Overview of augmented reality

If you’ve ever used a street view service to get to know a neighbourhood before you travel, or an interior decoration app to see what furniture looks like in your living room, you’ve already experienced augmented reality (AR). In entertainment, there are plenty of AR examples: filters that alter the appearance of a person in a photo, games that blend real and virtual spaces, and apps that place virtual characters within a physical environment.

But what is AR for business? It’s technology that meets specific business needs in a number of surprising and innovative ways. It’s also one of the pillars of Industry 4.0, the fourth industrial revolution that’s transforming business just as previous revolutions have in centuries past.

Definition of augmented reality

Augmented reality is an interactive experience that enhances the real world with computer-generated perceptual information. Using software, apps, and hardware such as AR glasses, augmented reality overlays digital content onto real-life environments and objects. This enriches the user experience and transforms one’s immediate surroundings into an interactive learning environment, which is particularly valuable in manufacturing and Industry 4.0 processes. It enables industrial users to become “one” with the systems and machines they work with, and to optimise and augment technology and IoT networks with human ingenuity, observation, and creativity.

How does augmented reality work?

Augmented reality works by superimposing digital information onto real-world objects to create a 3D experience that allows users to interact with both the physical and digital worlds. But AR does not and cannot exist in isolation; its true value lies in being part of a cloud-connected Industry 4.0 ecosystem that incorporates everything from big data to automated robots.

Here’s an overview of the augmented reality process:

1. An AR-enabled device with a camera, such as smart glasses, a tablet, or a mobile phone, analyses a video feed to identify a physical object or the environment around the user, such as a piece of machinery or the layout of a warehouse.
2. A digital twin—a 3D digital replica of the object in the cloud—connects the real and virtual environments. It gathers information from the physical object and digital
3. The augmented reality device then downloads information about the object from the cloud. It superimposes digital information over the object using markers or trackers such as GPS, accelerometers, orientation and barometric sensors, and more. This creates a partly real, partly digital 3D interface.
4. Thanks to real-time data flowing from products, the user can interact with the object or environment by moving around and sending commands to the cloud via a touchscreen, by voice, or with gestures.

What is mixed reality, or augmented reality vs. virtual reality?

While the differences between augmented, virtual and mixed reality are subtle, each type of technology interacts differently with the real and virtual worlds.

• Virtual reality: Virtual reality, or VR, removes people from the real world and fully immerses them in a virtual world using a head-mounted display or headset. In that virtual world of imagery and sounds, users can move around in all directions, manipulate objects, and more. VR is often used in healthcare, architecture, and education.
• Augmented reality: AR enhances, or augments, the real world with digital information. While augmented reality apps operate through mobile devices such as smartphones or tablets, in manufacturing and industrial settings where it is advantageous for the user to have their hands free, glasses or headsets are the optimal gateways to the AR experience.
• Mixed reality: MR blends imagination and reality so that users can both see and interact with the real world and the virtual environment simultaneously. Imagine playing a virtual video game while drinking real coffee and offering an imaginary character some of your coffee in your game—you’re blending realities.

What is augmented reality used for in industry?

In industry, AR can be used for everything from asset identification to knowledge transfer in the field to training. By incorporating the physical with the virtual to enhance the way people work, augmented reality provides workers with more information and context about the product or machines they are working on and the world around them.

AR is commonly used in the following areas:

• Design and product development: Imagine being able to prototype virtual objects that designers and potential users can walk around and examine from every angle? Thanks to augmented reality, digital twins, and the IoT, product designers can bring products to life, test them, and adjust them before anything physical is ever built.
• Maintenance, operational control, and safety: With AR, workers can obtain immediate information on any machine they are interacting with. They can access the latest user manual or connect with an expert anywhere in the world to help them assess or repair an issue. This supports continuous production and non-disruptive performance.
• Employee and operator training and learning: Augmented reality enables employees to be trained on any machine or equipment “on demand,” transforming their immediate surroundings into a continuous learning platform. It can also provide environments and scenarios that allow employees to hone their skills while increasing productivity and safety.
• Quality control: Incorporating AR into quality control and assurance can help prevent defects during production, optimise the production process, and reduce time to market. For example, technicians wearing AR glasses can view a product and obtain information from IoT sensors embedded in the product components that generate information about each part and alert them to issues.

Benefits of augmented reality in manufacturing

Many industries and manufacturers are adopting augmented reality because it drives operational efficiencies by reducing production downtime, identifying problems quickly, and keeping processes moving.

These are some of the key benefits AR provides in industrial and manufacturing environments:

1. Enhanced product development: Implementing AR during the design phase enables designers to meet contemporary consumer demands for shorter product lifecycles and to reduce costs associated with prototyping.
2. Simplified processes: Visualised workflows offering step-by-step instructions can support predictive troubleshooting while reducing mistakes that cause rework and speeding up complex assembly tasks for workers.
3. Streamlined warehouse management: AR can save time by managing stock levels, guiding product picking, minimising downtime by making it easier for technicians to diagnose and fix problems, and enhancing employee training.
4. Increased employee engagement: As AR is a relatively new technology, the immersive nature of the 3D experience and the opportunity to learn by virtually doing remain novel for employees, which enhances their engagement with the task at hand.
5. Reduced risk: AR does not just replace the work or function of real equipment and people; it also creates a safe, experiential learning environment that allows workers to practise tasks virtually without risk. This improves worker safety, inspection, training, and workflow.

AR in manufacturing: Examples of augmented reality in action

Augmented reality is already being widely used in manufacturing in a variety of creative ways.

Businesses are using AR-powered apps to offer step-by-step guides, documentation, manuals and more to help train new staff and upskill existing teams. This type of practical training in digital environments can support or replace human trainers and make the workplace safer. And it’s all possible because AR offers easy access to information from anywhere in the world at any time with 3D models, step-by-step instructions, and opportunities for collaboration.

Imagine creating a digital twin of your factory floor so that workers can carry out maintenance work more efficiently and remotely, and optimise work on production lines. Digital twins can also be used to create mock-ups that show how a finished product will work, incorporate customer requests into designs, and help manage predictive maintenance. Industry 5.0-type integration with digital twin technology, where the digital twin acts as a clone of the physical object paired with IoT, makes this possible.

As a result of the Amazon Effect, today’s customers expect to receive their orders quickly, and AR optimising warehouse management and workflow with augmented reality can help make that happen. With an AR-powered warehouse app, employees can receive information about orders and instructions to fulfil each order most efficiently. The app also scans barcodes for them, saving time on manual barcode scanning. And once the order is complete, the stock system is automatically updated.

Smart manufacturing implementation: Next steps

Smart manufacturing thrives on synchronising processes, enabling capabilities, and empowering people. AR technology plays a key role as part of a suite of Industry 4.0 innovations that work together to create fully optimised operations.

Your Industry 4.0 digital transformation can start from wherever you are today. Every step towards a more connected infrastructure powered by AI and the IIOT brings you closer to a future where advanced technologies combine with human ingenuity to drive efficiency, resilience, and growth. Discover how SAP solutions can help accelerate your smart manufacturing journey.