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  • Published In : Jul 2023
  • Code : CMI5981
  • Pages :140
  • Formats :
      Excel and PDF
  • Industry : Smart Technologies

The global extended reality market is valued to grow from US$ 46.3 Billion in 2023 to US$ 197.3 Billion by 2030, at a CAGR of 23% during the forecast period (2023-2030). The growth of the extended reality market is driven by the increasing demand for immersive and interactive experience in a variety of industries such as gaming, entertainment, healthcare, education, and manufacturing. Mixed Reality (MR) is a newer type of Extended Reality (XR), and it is used in a variety of applications such as manufacturing, healthcare, and education. Gaming is the largest application of extended reality (XR), and it is used to create immersive and interactive gaming experiences.

Global Extended Reality Market: Regional Insights

Due to the presence of numerous prominent players like Microsoft, Meta Inc, Qualcomm Incorporated, Unity Technologies, Adobe Inc., and Alphabet Inc., among others, the extended reality market in North America is anticipated to occupy the largest market share over the forecast period. During the development phase, the U.S. led the development of Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) technologies.

North America is one of the largest markets for extended reality. It is also one the leading consumer electronics markets and has a vast industrialized infrastructure. The region is expected not only to lead the market as a consumer of extended reality but also lead in extended reality research and development. It is home to some of the leading pioneers in the extended reality market. North America is also one of the leading manufacturing hubs in the world. These already established organization are likely to invest and adopt extended reality as compared to other parts of the world. For instance, GE aviation has successfully implemented Google Smart Glasses into its manufacturing and assembling facility in Ohio, the U.S. The results show an increase of 8-12% in the efficiency of GE mechanics. Such successful pilot programs are expected to boost the market for extended reality in North America.

The widespread adoption of extended reality technology in Europe is anticipated to expand quickly during the forecast period. Additionally, the Extended Reality market will benefit from virtual reality (VR) and augmented reality (AR) training and simulations in the automotive and manufacturing industries during the forecast period.

The Asia Pacific region is expected to experience the highest growth in the extended reality market during the forecast period, outperforming all other regions in terms of growth. Asia Pacific, an emerging region, is undergoing significant transformations as new technologies are adopted and developed. Due to the region's abundance of manufacturers. In the consumer goods, healthcare, and retail sectors, the Asia-Pacific market will expand at an exponential rate.

The market in Latin America, the Middle East, and Africa is primarily divided into wired and wireless segments. Based on industry, the market is additionally segmented into aviation and guard, shopper hardware, development, and clinical industries based on the mixed reality market in Africa and Latin America.

Figure 1: Global Extended Reality Market Share (%), By Region, 2022


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Global Extended Reality Market Drivers:

Business drivers and manufacturing technologies

Government spending, especially in the field of aerospace and defense, is a key driver for the extended reality market. Recently, Microsoft received a tender for supplying 100,000 HoloLens from the U.S Defense Department. Such investments are expected to drive the market growth in the region. For instance in June 2023, Windows Holographic (an ergonomic, untethered, self-contained holographic device with enterprise-ready applications to increase user accuracy and output), Microsoft HoloLens 2 is a mixed reality head-mounted display developed and manufactured by Microsoft, 23H1 is made available which brings great set of new features to HoloLens 2 users, IT professionals and developers.

Increasing demand in mobile devices with new applications of extended reality

The demand for more futuristic mobile phone applications and technologies in general, and immersive technologies in particular, has increased as a result of this explosive era of innovative mobile application development. The market for developing mobile apps for virtual reality and augmented reality is expanding worldwide. Virtual reality and augmented reality have a plethora of potential applications across all technological fields, from healthcare to industrial development. The main applications of virtual reality and augmented reality apps are Social Media Applications, Virtual Reality Mobile Apps, Troubleshooting of Large Scale Manufacturing Systems, and Healthcare Education Industrial Design. A special subfield of digital technology known as "immersive technology" allows users to become completely or partially immersed in a digital simulation. Augmented Reality (AR) is the use of technology to improve a user's perception of the real world. Virtual Reality (VR) refers to the use of technology to completely immerse the user in a virtual world. Every day, more and more applications for these two technologies emerge. The mobile app development trends for augmented reality and virtual reality applications have undergone significant shifts. The gaming sector accounts for the majority of the virtual reality technology market. To give users a surreal gaming experience, virtual reality mobile apps make use of specialized virtual reality headgear, 3D technology, and motion-sensors. The possibilities for expansion in this sector are virtually limitless as VR equipment becomes increasingly affordable. For instance, in February 2022, Netflix is an American subscription video on-demand over-the-top streaming television service owned and operated by Netflix, Inc. Sandbox & Co, a millennial learning company focusing on digital products, services and platforms, Sandbox VR partnered with Netflix to create a Virtual Reality (VR) experience inspired by Squid Game, the streaming giant's most-watched show of all time. The Squid Game VR experience is due to launch in late 2023. Netflix VR is an app that's uniquely compatible with Google's Daydream virtual reality viewing device, though it promises to be available to more platforms in the future. It allows you to watch television, movies, and other Netflix fare (but mostly television and movies) with a normal Netflix subscription and all the benefits of VR.

Global Extended Reality Market Opportunities:

Growing Demand for Mobile-Based AR and VR Platforms

The market is primarily driven by the rising use of the internet and the developing video game industry. The increased adoption of virtual reality and augmented reality in industries including retail, entertainment, healthcare, media, aerospace, manufacturing, and defense will cause the AR and VR market to grow quickly over the projected period. To support the growth of the manufacturing and automotive industries, governments all over the world are promoting the adoption of various technologies, including new ones. For instance, in October 2022, Meta is an American multinational technology conglomerate launched Meta Quest Pro, a Mixed Reality (MR) headset developed by Reality Labs, a division of Meta Platforms. The Quest Pro closer resembles AR headsets such as Microsoft's HoloLens rather than other virtual reality VR headsets, with a thinner lens enclosure, and a more visor-like form factor that does not obscure the entirety of the user's peripheral vision; "peripheral blinders" are included as an accessory, with a "full light blocker" attachment sold separately.

Continuous 5G technological advancements

Extended reality technology use is accelerating in both professional and personal settings. The introduction of 5G technology is anticipated to solve these issues by enabling the efficient distribution of processing power. A few countries, including China, South Korea, and the U.S., have already started offering 5G services in a select number of their chosen cities. A huge amount of money has been invested globally to bring 5G to every region of the world. For instance on May 31 2023, Qualcomm Accelerates an Open, XR Developer Ecosystem with Snapdragon Spaces Milestones, Snapdragon Spaces adds an innovative feature, and Dual Render Fusion that enables developers to seamlessly add headworn AR experiences to existing smartphone applications.

Extended Reality Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 46.3 Bn
Historical Data for: 2018 to 2021 Forecast Period: 2023 to 2030
Forecast Period 2023 to 2030 CAGR: 23% 2030 Value Projection: US$ 197.3 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: UK, Germany, France, Italy, Spain , and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East and Africa: GCC Countries, Israel, South Africa, North Africa, Central Africa, rest of MEA countries
Segments covered:
  • By Technology Type: Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR)
  • By Application: Gaming and Entertainment, Healthcare, Education and Training, Manufacturing and Industries, Retail and E-Commerce
Companies covered:

Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation, Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation, Vuzix Corporation, Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture

Growth Drivers:
  • Growing demand for mobile-based AR and VR platforms
  • Continuous 5G technological advancements
Restraints & Challenges:
  • Excessive use of extended reality devices causes health issues    
  • Privacy and data protection 

Global Extended Reality Market Trends:

Expanded reality's rapid acceptance in the healthcare industry

Extended reality has a bright future, especially for modern healthcare organizations, and opens up new opportunities for medical professionals. The use of extended reality technology in the healthcare industry is lowering costs and improving patient outcomes without putting patients' lives in danger. Extended reality technology can make it a risk-free approach for surgeons to explore the target organs before beginning any medical procedure by imagining the smallest details of the patient's anatomy.

Increase in the adoption of extended reality in the supply chain

Supply chain management, product development, prototyping, and quality control in the automotive industry are just a few of the growing applications in the supply chain industry that will drive growth in the market. Virtual prototypes, immersive show rooming, and augmented training are the three most common applications. Engineers and manufacturing companies can use virtual reality-based prototypes to imitate the volume, size, and distance of automobile parts. In a virtual environment where flaws and conception errors can be quickly identified, they are able to see all the important parts more clearly. Businesses can save money and increase production efficiency by not having to invest in physical assets. As a result, it is anticipated that the Extended Reality Market will expand in response to the growing use of XR in the automobile industry.

Global Extended Reality Market-Impact of COVID-19

The COVID-19 pandemic has positively impacted extended reality (XR) device sales. During the lockdown, customers all over the world found new ways to keep themselves occupied. During this crisis, people who worked from home were given new ways to communicate and work together to find a new path. Additionally, stakeholders were able to attend important events despite travel restrictions thanks to the widespread application of these devices. Extended reality (XR) has been used to train employees in a safe and socially distanced environment. This has been especially useful for training employees on new equipment or procedures. Therefore, engaging training courses are required for businesses to impart these new skills to their workforce. Through immersive learning, which is based on Extended Reality (XR) technology and has been shown to increase learning retention, employees can participate in "hands-on" learning. It is anticipated that such initiatives will contribute to the expansion of the market and raise the demand for XR technologies following COVID-19.

Global Extended Reality Market Restraints:

Excessive use of extended reality devices causes health issues

The sensory system can be thrown off by virtual reality, which can cause symptoms like nausea, dizziness, sweating, pallor, and losing one's balance, which are referred to collectively as "virtual reality sickness." These symptoms may begin within a few minutes of use in sensitive individuals. A person's sensory, motor, and perceptual abilities can also temporarily change after a virtual reality session, affecting their manual dexterity or body orientation. "AR/VR devices use LED screens that potentially contain a high blue light content, which can disrupt our biological rhythms when viewed at night or in the evening (delayed sleep onset, disrupted sleep, etc.)" Dina Attia, ANSES's scientific coordinator for this expert evaluation, makes this point. Epileptic seizures can be triggered in susceptible individuals by exposure to the temporal modulation of the light emitted by these LED screens, which flashes light that is sometimes hard to see.

Privacy and data protection

It's important to know that Augmented Reality (AR) devices overlay additional visual information on top of the real-world scene after analyzing it. As a result, data collection is an essential component of augmented reality. Users and viewers of AR-enabled devices are the subjects of data collection. As a result, data security and privacy play a crucial role. Hacker attacks and security, despite its numerous benefits, augmented reality technology is susceptible to various cyber-attacks and security threats. These kinds of actions can have severe repercussions. An AR-enabled navigation system, for instance, can be used by hackers to misdirect a vehicle and cause an accident. As a result, utilizing the principle of limited trust and independently verifying the data presented is always recommended. Addiction in continuous use of mobile or other devices is becoming simpler and more straightforward for individuals to encounter computer generated reality. This has led to a significant increase in the amount of time people spend using this technology. It may be difficult for younger generations in particular to resist the lure of virtual reality and choose other activities. It is essential to keep in mind that young people require time to experience the world as it is, not as it might be displayed on a screen, and that if virtual reality takes over their lives, they may not be able to do so. Monitoring AR usage is essential to avoiding the danger of addiction. Even though the idea of using augmented reality in a variety of industries typically elicits positive feelings, we need to be aware of the actual dangers of using augmented reality. Even for responsible users of new gadgets, this technology may be risky and prone to errors like any other. As a result, when experimenting with augmented reality, it is essential to constantly monitor its usage and to act immediately upon any negative signals before they become problematic.

Figure 2: Global Extended Reality Market Share (%), By Technology Type 2022


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Global Extended Reality Market Segmentation:

By Technology Type

Virtual Reality

The term "virtual reality" refers to an artificial environment that is created through the use of computer simulations and experiences and specialized hardware. Users can enter a virtual world through virtual reality, which has no effect on the real world. Virtual reality (VR) simulations are referred to as experiences because viewers are required to use hardware to immerse themselves in the simulations. The concept of a virtual environment, which refers to all possible realities and environments created within computers, is relatively new to this technology. Using Virtual Reality (VR) technologies. Because of this, virtual reality (VR) can be used for entertainment and education purposes. In a variety of industries, virtual reality (VR) platforms are extensively being developed for the creation of gaming experiences and training modules. This technology is expected to have a significant impact on the medical and healthcare industries as it provides an immersive method for teaching various aspects of healthcare without the need for a real patient or body. For instance on January 5, 2023, HTC Corporation, or High Tech Computer Corporation, is a Taiwanese consumer electronics company, HTC VIVE introduced new innovative extended reality (XR) headset VIVE XR Elite, The headset combines Mixed Reality (MR) and Virtual Reality (VR) capabilities into one compact, lightweight, powerful and highly versatile device – perfect for gaming, fitness, productivity, and more. 

Augmented Reality

Users can overlay digital data and virtual objects onto the real world with augmented reality. Visual, auditory, haptic, somatosensory, and olfactory senses are just a few of the ways that Augmented Reality (AR) technologies enhance the real world. Without having to completely immerse themselves in the simulation, this makes it possible for users to directly impose virtual objects onto the real world. Because some applications do not even require any special hardware to visualize the experiences. Augmented Reality (AR) technologies are much more effective in handheld and mobile applications. The mobile platform's offerings are one example of such a program. A smartphone that is compatible can be used to directly experience apps like Snapchat, Pokémon Go, Ingress, and Google Lens, among others. One of the most popular augmented reality (AR) applications currently available is Pokémon Go, and it is anticipated that these apps will have a significant impact on the market for extended reality. AR can be used in enterprise applications as well as consumer applications. One of the most important augmented reality hardware offerings in the enterprise market is, Microsoft HoloLens. The device has now been installed at a number of major Original Equipment Manufacturers (OEMs), including Mercedes-Benz and Lockheed Martin. For instance, on June 1, 2023, Niantic, Inc. introduced Major Updates to Lightship and 8th Wall Platforms for Developers at AWE USA 2023, 8th Wall Metaversal Deployment (build once, deploy everywhere) now supports video pass-through for mixed reality headsets.

Mixed Reality

Mixed reality can create new simulations and experiences by merging real and virtual realities. Users can use this technology to bring virtual components into the real world and allow virtual components to alter the real world. Computer processing, human input, and environmental input are the three main components of this technology. Experience in MR can be achieved by combining all three of these elements. Microsoft defines mixed reality experiences as a spectrum of realities in which virtual and augmented reality serve as polar opposites. Dennis Gabor's 1946 theory of holography serves as a loose foundation for mixed reality. As a result, mixed reality devices also include holographic display devices. For instance, on February 2, 2023 Microsoft Corporation is an American multinational technology corporation committed to HoloLens 2 and Mixed Reality when you use, Microsoft Dynamics 365 Remote Assist on HoloLens or HoloLens 2, which is used to collaborate with one or more Microsoft Teams desktop users or one Teams mobile user, HoloLens and Dynamics 365 are key components of Industrial Metaverse deployments, connecting the benefits of digital transformation to frontline workers in field service, factory operations, and many other use cases.

Global Extended Reality Market, By Application:

Gaming and Entertainment

One of the major drivers of the global extended reality market is the gaming and entertainment sectors. The gaming industry is adopting extended reality (XR) technologies in response to the growing demand for immersive gaming experiences. The availability of extended reality XR-enabled games is increasing as a result of extended reality XR headsets' realistic and immersive capabilities. Extended reality (XR) is also being used in other applications for entertainment such as movies, live events, and virtual concerts. For instance, Spotify has experimented with using extended reality (XR) to create virtual concerts allow fans to experience the concert in a more immersive way, as if they were actually there.


Extended Reality (XR) technologies like Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) can be used in education and training. This rapidly expanding field has the potential to transform the healthcare industry. Surgeons can get a more realistic and immersive view of the surgical field using virtual reality and augmented reality. Surgeons may be able to make more precise incisions and avoid harming the surrounding tissues with this assistance. VR can be used to create an immersive setting that helps patients forget about their pain. Patients who are undergoing surgery or other painful procedures may particularly benefit from this.

