One Stop Shop For Reports One Stop Shop For Reports
  • All Reports
  • All Sectors
    • Chemicals & Materials
      • Advanced Materials
      • Bulk Chemicals
      • Coatings | Paints and Additives
      • Composites
      • Renewable | Speciality chemicals
    • Consumer Goods
      • Baby Products
      • Consumer Electronics
      • Consumer Packaging
      • Cosmetics & Personal Care
      • Homecare & Decor
      • Luxury & premium products
    • Energy and Power
      • Energy Efficiency and Conservation
      • Green | Renewable Energy
      • Non Renewable | Conventional Energy
      • Power Equipment and Devices
    • Life Science
      • Biotechnology
      • Diagnostics
      • Healthcare
      • Healthcare IT
      • Medical Devices & Supplies
      • Pharmaceuticals
    • Food and Beverage
      • Agriculture & Agri Products
      • Beverages
      • Food Ingredients
      • Food Services and Hospitality
      • Nutraceutical | Wellness Food
      • Processed & Frozen Foods
    • Automotive and Transportation
      • Automotive components
      • Automotive Logistics
      • Automotive systems and accessories
    • Information and Communications Technology
      • E Commerce and Outsourcing
      • Entertainment & Media
      • High Tech | Enterprise & Consumer IT
      • Information & Network Security
      • Mobility | Telecom & Wireless
      • Software and Services
    • Semiconductor and Electronics
      • Semiconductor Materials and Components
      • Display Technology
      • Electronics System and Components
      • Emerging technologies
      • Security and Surveillance
      • Sensors and Controls
    • Building and Construction
      • Construction Materials
      • HVAC
      • Residential Construction and Improvement
      • Roads & Highways
    • Manufacturing
      • Manufacturing Services
      • Heavy Manufacturing
      • Packaging
      • Engineering | Equipment and Machinery
  • Who Trust Us
  • [email protected]
  • +1 718 874 1545 (International)
  • +91 78878 22626 (Asia)

More Results

One Stop Shop For Reports One Stop Shop For Reports
  • All Reports
  • All Sectors
    • Chemicals & Materials
      • Advanced Materials
      • Bulk Chemicals
      • Coatings | Paints and Additives
      • Composites
      • Renewable | Speciality chemicals
    • Consumer Goods
      • Baby Products
      • Consumer Electronics
      • Consumer Packaging
      • Cosmetics & Personal Care
      • Homecare & Decor
      • Luxury & premium products
    • Energy and Power
      • Energy Efficiency and Conservation
      • Green | Renewable Energy
      • Non Renewable | Conventional Energy
      • Power Equipment and Devices
    • Life Science
      • Biotechnology
      • Diagnostics
      • Healthcare
      • Healthcare IT
      • Medical Devices & Supplies
      • Pharmaceuticals
    • Food and Beverage
      • Agriculture & Agri Products
      • Beverages
      • Food Ingredients
      • Food Services and Hospitality
      • Nutraceutical | Wellness Food
      • Processed & Frozen Foods
    • Automotive and Transportation
      • Automotive components
      • Automotive Logistics
      • Automotive systems and accessories
    • Information and Communications Technology
      • E Commerce and Outsourcing
      • Entertainment & Media
      • High Tech | Enterprise & Consumer IT
      • Information & Network Security
      • Mobility | Telecom & Wireless
      • Software and Services
    • Semiconductor and Electronics
      • Semiconductor Materials and Components
      • Display Technology
      • Electronics System and Components
      • Emerging technologies
      • Security and Surveillance
      • Sensors and Controls
    • Building and Construction
      • Construction Materials
      • HVAC
      • Residential Construction and Improvement
      • Roads & Highways
    • Manufacturing
      • Manufacturing Services
      • Heavy Manufacturing
      • Packaging
      • Engineering | Equipment and Machinery
  • Who Trust Us
Home ➤ Information and Communications Technology ➤ Extended Reality Market
Extended Reality Market
Extended Reality Market
Published date: Feb. 2024 • Formats:
Request Sample Schedule a Call
  • Home ➤ Information and Communications Technology ➤ Extended Reality Market

Global Extended Reality Market By Component (Hardware, Software, and Service), By Technology (AR, VR, and MR), By End-User (Online and Offline), By End-User (Gaming, Retail, Healthcare, Manufacturing, Media & Entertainment, Education, Aerospace & Defense, and Other End-Users), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032

  • Published date: Feb. 2024
  • Report ID: 102359
  • Number of Pages: 230
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
  • Request a Free Sample
  • Quick Navigation

    • Report Overview
    • Key Takeaway
    • By Component Analysis
    • By Technology Analysis
    • By End-User Analysis
    • Key Market Segments
    • Driver
    • Restraint
    • Opportunity
    • Challenge
    • Regional Analysis
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    The Global Extended Reality (XR) Market size is expected to be worth around USD 519.5 Billion by 2032, from USD 49.6 Billion in 2023, growing at a CAGR of 30.8% during the forecast period from 2024 to 2033.

