Extended Reality (XR) Market By Component (Hardware, Software, and Services), By Device Type (Mobile, Personal Computer (PC), and Headset), By User (Single User and Multi User), Delivery Model (Consumer Engagement and Business Engagement), By Application (Virtual Reality (VR), Augmented Reality (AR), and Extended Reality (XR)), By Industry (Retail, Education, Industrial & Manufacturing, Healthcare, Media & Entertainment, Gaming, Aerospace & Defense, and Others) and By Region (Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa)- Prospective Landscape, Size, Share, Growth, Opportunities and Industry Forecast 2019-2028

Market Insights

The extended reality (XR) market was valued at US$ 18.73 Bn in 2019 and anticipated to grow at a CAGR of 51.3% throughout the forecast period to reach over US$ 500.0 Bn by 2028. The increased demand for extended reality (XR) in the developing economies of Asia-Pacific along with the rising penetration of immersive technologies among individuals as well as organizations is anticipated to enhance the global extended reality (XR) market growth. The growing adoption of smartphones as well as connected devices along with rising mergers & acquisitions for the expansion of immersive technologies in the gaming industry is further anticipated to enhance the global extended reality (XR) market growth. For instance, in February 2020, Facebook Inc. acquired the VR studio Sanzaru Games Inc. The acquisition of Sanzaru Games Inc. is anticipated to enhance the VR gaming offering by Facebook Inc.

Market Trends

The increased focus towards gesture-based computing along with growing adoption of 5G are some of the leading trends which are observed in the global extended reality (XR) market. The growing adoption of 5G is anticipated to be the major trend owing to the speed of 5G which is presumed to be 100 times faster than 4G, which will help the immersive technology devices to work smoothly, effectively, and efficiently. As per a recent report by Accenture PLC published in 2019, 5G connections are anticipated to witness strong growth in the near future and the estimated 5G connections in key countries by 2025 are U.S. (187.9 million), China (464.3 million), Japan (102.8 million), India (87.5 million), and Russia (45.8 million) among others.

Market Drivers

The major factors which are driving the growth for the global extended reality (XR) market are the growing penetration of smartphone devices and connected devices along with increased adoption of augmented reality (AR) and virtual reality (VR). As per a recent report published by Global System for Mobile Communications Association (GSMA) in 2020, titled- ‘Mobile Economy 2020’, the global unique mobile subscribers in 2019 was 5.2 Bn out of which 65% are smartphones. Furthermore, as per the same report the unique mobile subscribers are anticipated to reach over 5.8 Bn by 2025 and the penetration of smartphones is anticipated to reach over 80% by 2025. In addition, the increased demand for immersive technologies from emerging nations along with growing product launches by market players. Hereby, driving market growth.

Market Challenges

The extended reality (XR) market challenges are the high cost of devices along with ongoing COVID-19 pandemic. the COVID-19 pandemic impact has been considered for the year 2020 and 2021. The sudden lockdown worldwide has increased the demand for immersive technologies due to people working from home. Besides, the halt in the manufacturing industry worldwide decreased the supply of AR/VR devices which is estimated to impact the growth of the extended reality (XR) market.

Segment Insights

Based on industry, the extended reality (XR) market is segmented into retail, education, industrial & manufacturing, healthcare, media & entertainment, gaming, aerospace & defense, and others. In 2019, the industrial & manufacturing category had a major share in the global extended reality (XR) market and accounted for over 30% market revenue share in the same year. The growing us of immersive technologies in heavy industries such as oil & gas, manufacturing, mining, and chemical among others for training purposes is the key reason for category dominance. Besides, the gaming category anticipated witnessing the fastest growth over the upcoming years due to growing adoption of augmented reality (AR) and virtual reality (VR) in the gaming industry along with increased consumer inclination towards digital gaming worldwide.

Regional Insights

In 2019, North America had its dominance in the extended reality (XR) market due to the presence of a large number of industry players and growing adoption of immersive technologies in the education as well as aerospace & defense industry. The commercialization of 5G along with increased government focus on technology are some other key factors estimated to enhance the regional growth over the forecast period. The U.S. accounted for the major share in North America extended reality (XR) market in 2019 and accounted for over 80% of the market revenue share in the same year.

