State of the Art in AR, VR, and XR tech (2024-2025)

Imported and normalized from a Notion article.

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This article was written with the help of OpenAI’s deep research, an agentic AI tool that employs reasoning to synthesize extensive online information and execute complex multi-step research tasks.

Introduction

Augmented reality (AR), virtual reality (VR), and mixed/extended reality (XR) technologies have advanced rapidly in the past year, driven by major tech firms and innovative startups worldwide. The global XR market (encompassing AR and VR) was valued around $25.7 billion in 2024 , and hardware adoption is accelerating – for example, AR/VR headset shipments grew ~12.8% year-on-year in Q3 2024, with Meta’s Quest devices alone accounting for about 70% of units thanks to new releases . These “spatial computing” technologies are increasingly moving from hype to practical deployment across industries. This report details the latest state-of-the-art hardware and software, key company developments, and XR applications in gaming, healthcare, education, enterprise, and retail on a global scale.

Hardware Advancements in AR, VR, and XR

High-End Mixed Reality Headsets:  A milestone in 2024 was Apple’s entry into XR with the Vision Pro headset (available starting Feb 2024). Apple Vision Pro is a “spatial computer” that seamlessly blends digital content with the physical world, enabling powerful mixed-reality experiences in a user’s environment . It features advanced sensors (cameras and LiDAR), dual 4K micro-OLED displays, an Apple M2 chip plus a dedicated R1 chip for real-time sensor processing, and an innovative transparent lens design. The Vision Pro is controlled via natural inputs – eye tracking, hand gestures, and voice – with no controllers . Priced at$3,499, it targets developers and prosumer users initially. Apple’s visionOS platform allows Vision Pro to run thousands of iPad and iPhone apps plus new spatial apps via an all-new app store . Apple has been steadily improving visionOS (e.g. a September 2024 update and a March 2025 update adding AI-powered “Apple Intelligence” features) and expanding content, such as immersive 3D videos and concerts for Vision Pro . This marks a significant step forward in XR hardware, with TechCrunch calling it “the most advanced consumer electronics device ever created”, and it has spurred competition across the industry.

Meta’s VR/MR Headsets: Meta (Facebook) has solidified its lead in consumer VR with the Meta Quest 3, launched in October 2023. The Quest 3 is billed as “the world’s first mass-market mixed reality headset” . At $499, it delivers significant improvements over its predecessor: a 30% leap in visual resolution, 2× GPU performance (Snapdragon XR2 Gen 2 chip), 40% louder audio, and a slimmer, more comfortable design . Notably, Quest 3 introduces high-fidelity full-color passthrough cameras enabling mixed reality – users can see their surroundings in color and overlay virtual objects with 10× the pixel count of Quest 2’s passthrough . With a quick double-tap on the side, wearers can seamlessly toggle between fully immersive VR and mixed reality, blending virtual elements into their real space . This allows experiences like playing a virtual piano on your coffee table or opening a portal in your living room, as Meta showcases . The Quest 3, powered by inside-out tracking and self-contained, represents the mainstream trend toward standalone XR headsets that do both VR and passthrough AR. Meta also offers the higher-end Quest Pro (launched late 2022) oriented at enterprise use with features like eye and face tracking, but the Quest 3 has largely overtaken it for consumers. In addition, Meta introduced updated Ray-Ban Meta smart glasses in late 2023 – while these are camera-and-audio wearables (no display AR yet), Meta’s roadmap includes developing true AR glasses later in the decade.

Advanced VR for Enterprise: Outside the mass market, specialized manufacturers have pushed VR/MR hardware to extremes of fidelity. Notably, Finland’s Varjo released its next-generation Varjo XR-4 series headsets in late 2023, aimed at enterprise and government use. The XR-4 features the highest-resolution displays in any XR device (over 28 million pixels) combined with custom aspheric lenses, foveated eye-tracking, and LiDAR depth sensing . According to Varjo, the result is virtual and mixed reality visuals “practically indistinguishable from natural sight” – a huge claim enabled by human-eye resolution in the center of view and real-time depth scanning. The XR-4 (starting around$3,990) is not for gamers; it’s positioned to “go far beyond consumer-grade headsets” and serve industrial training, simulation, and design where top fidelity is required . In fact, over 25% of Fortune 100 companies use Varjo’s technology for use cases like training pilots and astronauts, speeding up automotive design, and powering medical breakthroughs . Varjo’s systems even achieved regulatory milestones – in 2024, a VR-based pilot training program using Varjo headsets became the first to earn FAA approval toward actual pilot certification . This underscores how professional-grade XR hardware is transforming workforce training. Other startups are also innovating in high-performance XR: for example, Bigscreen Beyond, a VR startup, began shipping an ultra-compact PC VR headset weighing just ~127g (much lighter than typical 500+g headsets) to improve comfort, and companies like Pimax (China) offer wide-FOV, high-resolution VR headsets for enthusiasts. While these remain niche, they showcase state-of-the-art advances in optics, displays, and ergonomics that will trickle down to consumer devices over time.

