The global extended reality market is valued to grow from US$ 46.3 Billion in 2023 to US$ 197.3 Billion by 2030, at a CAGR of 23% during the forecast period (2023-2030).
Key Takeaways
Key players operating in the extended reality market are Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation, Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation, Vuzix Corporation, Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture. Meta (formerly Facebook) is a leading player in the extended reality market with its Oculus Quest VR headsets and plans to rollout augmented reality glasses in 2024.
The key opportunities in the Extended Reality Market Demand include rising demand from healthcare industry to conduct surgeries with AR tools, collaboration between tech giants to develop lightweight AR smart glasses for consumers and use of XR in e-commerce for virtual shopping experiences.
The extended reality market is witnessing global expansion through partnerships between technology companies and healthcare providers to rollout XR-powered medical training programs. Companies are also investing in 5G-powered AR devices to capitalize on growing 5G adoption worldwide and enhance immersive experiences.
Market Drivers
The growing digital transformation across industries for enhancing customer experiences and optimizing workflows is a key driver for the extended reality market. With Covid-19 accelerating digital adoption, industries are increasingly adopting XR solutions to engage remotely with consumers, conduct operations virtually and provide immersive training experiences to employees.
Market Restrain
Lack of awareness about the benefits of extended reality applications and high costs associated with VR headsets and AR devices act as a restraint for the mass adoption of extended reality technologies. With advancing technologies, prices are expected to decline and widespread awareness campaigns by tech giants are likely to address this restrain over the forecast period.
Segment Analysis
The hardware sub segment currently dominates the extended reality market and is expected to continue dominating during the forecast period as well. Extended reality devices require expensive hardware components such as processors, controllers, displays, sensors etc. which accounts for a major portion of their costs. The growing adoption of AR and VR devices for various applications is driving the demand for extended reality hardware.
The services segment is expected to gain traction going forward as end users increasingly seek for implementation, integration and maintenance services from providers to deploy extended reality solutions for their specific needs across industries. Growing number of AR and VR startups developing varied applications and solutions will also fuel the demand for extended reality related services.
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