5G XR Streaming: The Infrastructure for Industrial VR & AR

With the commercial deployment of 5G, augmented and virtual reality (AR, VR) encompass a host of use cases which, enhanced by edge computing, bring great value to infrastructure providers and enterprise users alike.

Telecommunications providers have invested heavily in 5G and the 5G enterprise market has finally reached a critical mass. The market is projected to grow from $6.18 billion in 2025 to $8.26 billion in 2026^[1], signaling a shift from experimental pilots to full-scale industrial deployments.

While early industry analysis from Bain & Company once highlighted that more than half of telecom executives struggled to find a compelling, near-term business case for 5G^[2], the landscape in 2026 has shifted. Industrial XR streaming has emerged as the definitive solution, providing the measurable ROI and performance that early 5G skeptics found elusive.

Augmented and virtual reality provide one of the most dazzling applications of 5G. Ultra-high bandwidths and low latency as well as the increasing deployment and acceptance of cloud and edge computing powers digital transformation through XR ("Extended Reality" – an umbrella term for all immersive technologies).

Hololight’s XR streaming has effectively overcome the technological hurdles that once limited the potential of AR and VR in 5G scenarios.

New Possibilities with XR Streaming

The limited computing and graphics power of mobile devices such as smartphones, tablets and smart glasses still present a challenge for current and next generation AR and VR use cases. For example, the rendering of 3D content is usually subject to the technical specs (CPU, GPU, RAM) of the XR headset. Consequently, the quality of 3D models and richness of graphics effects are far below what we are used to from modern PC programs. And the performant rendering of complex data is almost impossible.

XR Streaming is the key technology to the limitless usage of mobile applications in AR and VR. Hololight, the leading provider of immersive streaming technology, enables the streaming of entire AR and VR applications in real-time via local servers, cloud, or edge infrastructure. Outsourcing the rendering process to powerful external hardware unlocks unlimited performance. It makes it possible to visualize and experience 3D content in unprecedented detail and complexity. Thus, XR Streaming is now enabling the proverbial killer apps and flagship augmented and virtual reality use cases.

Using the Edge

“More and more AR / VR content will want to be streamed from the telco edge to support more immersive experiences on cheaper headsets,” said Vasanth Mohan, Developer Advocate for the edge computing company MobiledgeX. “The low latency and high bandwidth that 5G and edge computing bring is crucial in making higher quality experiences available to a broader audience.” Whenever real-time data processing is a critical factor, edge infrastructure is a good choice. The move to the edge means that image frames can be rendered much closer to the end-user (compared to the cloud) on a powerful data center grade GPU, further enhancing the use cases. 

Using the edge has the benefits for latency, bandwidth, and security. Before, companies would need to invest in their own on-premises edge sites to gain these benefits. For many industrial and enterprise customers, this investment was necessary to ensure that the applications receive the capabilities required to carry out mission critical processes. However, by utilizing the telco edge, companies get the advantages of edge computing while not having to invest and maintain their own costly infrastructure and avoid wasting time with setup and applications can be used immediately in a flexible way.

With telco edge computing you have the best of both worlds: low latency using a cellular network and the flexibility and scalability of a cloud data center.
– Vasanth Mohan, Developer Advocate, MobiledgeX

The type of distribution and lower technical hurdles through XR streaming will also simplify implementing AR/VR technology for many companies.

Proven ROI: Industrial XR Streaming in Practice

(CR: BMW Group)

Hololight itself has long since implemented their proprietary XR streaming technology Hololight Stream into its 3D CAD Viewer Hololight Space. The German car manufacturer BMW, for example, uses the software to speed up design processes by as much as twelve months, from individual vehicle sections through complex production stages. With the regular computing power of mobile AR devices, this use case would not have been possible. The individual parts of a car are very detailed, complex, and large in file size. With the integration of Hololight Stream into Hololight Space, Hololight created a scalable solution, allowing BMW to visualize their 3D CAD models in very high-quality and without any data preparation.

BMW Success Story

Another use case example paves the way to smart factories. PROFIBUS & PROFINET have introduced omlox, a new global industrial standard for tracking technologies. The independent organization is using XR Streaming for its AR app to combine the world of tracking with augmented reality. Real-time location data like navigation instructions, machine data, tool positions, etc. can now be displayed on mobile AR headsets. Thanks to the Hololight Stream technology, all computing processes such as content rendering and application logic from the omlox system run through a powerful server. The large scope of AR content, again, requires more computing power than mobile devices can provide without overheating and rapidly draining battery life.

Omlox Success Story

Building on these established streaming successes, Hololight has partnered with HTC to provide a turnkey 5G VR streaming solution. This collaboration combines Hololight's XR streaming technology with HTC’s G REIGNS private 5G solution. It offers a dedicated path for enterprises to deploy high-performance, secure, and device-agnostic immersive experiences in environments where traditional network setups may be limited.

Conclusion

For real-time AR and VR, and the associated use cases, ultra-low latency and high bandwidth are so crucial that 5G is more necessary than for many other 5G-enabled use cases. Vice versa 5G needs XR Streaming and edge computing to open the door for industry changing apps and flagship use cases. XR Streaming empowers a way to help telco companies realize a sufficient return on investment (ROI) by enabling real value applications for enterprise companies’ future digital plans.