Companies are experiencing more and more pressure to increase productivity and quality while cutting costs in the digital era. The integration of innovative new technologies in the work process is crucial when transforming businesses to cope with these increasing requirements. In this research article, we investigate the current integration of such an innovative technology - augmented reality (AR) - in the manufacturing industry. For that purpose, we conduct a systematic literature review as well as a practically oriented search for augmented reality use cases in the field of manufacturing. We contribute to the current literature on augmented reality and digital transformation by analysing and synthesizing 95 articles and use cases to identify the current and the potential future role of augmented reality in the manufacturing industry and its impact on different work processes. We show that theoretical proof of concepts articles mostly focus on improving production operations, especially assembly processes, while the majority of practical use cases of currently applied AR solutions involve maintenance and inspection processes. Based on these findings, relevant future work opportunities for researchers as well as practitioners are derived.