Extended Reality (XR) Market

Extended Reality (XR) Market Insights

“The global extended reality (XR) market was estimated at US$ 25.2 billion in 2020 and is expected to grow at an impressive CAGR of 57.2% during 2022-2026 to reach US$ 361.9 billion by 2026.”

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Introduction

Extended Reality (XR) is an umbrella term encompassing virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies that merge the physical and virtual worlds. VR immerses users in entirely digital environments, while AR overlays digital content onto the real world, enhancing real-world experiences. MR combines elements of both, enabling interaction with both digital and physical environments simultaneously.

XR applications range from entertainment and gaming to education, training, healthcare, and beyond, offering immersive experiences and innovative solutions. By blurring the boundaries between the physical and digital realms, XR transforms how we perceive and interact with information, environments, and each other.

Extended Reality Market Drivers

The market growth of the extended reality is driven by the following factors-

• XR technology is increasingly being used for training purposes across various fields, such as mechanics, pilots, engineers, field workers, soldiers, and technicians in industries like oil & gas and manufacturing, driving market growth.

• XR is becoming more popular in both personal and professional spheres.

• Many businesses recognize the pressing need to enhance user experiences to remain competitive.

• Service providers particularly value exceptional customer experiences, fueling the demand for improved user experiences and consequently boosting industry growth.

COVID-19 Impact

The COVID-19 pandemic has positively influenced the Extended Reality (XR) sector. Physical lockdowns amid the pandemic across different regions are likely to propel the demand for XR as the companies’ enterprises worldwide are trying to find innovative ways to get their internal and wider globally dispersed teams to collaborate, communicate, and find a path forward during the crisis, thus augmenting the market growth.

Extended Reality Market Segments' Analysis

Application Insights

“Virtual Reality (VR) segment dominates the market.”

The Extended Reality (XR) market has been classified as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). Under these, the Virtual Reality (VR) segment held a significant market share. Virtual reality technology mainly involves using computer technology to generate a simulated environment. Unlike conventional user interfaces, VR usually places the user inside an experience, which means that the users are immersed in and can interact with a 3D world instead of viewing a monitor screen in front of them, thereby boosting segment growth.

Regional Insights

“The North America accounted for the largest market share.”

The North American market holds the highest market share and is projected to grow at a healthy CAGR in the coming years. This is ascribed to the significant presence of multiple vendors, including Microsoft and Qualcomm, among others, thus making substantial investments in technology advancements. Also, early adoption of these technologies in various sectors further bolsters the regional market growth during the review period.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.  

The following are the key players in the extended reality (XR) market (arranged alphabetically).

• Accenture PLC (Ireland)
• Microsoft Corporation (US)
• Northern Digital Inc. (Canada)
• Qualcomm Technologies Inc. (US)
• SoftServe Inc. (US)
• Softweb Solutions Inc. (US)
• SphereGen Technologies (US)
• Talespin Reality Labs Inc. (US)
• Varjo Technologies OY (Finland)
• VertexPlus Softwares Pvt. Ltd (US)

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s extended reality (XR) market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players based on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

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