Extended Reality Market

The Global

Extended Reality Market is valued at USD 33.3 Billion in 2021

and is projected to reach a value of

USD 161.5 Billion by 2028

at a CAGR of

29.80%

over the forecast period.

Premium Insights

Extended Reality is the term referred to as combining augmented reality (AR) and virtual reality (VR) technologies. Sometimes, the abbreviation "XR" can refer to these technologies. These technologies simulate or create a mirror world with a "digital world" that can be interacted with. The global Extended Reality market is expected to flourish during the forecast period owing to rising demand from the educational sector and industrial training, increasing demand for Extended Reality devices and technology, and rising adoption within the entertainment and gaming industry. Additionally, these devices are being adopted widely due to their cost-effectiveness.

Adopting Extended Reality within the healthcare sector is expected to sustainably propel the market’s growth. Medical practitioners promise a healthier future with the integration of these devices as they offer a reduced cost of treatment solutions and improved outcomes for individuals without the actual treatment. Surgeons can explore the target organ by picturing subtleties of the patients body before initiating any medical procedure. This makes the upcoming procedure a completely risk-free endeavor. A risk-free approach is expected to contribute to the rising adoptive rate of XR devices during the forecast period.

Top Market Trends

1. Commercializing of XR Technology:

Prominent players in the market are focused on commercializing XR devices by identifying increased utilization areas.

2. Increasing Product Launch by Prominent Players:

In December 2021, Mawari, a leading XR streaming solution provider, announced that their 3DXR Content Streaming Platform for the Metaverse would debut on the AWS marketplace. It will be managed and regulated by the software catalog from AWS that will allow consumers to buy, find, and search third-party deployments.

3. Gesture Control Computing:

The Extended Reality market is expected to widen its footprint during the forecast period owing to rising developments in gesture control computing solutions. The rising utilization of gesture control computing with various end-use industries, including gaming, TVs, devices, kiosks, medical, 3D sculpting, engineering, medical professionals, and designers, is expected to surge sales for XR devices.

4. COVID-19 Pandemic:

The pandemic has affected the sales of XR devices positively. Consumers globally found new ways to entertain themselves during the imposed lockdowns. People working from home were presented with new ways to communicate and collaborate to find a new pathway during this crisis. Additionally, the immense application for these devices allowed stakeholders to be present during important events amid the travel restrictions.

5. Expanding Market into Previously Untapped Regions:

The global Extended Reality market is expected to be ripened during the forecast period owing to the rising adoption of such devices from previously untapped countries, including China, India, and Brazil. Rising spending on AR & VR devise within these countries is expected to be observed. This can be attributed to the rising number of startups focused on building a new generation of AR/VR products.

6. Adoption of 5G Networks:

Rising integration of 5G networks among major economies of scale is expected to propel the market demand for Extended Reality market during the forecast. 5G networks allow for faster data transfer, which can launch more AR and VR solutions for mobile-based devices.

Market Segmentation

The global Extended Reality market can be categorized on the following:

Technologies, Offerings, Device Types, Applications,

and

Regions

. Based on Technologies, the market can be categorized into AR Technology, VR Technology, and MR Technology. Furthermore, based on Offerings, the market can be further segmented across Hardware & Software. In terms of Device Types, the market can be further fragmented across AR Devices, VR Devices, and MR Devices. In addition, by the Applications category, the market can be split between Consumer, Commercial, Enterprises (Manufacturing), Healthcare, Aerospace & Defense, Energy, Automotive, and Other Applications. Likewise, based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Technologies

AR Reality to Register Largest Market Share Owing to Expanding Gaming Industry

AR reality is expected to witness the largest market share in revenue and volume during the forecast period. AR technology is being widely accepted within the video game industry. The upcoming gaming age is expected to offer games and an immersive first-person experience that will be made possible with the inclusion of AR technologies. Additionally, in recent years, virtual reality technology has improved in terms of affordability and accessibility. The VR reality segment is expected to grow with the fastest-growing technology due to an overwhelming response from its users.

