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The extended reality market size is forecast to increase by USD 443.26 billion between 2022 and 2027, accelerating at a CAGR of 43.09%. In 2017, the US held the largest market share, projecting an annual revenue of USD 4.80 billion. The market is expected to experience growth during the forecast period due to the rapid advancement of sensor technology, which is anticipated to result in a reduction in sensor costs. The expansion of the global market can be attributed to the increasing demand for virtual reality gaming and 360-degree videos. This market research and growth report includes the market size, historical data (2017-2021), and future forecasts presented in terms of value (in USD billion) for all these mentioned segments.
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The rapid improvements in sensor technology are notably driving the market. The rapid development of sensor technology, which may lead to cost reduction of sensors, will boost the market during the forecast period. With the ongoing transformation in various industries and sectors, the demand for smart sensors with high reliability, low maintenance and repair costs, and minimal replacement times is increasing. Such sensors drive operational efficiency in all business processes. For example, the healthcare industry has developed tiny optical and biopotential sensors that researchers can incorporate into wearable devices. These sensors allow doctors to diagnose a patient's health in real-time.
The miniaturization of sensors has increased the installation of sensors in nearly every possible business facility for effective monitoring and analysis. A clear focus on research and development related to sensor technology is expected to support the market during the forecast period.
The VR segment was the largest segment and was valued at USD 12.51 USD in 2017. The segment of the global market is expanding due to the growing popularity of 360-degree videos and virtual reality gaming. The increased usage in 2020 as a result of the release of numerous new devices, such as the Oculus Quest 2, HTC VIVE Cosmos, and Sony PlayStation VR. Using specialized sensors, software, and 3D noises, providers are providing customers with truly immersive virtual reality experiences.
APAC is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The high demand for augmented reality is due to the widespread adoption of AR and VR technologies in various industries such as retail, healthcare, e-commerce, and automotive in North America. Mobile devices such as tablets and smartphones with built-in AR capabilities are ubiquitous in the region. The presence of major companies, increasing investment in AR technology by major companies, growing consumer acceptance of technologically advanced applications, and strong research efforts to increase the applications of AR and VR technologies have been repatriated. This is attributed to the high share of China's market. North America. Therefore, AR has become an important tool for smooth business operations and operations, expanding the scale of the AR advertising industry. With the rapid growth of digital reality, AR is widely used to add visual effects to product promotions. The region has retailers such as Coca-Cola, Disney, Ford, Kraft Foods, Maybelline, Nickelodeon, Pepsi, and Walmart using AR technology in their advertising. The United States is a key country in the region owing to the presence of major players such as Google, Facebook, Microsoft, and Qualcomm.
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The market growth and trends report is fragmented in nature. Some significant players include 3D Systems Corp., ABB Ltd., Accenture Plc, Alphabet Inc., Canon Inc., HTC Corp., Intel Corp., Lenovo Group Ltd., Magic Leap Inc..
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 Softwares Pvt. Ltd.
The market is experiencing significant growth fueled by advancements in technologies such as Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). XR enables immersive experiences that bridge shorter distances and deliver improved visual information to users. Demand for live virtual entertainment, including concerts, shows, and sports events, is on the rise. Gesture computing, miniaturization, and intelligent devices drive technological progress, facilitating multi-XR user experiences across various platforms like tablets, smartphones, and wearables. Companies are investing in smart technology, sensors, and electronic systems to enhance XR capabilities. Advertising outlets, VR events, and content for VR cater to a target audience seeking interactivity, engagement, and appeal. With 5G implementation and access to technically feasible hardware, XR technology is maturing rapidly, offering time-critical communication and immersive user experiences through head-mounted displays and edge cloud technologies.
The market is experiencing rapid industry growth, driven by the increasing adoption of virtual meetings and the evolving business atmosphere. In media and entertainment, XR is revolutionizing the end-user segment with virtual reality headsets and immersive experiences. Software developers, content creators for virtual reality, digital agencies, and brands are actively contributing to this growth by developing innovative XR solutions. XR is reshaping live sports experiences, offering enhanced viewing angles and engaging interactions for audiences. Game developers are leveraging XR technology to create immersive gaming experiences. With the maturity of XR technology, the market is witnessing a surge in time-critical communication and collaboration across various industries. As XR continues to advance, its impact on industries and user experiences is expected to grow exponentially, ushering in a new era of immersive and interactive digital environments.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.
Extended Reality Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 43.09% |
Market growth 2023-2027 |
USD 443.26 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
40.15 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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 Softwares Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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