Extended Reality (XR) Market Size (2024 - 2029)

Extended Reality (XR) Market Analysis

The Extended Reality (XR) Market size is expected to grow from USD 105.58 billion in 2023 to USD 472.39 billion by 2028, at a CAGR of 34.94% during the forecast period (2023-2028).

• Extended reality (XR) is a new umbrella word for immersive technologies, including virtual reality, augmented reality, and mixed reality, as well as other future realities that these technologies are expected to bring. The market need is driven by increased demand for shorter distances between individuals and better visual information.
• The notion of live virtual entertainment is spreading worldwide. People prefer at-home entertainment using technologies to attend live shows or events. With technology providing consumers with an immersive and real-world experience, the demand for live concerts, live shows, and sports is increasing substantially.
• Gesture-based computing refers to interfaces that employ the human body to communicate with digital resources rather than traditional input devices such as a game controller, a mouse, a keyboard, or a voice-entry method. The advent of the mouse enabled computer input to evolve beyond the linear dimension of the keypad to two dimensions; gesture-based technology is the next stage in that development, providing three-dimensional input that incorporates people in the computing process.
• The miniaturization trend and improvements in smart devices are expected to result in ever smaller sensors and electronic systems that can be integrated into the human body. Smart gadgets and many other Internet of Things (IoT) applications are driving the miniaturization trend.
• Training a larger audience is one of the most challenging difficulties confronting XR technology. The current applications in development (for usage on tablets, smartphones, and wearables) are restricted to a single user. To make XR more accessible, multi-user, consistent, and simplified experiences must be created. The availability of such solutions in the present market scenario is restricted, posing a substantial impediment to the industry's growth.
• Physical lockdowns in key locations had a favorable impact on XR technology demand. During COVID-19, businesses worldwide discovered methods to encourage their internal and geographically dispersed employees to connect, coordinate, and chart a course ahead.
• The broad possibilities of XR applications in terms of replicating tourist satisfaction enable several stakeholders to overcome restrictions on travel and lockdowns, enabling the crisis to work as an accelerator of current trends for XR adoption.
• Players are using the new normal working circumstances in the industrial setting. Oft Serve Inc., for example, provides a diverse range of products for various applications, including medical, which grew rapidly during the COVID-19 outbreak. Further, various companies in the market are involved in various strategies to meet the growing demand for XR in the post-COVID-19 scenario.

Extended Reality (XR) Industry Segmentation

Extended reality (XR) is an umbrella term encompassing augmented and virtual reality, covering a full spectrum of real and virtual environments. XR experience also caters to business issues and creates innovative solutions to increase efficiency and productivity to meet critical client needs. Implementing XR provides enterprises with a platform that helps people perform their jobs more effectively.

The study characterizes the extended reality (XR) market-based on the solution (consumer engagement and business engagement), application (virtual reality (VR), augmented reality (AR), and mixed reality (MR)), end-user industry (education, retail, industrial and manufacturing, healthcare, media and entertainment, and other end-user industries), and geography (North America, Europe, Asia Pacific, and Rest of the World). The study also incorporates the impact of the COVID-19 pandemic on the future growth prospects of the market.

The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.