Despite years of development and substantial investments from tech giants like Apple and Meta, extended reality (XR) remains on the periphery of mainstream adoption, according to Forrester’s latest report.

Forrester defines XR as “a technology that overlays computer imagery on a user’s field of vision, with augmented reality (AR), mixed reality, and virtual reality (VR) technologies that are supported using the same developer tools, sensors and cameras, and simulation engines.” 

New research from Forrester highlights how XR technology is in a multi-year holding pattern. According to Forrester data, 47% of business and technology leaders knew enough about their organizations’ XR plans to report on it. Of them, 35% — or 17% of the total — say they are currently deploying the technology against at least one case study in the organization, with the majority limited to enterprise training and onboarding.

However, its The State of Extended Reality report finds that XR faces high hurdles and a long timeline before achieving widespread market impact.  

Factors such as high hardware costs, user fatigue, and minimal compelling content hinder mainstream adoption of both high-effort devices like Apple’s Vision Pro and low-effort applications such as AR shopping tools. While generative AI (genAI) could potentially revolutionize XR user interaction, its full integration is unlikely to materialise before 2025 or later.  

Key findings from the report include:

  • Enterprise XR usage is limited: Only 17% of organizations are actively deploying XR, primarily for training and onboarding. While enterprise applications show potential, adoption across other functions remains low.
  • High-effort XR faces significant challenges: Devices like Meta’s Quest 3 and Apple’s Vision Pro encounter barriers such as user fatigue, limited software ecosystems, and steep costs (e.g., Vision Pro at $3,499). Even after a decade, Meta’s headsets have only reached 25 million in lifetime sales.
  • Low-effort XR struggles with engagement: Tools like AR-based virtual shopping apps see minimal consumer use due to their low utility and poor awareness, leaving XR stuck between low adoption rates and high expectations.
  • Future hope lies in GenAI integration: Generative AI promises to reshape XR’s potential by offering smarter, more interactive consumer experiences. However, these advancements are unlikely to drive adoption before 2025.
  • Expanding enterprise applications across industries: XR is gaining traction in industries like smart manufacturing, retail, and healthcare by streamlining operations and improving outcomes. From enhancing precision in assembly lines and inventory management to offering immersive retail experiences and supporting surgical training, XR is proving to be a versatile tool driving efficiency and innovation.

“While XR advances like Apple’s compelling but low-selling Apple Vision Pro or Meta’s surprise hit Ray Ban smart glasses suggest a potential revolution in how we will one day interact with information, current adoption remains slow due to high costs and a lack of compelling use cases,” said Dr James McQuivey, VP and Principal Analyst at Forrester. 

“Organizations should approach XR investments with measured expectations, focusing on niche use cases, such as enterprise training, where the technology has already demonstrated clear ROI. With generative AI added to these tools, XR will improve, keeping it on a path to eventually transform business and consumer experiences — just not in 2025.”