Extended Reality (XR) Market size is set to grow by USD 1.04 trillion from 2024-2028, Rapid improvements in sensor technology boost the market, Technavio

NEW YORK, June 17, 2024 /PRNewswire/ — The global extended reality (XR) market size is estimated to grow by USD 1.04 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 56.45%  during the forecast period. Rapid improvements in sensor technology is driving market growth, with a trend towards advent of 5G. However, infrastructural and integration issues  poses a challenge. Key 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..

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Market Driver

The extended reality (XR) market is set to experience significant growth with the rollout of 5G technology. This next-generation wireless technology offers high bandwidth and low latency, enabling real-time, immersive XR experiences. 5G enables the use of AR in live, outdoor environments and facilitates cloud-based gaming. Vendors like Qualcomm and Samsung are partnering with telecom providers to offer affordable 5G subscriptions. By 2025, global 5G deployment is expected, unlocking new XR applications in remote collaboration, training, and education. 

The Extended Reality (XR) market is experiencing significant growth with technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) gaining traction. According to recent studies, the global XR market is projected to reach new heights, with VR devices and simulations becoming increasingly popular in industries like gaming, healthcare, and training.

The use of XR in education and simulation training is also on the rise, providing new opportunities for businesses. Furthermore, the integration of AR in consumer applications, such as shopping and entertainment, is driving market growth. The future of XR looks promising, with advancements in technology and increasing adoption across various sectors. 

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Market Challenges

• The extended reality (XR) market faces challenges due to unequal geographic penetration. Many countries lack advanced internet infrastructure, hindering XR adoption. This issue is more pronounced in the enterprise segment, where strong internet connectivity is essential. Potential customers are waiting for improved user experience through better hardware, content, and infrastructure. The lack of high-speed Internet in several regions may hinder market growth during the forecast period.
• The Extended Reality (XR) market is experiencing significant growth, with technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) gaining traction. However, the industry faces several challenges. One major challenge is the high cost of XR hardware and software, limiting its accessibility to businesses and consumers. Another challenge is the lack of standardized XR content and platforms, making it difficult for developers to create and distribute content.
• Additionally, concerns around privacy and security in XR applications need to be addressed. Furthermore, the integration of XR technology into existing business processes and workflows requires careful planning and investment. Lastly, the need for skilled professionals in XR development and implementation is increasing, posing a challenge for organizations in terms of talent acquisition and retention.

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Segment Overview 

1. Application 

• 1.1 VR
• 1.2 AR
• 1.3 MR

• 2.1 Hardware
• 2.2 Software and services

• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 VR-  XR Market, which includes Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR), is experiencing significant growth. Businesses are adopting XR technologies to enhance customer experiences, improve training programs, and increase productivity. VR provides immersive environments, while AR overlays digital information onto the real world. MR combines elements of both. XR is revolutionizing industries such as healthcare, education, and manufacturing. Companies are investing in XR to gain a competitive edge. The market is expected to continue expanding due to advancements in technology and increasing demand.

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Research Analysis

The Extended Reality (XR) market encompasses Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) technologies. This sector is experiencing significant growth due to the increasing demand for immersive experiences in various industries. In the healthcare sector, XR technology is revolutionizing contemporary healthcare institutions by enabling doctors and surgeons to visualize target organs in 3D, enhancing precision and effectiveness.

In the education sector, XR technology is transforming industrial training through simulations and games, providing students with interactive and engaging learning experiences. The entertainment industry, including online gaming, is also leveraging 5G technology and XR devices to deliver high-definition XR content. The gaming industry is witnessing a surge in the adoption of XR technology, offering players a more immersive and interactive gaming experience. Overall, the XR market is poised for exponential growth, with applications spanning across multiple industries and use cases.

Market Research Overview

The Extended Reality (XR) market encompasses immersive technologies, including Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). XR technologies offer transformative experiences by merging digital information with the physical world. The global XR market is experiencing significant growth due to increasing demand for immersive experiences in various sectors such as education, healthcare, entertainment, and manufacturing.

The use of XR in training and simulation, product design, and remote collaboration is driving market expansion. Furthermore, advancements in technology, such as haptic feedback and eye-tracking, are enhancing user experience and increasing market potential. The market is expected to continue its upward trajectory, offering numerous opportunities for businesses and innovators alike.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• VR
• AR
• MR
• Component
• Hardware
• Software And Services
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory 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 over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio