Technological Advancements in Display, Motion Tracking and Emergence of 5G Technology is Likely to Drive the Growth of the Global Extended Reality (XR) Market

Market Research Future has published a Half-Cooked Research Report on the Global Extended Reality (XR) Market.

Market Highlights

According to MRFR analysis, the XR Market was valued at USD 18.4 Billion in 2022 and is expected to reach USD 457.06 Billion by 2030, at a CAGR of 58.2% during 2022–2030. Factors responsible for driving the growth of the market include advancements in head-pose tracking, increased investment in AR and VR technology, increase in demand to improve the customer experiences, technological advancement in display, motion tracking, and emergence of 5G technology. On the other hand, lack of highly intense connected infrastructure, interoperability issues of immersive 3D graphics, power, and thermal efficiency of standalone headsets are hindering the growth of the Extended Reality (XR) market during the forecast period.

The global XR market has been segmented based on type, component, delivery model, application, end-user, and region.

By component, the global XR market has been bifurcated into hardware, solutions, and services. The hardware segment accounted for the largest market share in 2018 and expected to dominate the market during the forecast period owing to declining prices of sensors and advancements in motion-tracking technology. On the other hand, the services segment is anticipated to exhibit the highest CAGR during the forecast period. Furthermore, based on services, the XR market has been subdivided into professional services and managed services. The growth of the managed services segment is attributed to a surge in demand for technical services.

By type, the XR market is bifurcated into mobile XR and PC-tethered XR. The PC-tethered XR segment accounted for the larger market size owing to the availability of seamless cloud-based solutions that can be easily integrated with other hardware modules. However, the mobile XR segment is expected to witness the highest CAGR during the forecast period. The market growth is attributed to the increase in demand for wearable technology.

Based on the delivery model, the market has been bifurcated into business-based engagement and consumer-based engagement. The business-based engagement accounted for the larger market size owing to an increase in demand for immersive technologies that help them to increase job productivity and employee efficiency.

Based on end-user, the global XR market has been categorized as healthcare, media and entertainment, manufacturing and industrial, retail and e-commerce, transportation, and others. The media and entertainment segment accounted for the largest market share in 2018, owing to the early adoption of AR and VR headsets. However, the healthcare segment is presumed to register the highest CAGR during the forecast period owing to an increase in the need for advanced imaging technologies for delicate surgeries.

Regional Analysis

By region, the Global Extended Reality (XR) Market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.

North America accounted for the largest market in 2018. The region is driven by the US and Canada owing to the early adoption of AR and VR technology and the presence of a number of vendors offering enhanced XR solutions that include Qualcomm, Northern Digital Inc., and Agile Lens.

Europe gained the second spot in the XR market due to the increasing number of startups in the XR technology offer AR/VR headsets and high technical expertise in developing a high power algorithm.

Key Players

The Key Players in Global Extended Reality (XR) Market are identified by MRFR include Talespin (US), SphereGen (US), HP Reveal  (US), Gofind Inc (US), Dassault Systèmes SolidWorks Corporation (France), Northern Digital Inc. (Canada), Accenture (Ireland), Medtronic (US), Softserve (US), AugRay (US), Mirari LLC.,(US), Agile Lens (US), Semcon (Sweden), Tata Exlsi (India), Qualcomm Incorporated (US), and VRee (The Netherlands).