Asia Pacific is presumed to witness the fastest growth over the upcoming years due to the rising adoption of immersive technologies along with growing spending on augmented reality(AR)/virtual reality (VR) in the region. Furthermore, the increased penetration of AR/VR mobile applications and the growing use of immersive technologies for training & development purpose are some other key factors for regional growth.

Top Companies with Recent Development

Noticeable players within the Market

• Facebook Inc.
• Qualcomm Inc.
• Accenture Plc
• Adobe In.
• Alphabet Inc.
• Unity Technologies
• SoftServe Inc.
• Sony Corporation
• Microsoft Corporation
• Northern Digital Inc.
• HTC Corporation
• Semcon
• Apple Inc.

The above mentioned major players for the extended reality (XR) market are investing heavily in Research & Development to introduce new products and offers along with enhanced technology to increase their market share and geographical expansion. Besides, the extended reality (XR) market players are concentrating on various strategies such as technological innovations, geographical expansion, acquisitions, strategic collaboration, strategic contracts, new product launches, and mergers to increase their market presence. For instance, in February 2020, Qualcomm Incorporated introduced a 5G-enabled XR reference design headset, which is based on the Qualcomm Snapdragon XR2 platform. The reference design has better CPU and GPU performance, artificial intelligence (AI) improvement, higher resolution, and more bandwidth, compared to the currently available extended reality (XR) platforms. The reference design is expected to simplify complex technologies and enable original equipment manufacturers (OEMs) to bring the next generation of virtual reality (VR), augmented reality (AR), and mixed reality (MR) devices to the market.

Report Scope by Market Segments

This report splits the extended reality (XR) market revenue opportunities worldwide, regional, and national levels and gives a comprehensive research study of the most recent industry activities in each of the sub-segments throughout the forecast period. For the reason of this ponder, Alchemy Market Research has segmented the extended reality (XR) market report on the premise of component, device type, user, delivery model, application, industry, and regional analysis:

By Component

• Hardware
• Software
• Services

By Device Type

• Mobile
• Personal Computer (PC)
• Headset

By User

• Single User
• Multi User

By Delivery Model

• Consumer Engagement
• Business Engagement

By Application

• Augmented Reality (AR)
• Virtual Reality (VR)
• Mixed Reality (MR)

By Industry

• Retail
• Education
• Industrial & Manufacturing
• Healthcare
• Media & Entertainment
• Gaming
• Aerospace & Defense
• Others

Regional Perspective

• North America (U.S., and Canada)
• Europe (U.K., Germany, France, Spain, and Rest of Europe)
• Asia-Pacific (Japan, China, India, and Rest of Asia- Pacific)
• Latin America (Brazil, Mexico, and Rest of Latin America)
• The Middle East & Africa (Saudi Arabia, UAE, and Rest of the Middle East & Africa)

This report answers key questions such as

• What are the challenges in the extended reality (XR) market?
• What are the factors anticipated to drive the extended reality (XR) market?
• What are trends, restraints, and challenges in the extended reality (XR) market?
• Who are the potential customers of the extended reality (XR) market?
• Analysis of key strategies by key market players?
• Which region is growing rapidly?
• How do rapidly changing consumer perspectives will affect the extended reality (XR) market?
• How is the competitive environment?
• Comprehensive details of factors that will challenge the growth of the market pre & post-COVID-19.
• How are collaborations evolving in the market?
• What is the customer sentiment about this market?
• What are the solutions to the challenges?
• What are the opportunities in this market?
• What are the key current & upcoming technological trends estimated to drive the markets?
• Regions & segment-wise analysis of how various industries will perform?
• Forecasts on how market drivers, restraints, and future opportunities will affect market dynamics?

Report Synopsis

The extended reality (XR) market is primarily driven by growing adoption of augmented reality (AR) and virtual reality (VR) solutions along with the rising penetration of smartphones and connected devices across the globe. The growing collaborations and partnerships among key market players along with an increased focus towards gesture-based computing are some other key factors estimated to enhance the global extended reality (XR) market growth over the forecast period. The increased product launches by key market players is another key factor for the increased market demand over the upcoming years. For instance, in February 2020, HTC Corporation introduced the complete VIVE Cosmos series. HTC Corporation is anticipated to change the Face of Virtual Reality (VR) with the launch of the aforementioned series. The company introduced three new products and three new modular faceplates which expand the functionality of VIVE Cosmos.

