Published Date : 11 Aug 2023
The global extended reality market size surpassed USD 35.14 billion in 2022 and it is projected to attain around USD 345.9 billion by 2030, poised to grow at a CAGR of 33.09% from 2022 to 2030.
In terms of developing technologies, extended reality (XR) includes immersive technologies like virtual reality, augmented worlds, mixed reality, and other potential future realities. Virtual reality (VR), augmented reality (AR), and mixed reality are only a few of the unique technologies included in extended reality (XR). The demand for augmented reality is now increasing steadily from a variety of industrial fields, despite the fact that interest in it has fluctuated significantly over the previous few years. During the forecast period, it is expected that the rising popularity of virtual reality and augmented reality will continue to be the primary driver driving the worldwide extended reality (XR) market.
The market for extended reality technology is projected to increase during the assessment period as a result of the significant increase in disposable income and rising consumer desire for the best possible all-around entertainment experience. While the gaming industry is expected to provide companies in the present extended reality (XR) market landscape a wide range of prospects, other industrial sectors, such as healthcare, education, real estate, media, and entertainment are expected to offer profitable chances. The extended reality (XR) market environment has seen rapid innovation thanks to the exponential growth in smartphone penetration and technological improvements, which has led to an increase in demand.
Regional Snapshots:
The extended reality market in North America is anticipated to expand rapidly over the course of the projection year, mostly as a result of the existence of several suppliers that are investing heavily in market advancements, including Qualcomm and Microsoft. One of the most cutting-edge marketplaces for virtual reality, augmented worlds, and mixed reality (MR) is the United States.
The majority of the businesses developing this technology are situated in the US. Greater accessibility to smart gadgets and increased technological exposure have generated significant demand in the area. Users responded favourably to Microsoft's augmented reality (AR) device, Hololens, which was initially made available in North America.
Additionally, a sizable market share is anticipated for the area. Both direct and indirect methods of utilising these technologies to foster innovation and advance prosperity have been developed by the US government. Additionally, the State Department's Foreign Service Institute has begun using virtual reality (VR) as an immersive learning tool in certain training.
Additionally, a number of training programmes for augmented reality and virtual reality have been put in place to grow local workforces and manage wastewater. Due to its greater exposure to technology and easy access to resources, which fueled a strong demand for all-inclusive reality solutions, the area is also leading the industry. Several regional businesses are integrating cutting-edge technology in their AR/VR devices.
Extended Reality Market Report Scope:
| Report Coverage | Details |
| Market Revenue in 2023 | USD 46.76 Billion |
| Projected Forecast Revenue in 2030 | USD 345.9 Billion |
| Growth Rate from 2022 to 2030 | CAGR of 33.09% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2022 To 2030 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Report Highlights:
Market Dynamics:
Drivers:
Computer technology is used to generate a simulated world as part of virtual reality technology. VR immerses the user into an experience, in contrast to conventional user interfaces. In place of staring at a computer screen in front of them, users are now immersed in and able to interact with a three-dimensional reality. The use of this technology has changed as a result of the simulation of as many senses as is feasible, including touch, vision, hearing, and smell.
In addition, teachers in a variety of educational sectors are increasingly using virtual reality technology, mostly to raise the bar for instruction. For instance, the advent of VR in the educational field has made it possible for students to be fully engaged in a VR setting outside of the boundaries of actual classrooms. Additionally, the technology offers less expensive lessons that are more engaging and visually appealing for the kids.
In recent years, virtual reality technology has also carved out a place for itself in the gaming sector. A more modern gaming age that provides gamers with an immersive first-person perspective experience has taken form thanks to VR. Virtual reality has become more widely available and more reasonably priced thanks to developers like Oculus and HTC over the past few years. Additionally, Oculus unveiled its standalone wireless virtual reality headset Oculus Quest.
Restraints:
The primary difficulty impeding the expansion of the extended reality industry is the health problems caused by excessive usage of gadgets. Although extremely advanced, extended reality technologies have also come under scrutiny for potential health risks. The most frequent risk is users getting hurt when they accidentally run into actual items while immersed in the virtual environment. After utilising extended reality gadgets, some users have reportedly experienced headaches, eye strain, dizziness, and nausea. The University of Leeds' research predicts that 20 minutes of virtual reality exposure will have an impact on certain kids' capacity to judge how far away things are from one another.
Opportunities:
The increasing use of artificial intelligence (AI) technology in virtual reality applications also raises the level of virtual characters. The Chinese internet behemoths Tencent and Baidu have been attempting to incorporate VR and AI into mobile applications and video games. Scalability is another benefit that cloud technologies are bringing to VR companies. The cloud services will be used to store programmes, data, as well as memory in non-real servers and will be streamed it on-demand as the volume of VR-generated data rises. This is also anticipated to fuel continuous service upgrades and VR innovation.
Challenges:
The COVID-19-caused global economic slump poses a danger to the market for extended reality. Due to the unanticipated circumstance of lockdowns in important areas, the continuing epidemic has raised the need for extended reality gadgets (Europe, APAC, and North America). Since the COVID-19, many firms' workers work from home, which raises the need for virtual meetings, training, and conferences. The epidemic has impacted extended reality gadget production all around the world as well. The pandemic's catastrophic effects on the industrial sector have put a stop to the global supply of extended reality gadgets.
Recent Developments:
Major Key Players:
Market Segmentation:
By Type
By Components
By End-Use
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