. Furthermore, 69 percent said they wanted their favorite brands to do more with AR.

Jason Yim, founder and CEO of extended reality creative agency Trigger XR and a leader in the luxury AR space, cited two examples of luxury AR projects:

• VIP experience: Yim was asked to create an experience for VIP guests at the Miami Grand Prix for Mercedes-AMG to work on the Apple Vision Pro. “It featured the latest W15 car, enhanced by cutting-edge volumetric capture, and an interactive game,” Yim recalled. “Guests were introduced to a streamlined narrative that included the addition of avatars of Toto Wolff and George Russell, joining Lewis Hamilton to create a richer, more dynamic experience.”
• Manchester United-Snapdragon project: Yim also worked on an AR project related to Snapdragon’s sponsorship of Manchester United’s shirt and stadium. After purchasing their shirts, fans could “activate” them with AR by scanning the shirt’s Snapdragon logo on their phones, unlocking exclusive content for both Manchester United and Snapdragon.

AR in construction and facilities management

AR is already a core part of many construction projects and facilities management applications, including the following:

• Model comparisons: Apps like Gamma AR allow construction teams to point their phones or tablets anywhere on a building site. The software then overlays the digital building model onto the app so teams can see where walls, support beams and other structural elements should go. This visualization helps teams spot and fix mistakes — like out-of-place piping and wrongly placed fittings — early. They can also share their progress with team members to keep the project on budget and schedule.
• New layout testing: AR also helps facilities managers in completed buildings. For example, let’s say a building owner wants to repurpose a floor for a new commercial tenant. Rather than relying on paper-based schematics and CAD, the potential tenant could walk around the area with their glasses on and see how the new layout might look.
• Precision installation: When carrying out jobs like partition wall installations in an office, engineers can use AR technology via glasses, tablets, or their phones to reveal hidden pipes and wiring. This way, they don’t accidentally drill into electricity, communications or water lines.

AR in the healthcare sector

We already mentioned how the XR Lab uses AR-powered training to help students understand physiology and the human body. But, AR is also advancing in the actual practice of medicine. For example:

• Atul Gupta, Philips’ chief medical officer, showcased a video demonstrating AR glasses that guide users step-by-step in operating a defibrillator.
• AccuVein uses infrared light to locate veins beneath a patient’s skin, reducing discomfort and increasing first-attempt success rates.
• Medivis combines AR with computer vision software to provide surgeons with 3D visualizations of a patient’s anatomy during surgery. This practice improves the chances of a successful outcome.

Benefits of using AR

AR is gaining popularity in various industries because it brings the following advantages:

• Improved user engagement: AR’s visual effects are impressive and attention-grabbing, as is its ability to interact with the environment or objects in real time.
• Immersive learning: AR offers the opportunity for “hands-on” learning in a safe environment, with real-world visuals that help students understand the subject. In areas like healthcare and engineering, where risk is higher, this technology can reduce mistakes and improve safety.
• Increased conversion rates: Consumers and business decision-makers can test-drive a product before buying it to ensure it’s the right decision. This ability reduces return rates, saving money and building customer trust.
• Cheaper development cycles: Endless physical prototyping when developing unique products can be replaced by virtual prototypes that mirror the movement, physics and functionality of a real-world product.
• Remote access: Managers and teachers can provide instructions and demonstrations to employees and students even if they’re not in the same location.
• Personalized experiences: Like other forms of media — such as ads, product recommendations or training courses — AR can be tailored to a specific audience or person.

The future of AR in business

AR is projected to be a significant economic driver for the tech industry. According to Precedence Research, the U.S. AR market is predicted to be worth about $723.34 billion by 2034.

But which vertical markets will embrace this new technology? Industry expert Eric Abbruzzese, research director at ABI Research, said revenues will be split between several significant verticals: education, gaming, healthcare, industrial and retail, to name a few.

“We expect revenues to primarily favor the healthcare and industrial verticals, owning approximately 54 percent of the market, thanks to more progressive technology adoption habits along with strong use case applicability,” Abbruzzese noted.

Here’s how some attention-getting AR technology is faring:

• Apple Vision Pro: Many thought the launch of the Apple Vision Pro in 2023 would be a game-changer for consumer AR and VR. However, its high price point compared to competitors and lukewarm user reviews seem to have dampened enthusiasm for the device.
• Orion AR: Facebook’s parent company, Meta, may have better luck with its Orion AR glasses. Unlike the Vision Pro, these glasses have more of the look and feel of 3D TV glasses. The parallel development of generative AI and computer vision will also likely help Orion. As for its use cases, the company says users will be able to open their refrigerators and receive recipe suggestions based on what’s inside. While such features sound useful, their success will hinge on how seamlessly the technology integrates into daily life. Another success factor is whether it delivers enough practical value to justify its cost and learning curve.

Commercially, the future of AR seems assured, given its real benefits in terms of cost, scalability and flexibility. The future for domestic and residential AR applications seems less certain, but the early reaction to the Orion glasses has been very positive.