    Extended Reality (XR) refers to a spectrum of technologies that combine virtual reality (VR), augmented reality (AR), and mixed reality (MR) to create immersive and interactive experiences. XR encompasses a wide range of applications that blend virtual elements with the real world, enabling users to engage with digital content in a more seamless and engaging manner.

    The XR market has been rapidly expanding in recent years, driven by advancements in hardware, software, and content development. VR, AR, and MR technologies have become more accessible and affordable, leading to increased adoption across industries such as gaming, entertainment, education, healthcare, and manufacturing.

    Extended Reality Market

    In the dynamic landscape of the Extended Reality (XR) market in 2022, Meta emerged as a dominant force within the consumer Virtual Reality (VR) sector, commanding an impressive estimated 80% market share, primarily attributed to the robust sales of its Meta Quest headsets.

    This substantial market presence underscores Meta’s strategic focus on VR/AR technologies, as evidenced by its significant investment exceeding $10 billion in its Reality Labs segment during the 2021-2022 period. This financial commitment highlights the company’s ambition to lead and expand the VR/AR ecosystem, reflecting its confidence in the transformative potential of XR technologies.

    Sony, with its PlayStation VR, maintained its leadership in the tethered VR segment, holding a 35% market share in 2022. The company’s sustained dominance in this segment is indicative of the strong synergy between its VR offerings and the extensive PlayStation gaming ecosystem. The anticipation surrounding Sony’s development of a next-generation PS VR, expected to launch in 2023, signals its ongoing commitment to enhancing the VR gaming experience, thereby reinforcing its position in the market.

    The total investment in the XR market in 2022 reached approximately $16 billion, a figure that demonstrates the sector’s rapid growth and the increasing interest from tech giants and investors alike. Projections suggest that this investment volume could escalate to between $20 and $22 billion in 2023, contingent upon Apple’s speculated entry into the XR market and the sustained investment levels by incumbents such as Meta and Microsoft.

    Key Takeaway

    • Market Growth Projection: The extended reality market is projected to experience staggering growth with an expected compound annual growth rate of 30.8% between 2023-2032, reaching USD 519.5 billion by 2032.
    • Driving Factors: The market’s expansion is being propelled by several factors, including an increasing prevalence of AR/VR gaming technology and advancements in hardware/software like powerful processors and enhanced graphics capabilities that make extended reality more immersive for both consumers and businesses alike.
    • Dominant Segments: In terms of components, the software segment holds the largest share, accounting for 65% of the market in 2022. Regarding technology, AR (Augmented Reality) holds the dominant position, with a market share of 55% in 2022. Additionally, the gaming sector stands as the most lucrative end-user segment, capturing the largest revenue share of 45%.
    • Growth Opportunities: The industry presents numerous growth opportunities, primarily driven by the continued adoption of XR technologies across various sectors such as gaming, healthcare, education, and retail. Moreover, the development of advanced hardware and software is expected to create more immersive XR experiences.
    • Latest Trends: Integration of technologies such as AI, 5G networks, and blockchain is a prominent trend, indicating the continuous evolution of the extended reality industry. Additionally, the use of XR for virtual events and remote collaboration, as well as its application in healthcare for therapies and mental health treatments, are gaining significant traction.
    • Regional Dominance: North America leads the extended reality market, capturing the largest share of 40% in 2022 and anticipated to register a CAGR of 32.2% during the forecast period. The region’s growth is propelled by factors such as the increasing use of smartphones, the deployment of 5G, and the rising demand for extended technology across diverse applications.
    • Key Market Players: Major players in the extended reality market include Microsoft, Google, Apple, Samsung, HTC, Sony, Qualcomm, Magic Leap, and Unity Technologies. These companies heavily invest in research and development to enhance their XR services, improve user experiences, and expand their market reach.
    • Recent Developments: Notable recent developments in the industry include HTC Corporation’s launch of the VIVE XR Elite, a versatile mixed reality (MR) and virtual reality (VR) headset, and Samsung Electronics Co., Ltd.’s introduction of Dreamground, an innovative AR experience aimed at promoting creative thinking and discovery.

