Extended Reality Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global Extended Reality Market was valued at USD 123.2 billion in 2022, and CAGR of 31.2% is expected during the forecast period. Extended reality is basically a new concept, that brings the new technologies like cutting-edge, virtual-reality, augmented-reality, and mixed-reality altogether. Extended world is responsible for merging virtual world with future world, and it provides mobility solutions, which is mostly accessible through all electronic devices. Increasing demand to reduce the operational costs of the businesses through extended reality, and to increase the productivity is driving growth in the market. Surge in advancements of 5G technology is driving growth in the extended reality market.

Growth Drivers

Surge in advancements of 5G technology is boosting the product demand significantly, and is expected to drive the growth in extended reality market significantly in near future. Increasing demand for VR headsets in gaming and entertainment applications helps to drive the market growth significantly. VR headset is gradually making an emotional connection with the user. Increasing demand for virtual reality and extended reality for professional training is driving the growth in the market significantly. Increasing demand for extended reality technique to deliver real world experience to the users in healthcare, education, retail, E-Commerce, Gaming, Automotive, Media and Entertainment, and Others.

Increasing demand for extended reality technology in medical fields used by the surgeons to boost their knowledge, and strengthen their skills. Increasing demand for entertainment is another key factor behind the significant growth in the market.

Segmentation

By Application

·         Augmented Reality

·         Virtual Reality

·         Mixed Reality

By Component

·         Hardware

·         Software

By Organization Size

·         Small

·         Medium-Sized

·         Enterprise

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Europe

·         Middle East and Africa

Extended Reality Market by Application Segmentation

On the basis of the application, the extended reality market is segmented into augmented reality, virtual reality, and mixed reality. Virtual Reality is the leading segment, and is expected to dominate the market during the forecast period. It typically leads by application, especially in areas like gaming, and training. VR has a more matured eco-system, with a broader range of content, and application available. AR is rapidly growing, and gaining traction in sectors like healthcare, retail, and industrial sectors, due to its practical use cases. Mixed Reality is still emerging, finding its application in enterprise, and specialized fields like architecture, engineering, and design, where the combination of real, and virtual environment do significantly enhance productivity.

Extended Reality Market by Organization Size Segmentation

On the basis of the size, the Extended Reality Market is segmented in small sized, medium sized, and enterprise sized organizations. Enterprise sized organization is the leading segment, and is expected to dominate the market during the forecast period. It typically have the largest market share in extended reality market, especially in sectors like industrial, training, healthcare, real estate, and enterprise software solutions. Their ability to invest heavily in research and development, as well as their global reach positions them leader. Enterprises have the financial, and technological resources to develop comprehensive XR solutions. Large enterprises are also the primary adopters of XR technologies, using them to enhance operations, training customer engagement, and more companies like Microsoft, and Meta are enterprise players leading the XR space. Surge in advancement in 5G technology is driving growth in the market significantly.

Regional Outlook

On the basis of the regions, the Extended Reality market is segmented into 5 parts: Asia Pacific, North America, Latin America, and Europe. North America holds the largest market due to the presence of major market players in the region, United States the hub of the market. Increasing expenditure on research and development in region is due to increasing growth in technology and innovation, and primarily due to the surge in telecom co. and Other platforms for developing VR tec.

North America, especially United States in particular, with significant investments in VR, particularly in the gaming, entertainment, and enterprise sector. Region’s advance technology infrastructure, high disposable income, and the presence of major tech companies like META and the Microsoft drive the adoption of VR. The region also sees substantial demand in the enterprise sector, particularly for training, simulation, and virtual meetings. Europe has a strong focus on augmented reality, particularly in industrial, and automotive applications. Countries like Germany, and France are leaders in AR for manufacturing, maintenance, and engineering purposes. Region’s emphasis on industry 4.0, and the integration of AR into various industrial processes has made AR the leading segment.

Asia Pacific specially the countries like China, Japan, and South Korea, are leading in mixed reality due to strong focus on innovation, and the integration of MR in various industries, including healthcare, education, and entertainment. Region’s tech-savvy population coupled with government initiatives to promote digitalization, and smart technologies, has fostered the growth of MR applications. Increasing demand for entertainment is the key factor in North American region, Increasing demand for industrial uses is driving the market in Europe, and because of it’s innovative approach and diverse applications Asia Pacific region is excelling during the forecast period.

Presence of key players in North America, and Europe is the key reason behind the significant growth in the market. Middle East and Africa is also witnessing moderate growth during the forecast period. Countries like the UAE, Saudi Arabia, and South Africa are leading in XR adoption due to government initiatives, specially in sectors like education, healthcare, and Retail. Virtual tourism, and immersive entertainment experiences a gaining popularity, especially in the Gulf countries.

Latin America is also seeing increased interest in XR, though at a different pace depending on the country. Brazil, Mexico, and Argentina are leading in the adoption of XR technologies. Increasing demand for 5G technology is witnessed significantly in the region. Economic instability in some countries hinder the growth in the market significantly. Both regions are seeing increasing government support, and investment in digital transformation projects. Reducing costs, and making XR more popular is essential for market growth.

Key Players

·         Qualcomm Technologies Inc.

·         HTC Corporation

·         Meta

·         SOFTENGI

·         AVEVA GROUP Ltd.

·         Softserve Inc

·         SphereGen Technologies LLC

·         Accenture PLC

·         Other Players