Chapter 1.        Executive Summary

 

Chapter 2.        Market Introduction

 

Chapter 3.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – Key Industry Dynamics

3.1.   Key Market Drivers

3.2.   Key Market Restraints

3.3.   Market Opportunities

3.4.   Future Trends

3.5.   Impact Analysis of Drivers and Restraints

Chapter 4.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

 

Chapter 5.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Component

5.1.   Hardware

5.2.   Software

5.3.   Services

Chapter 6.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Device Type

6.1.   Mobile

6.2.   Personal Computer (PC)

6.3.   Headset

Chapter 7.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By User

7.1.   Single User

7.2.   Multi User

Chapter 8.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Delivery Model

8.1.   Consumer Engagement

8.2.   Business Engagement

Chapter 9.        Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Application

9.1.   Augmented Reality (AR)

9.2.   Virtual Reality (VR)

9.3.   Mixed Reality (MR)

Chapter 10.    Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Industry

10.1.                     Retail

10.2.                     Education

10.3.                     Industrial & Manufacturing

10.4.                     Healthcare

10.5.                     Media & Entertainment

10.6.                     Gaming

10.7.                     Aerospace & Defense

10.8.                     Others

Chapter 11.    Global Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028 – By Region

11.1.            North America

11.2.            Europe

11.3.            Asia-Pacific

11.4.            Latin America

11.5.            Middle East & Africa

Chapter 12.    North America Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

