Is AR Just a Nice-to-Have?
Augmented Reality (AR) has long been associated with futuristic visions of digital transformation. While often celebrated in consumer tech and entertainment, its adoption in manufacturing raises a persistent question: Is AR a productivity revolution or just a flashy “nice-to-have”?
If you think AR’s real value is still theoretical, think again. Over the last decade, forward-thinking manufacturers have adopted AR solutions with measurable gains that go beyond aesthetics. From smarter operations to tangible cost savings, AR is proving its worth. But to fully appreciate its role, you need to take a hard look at its Return on Investment (ROI), which can be both direct and indirect.
This blog explores not only the immediate operational gains of AR but also the less obvious ways it pays off, with concrete examples of real gains experienced by industries already transforming their operations with the AR applications of DELMIA Augmented Experience.
The ROI Impact of AR on Manufacturing Operations
AR in manufacturing isn’t just hype; it increases efficiency, reduces errors, reduces onboarding time, and improves training outcomes, with proven results from companies like Safran and Latecoere.
These outcomes underscore AR’s direct contribution to accelerating production cycles and maximizing throughput and quality, ultimately translating into a stronger bottom line.
Efficiency Gains
One standout advantage of AR is the speed at which it enhances workflows. Imagine an assembly technician following step-by-step instructions superimposed directly onto the part to assemble thanks to AR glasses or an augmented projection system. No need to flip through manuals or memorize procedures—everything is visually intuitive and precise. For example, one of our customers reported a 60% increase in productivity on the assembly process of fixing elements to aerostructures.
Error Reduction
When it comes to assembling complex equipment that is subject to significant configuration variations from one production run to another, the risk of making errors due to misinterpreting paper-based work instructions is high. The same applies to quality checks of multiple elements, where there is always a risk of missing a control point. AR minimizes this risk by offering real-time, comprehensive guidance and error-checking systems. For instance, aerospace giants like Safran use AR to ensure precision in landing gear assembly. The result? Higher-quality output with a significantly lower defect rate—impacting both product reliability and customer satisfaction.
Cost and Time Savings
From expedited employee training to reduced material waste and production downtime, AR addresses multiple cost points. Training new operators often involves weeks of supervision and costly downtime. The use of AR tools on the shopfloor reduces onboarding periods by up to 50%, enabling workers to gain hands-on skills in real-world scenarios without expensive errors.
The ROI of AR can also be indirect
Beyond the quantifiable numbers, AR delivers more than just measurable results—it creates indirect benefits that grow its value over time.
Enhancing Work Comfort and Safety with AR
Augmented Reality improves workplace comfort by simplifying complex tasks and significantly reducing cognitive load. This allows employees to focus more effectively on their responsibilities, leading to higher job satisfaction and increased retention rates. A more comfortable and supportive work environment fosters long-term commitment. Additionally, AR enhances safety by providing real-time warnings within the operator’s field of view, helping to prevent accidents. By streamlining processes and prioritizing employee well-being, AR creates a safer, more efficient, and more satisfying workplace.
Improved Customer Experience
AR impacts the end customer by improving manufacturing quality and delivery timelines. For example, Latecoere—a leading manufacturer of aerostructures—integrates AR for inspections, achieving faster turnaround times without sacrificing quality. Customers receive better products, faster, creating loyalty and repeat business.
Innovation, Competitiveness and Brand Image
AR is a stepping stone toward Industry 4.0, where automation, IoT, and data-driven processes dominate. Early adopters of AR gain a competitive edge, showing they’re willing to innovate and bring cutting-edge practices to their industry. This impacts your brand image and helps attract talent in a competitive job market. Showcasing digital tools appeals to younger professionals and positions your company as innovative.
Real-World Examples of AR ROI
Manufacturers leveraging DELMIA Augmented Experience have reported transformative results across a range of missions.
- One of our customers in the aerospace and defense sector has reported a 34% increase in assembly speed and zero non-conformance for complex parts since implementing the AR solution.
- A leading commercial truck manufacturer deployed DELMIA Augmented Experience to assist with the assembly of harnesses. Thanks to the projection of the harness path directly on the assembly table, takt time for harness assembly was reduced by half and rework dropped by 80%, boosting both throughput and quality.
- Latecoere adopted AR for quality inspections. Compared to traditional methods, the AR-driven approach cut inspection times by up to 30% and identified issues quicker, reducing rework costs substantially.
- Safran, a global aerospace supplier, implemented DELMIA AR across numerous entities of Safran group. As an example, the manufacturer is using DELMIA Augmented Experience for the maintenance activities of landing gears. As a result, incoming inspections became four times more efficient after embracing the AR solution, and for paint masking operations non-quality costs have been divided by 7.
- An industrial equipment manufacturer reported 0 non-conforming parts reaching the next station since implementation of the solution.
- A major aeronautics manufacturer that used to mark the part manually before proceeding to the assembly reduced preparation time from 2 hours to a few minutes by implementing AR-guided projection systems, radically accelerating production time.
These diverse, quantified results echo across various sectors—proving AR isn’t just a future promise, but a present-day catalyst for measurable operational gains.
How to Evaluate the ROI of an AR Solution
Integrating AR is an investment, and like any investment, measuring ROI is essential. Here’s a roadmap to evaluating AR’s financial and operational impact:
- Define Clear Objectives: Pinpoint the operational inefficiencies or pain points AR will address.
- Select ROI Metrics: Choose meaningful benchmarks, such as improvement in throughput or reduction in errors, training time, or material waste.
- Calculate Costs: Include hardware (e.g., AR glasses), software, training, integration, and support costs.
- Measure Outcomes: Compare pre-implementation metrics with results after AR adoption, and look for both direct and indirect benefits.
- Monitor and Optimize: ROI is never static; it evolves as your AR solution adapts alongside your operations. Periodic assessments ensure the technology keeps delivering value.
Investing in AR without a clear methodology for ROI evaluation risks missed opportunities—or worse, wasted budgets. A thorough examination will help you see whether AR is delivering on your goals.
AR in Manufacturing—A Strategic Investment
The ROI of AR isn’t a promise—it’s a proven outcome for manufacturers ready to innovate. From speeding up assembly lines to improving inspections and customer experiences, AR consistently grows its worth. It’s both a short-term game-changer with immediate benefits and a long-term player in building competitive advantage.
For manufacturers looking to stay ahead, AR is a strategic investment, not a luxury. The question isn’t if AR offers ROI, but how quickly you can integrate it to see the results. It’s time to evaluate the numbers and unlock AR’s potential.
Ready to take the next step?
Download our comprehensive e-book, Assessing the ROI Of Your Augmented Reality Project, to get started. Learn how to evaluate the ROI of an AR project and ensure your investment drives measurable results. Additionally, explore our guide, The Top 10 Use Cases of Augmented Reality, delivering value in manufacturing, offering real-world insights and proven applications. Don’t miss these essential resources—download them today and lead the way in AR-driven innovation.
DELMIA Senior Offer Marketing Manager