The global extended reality market sizewas nearly USD 32.68 Billion in 2022 and is likely to reach USD 206.01 Billion by 2031, expanding at a CAGR of 22.7% during 2023–2031. Growing demand for multiple applications across several industries such as education, media & entertainment is fueling the market.
Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), and everything in between are all referred to as Extended Reality (XR). Although AR and VR provide a wide range of innovative experiences, XR is powered by the same underlying technologies.
Technology aids in the resolution of business difficulties and the development of innovative solutions in order to increase efficiency and productivity in order to meet the crucial needs of clients.
Several organizations are employing extended reality based apps for operations including retrofitting, assembling, manufacturing, and repairing production lines, as well as tracking, recognizing, and addressing technical concerns. Furthermore, individuals and businesses can interact with highly digitalized information using independent headsets thanks to the integration of AR and VR technology.
Market Trends, Drivers, Restraints, and Opportunities:
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Increasing adoption of extended reality in healthcare sector is expected to boost the market in the coming years.
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Growing demand for extended reality in education sector in order to provide better education to the students is estimated to fuel the market during the forecast period.
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Rising use of smart glass and head-up displays is propelling the market in the coming years’
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Excessive use of extended reality gadgets has been linked to health problems. Thus, it is expected to hamper the market growth in the coming years.
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Lack of strong user experience design and poor growth in developing economies is one of the restraining factor hindering the market growth.
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Ongoing developments in 5G technology and increasing investment by key players in order to improve the technology is anticipated to create a lucrative market opportunity in the coming years.
Scope of the report:
The report on the global extended reality market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Attributes
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Details
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Report Title
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Extended Reality Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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By Types (Virtual Reality, Augmented Reality, and Mixed Reality), Components (Hardware, Software, and Services), End-uses (Education, Automotive, Retail, Manufacturing, Aerospace, Healthcare, Media & Entertainment, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Microsoft, Qualcomm Technologies, Inc., Accenture, SoftServe, SphereGen, Northern Digital Inc, Softweb Solutions Inc., VertexPlus Softwares Pvt. Ltd., Varjo, Talespin Reality Labs, Inc., HP Development Company, L.P., Dassault Systèmes SolidWorks Corporation, Agile Lens, LLC, Semcon, Tata Elxsi, Medtronic, AugRay, Mirari, and VRee
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Extended Reality Market Segment Insights:
The Virtual Reality segment to grow during the anticipated period
In terms of types, the global Extended Reality market is segmented into Virtual Reality, Augmented Reality, and Mixed Reality. The Virtual Reality segment to grow during the anticipated period. Virtual reality technology has carved out a place in the game business. Virtual reality (VR) has formed a new gaming generation that provides players with an immersive, first-person experience.
Virtual reality has become more accessible and affordable in recent years. The Oculus Quest, a standalone wireless virtual reality headset, was also unveiled by Oculus. It's a stand-alone device with an Android-based operating system that can run games and software wirelessly.
It supports positional tracking with six degrees of freedom, using internal sensors and an array of cameras in the front of the headset rather than external sensors. The cameras are also employed in the "Passthrough" safety function, which displays a view from the cameras when a user leaves their assigned border area.
The software segment estimated to grow in the near future
Based on components, the global Extended Reality market is segregated as hardware, software, and services. The software segment is estimated to grow in the near future.
For example, Industrial Software Solutions, an AVEVA SELECT Partner provides augmented operation and maintenance software, AVEVA XR offers a full suite of augmented and virtual reality solutions for creating immersive visual environments for better operations management and digital training simulations. It helps to solve common workforce challenges, improves training speed and consistency, and simulates equipment settings for advanced control and safety situations.
Education segment to grow at a significant pace in the near future
Based on end-uses, the global Extended Reality market is fragmented into education, automotive, retail, manufacturing, aerospace, healthcare, media & entertainment, and others. The education segment to grow at a significant pace in the near future, owing to the strong usage of AR technology by schools and colleges.
As educators seek more innovative ways of teaching and providing dynamic content for students, the COVID-19 epidemic has prompted the use of augmented reality (AR) technology in the education sector. Several educational technology businesses are researching the possibilities of AR technology for educational applications, including Neo Bear, Strivr Labs, Inc., Talespin Reality Labs, Inc., and Health Scholars, among others.
In accordance with the expanding customer desire for online purchasing, virtual platforms are gaining traction in the retail and e-commerce industries. AR technology, in particular, can provide customers with a digital "try before you purchase" experience and assist merchants in drastically lowering return rates. For example, in the classroom uses of Google Arts & Cultures.
Excursions to museums, galleries, theatres, and other places for students have become considerably more difficult to organize in the face of quarantine and a pandemic. This Google software lets students to take a virtual 3D tour of the world's most famous institutions, spend a day at the ballet, and even travel to foreign countries without ever leaving your classroom or home.
North America dominates the global market
In terms of regions, the global Extended Reality market is split into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is expected to dominate the global market during the forecast period, due to the presence of several key players making significant expenditures in industry advances, such as Microsoft and Qualcomm.
Countries such as the United States have been at the forefront of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) development. The majority of the companies working on these technological developments are situated in the United States.
The region's significant demand is due to increased technological exposure and the ease with which smart gadgets can be used. For example, Hololens, Microsoft's augmented reality gadget, garnered a great response from users when it was first released in the United States and Canada.
According the CNBC reports, more than 120,000 Microsoft HoloLens augmented reality headsets will be delivered to the US Army. The contract, which could be worth up to $21.88 billion over ten years, comes after Microsoft was awarded a contract to create prototype headsets for the Army. The contract comes a year and a half after Microsoft earned a cloud contract worth up to $10 billion from the Pentagon.
Segments
By Types
- Virtual Reality (VR)
- Augmented Reality (AR)
- Mixed Reality (MR)
By Components
- Hardware
- Software
- Services
By End-use
- Education
- Automotive
- Retail
- Manufacturing
- Aerospace
- Healthcare
- Media and Entertainment
- Others
By Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
- Microsoft
- Qualcomm Technologies, Inc
- Accenture
- SoftServe
- SphereGen
- Northern Digital Inc
- Softweb Solutions Inc
- VertexPlus Softwares Pvt. Ltd
- Varjo
- Talespin Reality Labs, Inc
- HP Development Company
- L.P., GoFind, Inc
- Dassault Systèmes SolidWorks Corporation
- Agile Lens LLC
- Semcon
- Tata Elxsi
- Medtronic
- AugRay
- Mirari
- VRee
Competitive Landscape
Key players in the global extended reality market include Microsoft, Qualcomm Technologies, Inc., Accenture, SoftServe, SphereGen, Northern Digital Inc, Softweb Solutions Inc., VertexPlus Softwares Pvt. Ltd., Varjo, Talespin Reality Labs, Inc., HP Development Company, L.P., GoFind, Inc., Dassault Systèmes SolidWorks Corporation, Agile Lens, LLC, Semcon, Tata Elxsi, Medtronic, AugRay, Mirari, VRee.
These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.