Digital Realty Market Size, Share, and Trends

Digital Realty Market (By Offering: Hardware, Software; By End-user: Aerospace & Defense, Consumer, Commercial, Enterprise, Gaming and Entertainment, Healthcare, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

  • Last Updated : August 2023
  • Report Code : 3202
  • Category : ICT

Digital Realty Market Size and Manufacturers

The global digital realty market is surging, with an overall revenue growth expectation of hundreds of millions of dollars during the forecast period from 2023 to 2032.

Digital Realty Market Size 2023 To 2032

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Key Takeaways:

  • North America dominated the market with the largest market size in 2022.
  • Asia Pacific is expected to expand significant growth in the market during the forecast period.
  • By Offering, the hardware segment held the dominating share of the market in 2022, the segment is expected to continue the trend throughout the forecast period.
  • By End-user, the gaming and entertainment segment dominated the market in 2022.
  • By End-user, the automotive segment is expected to grow at a significant rate during the forecast period.

Digital Realty Market Overview:

Digital reality is generally referred to as the wider variation in technologies that includes virtual reality and augmented reality. The digital reality market encompasses a wide range of immersive technologies that blur the lines between physical and digital worlds. This dynamic sector generally revolves around offering a combination of augmented reality and virtual reality. Virtual reality offers fully immersive digital environments, often used in gaming and simulations, whereas AR overlays digital content onto the real world.

On the other hand, the sector of digital reality also encompasses mixed reality that combines elements of both VR and AR, enabling interactive digital objects to coexist with the physical environment. As the digital reality landscape continues to evolve, it presents both profitable and exciting opportunities for multiple end-user industries including education, e-commerce, automotive, gaming, and even in the healthcare sector.

Growth Factors:

Digital reality is one of the major emerging technologies globally. The digital reality market is emerging due to the increasing investments in innovation of technologies, and the emergence of companies with new ideas. The digital reality market is observed to expand with the rapidly growing internet connectivity across the globe. In addition, the ever-growing expansion of smartphones and other smart devices is observed to play a significant role in the market’s growth. As the focus on advancing virtual and augmented reality technologies increases, the market for digital reality is observed to be accelerated simultaneously.

Digital Realty Market Scope

Report Coverage Details
Largest Market North America
Base Year 2022
Forecast Period 2023 To 2032
Segments Covered By Offering and By End-user
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Digital Realty Market Dynamics:

Driver:

Rising demand from the advertising industry

The use of digital reality for incredibly immersive advertising and marketing allows consumers as well as companies to interact with the product in real-time, resulting in increased transaction volume. As people's dependency on smartphones is growing, many advertisers are focused on mobile advertising in general, enabling further penetration of mobile digital reality advertising.  Additionally, as more large businesses market their solutions, the ASPs of smart glasses and HMDs are likely to reduce. In terms of data presentation, as indicated in the digital reality framework, the advent of low-cost, energy-efficient tiny screens designed specifically for tablets and smartphones could help to speed the market's expansion.

Multiple brands such as Gucci and IKEA have already implemented virtual try-on services for consumers to try products before they buy. Companies can create AR or VR content that aligns with their brand message, this could be in the form of virtual events or online games to promote their brand. Digital reality can offer valuable data on user engagement, preference, and other major factors for advertisers along with proper analytics. Thus, the rising demand from the advertising industry is observed to act as a driver for the market.

Restraint:

Higher cost of operations

The high cost of operation can indeed become a major restraint for the digital reality market. This includes expenses related to technology development, hardware, software and infrastructure. These costs can limit accessibility for both businesses and consumers, potentially slowing down the growth and adoption of digital reality technologies such as virtual and augmented reality. As technology advances and economies of scale improve, it is possible that these costs may decrease over time, making digital reality more accessible.

Opportunity:

Integration of digital reality in the aerospace industry

Digital reality technology offers transformative solutions for various aspects of aerospace operations. In design and prototyping, virtual reality allows engineers to visualize and refine complex aircraft models. Whereas augmented technology assists maintenance technicians by overlying crucial information on real-world aircraft components, enhancing efficiency during repairs.

The aerospace industry can leverage digital reality technologies for multiple other applications. These include pilot training, simulations, prototyping and remote assistance. All these factors present a significant opportunity for the market to grow.

Offering Insights:

The hardware segment dominated the market with the highest market share in 2022. The hardware segment in digital reality includes sensors, motion tracing systems, HMDs, and haptic devices. Many organizations use low-cost, energy-efficient microdisplays which are mainly designed for smartphones and tablets. This element contributes to the demand for hardware solutions in the digital reality market while supporting the segment’s expansion. Reduced prices of data-source hardware components such as sensors, and cameras add a significant element of advantages in the growth of the segment in the digital reality market.

On the other hand, the software segment is observed to grow at a significant rate during the forecast period. The software segment plays a significant role in creating immersive experiences and enabling seamless interactions. The software also enhances real-time experiences or creates entirely virtual environments.

End-User Insights:

The gaming and entertainment segment dominated the market in 2022.  Increasing adoption of virtual reality and augmented reality by the gaming and entertainment industry drives the growth of the segment. The gaming and entertainment segment has been quick to develop compelling content that leverages these technologies, attracting a large user base. Virtual reality and augmented reality revolutionize the ways of interacting with the digital world and provide a better experience that is more engaging and realistic. AR and VR technologies revolutionize the pattern of playing video games.

Virtual reality and augmented reality technologies are also used in the entertainment industry such as it is mainly used in the television and film industry to create a more realistic and immersive viewing experience for the consumer. For example, virtual reality is used for making a virtual movie theater that can be accessible to people around the world. Whereas augmented reality can be used to add an interactive element to traditional films.

On the other hand, the automotive segment is expected to witness a significant rate of growth during the forecast period. The industry is experiencing significant growth as VR and AR technologies are being used for various purposes, such as designing, prototyping and enhancing overall customer experiences. These technologies streamline manufacturing processes, enable efficient collaboration and offer innovative ways for customers to explore and interact with vehicles. As technology advances, the automotive sector is likely to see further integration of digital reality solutions.

Regional Insights:

North America dominated the market in 2022. The region is observed to sustain its dominance throughout the forecast period. North America’s extensive network of venture capital firms and startup accelerators offers as nurturing environment for emerging digital reality companies. This financial support encourages experimentation and the rapid evolution of technologies. North America carries a thriving tech ecosystem that fosters innovation in digital reality. Leading giants such as Google, Facebook, and Microsoft have headquarters in the region, allowing them to invest heavily in cutting-edge research and development.

Digital Realty Market Share, By Region, 2022 (%)

Asia Pacific is expected to witness a significant rate of growth throughout the forecast period. The growth of the region is attributed to the ongoing technological advancements in the region. The increasing population and growth of the healthcare, e-commerce, and automotive sectors create demand for AR, VR, and MR technologies for a better customer experience. Moreover, rapidly growing demand for production and services in the manufacturing industries fuels the growth of the market in Asia Pacific. China, Japan and South Korea have emerged as key players in the market, with their robust tech ecosystems and innovative companies driving innovation. The proliferation of smartphones and affordable VR/AR devices is further accelerating the adoption of digital reality, making it accessible to a wider audience.

Moreover, numerous Indian companies have emerged as key players, developing applications across diverse sectors such as healthcare, education and entertainment. These applications range from virtual classrooms and medical training simulations of interactive marketing campaigns and immersive gaming experiences. In addition, as India continues to invest in research and development for user-friendly experiences, its digital reality market is poised for further growth, potentially contributing to technological advancements.

Recent Developments:

  • In June 2023, Apple introduced its new headset indulged with virtual reality and augmented reality. The headset is one of the most advanced devices in the consumer market that blends real and digital world.
  • In July 2023, the biggest global leader provider for the carrier-and cloud-neutral data center Digital Reality announced their latest data center KIX13 certification in Osaka, Japan as NVIDIA DGX H100-ready.  It is part of the NVIDIA DGX-Ready Data Center program and identifies KIX13’s vision to give a committed and strong environment for employing the intensive computing system.

Digital Realty Market Companies

  • Microsoft
  • Google LLC
  • Apple, Inc.
  • Sony Corporation
  • Blippar Limited
  • Infinity Augmented Reality Limited
  • Niantic, Inc.
  • Zappar Limited.
  • Magic Leap, Incorporated
  • Wikitude GmbH

Segments Covered in the Report:

By Offering

  • Hardware
  • Software

By End-user

  • Aerospace & Defense
  • Consumer
  • Commercial
  • Enterprise
  • Gaming and Entertainment
  • Healthcare
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Frequently Asked Questions

The major players operating in the digital realty market are Microsoft, Google LLC, Apple, Inc., Sony Corporation, Blippar Limited, Infinity Augmented Reality Limited, Niantic, Inc., Zappar Limited., Magic Leap, Incorporated, Wikitude GmbH, and Others.

The driving factors of the digital realty market are the rising demand from the advertising industry and rising emphasis on offering better customer experiences.

North America region will lead the global digital realty market during the forecast period 2023 to 2032.

Chapter 1. Introduction

1.1. Research Objective

1.2. Scope of the Study

1.3. Definition

Chapter 2. Research Methodology (Premium Insights)

2.1. Research Approach

2.2. Data Sources

2.3. Assumptions & Limitations

Chapter 3. Executive Summary

3.1. Market Snapshot

Chapter 4. Market Variables and Scope 

4.1. Introduction

4.2. Market Classification and Scope

4.3. Industry Value Chain Analysis

4.3.1. Raw Material Procurement Analysis 

4.3.2. Sales and Distribution Channel Analysis

4.3.3. Downstream Buyer Analysis

Chapter 5. COVID 19 Impact on Digital Realty Market 

5.1. COVID-19 Landscape: Digital Realty Industry Impact

5.2. COVID 19 - Impact Assessment for the Industry

5.3. COVID 19 Impact: Global Major Government Policy

5.4. Market Trends and Opportunities in the COVID-19 Landscape

Chapter 6. Market Dynamics Analysis and Trends

6.1. Market Dynamics

6.1.1. Market Drivers

6.1.2. Market Restraints

6.1.3. Market Opportunities

6.2. Porter’s Five Forces Analysis

6.2.1. Bargaining power of suppliers

6.2.2. Bargaining power of buyers

6.2.3. Threat of substitute

6.2.4. Threat of new entrants

6.2.5. Degree of competition

Chapter 7. Competitive Landscape

7.1.1. Company Market Share/Positioning Analysis

7.1.2. Key Strategies Adopted by Players

7.1.3. Vendor Landscape

7.1.3.1. List of Suppliers

7.1.3.2. List of Buyers

Chapter 8. Global Digital Realty Market, By Offering

8.1. Digital Realty Market, by Offering, 2023-2032

8.1.1. Hardware

8.1.1.1. Market Revenue and Forecast (2020-2032)

8.1.2. Software

8.1.2.1. Market Revenue and Forecast (2020-2032)

Chapter 9. Global Digital Realty Market, By End-user

9.1. Digital Realty Market, by End-user, 2023-2032

9.1.1. Aerospace & Defense

9.1.1.1. Market Revenue and Forecast (2020-2032)

9.1.2. Consumer

9.1.2.1. Market Revenue and Forecast (2020-2032)

9.1.3. Commercial

9.1.3.1. Market Revenue and Forecast (2020-2032)

9.1.4. Enterprise

9.1.4.1. Market Revenue and Forecast (2020-2032)

9.1.5. Gaming and Entertainment

9.1.5.1. Market Revenue and Forecast (2020-2032)

9.1.6. Healthcare

9.1.6.1. Market Revenue and Forecast (2020-2032)

9.1.7. Others

9.1.7.1. Market Revenue and Forecast (2020-2032)

Chapter 10. Global Digital Realty Market, Regional Estimates and Trend Forecast

10.1. North America

10.1.1. Market Revenue and Forecast, by Offering (2020-2032)

10.1.2. Market Revenue and Forecast, by End-user (2020-2032)

10.1.3. U.S.

10.1.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.1.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.1.4. Rest of North America

10.1.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.1.4.2. Market Revenue and Forecast, by End-user (2020-2032)

10.2. Europe

10.2.1. Market Revenue and Forecast, by Offering (2020-2032)

10.2.2. Market Revenue and Forecast, by End-user (2020-2032)

10.2.3. UK

10.2.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.2.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.2.4. Germany

