The extended reality market is expected to grow from USD 33.0 billion in 2021 to USD 125.2 billion by 2026, at a CAGR of 30.6%. The market growth can be attributed to several factors, such as surging deployment of extended reality in education sector and industrial training, rising demand for extended reality devices and technology in global automotive industry, surging adoption of extended reality in healthcare sector, and increasing demand for extended reality in entertainment and gaming industry. However, high installation and maintenance cost0f extended reality devices may create hurdles for the market.
The recent COVID-19 pandemic is expected to impact the global extended reality market. Due to COVID-19, the manufacturing units of major players are highly hampered due to worldwide lockdown and limited availability of labor and raw material. A number of scheduled product launches and related developments have been postponed due to the pandemic. However, the impact of COVID-19 is expected to reduce during the forecast period.
AR technology to account for largest share of extended reality market during forecast period
Based on the technology, the extended reality market has been divided into AR technology, VR technology, and MR technology. AR technology held the highest share in 2020. The increasing adoption of AR in consumer and commercial applications drives the growth of the AR technology segment of the extended reality market across the world. MR devices based on holographic technology are characterized by their ability to place digital content in the real world as if it is there. They embed holographic content and applications into physical surroundings for users to see, place, and interact with them as if they are a part of the physical world.
Software segment to hold largest share of extended reality market during forecast period
Increasing penetration of extended reality software solutions and their compatibility with existing hardware devices are expected to fuel the growth of the software segment of the market during the forecast period. Moreover, the growth in the number of apps and platforms in the AR space is expected to boost the growth of software in the market.
Automotive application to grow at highest CAGR during forecast period
On the basis of applications, the market is categorized into consumer, commercial, enterprise (manufacturing), healthcare, aerospace & defense, energy, automotive, and others. The use of AR HUD in automobiles ensures comfortable and safe driving. These displays allow drivers to see the virtual information projected on them. The rising demand for AR HUD and projectors is driving the adoption of AR technology in the automotive industry
APAC is expected to register highest CAGR in the market during forecast period
Among all regions, APAC is expected to register the highest growth in the extended reality market during the forecast period. Being an emerging economy, APAC is witnessing major changes in the adoption of new technologies and advancements. Due to the presence of a number of display panel manufacturers in the region, APAC witnesses an increasing adoption of the latest technologies. The extended reality market in APAC is expected to grow at a high rate in sectors such as healthcare, commercial, and consumer. The increasing number of players in the region is projected to boost the growth of the extended reality market.
Breakdown of primary participants:
- By Company Type: Tier 1 = 25%, Tier 2 = 35%, and Tier 3 = 40%
- By Designation: C-Level Executives = 35%, Directors = 25%, and Others = 40%
- By Region: North America = 14%, Europe = 43%, APAC = 29%, and RoW = 14%
Some of the major players in the extended reality market include Microsoft (US), Sony (Japan), Oculus VR (Facebook) (US), HTC (Taiwan), Google (US), Samsung Electronics (South Korea), Apple (US), PTC (US), Seiko Epson (Japan), and so on.
In this report, the extended reality market has been segmented on the basis of technology, offering, device type, application, and geography. The report also discusses the drivers, restraints, opportunities, and challenges pertaining to the market. It gives a detailed view of the market across four main regions?North America, Europe, APAC, and RoW. Value chain analysis has been included in the report, along with the key players and their competitive analysis in the extended reality ecosystem.
Key Benefits to Buy the Report:
- This report includes statistics for the extended reality market based on technology, offering, device type, application, and geography, along with their respective market sizes.
- Value chain analysis and key industry trends have been provided for the market.
- Major drivers, restraints, opportunities, and challenges for the extended reality market have been provided in detail in this report.
- This report would help stakeholders to understand their competitors better and gain more insights to enhance their position in the market.
- The competitive landscape section includes the competitor ecosystem and the recent development strategies adopted by the key players in the market, such as product launches/developments, contracts/collaborations/agreements/acquisitions.