Immersive Technology Market Size

Immersive Technology Market Overview

Immersive Technology Market Size was valued at USD 22.1 Billion in 2022. The Immersive Technology market industry is projected to grow from USD 27.2 Billion in 2023 to USD 144.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.20% during the forecast period (2023 - 2032). Advancements in hardware, gaming and entertainment, immersive technology is being used for medical training, therapy and remote surgery, real estate, health and wellness, automotive and manufacturing, marketing and advertising, are the key market drivers enhancing the market growth.

Figure 1: Immersive Technology Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Immersive Technology Market Trends

Virtual reality (VR), augmented reality (AR), and mixed reality (MR) technologies have all benefited from innovation and wide acceptance fostered by the gaming and entertainment industries. In addition to pushing the limits of what is possible in terms of immersive experiences, this dynamic industry has also acted as a strong motivator for the development of hardware and software, broadening the market.

With VR gaming experiences leading the way, the gaming industry has been at the forefront of adopting immersive technologies. With unmatched levels of immersion, engagement, and participation, games like "Beat Saber," "Half-Life: Alyx," and "Resident Evil 7: Biohazard" have demonstrated the potential of virtual reality. In addition to engrossing players, these games have prodded hardware makers to spend money on more sophisticated VR headsets with better graphics, tracking, and controllers, therefore lowering the barrier to entry for immersive gaming.

The gaming and entertainment industries have seen tremendous advancements in augmented reality. Mobile augmented reality (AR) apps like "Pokémon GO" brought the idea of fusing digital content with the real environment to millions of gamers. Such games have fueled the development of AR platforms and devices, like smartphones and AR glasses, in addition to generating large amounts of income. Applications for augmented reality (AR) in the gaming and entertainment sectors are anticipated to expand and becoming more complex as the technology develops.

Immersive technology has also benefitted live performances and entertainment. Virtual concerts, sporting events, and theatrical productions have all been created using VR and AR, allowing spectators to take in immersive experiences from the comfort of their own homes. This has been especially helpful during the COVID-19 pandemic, when it was difficult for people to physically attend events. Thus, driving the Immersive Technology market revenue.

Immersive Technology Market Segment Insights

Immersive Technology Component Insights

The global Immersive Technology market segmentation, based on Component, includes hardware (head-mounted display (HMD), gesture tracking devices (GTD), projectors & display walls (PDW)), software/platform, and services (professional and managed). The hardware segment dominated the market in 2022. A crucial component of immersive experiences is display technology. Delivering realistic and visually beautiful VR and AR experiences depends on improvements in high-resolution, low-latency displays. The visual quality of VR headsets like the Oculus Quest 2 has improved thanks to the advancement of OLED and AMOLED screens, boosting users' immersion.

Immersive Technology Technology Insights

The global Immersive Technology market segmentation, based on technology, includes mixed reality (MR), virtual reality (VR), augmented reality (AR) and 360 film. The augmented reality (AR) segment dominated the market in 2022. Companies like Microsoft with their HoloLens and Magic Leap are utilizing augmented reality for enterprise applications, which is increasing use in enterprise and industrial settings. For maintenance and repair work, AR is utilized in the manufacturing industry. In order to increase productivity and lower errors, technicians can utilize augmented reality (AR) glasses to view real-time instructions and data overlays on complicated machinery.

Figure 2: Immersive Technology Market, by Technology, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Immersive Technology Application Insights

The global Immersive Technology market segmentation, based on application, includes training & learning, emergency services, product development and sales & marketing. The training & learning segment dominated the market in 2022. Immersive technologies offer engaging and interactive learning experiences that can significantly improve knowledge retention and understanding. For example, medical students can use VR simulations to practice surgical procedures in a realistic virtual environment, allowing them to gain valuable experience before working on actual patients.

Immersive Technology Industry Insights

The global Immersive Technology market segmentation, based on industry, includes healthcare, retail & ecommerce, education, construction, media & entertainment, gaming, manufacturing, aerospace & defense, others (automotive, energy, etc.). The Healthcare category generated the most income in 2022. Medical practitioners can perform surgical procedures in a realistic, risk-free environment with the help of VR and AR simulators. For instance, Osso VR gives surgeons a platform to refine their abilities through realistic simulations, lowering the learning curve and improving patient safety.

Immersive Technology Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Immersive Technology Market dominated this market in 2022 (45.80%). Silicon Valley serves as the hub of a dominant tech ecosystem in North America, primarily the United States. Tech behemoths like Apple, Google, Facebook (Meta), Microsoft, and a slew of startups that specialize in immersive technology call this region home. The dominance of these businesses provides a dynamic environment for innovation that supports the expansion of the market for immersive technology. Further, the U.S. Immersive Technology market held the largest market share, and the Canada Immersive Technology market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: IMMERSIVE TECHNOLOGY MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Immersive Technology market accounts for the second-largest market share. Immersive technology's extensive application in teaching and healthcare is one of the key factors influencing the market in Europe. The region's healthcare systems were early adopters of immersive technology for patient care and medical training, putting a strong emphasis on the technology's useful applications. For instance, The University of Oxford in the UK uses virtual reality simulations for surgical training, which lowers the learning curve for healthcare practitioners. The outcomes for patients and patient safety are improved by this prevailing tendency. Further, the German Immersive Technology market held the largest market share, and the UK Immersive Technology market was the fastest growing market in the European region.