AR Glasses and Wearables: In parallel, there’s intense development of augmented reality glasses that are lightweight and all-day wearable. Many efforts in the past year focused on making AR glasses more practical for consumers and enterprises. For instance, California-based startup Xreal (formerly Nreal) introduced the Xreal Air 2 series of glasses in 2024 – lightweight smart glasses that connect to phones/laptops. The new Xreal Air 2 Ultra model adds onboard cameras and processors, enabling true spatial computing experiences comparable to pricier headsets from Apple or Meta, but in a \(699 glasses form factor** . These glasses can project a virtual screen or 3D apps into the wearer’s view while remaining visibly like regular sunglasses. Xreal also launched a companion device (Xreal Beam) to run Android apps and content for the glasses . Their strategy of “phone-tethered AR” seems to be gaining traction – Xreal announced in 2024 that it has **sold over 430,000 AR glasses to date and raised\) 60 million for further development . This indicates a growing consumer appetite for affordable AR eyewear that leverages existing devices. Another notable player is Magic Leap, which shifted fully to enterprise AR with its Magic Leap 2 headset (released 2022 but rolled out broadly through 2023–24). Magic Leap 2 features one of the most advanced optic systems in see-through AR, with a wide field of view, high clarity, and robust occlusion of dark objects. It targets use cases like surgical visualization, remote expert support, and 3D design. Magic Leap made headlines in mid-2024 by partnering with Google to combine its optics and AR engineering expertise with Google’s software platforms . This strategic alliance aims to “advance the future of the XR ecosystem with unique and innovative product offerings” – possibly hinting that the next Magic Leap devices will integrate Google’s operating systems or AI capabilities (more on Google’s XR platform below). Beyond these, many other AR wearables emerged: Lenovo’s ThinkReality division, Vuzix, Rokid (China), and others released or announced new smart glasses for enterprise (typically offering heads-up info display or video calls for field workers). While true consumer AR glasses with full 3D graphics remain a challenge (due to optics, battery, and privacy concerns), the past year saw clear progress toward smaller, more powerful AR wearables that inch closer to everyday glasses.

Supportive Hardware and Haptics: XR hardware advances are not limited to headsets. There have been improvements in controllers and input devices – for example, Meta’s Quest 3 controllers feature improved haptic feedback and inside-out tracking (no external sensors needed), and some VR systems (HTC VIVE, Valve) support hand tracking so users can interact without controllers. In haptics, startups like HaptX and Manus are refining haptic gloves that provide force feedback for realistic touch in VR, which saw continued R&D and pilot uses (e.g. in VR training for feeling virtual objects). Additionally, full-body tracking and suits (such as Teslasuit or Sony’s Mocopi trackers) are being used for motion capture and more immersive experiences, though still niche. In spatial computing, there’s also focus on better spatial audio hardware – new headsets (Apple, Meta) incorporate advanced spatial speakers so virtual sounds come from proper directions, enhancing realism. All combined, the hardware ecosystem in 2024–2025 offers a spectrum from cutting-edge high-end XR systems to smaller, more accessible AR/VR devices, setting the stage for broader adoption.

Software and Platform Innovations

Hardware gains have been matched by major software advancements in AR/VR platforms and tools:

• Operating Systems and Toolkits: A significant development came from Google, which in December 2024 announced Android XR, a new open platform built specifically for XR devices . Developed in partnership with Samsung and Qualcomm, Android XR is essentially an XR-optimized version of Android that will power upcoming headsets and smart glasses. Google is providing a developer preview (with support for familiar tools like ARCore, Android Studio, Unity, OpenXR, etc.) so developers can start building apps for upcoming Android XR devices . The first device, codenamed “Project Moohan” by Samsung, is slated for release in 2025 . Android XR also integrates Google’s latest AI assistant (Project Gemini) to enable voice and vision intelligence – e.g. a user can ask the glasses about what they’re seeing, get contextual info, translations, or have the AI help with tasks . This shows a trend of convergence between XR and AI, making software more intuitive. Apple, similarly, has been evolving its visionOS for Vision Pro, adding features like persona avatars and incorporating on-device AI (referred to as “Apple Intelligence” in a 2025 update) for smarter interactions.
• Content and Developer Ecosystems: The XR content ecosystem expanded significantly. Both Unity and Unreal Engine – the two leading 3D engines – released updates to better support AR/VR development. For example, Unity’s 2023 and 2024 versions include built-in support for XR plugins, OpenXR standard, and even specific support for Apple Vision Pro’s unique features . Epic’s Unreal Engine 5 continues to be used for high-fidelity VR experiences and has templates for AR projects. Cross-platform frameworks like OpenXR have gained traction, allowing developers to write an app once and deploy to multiple VR/AR devices. This was underscored by companies like Varjo achieving OpenXR 1.0 compliance for their high-end headsets , and by Microsoft and Meta also aligning to OpenXR on their platforms.
• XR Cloud Services: The concept of the “AR cloud” (a persistent 3D map of the world for shared AR experiences) saw progress. Niantic’s Lightship VPS (Visual Positioning System) expanded to more cities, allowing phones and headsets to localize in specific real-world locations with cm-level accuracy for AR content. Niantic also updated its Lightship AR SDK (e.g. ARDK 3.0) to let developers blend Unity AR experiences with its real-world scanning and multiplayer features . Other players like Snap and 8th Wall (web AR platform) similarly grew their AR cloud offerings, enabling things like location-based AR advertising and city-scale AR games. Microsoft, while stepping back from its own VR hardware, continues to offer Azure Mixed Reality services (like Azure Object Anchors and Remote Rendering) to enterprise developers building cloud-connected AR applications (e.g. visualizing big 3D models via HoloLens or other devices by streaming from the cloud). We also saw more adoption of 3D content standards: USD (Universal Scene Description) is being championed by NVIDIA and others for metaverse interoperability, and glTF for 3D models on the web, helping standardize XR content pipelines.
• Social and Collaborative Platforms: In the past year, there have been upgrades to platforms enabling multi-user XR experiences. Meta’s Horizon Worlds social VR, while off to a slow start, got improvements and opened to web and mobile users to expand its reach (so people can join VR environments from a phone or PC). Microsoft’s Mesh for Teams – which blends mixed-reality avatars and meetings – was showcased and is gradually rolling out, allowing workers to meet as avatars in a shared virtual space via VR or computer. Startups like Spatial and Frame provided browser-based collaborative VR spaces, used for everything from virtual offices to conferences. The enterprise collaboration space is vibrant, with solutions for virtual training sessions, design reviews in VR, and remote assistance via AR (e.g. using a HoloLens or phone to get a remote expert’s guidance overlayed on machinery). The ongoing challenge has been interoperability, but initiatives through the Metaverse Standards Forum (launched 2022) continued through 2024 to align formats and protocols so virtual worlds can connect.
• Creation and AI Integration: Another notable trend is AI-powered content creation for XR. Generative AI is being leveraged to create 3D assets, virtual characters, and even entire virtual environments more efficiently. Companies like NVIDIA introduced tools to generate 3D models from 2D images or to assist in scene creation for simulation. Startups (e.g. Singularity 6 or Inworld AI) are making AI-driven NPCs that can interact naturally with users in VR. Snap’s Lens Studio now has AI features that let creators generate AR Lens effects or even create AR filters via text prompts. The Fast Company “most innovative companies” list for 2025 highlights that Snap’s platform now lets millions of users easily create their own AR Lenses with AI tools . This convergence of XR and AI lowers the barrier to content creation and will likely yield more dynamic, personalized XR experiences moving forward.