    By Component Analysis

    By Component Analysis, the software segment is projected to be the most lucrative in the global extended reality market, with a significant CAGR of 31%. In 2022, the software segment is expected to account for a substantial revenue share of 65%. This growth can be attributed to the increasing demand for software applications that drive immersive experiences in extended reality environments.

    The software segment includes various components such as content creation tools, development platforms, and application software that enable the creation, deployment, and management of extended reality experiences. As organizations across industries recognize the value of extended reality in enhancing their products and services, the demand for software solutions will continue to rise, driving the growth of this segment.

    By Technology Analysis

    By Technology Analysis, AR (Augmented Reality) technology is estimated to be the most lucrative segment in the global extended reality market, with a significant market share of 55% and a projected CAGR of 29.9% in 2022.

    AR technology overlays digital content onto the real world, enhancing user experiences and enabling a wide range of applications in gaming, retail, healthcare, and more. The increasing adoption of AR in smartphones, smart glasses, and other devices is driving the growth of this segment. With its potential to blend the digital and physical worlds seamlessly, AR technology offers immense opportunities for businesses to deliver interactive and engaging experiences to their customers.Extended Reality Market

    By End-User Analysis

    By End-User Analysis, the gaming segment is estimated to be the most lucrative in the global extended reality market, accounting for the largest revenue share of 45% and projected to grow at a CAGR of 33.4% during the forecast period. The gaming industry has been at the forefront of adopting extended reality technologies, leveraging VR and AR to create immersive and realistic gaming experiences. The increasing popularity of VR gaming headsets and the development of AR-enabled mobile games have contributed to the growth of this segment.

    As the demand for interactive and immersive gaming experiences continues to rise, the gaming segment is expected to maintain its dominance in the extended reality market. Furthermore, the integration of extended reality technologies into gaming consoles, PCs, and mobile devices is expected to drive the growth of this segment in the coming years.

    Key Market Segments

    Based on Component

    • Hardware
    • Software
    • Service

    Based on Technology

    • AR
    • VR
    • MR

    Based on End-User

    • Gaming
    • Retail
    • Healthcare
    • Manufacturing
    • Media and Entertainment
    • Education
    • Aerospace and Defense
    • Other End-Users

    Driver

    Availability of affordable VR devices

    The availability of affordable virtual reality (VR) devices serves as a significant driver for the extended reality (XR) market. As VR technology becomes more accessible due to declining hardware costs and the introduction of budget-friendly devices, it opens up new opportunities for widespread adoption across various sectors.

    Affordable VR headsets enable more consumers and businesses to experience immersive virtual environments, driving demand for XR content and applications. This accessibility fuels market growth by expanding the user base and stimulating innovation in VR technology, ultimately contributing to the overall development and advancement of the XR ecosystem.

    Restraint

    Excessive use of extended reality devices cause health issues

    An important restraint facing the extended reality (XR) market is the potential for excessive use of XR devices to cause health issues. Prolonged exposure to virtual and augmented reality environments can lead to various physical and mental health concerns, including eye strain, headaches, motion sickness, and disorientation.

    Moreover, extended use of XR devices may exacerbate existing conditions such as myopia or trigger symptoms of cybersickness. These health concerns pose challenges for widespread adoption and acceptance of XR technology, as users may be hesitant to engage with immersive experiences due to fears of adverse health effects. Addressing these concerns requires ongoing research, development of ergonomic designs, and implementing best practices for responsible XR usage to mitigate health risks and promote user well-being.

    Opportunity

    Growth of global travel and tourism industry

    The growth of the global travel and tourism industry presents a significant opportunity for the extended reality (XR) market. XR technologies, including virtual reality (VR) and augmented reality (AR), offer innovative solutions for enhancing the travel experience, enabling users to explore destinations virtually, preview accommodations, and engage in immersive cultural experiences from the comfort of their homes.

    With the rise of remote work and digital nomadism, XR-powered virtual travel experiences become increasingly relevant, providing opportunities for destination marketing, virtual tours, and travel planning tools. By leveraging XR technology to create compelling and interactive travel experiences, businesses in the travel and tourism industry can attract new customers, increase engagement, and differentiate themselves in a competitive market landscape.

