The Extended Reality (XR) Market is expected to grow by $1.04 trillion (2024-2028), driven by advancements in sensor technology and the impact of AI on market trends
NEW YORK, December 2, 2024 /PRNewswire/ — Report on how AI is redefining the market landscape – The World extended reality (XR) market it is estimated that the size will increase by 1,040 billion dollars from 2024 to 2028, according to Technavio. The market is estimated to witness a growth of nearly 56.45% during the forecast period. Rapid improvements in sensor technology are driving market growth, with a trend towards the advent of 5G. However, infrastructure and integration issues pose a challenge. Major market players include 3D Systems Corp., ABB Ltd., Accenture Plc, Alphabet Inc., Canon Inc., HTC Corp., Intel Corp., Lenovo Group Ltd., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp. , NVIDIA Corp., PTC Inc., Qualcomm Inc., Roper Technologies Inc., Seiko Epson Corp., SoftServe Inc., Sony Group Corp., Tata Sons Pvt. Ltd. and VertexPlus Technologies Ltd.
Technavio announced its latest market research report titled Global Extended Reality (XR) Market 2024-2028
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Forecast period
2024-2028
Reference year
2023
Historical data
2018 – 2022
Segment covered
Application (VR, AR and MR), Components (Hardware, Software and Services) and Geography (North America, APAC, Europe, South America, Middle East and Africa)
Region covered
North America, APAC, Europe, South America, Middle East and Africa
Key companies profiled
3D Systems Corp., ABB Ltd., Accenture Plc, Alphabet Inc., Canon Inc., HTC Corp., Intel Corp., Lenovo Group Ltd., Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp. , PTC Inc., Qualcomm Inc., Roper Technologies Inc., Seiko Epson Corp., SoftServe Inc., Sony Group Corp., Tata Sons Pvt. Ltd. and VertexPlus Technologies Ltd.
Key Market Trends Fuel Growth
The integration of 5G technology into extended reality (XR) applications brings significant benefits. With high bandwidth and low latency, 5G enables the use of AR in live outdoor environments and facilitates cloud gaming. A reliable 5G subscription is necessary for efficient cloud gaming. The lower latency of 5G networks compared to previous generations is crucial for XR applications, ensuring real-time responsiveness for seamless experiences. Vendors like Qualcomm and Samsung are collaborating with telecom providers offering 5G technology. By 2025, the global deployment of 5G is planned. XR applications, such as collaboration and remote learning, benefit from 5G capabilities, thereby accelerating the growth of the XR market.
XR technology, which includes virtual reality (VR) and augmented reality (AR), is revolutionizing various industries. The market for XR devices and content is growing rapidly, with VR headsets and AR glasses leading the way. The gaming industry is a major driver, with XR games and simulations becoming increasingly popular. The healthcare industry is also adopting XR for training programs, simulations and virtual meetings, addressing health concerns such as myopia and enabling remote surgeries. In the hospitality sector, XR improves the guest experience through virtual tours and interactive menus. The software segment, including 5G technology, is crucial for delivering high-quality XR content to users. Mixed reality is expected to gain traction in retail stores, while 5G users will benefit from improved internet connectivity and distribution of processing capabilities. Contemporary physicians and healthcare institutions are exploring XR for medical training and virtual realities to treat target organs. The online entertainment and gaming industry is also adopting XR technology, making it an exciting time for this innovative technology.
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Market Challenges
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The extended reality (XR) market is growing rapidly with applications in various industries such as virtual meetings, online gaming, and contemporary healthcare settings. However, challenges persist. Internet connectivity and accessibility of gaming equipment remain key issues for virtual meetings and online gaming, particularly in developing regions. In the medical sector, doctors and surgeons need real-time target organ identification during virtual realities, which requires the distribution of high processing capabilities. 5G technology is a game-changer, enabling real-time experiences for 5G users in 5G operations. Mobile XR and solo headsets dominate the consumer market, while connected VR headsets are aimed at professional services and industrial training. The e-commerce, entertainment, construction, retail and e-commerce, transportation, and industrial and manufacturing industries are also leveraging XR. Augmented reality technologies, such as live streaming, virtual projects and casting, are transforming industries such as education, festivals, television presentations and corporate events. Developers of Cloud VR-based technologies and programs are essential to the growth of XR Studios. NFTs and advanced human-machine interfaces are the future of XR, with gaming companies leading the way in multi-dimensional Web 3.0.
This extended reality (xr) market report covers market segmentation by
Application
Component
Geography
1.1 VR- The extended reality (XR) market refers to technology that blends the real and virtual worlds. It includes virtual reality (VR), augmented reality (AR), and mixed reality (MR). Companies like Microsoft, Google and Facebook are investing heavily in this area. XR applications span industries such as gaming, education, healthcare, and manufacturing. The market is expected to witness significant growth due to the increasing demand for experiences and interactivity. Businesses can leverage XR to strengthen customer engagement, improve training programs, and streamline operations.
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Research Analysis
The extended reality (XR) market is growing exponentially, transforming various industries with its technologies. Virtual meetings are revolutionizing the way we connect, enabling real-time remote collaborations. Online gaming reaches new heights with XR devices, delivering more interactive and engaging experiences. Internet connectivity and gaming equipment are essential prerequisites for XR technology, ensuring seamless and uninterrupted access to XR content. In healthcare, contemporary doctors and healthcare facilities are leveraging XR for training and surgical procedures, enabling more precise organ targeting and minimally invasive procedures. Virtual realities and augmented reality are revolutionizing education, providing students with learning experiences and simulations. 5G technology and XR technology are synergistic, with the former providing the speed and bandwidth needed by the latter. XR devices and XR content are driving demand, with games and training programs being the most popular applications. The entertainment industry and gaming industry are leading the charge, while the education industry is quickly catching up.
Market Research Overview
Extended Reality (XR), encompassing Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality, is revolutionizing various industries with its experiences. Virtual meetings enable remote collaboration in contemporary healthcare settings, allowing doctors and surgeons to plan target organ surgeries in virtual realities. Medical students can learn through interactive simulations and training programs. In the entertainment industry, XR is transforming online gaming with advanced human-machine interfaces and ultra-high resolution VR glasses. 5G technology and the distribution of processing capabilities enable 5G users to enjoy XR operations in mobile and single-player headsets. Ecommerce and retail leverage XR for virtual projects, live streams, and shopping experiences. Construction, transportation, industrial and manufacturing, festivals, television presentations, corporate events, professional services and XR studios are also adopting XR technologies. Augmented reality technologies, such as NFT and AR in retail stores, are redefining consumer experiences. The software segment, which includes program developers and VR cloud-based technology, is fueling the growth of XR content in education, industrial training and healthcare. The future of XR is multidimensional, merging the physical and digital worlds for a Web 3.0 experience.
Table of contents:
1 Summary 2 Market Landscape 3 Market sizing 4 Historical market size 5 Analysis of the five forces 6 Market Segmentation
Application
Component
Geography
7 Customer landscape 8 Geographic landscape 9 drivers, challenges and trends 10 Business Landscape 11 Company Analysis 12 Appendix
About Technavio
Technavio is a leading global technology research and consulting company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With more than 500 specialist analysts, Technavio’s reporting library includes more than 17,000 reports, covering 800 technologies, spread across 50 countries. Their customer base consists of businesses of all sizes, including more than 100 Fortune 500 companies. This growing customer base leverages Technavio’s comprehensive coverage, in-depth research, and actionable market intelligence to identify opportunities in existing markets and potentials and assess their competitive positions in changing market scenarios.
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