Overall, the software stack for XR is maturing: robust OS support (visionOS, Android XR, Windows Mixed Reality), powerful engines and standards (Unity, Unreal, OpenXR), and cloud-backed services to enable rich, shared experiences. This maturation is crucial, as it supports the explosion of use cases for XR across different sectors.

Major Players and Industry Developments

The XR landscape in 2024–2025 involves both tech giants and agile startups, each driving innovation:

• Meta (Facebook): Meta remains the market leader in VR device shipments and continues to invest heavily in the “metaverse” vision. Besides Quest 3 hardware, Meta has been improving its Quest software platform, adding features like Meta Reality mixed-reality APIs for developers, fitness tracking, and better avatar graphics. It has also acquired VR game studios (e.g. the makers of Iron Man VR and Twisted Pixel in 2023) to bolster content. In 2024 Meta emphasized making its social VR more accessible (Horizon Worlds) and integrating work tools – e.g. they partnered with Microsoft so Quest headsets can run Microsoft 365 apps and Teams, aiming at enterprise productivity use . While Meta shelved its earlier consumer AR glasses plans (and its Realtime Ray-Ban glasses remain simple cameras), it reportedly continues R&D on true AR glasses for mid-decade. Globally, Meta’s aggressive pricing of Quest (even cutting Quest 2’s price) and expanding content library (over 5000 apps) have kept it at the forefront, though it faces new competition from Apple and others.
• Apple: Apple’s Vision Pro launch in 2024 is perhaps the most significant new entry to XR. Apple’s approach focuses on a premium, productivity and creativity-oriented MR device rather than pure VR gaming. With its strong ecosystem integration (e.g. iCloud, Apple services, and continuity with Mac/iPhone apps), Apple is carving a niche for “spatial computing” in work and personal productivity (think virtual monitors, 3D design, immersive FaceTime calls, etc.). The company has also been courting developers – by late 2024, Apple announced over 600 Vision Pro apps ready at launch , from office apps to games and entertainment. While initial sales are limited (US only, expanding to more countries in 2025), Apple’s entry has spurred investment across the XR industry, as many see it as a catalyst for mainstream acceptance of AR/MR. There are also rumors of Apple working on a lower-cost version of the headset or AR glasses in the coming years, but nothing official yet. In the meantime, Apple continues to enhance ARKit (its AR developer framework for iOS), which in 2024 gained improvements in scene understanding and rendering, benefiting the massive installed base of iPhones and iPads that do mobile AR.
• Microsoft: Microsoft has pivoted its XR strategy. In October 2024, Microsoft ceased production of its HoloLens 2 AR headset, indicating no immediate successor hardware . The company announced it will “no longer produce HoloLens 2” and has signaled last-call for purchases, though it will support existing devices until end of 2027 . This marked an end (at least for now) of Microsoft’s ambitious HoloLens hardware line that began in 2015. However, Microsoft isn’t exiting XR altogether – instead it stated it will “continue to invest in mixed reality through first-party software solutions and by partnering with the broader mobile and MR hardware ecosystem” . Indeed, Microsoft has taken a partnership route: it has collaborated with Meta to bring Windows 11 streaming and Xbox Cloud Gaming to Quest headsets, and it remains involved in the U.S. military’s IVAS project (an AR combat headset based on HoloLens tech) in partnership with defense firms . Microsoft’s Mesh platform also received updates (showcased at Ignite 2024), indicating that the company sees its strength in collaboration software and cloud services for XR, rather than consumer hardware. We can expect Microsoft to focus on enabling its software (Teams, Dynamics 365, Azure MR services) to work on others’ XR devices.
• Google: After the ill-fated Google Glass and a canceled early AR project, Google has re-emerged in XR through alliances and Android. The Android XR initiative (as detailed above) positions Google to be a key software provider for many OEMs building XR hardware (much as Android is ubiquitous in phones). Google’s partnership with Samsung is especially noteworthy – Samsung is expected to release a mixed-reality headset (likely a high-end device potentially branded in the Galaxy lineup) using Google’s OS and Qualcomm’s XR chips, possibly by 2025 . Additionally, Google in mid-2024 struck a partnership with Magic Leap to collaborate on AR technology , and acquired some R&D teams (reportedly some from HTC’s VR division) . All signs point to Google providing the software ecosystem (Android, Play Store, AI services) for multiple XR devices in the coming years – an approach that could rapidly scale XR to many vendors (from smart glasses like Xreal to VR headsets from Lenovo or HTC). Meanwhile, Google continues to integrate AR features into its core products: AR search results and navigation in Google Maps Live View have become more sophisticated, and Google’s Immersive View (3D map flythroughs) is bridging the gap to XR by letting users explore cities in a quasi-VR mode on mobile. Although Google doesn’t sell a consumer XR device today, its global influence through Android and cloud means it will remain a major player shaping XR’s future.
• Startups and New Entrants: Beyond Big Tech, a host of startups globally are contributing to XR innovation:
