As per the report by Coherent Market Insights, the global extended reality market is projected to reach a significant value of USD 366.9 billion by 2032. Canada is emerging as a key player in employing this innovative technology for defense training and manufacturing simulation.
Canada is emerging as a key player in employing this innovative technology for defense training and manufacturing simulation. Extended reality (XR), which encompasses augmented reality (AR), virtual reality (VR), and mixed reality (MR), exhibits high potential in transforming industries. It not only revolutionizes training methods but also plays a crucial role in improving operational efficiency and thus has become an irreplaceable tool in sophisticated industries.
For instance, iFood360° is a new program, developed by Food Processing Skills Canada, which aims to provide virtual reality learning experiences to individuals employed in the Canadian food and beverage processing industry. It will also help jobseekers and students in exploring new career opportunities.
(Source: iFood360)
Canada’s Bold Leap into Digital Futures
Canada has been very consistent in demonstrating a strong commitment to digital transformation through the use of new technologies to enhance productivity and innovation across various industries. The Canadian government along with the private sector has made significant investments in digital infrastructure, thereby creating a robust foundation for XR adoption. Initiatives like the Digital Supercluster, which brings together businesses, researchers, and tech innovators, have accelerated the development and application of XR technologies.
For instance, in a Canadian conference first, Future Canada is set to introduce Jessica, an AI-powered Extended Reality (XR) digital companion. This virtual host was developed by combined efforts of technology leader ibentos, VR/AR Association, and Algoma University’s National Centre of Excellence for Immersive Technology. Jessica is an intelligent event companion developed to answer questions, simplify complex technologies, and demonstrate real-world XR and AI applications. This key development shows how Canadian institutions are using cutting-edge technologies to boost local digital innovation and improve user engagement.
(Source: AlgomaU)
How XR is Reshaping Defense and Aerospace Training
Canada’s national defense and aerospace industries are prime examples where extended reality (XR) application is bound to have a profound impact. XR is revolutionizing defense training through the provision of simulation-based combat training, tactical operations practice, and equipment handling exercises in controlled, risk-free environments. These immersive simulations enable military personnel to obtain practical skills without the need for expensive field exercises, thus reducing costs and minimizing risks.
Meanwhile, in aerospace, XR technology is employed in pilot training via virtual cockpits. It enables pilots to practice various scenarios, including emergency landings, in a secure and controlled environment. Canada’s aerospace sector benefits from advancements in XR technology, as seen in Embraer and CAE’s joint venture expansion, in August 2023. Their state-of-the-art E-Jet E2 full-flight simulators enhance pilot training programs globally, showcasing XR’s role in delivering cost-effective, immersive solutions for aviation training and strengthening Canada’s position in aerospace innovation.
(Source: CAE)
Manufacturing Reinvented with XR as the New Assembly Line Tool
Extended Reality (XR) is a major driver of innovation and efficiency in the manufacturing sector, fundamentally transforming every production stage. Manufacturers are using XR to streamline their operations and cut down the costs of production from manufacturing the product to assembly line optimization. Engineers use VR and AR to create product prototypes in a virtual environment where they can easily visualize and test the designs even before starting the physical production. This development process is thus less prone to errors, and it is done faster. On the assembly line, AR tools provide workers with real-time instructions and visual overlays, which result in higher accuracy and efficiency. In addition, employee training can also benefit from XR through simulations that train workers for dangerous scenarios without exposing them to real risks.
Canadian companies such as Precision OS and Scope AR are leading the charge in XR adoption for manufacturing. While Precision OS, originally focused on medical training, has extended its simulations to industrial applications, Scope AR offers an AR-based solution that allows step-by-step real-time troubleshooting and repairs.
Government Acts as Catalyst for XR Growth and Innovation
The Canadian government has provided impetus to the growth of the industry through funding, grants, and strategic partnerships. The Strategic Innovation Fund and the Digital Supercluster Initiative are some of the programs that facilitated the development and usage of XR technologies across sectors in defense, aerospace, and manufacturing. In addition, the government introduced policies and initiatives for research and development in XR.
Canada’s extended reality market is advancing with Virtualware’s VIROO platform, training workers in Windsor-Essex for battery manufacturing. The program has been scheduled to run from February 2025 through March 2026 and received USD 3.8 million in funding from Upskill Canada and the Government of Canada. This innovation addresses challenges in preparing workers for jobs in non-existent physical spaces, thus enabling workforce development in emerging industries.
(Source: XRTODAY)
Canada’s Path to Global XR Leadership
XR is revolutionizing how Canadian businesses operate, offering cost-effective solutions, reducing risks, and enhancing productivity. With strong government support, a thriving ecosystem of innovators, and increasing adoption across industries, Canada is well-positioned to lead the global XR revolution. The future of XR in Canada is bright, and as this transformative technology continues to evolve, the possibilities for innovation and growth are truly limitless.
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