    Challenge

    Display latency and limited field of view

    A significant challenge confronting the extended reality (XR) market is the issue of display latency and limited field of view in XR devices. Display latency, or the delay between user input and the corresponding visual response in VR or AR environments, can lead to motion sickness, discomfort, and a suboptimal user experience. Similarly, the limited field of view in many XR headsets restricts the user’s peripheral vision, reducing immersion and potentially causing disorientation or feelings of claustrophobia.

    Overcoming these technical challenges requires advancements in display technology, optimization of hardware and software integration, and innovation in design to create XR devices that deliver smooth, low-latency experiences with expansive fields of view. Addressing these challenges is essential for enhancing user comfort, improving adoption rates, and unlocking the full potential of extended reality technologies across diverse applications and industries.

    Regional Analysis

    North America is poised to maintain its stronghold as the most dominant region in the global extended reality (XR) market, boasting the largest market share of 40%. This significant market presence underscores North America’s pivotal role in driving innovation and adoption of XR technologies across various industries. The region’s robust ecosystem of tech companies, research institutions, and venture capital firms, coupled with a strong culture of innovation and entrepreneurship, positions it as a hub for XR development and investment.

    Furthermore, North America is projected to sustain remarkable growth momentum, with a forecasted Compound Annual Growth Rate (CAGR) of 32.2% during the forecast period. This impressive growth rate reflects the region’s continued leadership in advancing XR technology and its applications, fueled by ongoing investments, partnerships, and strategic initiatives.

    The convergence of XR with other transformative technologies such as artificial intelligence, 5G connectivity, and the Internet of Things further accelerates market expansion in North America, driving demand for XR solutions across diverse sectors including gaming, entertainment, healthcare, education, and enterprise.

    Extended Reality Market

    Note: Actual Numbers Might Vary in the final report

    Key Regions and Countries Covered in this Report

    • North America
      • The US
      • Canada
      • Mexico
    • Western Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Portugal
      • Ireland
      • Austria
      • Switzerland
      • Benelux
      • Nordic
      • Rest of Western Europe
    • Eastern Europe
      • Russia
      • Poland
      • The Czech Republic
      • Greece
      • Rest of Eastern Europe
    • APAC
      • China
      • Japan
      • South Korea
      • India
      • Australia & New Zealand
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Colombia
      • Chile
      • Argentina
      • Costa Rica
      • Rest of Latin America
    • Middle East & Africa
      • Algeria
      • Egypt
      • Israel
      • Kuwait
      • Nigeria
      • Saudi Arabia
      • South Africa
      • Turkey
      • United Arab Emirates
      • Rest of MEA

    Key Players Analysis

    Microsoft, Google, and Apple are the key players in the XR Market. Other key players include Samsung, HTC, Sony Qualcomm, Magic Leap, and Unity Technologies. These companies invest thoroughly in research & development to enhance their XR service, improve the user experience, and expand their reach. The XR industry is driven by the increasing demand from different industries such as gaming, healthcare & education.

    Market Key Players

    • Qualcomm Technologies Inc.
    • Accenture PLC
    • SoftServe Inc.
    • SphereGen Technologies LLC
    • Northern Digital Inc.
    • Microsoft Corporation
    • Softweb Solutions Inc. (Avnet Inc.)
    • Tata Elxsi Limited
    • Varjo Technologies Oy
    • Talespin Reality Labs Inc
    • Other Key Players

    Recent Developments

    • In February 2023, Sony released a new gaming device called PlayStation VR2 and PlayStation VR2 Sense Controller Charging Station. These products were designed to provide players with a unique and immersive gaming experience. The PS VR2 comes with some exciting features like headset feedback, eye tracking, 3D audio, and adaptive triggers. The PS VR2 Sense controllers also have haptic feedback, which adds a new level of realism to gameplay.
    • In January 2023, HTC introduced their latest consumer flagship, the VIVE XR Elite. This device combines both mixed reality (MR) and virtual reality (VR) technologies into one compact and lightweight headset. It offers a range of powerful features and is suitable for various activities such as gaming, work, exercise, and more. It’s an excellent choice for people looking for a versatile and enjoyable experience.