  • Hardware Startups: In AR glasses, besides Xreal and Magic Leap, companies like Rokid (China) and Enreal are releasing consumer AR glasses with cinema-like displays. Lynx, a French startup, launched its Lynx-R1 mixed reality headset (small form-factor passthrough MR) to backers in 2023 and is iterating on its design, now also a partner in Google’s Android XR program . Enthusiast VR firms like Pimax (China) and StarVR (Taiwan) push boundaries in specs (e.g. 200° field of view, dual 8K displays). UltraLeap (UK) provides hand-tracking and mid-air haptic modules that are being integrated into other XR products. There’s also movement in components: firms are developing better micro-displays (e.g. OLED-on-silicon, microLED for AR) and optics (pancake lenses are now standard in new VR headsets for slimmer profiles, and companies like Lumus or DigiLens are making waveguide optics for transparent AR). These component innovations often come from specialized startups and will feed the next generations of devices.
  • Content & Platform Startups: On the software side, many startups are tackling specific XR verticals. For example, FundamentalVR focuses on medical simulation – its platform lets surgeons practice procedures in VR with realistic instrument feedback, and this has shown measurable improvement in surgical training outcomes . Squint is a startup that uses AR and AI to train manufacturing workers: its tool can turn a how-to video of a task into an interactive AR guide automatically, helping industrial companies reduce training time . In cultural entertainment, France-based Excurio builds multi-user VR experiences for museums and tourism – in 2024 it ran immersive exhibits where up to 100 visitors don VR headsets to explore 19th-century Paris or ancient Egypt together, drawing in new museum audiences . Social VR startups like VRChat and Rec Room continue to thrive with user-generated worlds and millions of users (notably, Rec Room reported over 3 million monthly VR users in 2024). Roblox also launched on VR (Meta Quest) in late 2023, bringing its huge creator community into VR and exemplifying how gaming platforms are merging with XR. Startups in XR for retail (like AR try-on platforms), XR in real estate (virtual property tours), and location-based VR entertainment (VR arcades such as Sandbox VR, Zero Latency expanding locations worldwide) also saw significant business growth, as discussed in the industry sections below.
  • Global Landscape: It’s worth noting that XR innovation is truly global. In China, the government has a national VR/AR industry plan (to ship tens of millions of devices by 2025) and companies like ByteDance (with Pico headsets) and Tencent are heavily investing. ByteDance’s Pico 4 headset, launched late 2022, continued to sell in Asia and Europe in 2023–24 as a strong Quest alternative (though ByteDance has not entered the US market). Several Chinese AR glasses (Rokid, Nreal/Xreal, etc.) are among the first consumer shipments in that category. South Korea’s Samsung, as mentioned, is re-entering XR in partnership with Google, and its rival LG is also reportedly working on XR devices. Europe hosts high-end players like Varjo and many enterprise-focused XR software firms, and the EU has even discussed “metaverse regulation” and funding programs to support XR content creation . The Middle East, notably Saudi Arabia and UAE, have poured money into metaverse and XR initiatives as part of future-city projects (e.g. NEOM’s digital twin). This global effort means breakthroughs can come from anywhere – for instance, India’s Reliance Jio launched an affordable JioDive VR viewer for smartphones in 2023 to drive VR content in its market, and in Africa XR startups are exploring uses like virtual education in remote regions. Cross-border partnerships (such as Magic Leap + Saudi investment, or Microsoft + Indian HoloLens developers) have also grown. In short, XR is no longer confined to Silicon Valley – it’s a worldwide race, blending big tech resources with startup agility.

Applications and Industry Trends

XR technologies are increasingly applied across a wide range of industries. Below we highlight key developments and trends in gaming/entertainment, healthcare, education, enterprise (workplace and industrial), and retail/marketing, demonstrating how AR/VR is transforming each sector:

Gaming and Entertainment

Gaming remains a primary driver of consumer VR adoption and a fertile ground for AR innovation. In the past year, VR gaming reached new heights: the PlayStation VR2 (launched February 2023) brought high-end VR to console players, with over 100 titles by late 2024 and blockbuster games like Horizon: Call of the Mountain and VR modes for Gran Turismo 7 and Resident Evil 8. While PS VR2 initial sales were modest, the growing library and Sony’s backing have solidified console VR’s presence. On PC and standalone VR, games like Beat Saber (now owned by Meta) continued to top the charts, and new hits emerged – e.g. the tactical shooter “Ghosts of Tabor” surpassed 1 million players and \(30M revenue within a year of its 2023 early access launch, indicating viable success for VR-first titles . Meta’s Quest platform saw more developers cross the\) 1M revenue mark, and the Quest 3’s improved performance is enabling more graphically rich VR games on standalone hardware. Moreover, 2024 saw the arrival of major gaming platforms into VR: as mentioned, Roblox released on Quest, allowing its huge user base to experience user-made games in VR, and Minecraft and Fortnite both have unofficial or official pathways to VR play, signaling that big franchises are acknowledging VR demand.

In augmented reality gaming, the mobile AR phenomenon persists beyond Pokémon GO. Niantic, the studio behind Pokémon GO, launched Monster Hunter Now in late 2023, translating Capcom’s popular franchise into an AR mobile game with location-based monster battles. It quickly amassed millions of downloads, reinforcing that well-designed AR games can engage mainstream audiences. Companies are also blending AR with physical play – for example, Nintendo’s Mario Kart Live and Hot Wheels Rift use toy cars and AR to merge real and virtual play spaces at home. Location-based entertainment (LBE) bounced back as pandemic restrictions eased: AR scavenger hunts, AR-enhanced theme parks, and VR arcade experiences drew crowds. A notable trend is mixed reality gaming using passthrough: with devices like Quest 3 and Apple’s Vision Pro, developers can create games that insert virtual gameplay into your real room (fighting aliens bursting through your walls, etc.). Early MR games are already on Quest (like I Expect You To Die: Home Sweet Home, an escape-room that uses your actual room in puzzles). This MR gaming blur real and virtual, providing a fresh twist that could attract gamers who might find pure VR too isolating.

Social entertainment in XR also grew. Virtual concert platforms like Fortnite’s Party Royale and VRChat hosted more immersive music events. There were also experiments in blending real and virtual concerts – e.g. in November 2024, Apple debuted The Weeknd’s immersive music experience for Vision Pro , and in early 2025 Apple partnered with rock band Metallica to release a concert filmed with 3D 180° cameras for Vision Pro , allowing fans to feel almost present at live shows. These indicate how XR is opening new distribution channels for music and live events, a trend likely to continue.

Healthcare and Wellness

Healthcare has embraced AR and VR for training, treatment, and patient education at an accelerating pace. Medical training using VR has proven effective: platforms like Osso VR and FundamentalVR provide realistic surgical simulations, enabling surgeons and medical students to practice procedures in a safe virtual environment. Hospitals report that this leads to improved skill and confidence – for instance, FundamentalVR’s solution has been used to train surgeons on new orthopedic techniques, letting them repeat procedures virtually and receive performance feedback . By 2024, some surgical residency programs even grant credit for VR training hours. VR is also used to train for rare or complex surgeries that a surgeon might not often encounter in real life, thereby improving preparedness and patient outcomes.

Therapy and mental health applications of XR have also expanded. The FDA-approved VR therapy for chronic pain (AppliedVR’s EaseVRx) gained traction in clinics as a digital therapeutic: patients use a VR headset at home to undergo cognitive-behavioral therapy modules in calming virtual environments, which has been shown to reduce pain levels. VR exposure therapy for phobias and PTSD is increasingly offered by therapists, as it allows controlled exposure to fears (like virtual heights, or simulated combat scenarios for veterans with PTSD) in a safe setting. Notably, some veterans’ hospitals in the U.S. and mental health services in Europe have invested in VR systems for this purpose. VR meditation and wellness apps boomed for consumers – titles like Tripp (a guided meditation in immersive visuals) saw user growth as people seek stress relief in VR. On the AR side, mental health researchers have experimented with AR for treating psychosis (e.g. projecting calming digital avatars to talk patients through episodes) or using AR games to encourage physical exercise and social interaction for those struggling with depression.

In clinical healthcare, AR is aiding surgeons and practitioners during actual procedures. For example, some neurosurgeons now wear see-through AR headsets in the operating room to project MRI and CT scans as a hologram “heads-up display” aligned onto the patient, improving precision. HoloLens and Magic Leap have been trialed for displaying a patient’s vein maps, identifying tumors during surgery, or guiding catheter insertions – effectively giving surgeons x-ray vision. Companies like Medivis and SentiAR developed AR software that lets doctors see 3D anatomy floating over patients in real-time. Early studies report that this can reduce surgery time and error rates. In dentistry as well, AR is used to project guides for drilling and implant placement onto AR glasses.

Another active area is remote healthcare and assistance. AR glasses can enable an on-site nurse or junior doctor to consult with a remote specialist who “sees what they see” through the glasses and can annotate in the wearer’s view (telepresence). This has been piloted in emergency medicine and paramedic response (e.g. an ER doctor remotely guiding a paramedic through a complex intervention via AR overlays). During the pandemic, such use cases were explored to minimize staff exposure – and they continue to find utility in improving access to expertise in underserved areas.

Lastly, the health and fitness sector has seen XR crossover: VR fitness apps (like supernatural boxing, dancing games) are hugely popular on Quest, turning workouts into engaging games. Some gyms started offering VR workout stations. And AR is used in consumer wellness – e.g. smart mirrors with AR overlays for form correction, or AR yoga apps that project a virtual instructor into your room. The coming years will likely see regulated medical XR solutions (digital therapeutics) become more common alongside the still-growing fitness and wellbeing apps.

Education and Training

Education has been a promising arena for AR/VR, and the past year saw wider adoption from K-12 to higher ed and corporate training. Classroom learning with AR became more accessible through tablet and smartphone apps. For example, using an iPad’s AR capabilities, students can now see a 3D model of the solar system hovering over their desk or explore a human cell in AR during biology class. In 2024, publishers released more AR-enabled textbooks – scanning a page with a device might bring up interactive 3D content, like historical figures coming to life or chemical structures popping out. Some schools have experimented with class sets of VR headsets for virtual field trips: Google’s VR Expeditions program (now integrated into Google Arts & Culture) offers guided VR tours of historical sites, underwater ecosystems, outer space, etc., giving students immersive exposure that would be impossible otherwise. The cost of VR hardware dropping has helped here – a Quest 2 or similar can be under$300, making class deployments more feasible, and some educational institutions use simpler smartphone-based VR for introductory use.

At the university level, XR is increasingly part of the curriculum itself. A notable example is Texas A&M University’s Visualization program, which integrated AR/VR production so students learn to create immersive content as part of their studies . More universities now have dedicated XR labs or even degrees in immersive media. They use VR for virtual labs (letting students practice chemistry experiments in VR, avoiding material costs and safety issues) or AR for engineering and medical anatomy classes. Remote learning also benefited: in a “metaversity” trend, a few colleges (like Morehouse College in the US) ran some courses entirely in VR – students and instructor meet as avatars in a virtual classroom or even on a virtual replica of campus, which reportedly increased engagement for remote learners.

Corporate and skills training is one of the strongest enterprise use cases for XR. In 2024, more Fortune 500 firms expanded VR training programs for employees. Examples: Walmart, which had already deployed 17,000 Oculus Go headsets for employee training a few years ago, upgraded to interactive Quest training modules to teach new associates in simulated store environments. Accenture has used thousands of VR headsets to onboard new hires with a virtual campus called the Nth Floor, where employees learn about company culture and meet colleagues’ avatars. VR training is shown to improve retention of information and is used for everything from safety drills (e.g. practicing warehouse machinery operation or emergency evacuations in VR) to soft skills (practicing public speaking or customer interactions with virtual avatars). A study by PwC found VR learners can train up to 4x faster than in classroom settings and with greater emotional connection.

On the AR side, on-the-job training and guidance is big: a technician wearing AR glasses can see step-by-step instructions overlaid on equipment as they perform a task. This “see what I see” guidance not only trains them but also ensures quality. Startups like Squint (as mentioned) use AR to convert expert procedures into on-demand training overlays . Field service technicians in companies like Boeing and GE have AR apps that recognize a machine and overlay wiring diagrams or highlight parts that need maintenance. This year, some companies began pairing AR with AI copilots – an engineer can ask an AR assistant (via voice) for troubleshooting help and the system, using documentation, can highlight likely problem areas on the equipment through the AR display. Such intelligent AR training reduces dependence on printed manuals and can significantly cut training time for complex tasks .

In summary, XR in education and training is moving past pilot stage into broader usage as hardware becomes more affordable and success stories accumulate. It is enhancing experiential learning and helping workers acquire skills in safer, more efficient ways.

Enterprise and Industry

In enterprise settings – from offices to factories – XR is driving new efficiencies and ways of working. A few major trends in the past year include:

• Remote Collaboration & Meetings: Businesses have been exploring VR meeting solutions as a complement to Zoom. With tools like Meta’s Horizon Workrooms, Microsoft Mesh, or Spatial, teams can gather in a virtual conference room as avatars, manipulate 3D models together, or whiteboard on virtual screens. While not yet mainstream for everyday meetings, these have proven valuable for specific cases like design reviews (where a 3D model can be examined by all participants from any angle) or when teams are globally distributed and want a greater sense of presence than video calls. As an example, automaker BMW has used VR for internal design evaluations of car prototypes, saving travel by having designers and engineers meet in VR to inspect life-size virtual cars. Another example: architecture firms during 2024 often met with clients inside a VR model of a building to walk them through the design. The enterprise push is also evidenced by partnerships – Meta and Microsoft’s collaboration means Quest headsets can natively run Microsoft Teams, and Microsoft 365 apps are accessible in VR, aiming to integrate XR with the regular work toolbox . Still, challenges like device comfort for long meetings and software maturity mean these are in early stages, but interest remains high.
• Design, Prototyping and Visualization: XR has become a powerful tool in product design and engineering. Virtual prototyping in VR can save significant time and cost by allowing designers to visualize a product at scale without physical mockups. Companies like Ford have long used VR caves for car design; now they are moving to headsets like Varjo XR for even higher fidelity. In 2024, Varjo noted that using its XR headsets, carmakers cut down design cycles drastically by spotting issues in VR models early . Similarly, aerospace companies use VR to review airplane or spacecraft designs collaboratively. Augmented reality is used on factory floors to overlay digital twins of equipment for planning layout changes or to compare CAD designs with the as-built reality for quality control.
• Industrial Maintenance and Logistics: AR is having a strong impact in maintenance, repair, and operations. Wearing AR smart glasses, technicians can see overlay instructions or even live IoT data from a machine (e.g. temperatures, pressures) while working, which speeds up diagnostics. This year, more companies moved from pilot to deployment – for example, airlines have started using AR for aircraft maintenance: an engineer can pull up wiring schematics in their view rather than flipping through manuals. Logistics and warehousing benefit from AR too: “vision picking” solutions give warehouse pickers AR glasses that highlight the item to pick on a shelf and the optimal route, improving speed and reducing errors. DHL and others have reported double-digit efficiency gains from such AR implementations in warehouses.
• Field Service and Remote Expert Assistance: As touched on in healthcare, this applies to enterprise broadly – a field service worker can call a remote expert who sees a live AR video feed and can draw annotations onto the worker’s view (“turn this knob”, “check this part”). Enterprises in telecom, manufacturing, and energy have expanded use of these AR remote assistance tools to reduce downtime and travel. For example, an offshore oil rig worker can get an expert’s guidance via AR instead of that expert flying out to the rig for a minor issue. This trend has been facilitated by improved connectivity (5G, etc.) and robust software platforms (like Microsoft Dynamics 365 Guides or AR startup platforms like Help Lightning).
• Data Visualization and Analytics: XR offers new ways to comprehend big data. In 2024 some financial and data firms experimented with VR “war rooms” where analysts visualize multidimensional data in 3D space or monitor multiple virtual screens more effectively than limited physical monitors. Likewise, cybersecurity teams used VR simulations to visualize network topologies and cyber attack patterns (a startup called Haiku even built a “cybersecurity metaverse” for training and operations ). While niche, these illustrate XR’s potential beyond physical tasks – reimagining how we interface with abstract data and complex systems.
• Enterprise Adoption and ROI: A notable development is that enterprises now look at XR more pragmatically – success is measured by ROI, not hype. Over the past year, evidence of ROI has grown. A report by PwC and XRA (XR Association) highlighted that well-implemented VR/AR training can yield significant ROI in reduced training time and improved safety. Companies are also recognizing XR’s role in attracting younger, tech-savvy talent and in preserving institutional knowledge (recording expert procedures in AR for future training, etc.). Many large organizations have an “XR strategy” or dedicated innovation teams for XR now. That said, challenges remain such as device management at scale, security (especially for AR recording devices in sensitive workplaces), and content creation costs. The trend is that XR is moving from experimentation to a productivity tool in various enterprise workflows, especially where spatial understanding or remote presence is valuable.