The Asia-Pacific Immersive Technology Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region, including China, India, and Southeast Asian countries, has a rapidly growing middle class with increasing disposable income. The dominating reason here is the potential for immersive technology to cater to this expanding market of tech-savvy consumers seeking immersive entertainment and educational experiences. China's booming VR arcade industry serves as a dominating example of catering to the middle-class population. These arcades offer immersive gaming experiences, making VR accessible to a wider audience. Moreover, China’s Immersive Technology market held the largest market share, and the Indian Immersive Technology market was the fastest growing market in the Asia-Pacific region.

Immersive Technology Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Immersive Technology market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Immersive Technology industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Immersive Technology industry to benefit clients and increase the market sector. In recent years, the Immersive Technology industry has offered some of the most significant advantages to medicine. Major players in the Immersive Technology market, including Acer Inc., Atheer, Inc., AVEVA Group PLC, Barco NV, Blippar Ltd., Carl Zeiss AG, CM Labs Simulations Inc., EON Reality, Inc., FAAC Incorporated, Google, LLC, HCL Technologies Limited, Honeywell International, Inc., HTC Corporation, Immersive Media Company, Immersive Technologies Pty Limited, Lockheed Martin Corporation, Magic Leap, Inc., NCTech Limited, Oculus (Facebook Technologies, LLC.), Samsung Group, Sony Corporation, Unity Software Inc., Varjo Technologies Oy, VI-grade GmbH, Zeality Inc. and others, are attempting to increase market demand by investing in research and development operations.

Acer Inc. (Acer) is a corporation that develops, designs, markets, and sells information technology (IT) products. Personal computers, projectors, tablet PCs, smartphones, wearable technology, smart devices, LCD displays, servers, and ICT equipment are all part of the company's product line. Acer sells goods under the brand names Acer, Gateway, Predator, Concept D, Planet9, and Packard Bell. Additionally, it engaged in e-commerce, the distribution of IT products, and the use of virtual reality headsets, digital billboards, cloud services, mobile devices, new energy devices, and real estate services. Africa, the Middle East, Europe, the Asia-Pacific region, and the Americas all have activities for the corporation. The main office of Acer is in Taipei, Taiwan.

A part of Schneider Electric SE, AVEVA Group Plc (AVEVA) provides engineering software solutions. The company offers corporate solutions, design, engineering, software, plant and marine catalog information, and ship building and design management systems. It also provides consultation, integration, and lifecycle management services. Engineering projects in the fields of mining, metals, infrastructure, life sciences, food and beverage, consumer packaged products, oil and gas, energy, marine, chemical, and manufacturing can all profit from the technology provided by AVEVA. The business sells its products under the AVEVA NET brand. AVEVA's headquarters are in the UK's Cambridge shire region.

Key Companies in the Immersive Technology market include

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  Acer Inc.

  
  


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  Atheer, Inc.

  
  


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  AVEVA Group PLC

  
  


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  Barco NV

  
  


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  Blippar Ltd.

  
  


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  Carl Zeiss AG

  
  


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  CM Labs Simulations Inc.

  
  


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  EON Reality Inc.

  
  


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  FAAC Incorporated

  
  


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  Google LLC

  
  


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  Honeywell International Inc.

  
  


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  HCL Technologies Limited

  
  


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  HTC Corporation

  
  


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  Immersive Media Company

  
  


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  Immersive Technologies Pty Limited

  
  


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  Lockheed Martin Corporation

  
  


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  Magic Leap Inc.

  
  


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  NCTech Limited

  
  


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  Oculus (Facebook Technologies, LLC.)

  
  


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  Samsung Group

  
  


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  Sony Corporation

  
  


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  Unity Software Inc.

  
  


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  Varjo Technologies Oy

  
  


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  VI-grade GmbH

  
  


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  Zeality Inc.

  
  

Immersive Technology Industry Developments

EON Reality announced its collaboration with Elixir Traders Limited, a company involved in the wholesale activity of household goods, to infuse Extended Reality (XR) technology into different sectors of the U.K. market on October 2023. This incorporation would not only help improve operating procedures but also move industries forward into data-driven decisions and immersive interactions.

Meta Quest 3 was launched by Meta in June 2023. It is said to have more powerful performance, higher resolution, innovative meta-reality technology, and greater comfort for its customers.

Ultraleap Limited (Leap Motion, Inc.), in May 2023, introduced the Leap Motion Controller 2, a second-generation hand-tracking camera that allows users to interact with digital information in 3D using their own hands. Thus, this camera is compatible across all platforms and complementary hardware such as PCs, holographic displays, VR, and AR.

In January 2022, Sony Group unveiled exclusive games with PSVR2 as part of a product launch event for the next virtual world device called the Metaverse. The new technology has deeper engagement features, including haptic feedback incorporated into the headsets along with improved visual clarity, which could be one of those entry points that are highly accepted by companies like Epic Games Incorporated into multiverse services.

Acer introduced SpatialLabs in May 2021, a series of apps that take a digital world and make it tell stories through organic means while providing stereoscopic three-dimensional experiences. Slash visuals and screen-sensing technologies power spatial labs. Even without special glasses, creators can view their projects in real-time and also at 360 ° because there is information floating right in front of the display.

Harmony announced VisualLive’s acquisition—an efficient innovative solution facilitating cutting costs related to architectural features, tech, and infrastructure for interactive virtual collaborative efforts—in March 2021, thus enabling multiple firms globally to achieve multiple types of planning & management solutions for 3D media.

Honeywell Industrial, Inc. purchased a majority share in Fiplex Telecommunication, Incorporated, in March 2021. Through this acquisition, Honeywell Worldwide, Inc. will be able to provide a broader range of connection & communication products.