    Report Scope

    Report Features Description
    Market Value (2023) USD 49.6 Bn
    Forecast Revenue (2032) USD 519.5 Bn
    CAGR (2023-2032) 30.8%
    Base Year for Estimation 2023
    Historic Period 2016-2022
    Forecast Period 2023-2032
    Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments Covered By Device Type (AR Devices, VR Devices, and MR Devices), By Components (Hardware, Software, and Service), By End-User (Online and Offline), By End-User (Gaming, Retail, Healthcare, Manufacturing, Media & Entertainment, Education, Aerospace & Defense, and Other End-Users)
    Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA
    Competitive Landscape Qualcomm Technologies Inc., Accenture PLC, SoftServe Inc., SphereGen Technologies LLC, Northern Digital Inc., Microsoft Corporation, Softweb Solutions Inc. (Avnet Inc.),Tata Elxsi Limited, Varjo Technologies Oy, Talespin Reality Labs Inc, Other Key Players
    Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)

    Frequently Asked Questions (FAQ)

    What is the extended reality (XR) market?

    The extended reality market refers to the collective market for technologies that merge the physical and virtual worlds, including virtual reality (VR), augmented reality (AR), and mixed reality (MR).

    What are some key applications of extended reality?

    Extended reality has applications in various industries, including gaming, entertainment, healthcare, education, manufacturing, and retail. It can be used for immersive gaming experiences, virtual training simulations, architectural visualization, medical diagnostics, and more.

    What are the major factors driving the growth of the extended reality market?

    The growth of the extended reality market is primarily driven by advancements in technology, increasing adoption in various industries, rising demand for immersive experiences, and the availability of more affordable and accessible XR devices.

    What are the main challenges faced by the extended reality market?

    Some challenges include high costs of hardware and development, technical limitations like battery life and processing power, concerns regarding privacy and data security, and the need for more compelling content and applications to drive widespread adoption.

    Extended Reality Market
    Extended Reality Market
    Published date: Feb. 2024
    add_shopping_cartBuy Now get_appDownload Sample
    keyboard_arrow_up
    • Qualcomm Technologies Inc.
    • Accenture plc Company Profile
    • SoftServe Inc.
    • SphereGen Technologies LLC
    • Northern Digital Inc.
    • Microsoft Corporation Company Profile
    • Softweb Solutions Inc. (Avnet Inc.)
    • Tata Elxsi Limited
    • Varjo Technologies Oy
    • Talespin Reality Labs Inc
    • Other Key Players
  • settingsSettings

Related Reports

  • Retail Analytics Market
  • Mixed Reality Market
  • Virtual Reality Headset Market
  • Business Process Outsourcing Market
  • Virtual Events Market
  • Digital Identity Solutions Market
  • Generative AI Market
  • Cyber Security Market

Our Clients

  • Our Clients
Inquiry Before Buying

Extended Reality Market
  • 102359
  • Feb. 2024
    • ★★★★★
      ★★★★★
    • (83)
add_shopping_cart Buy Now
Trusted by more than 17382 organizations globally
  • Client Logo
  • Client Logo
  • Client Logo
  • Client Logo
  • Client Logo
  • Client Logo
✖
Request a Sample Report
We'll get back to you as quickly as possible

Single User
$6,000
$3,999
USD / per unit
save 24%
Multi User
$8,000
$5,999
USD / per unit
save 28%
Corporate User
$10,000
$6,999
USD / per unit
save 32%
e-Access
Report Library Access
Data Set (Excel)
Print
Company Profile Library Access
Interactive Dashboard
Free Custumization No up to 10 hrs work up to 30 hrs work
Accessibility 1 User 2-5 User Unlimited
Analyst Support up to 20 hrs up to 40 hrs up to 50 hrs
Benefit Up to 20% off on next purchase Up to 25% off on next purchase Up to 30% off on next purchase
Buy Now ($ 3,999) Buy Now ($ 5,999) Buy Now ($ 6,999)
  • location_on420 Lexington Avenue, Suite 300 New York City, NY 10170,
    United States
  • phone+1 718 874 1545 (International)
  • phone+91 78878 22626 (Asia)
  • email[email protected]
  • Facebook Logo
  • Twitter Logo
  • LinkedIn Logo
Find Help
  • Contact Us
  • How to Order
Legal
  • Privacy Policy
  • Refund Policy
  • Frequently Asked Questions
  • Terms and Conditions
Explore
  • About Us
  • All Reports
  • All Sectors
  • Infographics
  • Statistics and Facts
  • Companies
Secured Payment Options
Secured Payment Options

© 2025 Market.Us. All Rights Reserved.