Industry 4.0 (or 4th industrial revolution) facilitates horizontal and vertical digital information flow along value chains up to the end-customer and is highly relevant in a broad variety of industries. Augmented reality (AR) is a key technology in Industry 4.0, which connects the virtual and real-world environments using such digital information flows. In doing so, the technology relies upon the systems that includes hardware and software components. Particularly, optics and photonics are of much importance in the display and processing of information in these systems. However, a particular challenge is that the AR-based systems have not been adopted in the industry as much as other technologies even after several decades of their existence. Based on review of academic literature, an industrial survey and experiments conducted in the industry, this article aims to identify success factors and challenges of AR systems and metrics of photonic components that can form the basis of an AR* framework for photonics-based system design for future research. @font-face {font-family:“Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;}p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:“”; margin:0cm; mso-pagination:widow-orphan; font-size:10.0pt; font-family:“Times New Roman”,serif; mso-fareast-font-family:“Times New Roman”; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}.MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}div.WordSection1 {page:WordSection1;}