Logistics is Leader in Adopting Augmented Reality

Oct. 5, 2017
General Electric has seen significant performance improvement in warehousing and logistics, citing a 46% performance increase using smart glasses.

Logistics will account for 24% of global smart glasses shipments in 2017, according to new report ABI Research logistics.

The sector was one of the first markets to adopt and deploy augmented reality, logistics and will continue to be a leading vertical for Augmented Reality (AR) glasses shipments and total value chain revenues.

The shipments of smart glasses for logistics are expected to generate revenue of $52.9 million in 2017 and will grow to $4.4 billion in 2022.

“AR smart glasses pick-by-vision capability frees workers’ hands of traditional paper lists and picking instructions and enables them to work comfortably, safely, and efficiently in warehouses,” says Marina Lu, senior analyst at ABI Research.  

“AR streamlines the work process, and in turn offers compelling ROI to adopters through reduced errors and higher efficiency,” added Lu. “Another primary enterprise-focused use case for AR, See What I See (remote expertise), can drastically reduce travel costs and optimize resources by resolving issues with AR’s real-time remote support that enables communication with remote colleagues, and displays all relevant information like guidelines, and checklists in the field of view.”

One of the companies that have expanded the use of AR is DHL. After completing smart glasses trials in numerous pilot sites across the U.S., mainland Europe, the UK, and the Netherlands, DHL Supply Chain decided to expand AR solutions across different industry sectors globally, as average productivity has universally improved by at least 15%.

DHL has partnered with hardware companies including Vuzix (M100 and M300 Smart Glasses) and Google, along with software provider Ubimax, for their AR logistics solutions.

An earlier user of AR General Electric has seen significant performance improvement in warehousing and logistics as well, citing a 46% performance increase using smart glasses on Upskill’s Skylight platform.

“These early use cases, mainly pick and pack and remote expertise, will always be prevalent, although new use cases will continue to add potential market value,”. concludes Eric Abbruzzese, principal analyst, ABI Research.

“More universal AR use cases, including maintenance and repair, training, and navigation, can be incredibly useful in various parts of the logistic market. While device concerns around comfort, battery, usability, and robustness do persist, advancements in smart glasses, as well as the quickly growing AR-powered mobile device space, promise to lessen these concerns over time. “

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