Extended Reality Xr Market Report

Market Insights

The Extended Reality (XR) market is projected to grow from USD 25.2 billion in 2020 to USD 361.9 billion by 2026 at a CAGR of over 57.2% during the forecast period.

This market research report provides in-depth information on trends, dynamics, revenue opportunities, competitive landscape, and recent developments in the Extended Reality (XR) market. The historic years considered for the study are 2016-2019, base year is 2020, estimated year is 2021, and forecast period is 2022-2026.

Figure: Extended Reality (XR) Market Size, 2020-2026 (USD Billion)

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Extended reality (XR) is among the innovative technologies and it includes various immersive technologies, such as augmented reality, virtual reality, mixed reality, and other future realities that may emerge. Virtual Reality (VR) is referred to as a digitally created experience where a three-dimensional environment is simulated with the real-world. XR technology provides a 3D experience to the viewers by the usage of VR devices, such as headsets, gloves, glasses, and bodysuits.

Key Players

The key players operating in the Extended Reality (XR) market are-

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

Market Dynamics

Growing usage of this XR technology in instructive training, which includes training mechanics, pilots, engineers, field workers, soldiers in defense, and technicians, in the oil & gas and manufacturing sectors is are expected to boost the market growth. Also, XR is gaining popularity in both personal & professional applications. There is a strong need to improve user experience in several businesses. Moreover, the customer experience is a valuable asset for the service providers, which augments the need for receiving exceptional user’s experience, thereby bolstering the industry growth.

Segment’s Analysis

Application Trends

Based on application, the Extended Reality (XR) market has been classified Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). Under these, the Virtual Reality (VR) segment held a significant market share in 2020. Virtual reality technology mainly involves using computer technology to generate a simulated environment. Unlike the 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 boosts the segment growth.

Regional Trends

By region, the North America market held the highest market share in 2020 and is projected to grow at a healthy CAGR in the coming years. This is ascribed to 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.

COVID-19 Impact on Extended Reality (XR) Market

The COVID-19 pandemic has positively influenced the Extended Reality (XR) sector. Physical lockdowns in amid the pandemic across different regions is 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.

Critical Questions Answered in the Report

• What are the key trends in the Extended Reality (XR) market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in next five years?
• What is the impact of COVID-19 on Extended Reality (XR) market?
• What are the key strategies adopted by the major vendors to lead in the Extended Reality (XR) market?
• What is the market share of the top vendors?

Target Audience

The target audience of Extended Reality (XR) Market includes-

• Extended Reality (XR) companies
• Extended Reality (XR) distributors
• Education companies
• Government organizations