Retail, Marketing and Consumer Engagement

XR is reshaping how consumers discover and interact with products, both online and in stores, leading to the rise of “immersive commerce”:

• AR Shopping and Virtual Try-Ons: By 2024, using AR to try products before purchase became commonplace. Retail accounts for an estimated 55% of AR use cases in 2024 by one analysis . Shoppers can virtually try on clothes, jewelry, or cosmetics through AR filters on their smartphone – for instance, Amazon’s app and Walmart’s app allow customers to see how a shirt or dress might look on their own body using AR and AI (some use a single photo to realistically overlay outfits). Beauty brands like L’Oréal (through its Modiface tech) let users test different makeup shades in AR with high fidelity. Eyewear retailers (Warby Parker, Zenni, etc.) have AR glasses try-on so customers can see frames on their face. This has proven to increase conversion rates – Snap reported that interacting with AR try-on lenses makes users 94% more likely to purchase, and Threekit (a 3D commerce platform) cited up to 40% conversion lift for retailers using AR . Such stats have driven many brands to adopt AR either in their own apps or through Snapchat, Instagram, and TikTok which all offer AR lens shopping experiences. In 2024, Snap even launched a business unit Snap AR Enterprise Services to build AR try-on for other retailers, indicating demand for turnkey AR commerce solutions.
• In-Store AR Experiences: Brick-and-mortar retail also uses AR to enhance shopping. Stores deployed AR mirrors or kiosks – e.g. cosmetic stores have “magic mirrors” where you stand in front of a screen and see virtual makeup applied to your face in real-time. Furniture retailers like IKEA and Home Depot have AR apps to visualize furniture or paint colors in your home (you can point your phone at your living room and see a sofa or a new wall color at true scale). Some grocery stores in Asia introduced AR navigation: hold up your phone and arrows or mascot characters appear on the floor guiding you to the right aisle or offering promotional info above products. Additionally, AR is used in product packaging – scanning a product with your phone might show an interactive animation or additional info (for instance, a cereal box AR experience for kids). These efforts aim to make in-person shopping more engaging and informative.
• Virtual Stores and Showrooms: A few brands have experimented with fully virtual shopping environments. For example, “metaverse” shopping malls or showrooms where your avatar can walk around and view 3D products. While still experimental, luxury brands have created VR boutiques or spaces in platforms like Decentraland and Roblox to build brand engagement among younger consumers. Car companies have virtual showrooms: prospective buyers can put on a VR headset at a dealership (or their own device at home) and virtually sit in a car’s interior, customize features, and take a virtual test drive. During 2024, Ferrari and Lucid Motors rolled out VR showroom experiences. Even after a purchase, AR is used for product onboarding – e.g. when you buy a new appliance, an AR manual can show you how to install and use it by overlaying instructions on the device through your phone.
• Advertising and Marketing: AR advertising grew substantially via social media lenses and WebAR. Brands find AR lenses a compelling way to engage – millions of Snapchat users play with sponsored AR filters (turning into a character, trying a product in AR, etc.), which increases brand recall. In late 2023, Snap reported that over 250 million Snapchat users engage with AR every day. TikTok introduced AR ads that let users virtually place a new TV in their room or see a 3D car model. WebAR (AR experiences launched via a browser, no app needed) also lowered friction for campaigns – for example, a QR code on a bus shelter could instantly launch an AR game or product demo on your phone. Brands like Pepsi, Burger King, and Nike have all run creative AR campaigns (such as “AR scavenger hunts” or interactive AR games tied to promotions). These marketing uses show how AR can capture consumer attention in ways static ads cannot, by making the consumer an active participant.
• Consumer Electronics and Media: XR is even changing how we consume media and electronics. For instance, virtual screens in VR are replacing some use of TVs or monitors – apps like Netflix VR or Virtual Desktop let people watch movies on a giant virtual theater screen or have a multi-monitor computer setup in VR, which is appealing to some and could influence future media consumption habits. Augmented reality is blending with entertainment – popular apps like Pokemon GO continue to release AR features (a 2024 update allowed players to “buddy up” with their Pokémon in AR more interactively), and new AR-capable devices like the Vision Pro mean there’s a push to create immersive 3D movies and sports viewing. Disney has reportedly been working on VR/AR experiences for its content (though they shut down a standalone metaverse division in early 2023, Disney and others are still exploring XR content delivery on platforms like Vision Pro). The concept of “metaverse concerts” and virtual fan experiences (as noted earlier with music) also falls here – essentially new media formats enabled by XR.

In retail and consumer engagement, the overarching theme is blending the digital and physical shopping experience and making marketing more interactive. Companies are finding real value in these XR tools – whether it’s reducing returns because customers picked the right product via AR try-on, or increasing online sales through rich 3D product views. As AR becomes even more accessible (with webAR and more powerful phone AR every year), we can expect these use cases to become standard parts of the shopping journey globally.

Conclusion and Outlook

In the span of a year, AR, VR and XR technologies have made remarkable strides. We’ve seen state-of-the-art hardware like Apple’s Vision Pro and Varjo’s XR-4 push the boundaries of immersive display and input, while mainstream devices like Meta’s Quest 3 and Xreal’s AR glasses make quality XR experiences more affordable and accessible. On the software side, the ecosystem is maturing with cross-platform standards (OpenXR), powerful creation tools, and the infusion of AI to make experiences smarter and content creation easier. Businesses across the world – from gaming studios to hospitals, factories to fashion retailers – are finding novel ways to leverage XR to enhance entertainment, improve training and design, boost productivity, and engage customers.

Not everything is perfect: the “metaverse” hype of 2021-22 has cooled, and with it some over-ambitious projects have been reeled in (e.g. Meta significantly refocused its spending, Microsoft discontinued its own XR hardware). This healthy recalibration means the industry is now focusing on tangible value and usability. Key challenges remain such as miniaturizing AR hardware to true glasses, improving battery life and comfort for long-term use, and ensuring privacy/security as these devices proliferate. There are also policy and societal questions being addressed – for instance, how to establish norms for wearing AR glasses in public, and how to make XR content accessible to people with disabilities.

Looking ahead through 2025, several trends are anticipated:

• Mixed Reality Convergence: Devices that can do both VR and passthrough AR (mixed reality) will likely dominate high-end consumer and enterprise segments. We expect more MR headsets in the vein of Quest 3 and Vision Pro from other players (Samsung’s device, potentially an HTC Vive update, etc.). This convergence gives users flexibility in one device, and could hasten adoption as the use cases multiply.
• Lighter, More Mobile XR: There’s an industry push towards all-day-wearable AR glasses. By late 2025, we may see the first generation of consumer AR glasses that look close to normal eyewear, likely initially tethered to phones for compute. Progress in waveguide optics, microLED displays, and dedicated AR chips (like Qualcomm’s AR2 platform) will drive this. VR headsets will continue to get lighter with innovations like pancake lenses and better weight distribution (as evidenced by devices like the Bigscreen Beyond and Meta’s research into compact optics). This will reduce fatigue and broaden who can use XR comfortably.
• Integration with 5G and Cloud: As 5G networks roll out globally, XR devices will increasingly leverage cloud rendering and edge computing. This means lighter devices can offload heavy graphics processing to the cloud, streaming the results – enabling high-fidelity experiences on portable glasses. Carriers in Asia, Europe, and North America are already partnering with XR companies to ensure their networks are ready for AR cloud services. By 2025, we may see the first cloud XR apps that truly require 5G (e.g. city-wide multiplayer AR games or real-time remote expert guidance with 4K video overlays).
• Content Explosion: With more devices in consumers’ hands, content creation will explode. Expect a wave of new AR games and utilities taking advantage of phone and glasses capabilities, as well as more premium VR titles as the installed base grows. The entry of companies like Apple often galvanizes developers – we’re likely to see innovative apps in the Vision Pro’s ecosystem (productivity, creativity, entertainment) that rethink how we use computers in 3D. Likewise, Google’s Android XR platform could spur a diverse range of apps across many device makers. Tools that let non-programmers create XR content (using AI or low-code platforms) will also democratize development, meaning more user-generated content in the XR space.
• Industry Standards and Interoperability: Through bodies like the XR Association and Metaverse Standards Forum, 2024 saw movement toward common standards. In 2025, we anticipate better interoperability – perhaps avatars that can travel between platforms, or digital assets that can be owned and used across multiple virtual environments (an area where blockchain advocates see a role, although mainstream XR has mostly de-emphasized crypto after the metaverse bubble burst). Governments are also paying attention: the EU is discussing metaverse regulatory guidelines , and countries like South Korea are investing in open “metaverse platforms” that aren’t dominated by a single company. All this suggests that cooperation will be key to growing the XR pie for everyone.

In conclusion, the state-of-the-art in AR, VR, and XR as of 2024–2025 is one of dynamic growth and maturation. What was once confined to labs and niche enthusiast communities is now a global industry delivering real business value and captivating experiences. From a gamer battling robots in her living room with a mixed reality headset, to a surgeon practicing a new technique in VR, to a student exploring an ancient world in AR – extended reality is touching more lives in more ways than ever. The coming years promise further convergence of our digital and physical worlds, with XR technologies playing a central role in how we work, learn, play, and connect. The excitement now is grounded in progress: the long-envisioned potential of AR and VR is steadily becoming reality, one innovative step at a time.

References

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