Global Extended Reality Market Size, Share & Trends Analysis Report, By Technology, By Offering, By Device Type, By Application, By Region Forecasts, 2023 – 2030

Global Extended Reality Market Size, Share & Trends Analysis Report, By Technology, By Offering, By Device Type, By Application, By Region Forecasts, 2023 – 2030

The Extended Reality Market was amounted at US$ 48.78 billion in 2022 and is projected to grow to US$ 752.54 billion by 2030 at CAGR of 34.21% during 2023-2030.

Throughout the projected period, a number of critical factors is likely to propel the expansion of the global extended reality market. These include the growing trend of smart device miniaturisation and the rising use of gesture-based computing. In addition, growing consumer demand for VR gaming and entertainment devices along with ongoing 5G technological advancements is anticipated to support market expansion. Nevertheless, over the projection period, the marker expansion is hindered by expensive implementation, installation, and maintenance costs, as well as by display latency and a narrow range of view. A profitable growth opportunity is presented to the market by factors including the growing desire for a stimulating digital environment and technical improvements and developments. The preservation of customer privacy, however, is anticipated to present difficulties for the expansion of the worldwide extended reality business.

“VR technology segment, by technology, to be fastest growing market from 2023 to 2030.”

Virtual reality and alternate reality games provide a futuristic outlook in the gaming industry. Customers can use XR to customise how they interact with data and analytical representations of games from the past or present. Parallel to this, virtual reality headsets are being used more and more by the entertainment industry to give viewers an immersive experience by letting them see 3D objects from different angles. Creating an emotional connection with the user through the VR headset is getting more and more popular. This promotes market expansion by raising the demand for virtual reality headsets in gaming and entertainment applications.

“Software segment, by offering, to be dominating market from 2023 to 2030.”

The dominance of the market is due to the widespread use of various extended reality technologies, such as AR, VR, and MR. AR/VR apps are used by retailers such as Walmart and IKEA to enhance their customers' shopping experiences. Furthermore, software developers are under increased pressure to produce innovative and imaginative gaming apps due to the growing popularity of AR/VR apps. This is expected to support the market's expansion in the next years.

“AR Devices segment, by device type, to be dominating market from 2023 to 2030.”

Throughout the projected period, technological breakthroughs and improvements in AR devices are anticipated to support market expansion. For example, in 2023, the Chinese tech company Xiaomi released a prototype of augmented reality spectacles, joining forces with Google and Microsoft. The Xiaomi Wireless AR Glass Discovery Edition is the newest in a series of augmented reality devices that also includes Microsoft's HoloLens and Google Glass Enterprise. It features gesture controls.

“Automotive segment, by application, to be fastest growing market from 2023 to 2030.”

The growth may be attributed to automakers' increased focus on enhancing the customer experience. XR solutions are used by automakers to teach their staff. Ford, for example, set up a virtual laboratory for developing prototypes, while Maruti Suzuki set up a chain of training centres based on simulation all over India. Additionally, automotive dealerships use AR and VR technologies to enable customers to virtually and safely test-drive new car features. To speed up the repair process, the crew also makes use of these instruments. Porsche technicians, for instance, can instantaneously study schematic schematics of cars using AR glasses, which cuts down on repair resolution times by 40%. Consequently, continued expansion in the area is expected.

“North America to be largest region in extended reality market.”

North America has the largest extended reality market share due to the region's large number of industry participants. During the projection period, the region is expected to exhibit a CAGR of approximately 31.4% and take the greatest market share of almost 40%. The region benefits from opportunities to engage with state-of-the-art technology, and the increasing trend of smart device usage is increasing demand for extended reality experiences. Moreover, greater investment in infrastructure development facilitates the integration of XR, offering unprecedented connectivity between the US and Canada.

Extended Reality Competitive Landscape

The competitive landscape of the Extended Reality market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Extended Reality technology holds the potential for profitability. This is due to its versatile applications across various industries and its alignment with products. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Extended Reality market is highly competitive, with numerous companies vying for market share. Prominent companies in the Extended Reality Market include:

Meta Platforms, Inc., Sony Group Corporation, Microsoft, Apple Inc., Google, PTC Inc., Seiko Epson Corporation, HTC Corporation, Qualcomm Technologies, Inc., Lenovo, Intel Corporation, Samsung Electronics Co., Ltd., Panasonic Holdings Corporation, Continental AG, Visteon Corporation, Eon Reality, Xiaomi Corporation, Magic Leap, Inc., Virtuix, Ultraleap, Maxst Co. Ltd., Vuzix Corporation, Tata Elxsi, Northern Digital Inc., Fusion VR, and others.

Recent Developments:

February 2023: OnePlus, in collaboration with Qualcomm, enabled developers to create a user-friendly XR environment and integrated the Snapdragon Spaces extended reality technology into the OnePlus 11 5G. Customers will be able to watch films and live concerts on digital platforms thanks to this partnership, and developers will be able to produce immersive gaming experiences.

January 2023: CYENS announced the start of the XR4ED (Extended Reality for Education) programme. The XR4ED programme brings together a wide spectrum of stakeholders working in the fast emerging field of extended reality, with a focus on immersive technologies.

January 2023: Mapstar, the XR Map-based Metaverse that allows users to quickly create new digital realities by mapping the environment in 3D and anchoring digital assets, unveiled its augmented reality on-site editing, LiDAR, XR-layer, and VR capabilities with the goal of enhancing the in-store shopping experience for mall patrons.

October 2022: Ericsson and the University of Texas at Austin expanded their research partnership to deliver seamless and immersive XR experiences to consumers.

June 2022: Enhatch teamed with Holo-Light, a developer of immersive technology, to develop an XR streaming platform for surgical training that utilises both AR and VR technologies. This tool facilitates the viewing of high-resolution 3D models during surgery, improving surgical outcomes.