Spatial Computing Market by Technology Type (AR Technology, VR Technology, MR Technology), Component (Hardware, Software, Services), Vertical (Media & Entertainment, Manufacturing, Retail & eCommerce) and Region - Global Forecast to 2028

Spatial Computing Market by Technology Type (AR Technology, VR Technology, MR Technology), Component (Hardware, Software, Services), Vertical (Media & Entertainment, Manufacturing, Retail & eCommerce) and Region - Global Forecast to 2028

The Spatial computing market size is expected to grow from USD 97.9 billion in 2023 to USD 280.5 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 23.4% during the forecast period. The increase in government initiatives, continuous development in 5G technology, and incorporation of spatial computing and adjacent technologies in the aerospace & defense sector offer opportunities to grow the spatial computing market. Strict maintenance and preservation of consumer privacy pose a significant challenge to the growth of the Spatial computing market.

“By component, the software segment to have the highest market share during the forecast period.“

Spatial computing software, encompassing augmented reality (AR), virtual reality (VR), and mixed reality (MR), is being increasingly implemented across a broad spectrum of industries. These software solutions are designed to merge the digital and physical worlds, enhancing the way we interact with our surroundings. In the market, spatial computing software is used for applications ranging from immersive gaming and virtual tourism experiences to revolutionizing industries like healthcare, education, manufacturing, and architecture. In healthcare, for example, surgeons use AR-based software for more precise procedures, while in education, students can engage in interactive and immersive learning experiences. Manufacturing industries are adopting these solutions for product design and quality control, and architects use them for 3D building visualization.

“By hardware, the MR devices segment is expected to grow at the highest CAGR during the forecast period. “

Mixed Reality (MR) devices represent a hybrid approach that blends elements of both Augmented Reality (AR) and Virtual Reality (VR). These devices, such as HoloLens by Microsoft, enable users to simultaneously interact with digital and physical environments. MR devices use spatial mapping, depth-sensing cameras, and a combination of real and virtual content to blend the physical world with virtual objects or holograms seamlessly. MR is implemented in spatial computing by allowing users to place, manipulate, and interact with virtual content in their real-world surroundings. This technology is applied in various professional settings, such as design, engineering, and medical training, where users can visualize and manipulate 3D models in real-time, enhancing spatial understanding and problem-solving.

“By vertical, the media & entertainment segment is projected to record the highest market share during the forecast period.”

The consumer segment consists of gaming & sports and entertainment applications. The entertainment applications include museums (archeology), theme parks, art galleries, and exhibitions. Spatial computing technology offers remarkable results in terms of visual effects when used in gaming and sports broadcasts. The gaming sector has been an early adopter of new 3D and extended reality technologies. These technologies can be used to enhance the gaming experience of players by creating virtual objects and characters that are linked to defined locations in the real world. Players can easily interact with digital objects in the real world.

The breakup of the profiles of the primary participants is below:

By Company Type: Tier I: 29%, Tier II: 45%, and Tier III: 26%

By Designation: C-Level Executives: 30%, Director Level: 25%, and *Others: 45%

By Region: North America: 40%, Europe: 30%, Asia Pacific: 25%, **RoW: 5%

* Others include sales managers, marketing managers, and product managers

**RoW include Middle East & Africa and Latin America

Note: Tier 1 companies have revenues of more than USD 100 million; tier 2 companies’ revenue ranges from USD 10 million to USD 100 million; and tier 3 companies’ revenue is less than 10 million

Source: Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis

Some of the key players operating in the Spatial computing market are – IBM (US), SAP (Germany), Google (US), Microsoft (US), Salesforce (US), AWS (US), Oracle (US), Alibaba Cloud (China), Tencent Cloud (China), and Workday (US).

Research coverage:

The market study covers the Spatial computing market across segments. It aims to estimate the market size and the growth potential of this market across different segments, such as component, technology type, vertical, and region. It includes an in-depth competitive analysis of the key players in the market, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Reasons to buy this report:

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall Spatial computing market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

Analysis of key drivers, restraints, opportunities, and challenges influencing the growth of the Spatial computing market.

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the Spatial computing market.

Market Development: Comprehensive information about lucrative markets – the report analyses the Spatial computing market across varied regions.

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the Spatial computing market.

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Meta, Microsoft, Apple, Sony, and Qualcomm in the spatial computing market.