May 23, 2024

Extended Reality Market Poised to Witness High Growth Owing to Increasing Adoption of AR and VR Technologies

Extended Reality (XR) refers to all real-and-virtual combined environments and human-machine interactions generated by computer technology and wearables. It includes augmented reality (AR), virtual reality (VR), and mixed reality (MR) and comprises interactive technology that merges the real physical world with the virtual world. Extended reality (XR) supplements reality rather than completely replacing it and is utilized in various sectors like education & training, retail, real estate, media & entertainment, healthcare and enterprises. The increasing adoption of AR, VR and MR technologies across different industries is propelling the growth of the extended reality market.

The Global Extended Reality Market is estimated to be valued at US$ 70.05 Bn in 2024 and is expected to exhibit a CAGR of 23.% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the extended reality market are Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation, Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation, Vuzix Corporation, Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture. Key players are focusing on enhancing their product portfolio through mergers & acquisitions and accelerating technology innovation to capture more market share.

The growing demand for extended reality technologies especially from the education and training, retail, real estate, media & entertainment industries is creating huge growth opportunities for market players. Many companies are adopting AR and VR technologies to enhance their customer experience and drive more sales.

The global expansion of key players through collaborations with local players and establishing research & development centers in different parts of the world will further fuel the adoption of extended reality solutions. Companies are strategizing to expand into emerging markets in Asia Pacific, Latin America, Middle East and Africa to tap the growth opportunities.

Market drivers
– Increasing demand for virtual training simulations: Extended reality technologies enable creating highly realistic virtual training simulations for various industries like aerospace, automotive, healthcare, defense etc. This is driving more adoption.

– Immersive shopping and customer experience: Retailers are using AR and VR to provide immersive virtual shopping experiences and interactive product demos to customers. This is positively impacting sales.

Market restraints

– Limitations of current technology: Issues like limited Field of View (FOV), low resolution, high cost of devices, latency and lack of standards are limiting the mass adoption of extended reality.

– Health and safety issues: Prolonged use of VR headsets can cause issues like motion sickness, headaches, eyestrain etc. Strict regulations and certifications are required regarding health and safety.
Here is the segment and global analysis for the Extended Reality Market without mentioning market size, CAGR or conclusion:

Segment Analysis
The extended reality market is dominating by the consumer sub segment. Extended reality devices and apps have gained major popularity among individual users for gaming and entertainment. Technologies like AR and VR bring a whole new level of immersive experience for games and media content which is driving high demand for consumer applications of extended reality. Content creators are also building more AR filters and VR worlds and games for consumer use.

The industrial sub segment is another fast growing segment in Extended Reality Market. Use of AR and VR solutions are enabling industries like manufacturing, healthcare, construction etc to improve workflows and productivity. Applications like remote assistance, staff training and simulation are majorly driving the adoption of extended reality technologies in industries.

Global Analysis
North America region is dominating as well as the fastest growing market for extended reality globally. Early adoption of cutting edge technologies and presence of major extended reality players in the region is supporting the market growth. Asia Pacific is also emerging as another high potential regional market. Countries like China, India, Japan and South Korea are witnessing rising adoption of AR and VR solutions across industries as well as for consumer use due to increasing digitization. Europe is another prominent extended reality market driven by growing industrial and consumer applications of the technology.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it