10.2.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.2.4.2. Market Revenue and Forecast, by End-user (2020-2032)

10.2.5. France

10.2.5.1. Market Revenue and Forecast, by Offering (2020-2032)

10.2.5.2. Market Revenue and Forecast, by End-user (2020-2032)

10.2.6. Rest of Europe

10.2.6.1. Market Revenue and Forecast, by Offering (2020-2032)

10.2.6.2. Market Revenue and Forecast, by End-user (2020-2032)

10.3. APAC

10.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.3.3. India

10.3.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.3.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.3.4. China

10.3.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.3.4.2. Market Revenue and Forecast, by End-user (2020-2032)

10.3.5. Japan

10.3.5.1. Market Revenue and Forecast, by Offering (2020-2032)

10.3.5.2. Market Revenue and Forecast, by End-user (2020-2032)

10.3.6. Rest of APAC

10.3.6.1. Market Revenue and Forecast, by Offering (2020-2032)

10.3.6.2. Market Revenue and Forecast, by End-user (2020-2032)

10.4. MEA

10.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.4.2. Market Revenue and Forecast, by End-user (2020-2032)

10.4.3. GCC

10.4.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.4.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.4.4. North Africa

10.4.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.4.4.2. Market Revenue and Forecast, by End-user (2020-2032)

10.4.5. South Africa

10.4.5.1. Market Revenue and Forecast, by Offering (2020-2032)

10.4.5.2. Market Revenue and Forecast, by End-user (2020-2032)

10.4.6. Rest of MEA

10.4.6.1. Market Revenue and Forecast, by Offering (2020-2032)

10.4.6.2. Market Revenue and Forecast, by End-user (2020-2032)

10.5. Latin America

10.5.1. Market Revenue and Forecast, by Offering (2020-2032)

10.5.2. Market Revenue and Forecast, by End-user (2020-2032)

10.5.3. Brazil

10.5.3.1. Market Revenue and Forecast, by Offering (2020-2032)

10.5.3.2. Market Revenue and Forecast, by End-user (2020-2032)

10.5.4. Rest of LATAM

10.5.4.1. Market Revenue and Forecast, by Offering (2020-2032)

10.5.4.2. Market Revenue and Forecast, by End-user (2020-2032)

Chapter 11. Company Profiles

11.1. Microsoft

11.1.1. Company Overview

11.1.2. Product Offerings

11.1.3. Financial Performance

11.1.4. Recent Initiatives

11.2. Google LLC

11.2.1. Company Overview

11.2.2. Product Offerings

11.2.3. Financial Performance

11.2.4. Recent Initiatives

11.3. Apple, Inc.

11.3.1. Company Overview

11.3.2. Product Offerings

11.3.3. Financial Performance

11.3.4. Recent Initiatives

11.4. Sony Corporation

11.4.1. Company Overview

11.4.2. Product Offerings

11.4.3. Financial Performance

11.4.4. Recent Initiatives

11.5. Blippar Limited

11.5.1. Company Overview

11.5.2. Product Offerings

11.5.3. Financial Performance

11.5.4. Recent Initiatives

11.6. Infinity Augmented Reality Limited

11.6.1. Company Overview

11.6.2. Product Offerings

11.6.3. Financial Performance

11.6.4. Recent Initiatives

11.7. Niantic, Inc.

11.7.1. Company Overview

11.7.2. Product Offerings

11.7.3. Financial Performance

11.7.4. Recent Initiatives

11.8. Zappar Limited.

11.8.1. Company Overview

11.8.2. Product Offerings

11.8.3. Financial Performance

11.8.4. Recent Initiatives

11.9. Magic Leap, Incorporated

11.9.1. Company Overview

11.9.2. Product Offerings

11.9.3. Financial Performance

11.9.4. Recent Initiatives

11.10. Wikitude GmbH

11.10.1. Company Overview

11.10.2. Product Offerings

11.10.3. Financial Performance

11.10.4. Recent Initiatives

Chapter 12. Research Methodology

12.1. Primary Research

12.2. Secondary Research

12.3. Assumptions

Chapter 13. Appendix

13.1. About Us

13.2. Glossary of Terms

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