Based on Offerings

Software to Occupy the Largest Market Share while Hardware to Grow with the Fastest Growing CAGR

The software segment will register the largest market share during the forecast period. Factors such as prominent players offering a wide range of virtual and augmented reality solutions for generating immersive visual surroundings. These solutions are expected to increase program management and digital training solutions. Additionally, players, including, Industrial Software Products, an AVEVA SELECT Partner are offering augmented maintenance and operations software upgrades regularly. Hardware will grow with the fastest-growing CAGR during the forecast period owing to rising AR and VR headsets sales.

Based on Device Types

Artificial Reality to Witness Largest Market Owing to Rising Adoption of Gesture-based Computing

The artificial reality device type is expected to witness the largest market share in revenue. Studies have indicated that there will be a rising adoption of gesture-based computing, wherein the human body interacts with digital resources without using common input devices. These devices include a keyboard, mouse, game controller, or voice-entry mechanism. The most common application for these devices will be within the gaming industry, paving the way for higher segmental growth during the forecast period. However, virtual reality devices will grow with the fastest growing CAGR during the forecast period owing to rising integration within the healthcare sector for performing a wide range of minimally invasive procedures.

Based on Applications

Commercial Usage to Grow with Rising Adoption Within the Education Sector

Rising integration of AR technologies within colleges and schools will propel the segmental growth for the commercial segment during the forecast period. The ongoing pandemic forced a system of distance learning for many students as instructors looked for more innovative methods for teaching dynamically. Numerous companies in the educational sectors, including Neo Bear, Strivr Labs, Corporation, Talespin Reality Labs, Corp, and Health Scholars, have begun investing in introducing a wide range of products for the educational sector. The consumer segment will grow with the fastest growing CAGR during the forecast period owing to VR technology integration in shopping platforms as a "try-before-you-buy" solution.

Based on Region

North America to Account for the Largest Market Share Owing to Progressive Technological Advancements

The Extended Reality market in North America is expected to occupy the largest market share during the forecast period owing to the presence of many prominent players such as Microsoft, Facebook, Qualcomm Incorporated, Unity Technologies, Adobe Inc., and Alphabet Inc, among others. The United States has spearheaded the development of AR, VR, and MR technology during the development phase. Higher demand for such products from the region can be attributed to growing technological exposure to consumers and increasing accessibility and availability of these devices at an effective price.

Europe is expected to grow with the fastest-growing CAGR during the forecast period owing to rising technological adoption in the region. Additionally, increasing the adoption of AR and VR training and simulations in the manufacturing sector will prove fruitful for the Extended Reality market during the forecast period.

Competitive Landscape

The prominent global Extended Reality market leaders constantly focus on product innovation and upgrading their portfolios. An ongoing trend of launching products for the healthcare sector is on the rise. These devices offer support for minimally invasive heart procedures and clinical support. Manufacturers are focused on increasing lens production and glass & infrastructure equipment during the forecast period to accommodate the increased demand.

The key players in the global Extended Reality market are Accenture PLC (Ireland), among others.

Recent Market Developments

·

November 2021:

Immersivecast announced they would launch the XR Metaverse Workspace. This product launch is a service environment expected to enable multi-dimensional Web 3.0 that will further integrate NFT, AR, and VR processes. This will streamline the creation of content for many end users. This product unveiling is expected to create a first-ever 5G network slicing test with Deutsche Telekom, Samsung, and Ericsson.

·

September 2021:

Facebook Inc. said they would be investing USD 50 million to engage with organizations to build metaverse sustainably. Facebook announced that they had invested significantly in an augmented reality environment wherein people can interact with various gadgets. The new XR programs and Research Fund is expected to spend internationally over two-plus years to ensure the Metaverse technology is being implemented inclusively.

·

December 2021:

HTX Labs, a leader in providing immersive learning solutions, announced that they received a reward for a new Small Business Innovations Research (SBIR) phase II contract from the US Air Forces 821 Contingency Response Squadron (CRS). The SBIR contract expands the companys EMPACT immersive training platform for better development, creation, and deployment of immersive environments. This development is expected to improve CRS mobility on a global scale.

·

December 2021:

Oppo announced they were unveiling the Air Glass, an AR glass that will feature a Cicada Wing Design and an internally developed Spark Micro Projector. These Air Glasses offer diffraction and waveguide displays that can support various functionality through inputs such as touch, voice, head tracking, and gestures. Oppo has announced that the integration of glasses with the rest of its ecosystem will enable a seamless experience for its consumers.

Segmentation of the Global Extended Reality Market