Extended Reality (XR) Market to Grow by USD 1.04 Trillion (2024-2028), Driven by Advances in Sensor Technology, with AI Impacting Market Trends - Technavio

NEW YORK, Dec. 2, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape -The global extended reality (XR) market size is estimated to grow by USD 1.04 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 56.45% during the forecast period. Rapid improvements in sensor technology is driving market growth, with a trend towards advent of 5G. However, infrastructural and integration issues poses a challenge. Key market players include 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 Technologies Ltd..

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Key Market Trends Fueling Growth

The integration of 5G technology into extended reality (XR) applications brings significant advantages. With high bandwidth and low latency, 5G enables the use of AR in live, outdoor environments and facilitates cloud-based gaming. A reliable 5G subscription is necessary for effective cloud gaming. The lower latency of 5G networks compared to previous generations is crucial for XR applications, ensuring real-time responsiveness for seamless experiences. Vendors like Qualcomm and Samsung collaborate with telecom providers offering 5G technology. By 2025, global 5G deployment is predicted. XR applications, such as remote collaboration and training, benefit from 5G's capabilities, accelerating the growth of the XR market. 

XR technology, which includes Virtual Reality (VR) and Augmented Reality (AR), is revolutionizing various industries. The market for XR devices and content is growing rapidly, with VR headsets and AR glasses leading the way. The gaming industry is a major driver, with XR games and simulations becoming increasingly popular. The healthcare sector is also adopting XR for training programs, simulations, and virtual meetings, addressing health concerns such as myopia and enabling remote surgeries. In the hospitality industry, XR is enhancing customer experience through virtual tours and interactive menus. The software segment, including 5G technology, is crucial for delivering high-quality XR content to users. Mixed reality is expected to gain traction in retail stores, while 5G users will benefit from improved internet connectivity and processing capability distribution. Doctors and contemporary healthcare institutions are exploring XR for medical training and virtual realities to treat target organs. The entertainment industry and online gaming are also embracing XR technology, making it an exciting time for this innovative technology. 

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Market Challenges

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• The Extended Reality (XR) market is experiencing rapid growth with applications in various sectors like virtual meetings, online gaming, and contemporary healthcare institutions. However, challenges persist. Internet connectivity and gaming equipment accessibility remain key issues for virtual meetings and online gaming, particularly in developing regions. In the medical sector, doctors and surgeons require target organs identification in real-time during virtual realities, which demands high processing capability distribution. 5G technology is a game-changer, enabling real-time, experiences for 5G users in 5G operations. Mobile XR and solo headsets dominate the consumer market, while tethered VR headsets cater to professional services and industrial training. E-commerce, entertainment, construction, retail and e-commerce, transportation, and industrial and manufacturing sectors also leverage XR. Augmented reality technologies, such as live broadcast, virtual projects, and cast, are transforming industries like education, festivals, television presentations, and corporate events. Cloud VR-based technology and program developers are essential for the growth of XR studios. NFTs and advanced human-machine interfaces are the future of XR, with gaming companies leading the charge in the multi-dimensional Web 3.0.

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Segment Overview 

This extended reality (xr) market report extensively covers market segmentation by

1. Application 
• 1.1 VR
• 1.2 AR
• 1.3 MR
2. Component 
• 2.1 Hardware
• 2.2 Software and services
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 VR- The Extended Reality (XR) market refers to the technology that blends real and virtual worlds. It includes Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). Companies like Microsoft, Google, and Facebook are investing heavily in this space. XR applications span across industries such as gaming, education, healthcare, and manufacturing. The market is expected to grow significantly due to increasing demand for interactive and experiences. Businesses can leverage XR to enhance customer engagement, improve training programs, and streamline operations.

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Research Analysis

The Extended Reality (XR) market is experiencing exponential growth, transforming various sectors with its technologies. Virtual meetings are revolutionizing the way we connect, enabling remote collaborations in real-time. Online gaming is reaching new heights with XR devices, offering more interactive and engaging experiences. Internet connectivity and gaming equipment are essential prerequisites for XR technology, ensuring seamless and uninterrupted access to XR content. In the healthcare sector, doctors and contemporary healthcare institutions are leveraging XR for training and surgeries, allowing for more precise targeting of organs and minimally invasive procedures. Virtual realities and augmented reality are revolutionizing education, providing students with learning experiences and simulations. 5G technology and XR technology are synergistic, with the former providing the necessary speed and bandwidth for the latter. XR devices and XR content are driving demand, with games and training programs being the most popular applications. The entertainment industry and gaming industry are leading the charge, while the education industry is quickly catching up.

Market Research Overview

Extended Reality (XR), encompassing virtual reality (VR), augmented reality (AR), and mixed reality, is revolutionizing various sectors with its experiences. Virtual meetings allow remote collaboration in contemporary healthcare institutions, enabling doctors and surgeons to plan target organ surgeries in virtual realities. Students in the medical sector can learn through interactive simulations and training programs. In the entertainment industry, XR is transforming online gaming with advanced human-machine interfaces and ultra-high-resolution VR glasses. 5G technology and processing capability distribution empower 5G users to enjoy XR operations in mobile and solo headsets. E-commerce and retail are leveraging XR for virtual projects, live broadcasts, and shopping experiences. Construction, transportation, industrial and manufacturing, festivals, television presentations, corporate events, professional services, and XR studios are also embracing XR technologies. Augmented reality technologies, such as NFT and AR in retail stores, are redefining consumer experiences. The software segment, including program developers and cloud VR-based technology, is fueling the growth of XR content in education, industrial training, and healthcare. The future of XR is multi-dimensional, merging the physical and digital worlds for a Web 3.0 experience.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• VR
• AR
• MR
• Component
• Hardware
• Software And Services
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio