The Extended Reality (XR) market is expected to grow at a CAGR of 58.2% to reach USD 456.3 Billion in 2030.
Extended Reality (XR) is the mixed term for Virtual Reality (VR), Mixed Reality (MR), Augmented Reality (AR), and all other future realities that this technology could bring. It comprises the entire range of virtual and real surroundings. The Extended Reality (XR) is the juncture of all AR, VR, and MR technologies, which incorporates them together in numerous ways to disrupt ordinary tasks. Furthermore, the increasing trend of shrinking smart devices is one of the major factors driving the demand for extended reality (XR) market. Moreover, augmented reality and virtual reality technologies are proving to be very promising for retailers and media & entertainment industries, which is also anticipated to fuel the demand for extended reality in the near future.
Key Market Drivers and Restraints:
Increasing adoption of gesture-based computing
Gesture controls and gesture-based computing is still in nascent stages. Currently, it’s quite unreliable and comprises sensitive controls. However, for the last couple of years, VR and AR equipment has improved significantly in the form of resolution, factor, and function. The recent generation is much lighter, which allows users to wear it easily and work for a longer period of time. Moreover, hand gesture recognition, particularly in aerospace engineering and AR-based maintenance in automotive, is proving to be very essential. Thus, such a factor is cumulatively driving the demand for extended reality (XR) products & solutions.
High implementation cost
The extended reality is the combination of AR, VR, and MR, and leverages 3D and other advanced technologies to create realistic environments. In addition, it comprises complex and advanced hardware and software that contains very high costs, which in turn increases its overall costs. In addition, the implementation of XR devices and solutions further requires additional costs. Also, the support and maintenance cost further increases the overall cost structure making it very costly to deploy. Thus, such high deployment costs are hindering the extended reality (XR) market growth.
The consumer engagement segment is anticipated to dominate extended reality (XR) market during the forecast period
The consumer engagement segment is anticipated to dominate the market during the forecast period. The growth of this segment is mainly attributed to the growth in demand for XR devices among consumers due to its capabilities of creating realistic illusions. In addition, growing demand from consumers for this technology in numerous industries such as education, retailing, tourism, healthcare, gaming, and others is fuelling the growth of this segment.
Regional Market Scenario:
Asia-Pacific will lead the growth in this market
Asia-Pacific region is projected to hold the highest CAGR during the forecast period. The market growth of this region is mainly attributed to the booming adoption of IoT things and smartphones in countries such as China, India, and Japan. In addition, growth in the adoption of Virtual Reality (VR and Augmented Reality (AR) technologies in the media & entertainment industry and rise in the number of VR and AR applications related training providers are also the major factors contributing to the market growth in this region.
Key Market Players
• Accenture PLC
• Microsoft Corporation
• Qualcomm Technologies Inc.
• SoftServe Inc.
• Northern Digital Inc.
• SphereGen Technologies
• Softweb Solutions Inc.
• Northern Digital Inc.
• VertexPlus Softwares Pvt. Ltd
Extended Reality (XR) Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||USD 456.3 Billion|
|Growth Rate||CAGR of 58.2 % during 2022-2030|
|Segment Covered||By Component, Type, Delivery Model, End User, Region.|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||alespin (US), SphereGen (US), HP Reveal (US), Gofind Inc (US), Dassault Systèmes SolidWorks Corporation (France), Northern Digital Inc. (Canada), Accenture (Ireland), Medtronic (US), Softserve (US), AugRay (US), Mirari LLC.,(US), Agile Lens (US), Semcon (Sweden), Tata Exlsi (India), Qualcomm Incorporated (US), and VRee (The Netherlands).|
Key Segment Of The Extended Reality (XR) Market
By Outlook, 2022-2030 (USD Million)
• Customer Engagement
• Business Engagement
By Type, 2022-2030 (USD Million)
• Mobile Xr
• Pc Tethered Xr
By Component, 2022-2030 (USD Million)
By End-User, 2022-2030 (USD Million)
• Retail And E Commerce
Regional Overview, 2022-2030 (USD Million)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa