The extended reality market is estimated to be valued at US$ 46.3 Bn in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The extended reality market refers to the continuum of virtual reality, augmented reality, and mixed reality. These technologies are used to create interactive computer-generated environments that merge the digital and physical worlds. Extended reality finds application in various industries such as gaming, entertainment, healthcare, education, manufacturing, and others. AR/VR headsets, head mounted displays, smart glasses, and controlled devices are some common products associated with extended reality.
Market Dynamics:
Growing adoption of extended reality solutions in industrial applications is a key driver for the market growth. Extended reality technologies help enable remote assistance, improve worker safety and productivity, offer flexible work environments, and drive innovation in industries. For instance, AR and VR training helps manufacturers reduce costs and improve workforce safety by simulating hazardous work environments.
Secondly, increasing investments by technology companies is also fueling market expansion. Major companies such as Meta, Microsoft, and Apple are investing heavily in research and development of advanced AR/VR technologies and products. This is leading to improved functionality and reduced costs of extended reality devices.
SWOT Analysis
Strength: Extended reality technology blends the physical and digital worlds to enhance human experiences. It creates immersive experiences for applications across various industries like education, healthcare, retail and more.
Weakness: High costs associated with Extended Reality devices and lack of quality content are major weaknesses
Opportunity: Growing investments by tech giants and increasing applications of XR in remote work and learning are big opportunities.
Threats: Data privacy and security concerns, and health issues associated with extended reality experiences are major threats. Regulations around data privacy and security can impact growth.
Key Takeaways
The Global Extended Reality Market is expected to witness high growth, exhibiting CAGR of 2.3% over the forecast period, due to increasing demand from various industries like gaming, education, industrial training, and live events. Extended reality is transforming how people interact with technology and each other.
Regional analysis: North America dominates the extended reality market, accounting for the largest market share of over 35% in 2023. However, Asia Pacific is expected to grow at the fastest pace due to the rapid adoption of emerging technologies and high investments in virtual and augmented reality by Chinese manufacturers.
Key players: Key players operating in the extended reality market are 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. Meta (formerly Facebook) is a market leader in the AR/VR industry, with its focus on advancing connectivity in the metaverse.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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