The global XR market is evolving at a faster pace expected to secure a revenue growth near about USD 500 billion by the year 2028 anticipated to secure a CAGR growth of 65% throughout the forecast period from 2018 to 2028.
The rapid succession in growth can be attributed to the extensive developments and technological advancements in the field of head-pose tracking coupled with massive influx of investments in augmented reality and virtual reality technology propelling the enhancement of the product portfolio with next-generation technology integration. Also, a surge in the demand for enhancing customer experience has been leveraged by technology developers to primarily focus on simulation systems and the experience provided.
The global XR market is largely fuelled by the technological advancements in display systems, advanced motion tracking and the emergence of 5G technology. However, lack of a highly equipped and solid infrastructure along with the interoperability issues associated with immersive 3D graphics and the power and thermal efficiency of standalone headsets are major restrains impeding the potential growth of the global extended reality market.
Extended reality is a larger technology concept that encompasses technologies such as virtual reality, mixed reality and augmented reality integrated independently or altogether to enhance customer experience by entailing complete information of the existing environment or designing a whole new environment providing artificial experiences.
Immersive technologies are focused on extending the reality experienced by amalgamating the virtual and real worlds as done in simulated systems that provide a real world experience or the technology creates a completely immersive experience.
Extended reality is also gaining popularity in the gaming industry as virtual reality preferences soar significantly. XR has transformed into a mainstream technology due to the constant technological initiatives of device manufacturers upgrading the display features.
XR is being adopted at a skyrocketing pace across various industrial and business applications. For instance, businesses are widely benefiting from extended reality technology particularly the online retail industry. retail giants are integrating XR technology allowing individually to virtually try on products such as clothing without having to visit any store while some retailers are using XR to offer a preview of the product eliminating the time and resources wasted in returns and exchange. XR games are growing enormously popular among the GenZ and millennial with emergence of highly novel gaming concepts such as the widespread popularity of Pokémon Go.
Global extended reality market players have a robust foundation standing beside the surging number of new market players entering the industry with a fundamental goal of disrupting the conventional technologies in place. Increasing threat of the young market players and the fast paced up gradation gaming technologies and VR in other fields has resulted in market consolidation.
The major players of the global XR market are Accenture PLC, Qualcomm Technologies, SphereGen Technologies, Northern Digital, SoftServe, Microsoft Corporation, VertexPlus Software, Google, HP Development Company, Samsung, HTC Corporation, Sony, Nintendo, Metaio, Acer, Zappar, Dell Technologies, Seiko Epson, Koninklijke Philips, Aurasma and Softweb Solutions. The XR market is landscape housing well established local players along with international participants. In addition, the recognized industry players are introducing a novel portfolio of product features and technological advancements for attaining a significant identity in the global market
XR Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 500 billion|
|Growth Rate||CAGR of 65% during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Accenture PLC, Qualcomm Technologies, SphereGen Technologies, Northern Digital, SoftServe, Microsoft Corporation, VertexPlus Software, Google, HP Development Company, Samsung, HTC Corporation, Sony, Nintendo, Metaio, Acer, Zappar, Dell Technologies, Seiko Epson, Koninklijke Philips, Aurasma and Softweb Solutions.|
Key Segments of the Global XR Market
Type Overview, 2018-2028 (USD Billion)
- Personal Computer (PC)
Application Overview, 2018-2028 (USD Billion)
- Augmented Reality (AR)
- Virtual Reality (VR)
- Mixed Reality (MR)
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
Reasons for the study
- The primary objective of the study is to allow clientele to benchmark against the rest of the market by delivering an exhaustive and conclusive research on the global XR market.
- Ascertain your competitive advantage amidst the innovations driven by the key market players to enhance industry growth.
What does the report include?
- The research assessment on the global XR market compiles the qualitative factors prominently highlighting the market drivers followed by restrains, opportunities and challenges.
- The study broadly covers competitive landscape comprising of the existing as well as prospective players in the XR industry studying their strategic initiatives focused on product development.
- Report deliverables predominantly discuss the qualitative and quantitative aspects of different market segments based on the type and application along with a similar analysis of the key geographies.
- Accurate forecast estimations, market sizes and share have been incorporated with each of the segment mentioned above.
Who should buy this report?
- The report on the global XR market offers an archive of suitable information for all the market players across the value chain of the technology industry along with products and solution providers, suppliers, distributors and other intermediaries.
- Venture capitalists, equity firms, and regulatory authorities looking for in-depth information on the future outlook of the global XR market.
- Technocrats, system integrators, channel partners and R&D organizations seeking insights reshaping the global XR market.
Rapid evolution in technological advancements with an optimistic emergence of extended reality and the growing demand by the GenZ population for highly realistic simulated experience countering the disparity between the need for an exclusive experience and technological limitations are boosting the manufacturers to scale up research and development in the fields of augmented reality and virtual reality. Increasing business demand for XR technology can be attributed to the rising inclination of business executives towards leveraging XR solutions in order to bridge the expanding gap of physical distance during employee engagement.
Increasing product development initiatives focusing on the introduction of supporting technologies to assist XR platforms such as the development of an electromagnetic sensor-fusion tracking system to aid extended reality based platform are among the strategic initiatives significantly propelling the growth of the global XR market during the forecast years. In additionally, rapidly escalating adoption of gesture-based computing is accelerating the demand for XR technology. Recent generation of VR and AR based equipments display high capabilities with lighter and easy wearable physical traits. Increasing reliance on hand0gesture recognition in the aerospace industry and the increasing adoption of AR-based maintenance services in automotive sector are collaboratively augmenting the growth of the global XR market during the forecast years.
Based on the type, the market is sectioned into personal computer (PC), mobile devices and headset devices. Increasing awareness of the extended reality technology has led to a surge in adoption of the technology by large number of personal computer manufacturers worldwide underlining a sustainable growth of the segment during the forecast. Rising shift from conventional to work from home models is driving the demand for technologically equipped personal computers. Increasing demand for owning next-generation technologies is scaling up the needs of techno-savy customers and gaming enthusiasts towards advanced XR-based devices such as smartphones and headsets contributing to an optimum growth of the type segments during the forecast.
Based on the applications, the market is categorised into mixed reality (MR), augmented reality (AR), and virtual reality (VR). Virtual reality is gaining momentum owing to the capabilities of providing immersive experiences along with content which is completely computer-generated and digital with the help of a VR headset or HMD setup. VR is extensively adopted to replace the existing reality with a 3D simulated digital environment isolating the user from real world. AR works as an overlayer placing the digital content on top of the real world displaying the ability to superficially communicate with the environment in real-time an experience provided via wearable glass device or smartphone applications. MR is a popular amalgamation of the two of the above technologies widely adopted by industries and businesses.
North America is a leading global player of the XR market accounting for a predominant share of the global revenue. The region has been a significant revenue contributor and a flagbearer of multiple technological innovations speeding up breakthrough advancements and driving adoption rate across the region. The air force, military and defense industry in the United States is a prominent customer adopting highly advanced immersive technologies for enhancing the existing curriculum and structure of training programs provided. Military innovation and technological advancements receive enormous capital support from the U.S, government offering heavy investments to focus on training systems based on virtual, mixed and augmented reality with extended reality as the focal point of military advancement. The U.S. displays a very strong geographic footprint with technology giants pacing up advancements in the XR technology platforms. Increasing adoption of smart glass, wearables and head-up displays and other devices is boosting the growth of the market in the region.
NOTE: In September 2020, Facebook introduced Oculus Quest 2 which is the technology giant’s next-gen all-in-one VR technology based headset.