Education and Training

Virtual reality (VR) can be used to create virtual field trips to historical sites, museums, and even the International Space Station that students would otherwise be unable to visit. Realistic simulations of actual situations can be created with extended reality (XR). Students can be trained in this way to become pilots, surgeons, or firefighters, among other professions. Extended reality (XR) can be used to create learning environments that allow students from all over the world to collaborate. Extended reality (XR) can be used to create individualized learning experiences that are based on the needs of each student.

Manufacturing and Industries

Extended reality (XR) can be used to create a realistic simulation of manufacturing processes, making it possible to train employees on new equipment or procedures without having to put them in risk. Equipment and machinery can be visualized and analyzed with extended reality (XR). This can assist in identifying potential issues prior to causing downtime. Extended reality (XR) can be used to find flaws in processes and products. Quality can be improved and waste can be reduced by this. Extended reality (XR) can be used to create virtual product prototypes, which can help reduce product development time and costs.

Retail and E-commerce

Extended Reality (XR) technologies can be used to create an immersive and interactive shopping experience, and the retail and e-commerce industries are benefiting from their rapid expansion. Virtual Reality (VR) can be used to create virtual showrooms where customers can view products and interact with them in a realistic way. This is especially useful for products that are difficult to visualize, like home appliances or furniture. Customers can virtually try on products using Augmented Reality (AR) on their body or face. Using Augmented Reality (AR), virtual products can be placed in the customer's environment, allowing them to visualize how a product would look in their home or workplace. Customers can receive product-related information in the form of images, videos, or text using Augmented Reality (AR).

Global Extended Reality Market: Key Developments

To provide a one-of-a-kind gaming experience, Sony Group Corporation released PlaystationVR2 and the PlayStation VR2 Sense controller charging station in February 2023. Eye tracking, 3D audio, adaptive triggers, and haptic feedback from PS VR2Sense controllers are all features of PS VR2.

On May 11, 2022 Google LLC is an American multinational technology company introduced ARCore Geospatial API that makes the world your canvas with the use of ARCore Geospatial API ARCore, Google’s, Augmented Reality (AR) developer platform, works across Billions of devices, providing developers with simple yet powerful tools to build immersive experiences that seamlessly blend the digital and physical worlds

In September 20, 2022, NVIDIA Nvidia Corporation is an American multinational technology company announced its first software- and infrastructure-as-a-service offering with the launch of NVIDIA Omniverse Cloud, a comprehensive suite of cloud services for artists, developers and enterprise teams to design, publish, operate and experience metaverse applications anywhere NVIDIA Omniverse: a platform for creating and operating metaverse applications

In April 2022, Snap Inc. is an American camera and social media company, Snapchat launched SnapAR, a new enhanced AR which features a new version so developers can build Lenses that are more dynamic and look true to life. With its API Library, Lenses can surface real-time financial, translation, and weather data from partners, ultimately making more useful and rich AR experiences. The company is expanding the API Library with new partners, AstrologyAPI and Sportradar, so Lenses can tap into frequently-updating information like daily horoscopes and live sports scores.

Global Extended Reality Market: Key Companies Insights

The global extended reality market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing research and development and efforts by value chain participants. Moreover, key market players are adopting various business growth strategies in order to expand their presence on the regional and global basis.

Here are the key players of extended reality market, Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation. Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation. Vuzix Corporation Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture.

*Definition: The Extended Reality (XR) market refers to the market for technologies that combine the physical and digital worlds, creating immersive and interactive experience for users. XR encompasses Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) technologies.

Frequently Asked Questions

The Global Extended Reality Market size is estimated to grow from US$ 46.3 Billion in 2023 to US$ 197.3 Billion by 2030, at a CAGR of 23% during the forecast period (2023-2030).

The primary drivers of the market's expansion are the growing demand for cutting-edge technologies like Augmented Reality (AR) and Virtual Reality (VR) as well as the growing use of extended reality technologies in a variety of industries such as manufacturing, healthcare, and entertainment.

The Augmented Reality (AR) segment is estimated to gain the largest market share of about in 2030.

Lack of effective user-experience design and slow growth in developing countries are the key factors hampering the market growth.

Here are the major players of market, Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation. Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation. Vuzix Corporation Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture.

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