12.1.            North America Extended Reality (XR) Market– By Component

12.1.1.    Hardware

12.1.2.    Software

12.1.3.    Services

12.2.            North America Extended Reality (XR) Market– By Device Type

12.2.1.    Mobile

12.2.2.    Personal Computer (PC)

12.2.3.    Headset

12.3.            North America Extended Reality (XR) Market– By User

12.3.1.    Single User

12.3.2.    Multi User

12.4.            North America Extended Reality (XR) Market– By Delivery Model

12.4.1.    Consumer Engagement

12.4.2.    Business Engagement

12.5.            North America Extended Reality (XR) Market– By Application

12.5.1.    Augmented Reality (AR)

12.5.2.    Virtual Reality (VR)

12.5.3.    Mixed Reality (MR)

12.6.            North America Extended Reality (XR) Market– By Industry

12.6.1.    Retail

12.6.2.    Education

12.6.3.    Industrial & Manufacturing

12.6.4.    Healthcare

12.6.5.    Media & Entertainment

12.6.6.    Gaming

12.6.7.    Aerospace & Defense

12.6.8.    Others

12.7.            North America Extended Reality (XR) Market– By Country

12.7.1. U.S.

12.7.2. Canada

Chapter 13.    Europe Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

13.1.            Europe Extended Reality (XR) Market– By Component

13.1.1.    Hardware

13.1.2.    Software

13.1.3.    Services

13.2.            Europe Extended Reality (XR) Market– By Device Type

13.2.1.    Mobile

13.2.2.    Personal Computer (PC)

13.2.3.    Headset

13.3.            Europe Extended Reality (XR) Market– By User

13.3.1.    Single User

13.3.2.    Multi User

13.4.            Europe Extended Reality (XR) Market– By Delivery Model

13.4.1.    Consumer Engagement

13.4.2.    Business Engagement

13.5.            Europe Extended Reality (XR) Market– By Application

13.5.1.    Augmented Reality (AR)

13.5.2.    Virtual Reality (VR)

13.5.3.    Mixed Reality (MR)

13.6.            Europe Extended Reality (XR) Market– By Industry

13.6.1.    Retail

13.6.2.    Education

13.6.3.    Industrial & Manufacturing

13.6.4.    Healthcare

13.6.5.    Media & Entertainment

13.6.6.    Gaming

13.6.7.    Aerospace & Defense

13.6.8.    Others

13.7.            Europe Extended Reality (XR) Market– By Country

13.7.1.    Germany

13.7.2.    France

13.7.3.    UK

13.7.4.    Spain

13.7.5.    Italy

13.7.6.    Rest of Europe

Chapter 14.    Asia Pacific Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

14.1.            Asia Pacific Extended Reality (XR) Market– By Component

14.1.1.    Hardware

14.1.2.    Software

14.1.3.    Services

14.2.            Asia Pacific Extended Reality (XR) Market– By Device Type

14.2.1.    Mobile

14.2.2.    Personal Computer (PC)

14.2.3.    Headset

14.3.            Asia Pacific Extended Reality (XR) Market– By User

14.3.1.    Single User

14.3.2.    Multi User

14.4.            Asia Pacific Extended Reality (XR) Market– By Delivery Model

14.4.1.    Consumer Engagement

14.4.2.    Business Engagement

14.5.            Asia Pacific Extended Reality (XR) Market– By Application

14.5.1.    Augmented Reality (AR)

14.5.2.    Virtual Reality (VR)

14.5.3.    Mixed Reality (MR)

14.6.            Asia Pacific Extended Reality (XR) Market– By Industry

14.6.1.    Retail

14.6.2.    Education

14.6.3.    Industrial & Manufacturing

14.6.4.    Healthcare

14.6.5.    Media & Entertainment

14.6.6.    Gaming

14.6.7.    Aerospace & Defense

14.6.8.    Others

14.7.            Asia-Pacific Extended Reality (XR) Market– By Country

14.7.1. China

14.7.2. India

14.7.3. Japan

14.7.4. South Korea

14.7.5. Rest of Asia-Pacific

Chapter 15.    Latin America Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

15.1.            Latin America Extended Reality (XR) Market– By Component

15.1.1.    Hardware

15.1.2.    Software

15.1.3.    Services

15.2.            Latin America Extended Reality (XR) Market– By Device Type

15.2.1.    Mobile

15.2.2.    Personal Computer (PC)

15.2.3.    Headset

15.3.            Latin America Extended Reality (XR) Market– By User

15.3.1.    Single User

15.3.2.    Multi User

15.4.            Latin America Extended Reality (XR) Market– By Delivery Model

15.4.1.    Consumer Engagement

15.4.2.    Business Engagement

15.5.            Latin America Extended Reality (XR) Market– By Application

15.5.1.    Augmented Reality (AR)

15.5.2.    Virtual Reality (VR)

15.5.3.    Mixed Reality (MR)

15.6.            Latin America Extended Reality (XR) Market– By Industry

15.6.1.    Retail

15.6.2.    Education

15.6.3.    Industrial & Manufacturing

15.6.4.    Healthcare

15.6.5.    Media & Entertainment

15.6.6.    Gaming

15.6.7.    Aerospace & Defense

15.6.8.    Others

15.7.            Latin America Extended Reality (XR) Market– By Country

15.7.1. Brazil

15.7.2. Mexico

15.7.3. Rest of Latin America

Chapter 16.    Middle East & Africa Extended Reality (XR) Market– Analysis and Revenue Forecast 2019-2028

16.1.            Middle East & Africa Extended Reality (XR) Market– By Component

16.1.1.    Hardware

16.1.2.    Software

16.1.3.    Services

16.2.            Middle East & Africa Extended Reality (XR) Market– By Device Type

16.2.1.    Mobile

16.2.2.    Personal Computer (PC)

16.2.3.    Headset

16.3.            Middle East & Africa Extended Reality (XR) Market– By User

16.3.1.    Single User

16.3.2.    Multi User

16.4.            Middle East & Africa Extended Reality (XR) Market– By Delivery Model

16.4.1.    Consumer Engagement

16.4.2.    Business Engagement

16.5.            Middle East & Africa Extended Reality (XR) Market– By Application

16.5.1.    Augmented Reality (AR)

16.5.2.    Virtual Reality (VR)

16.5.3.    Mixed Reality (MR)

16.6.            Middle East & Africa Extended Reality (XR) Market– By Industry

16.6.1.    Retail

16.6.2.    Education

16.6.3.    Industrial & Manufacturing

16.6.4.    Healthcare

16.6.5.    Media & Entertainment

16.6.6.    Gaming

16.6.7.    Aerospace & Defense

16.6.8.    Others

16.7.            Middle East & Africa Extended Reality (XR) Market– By Country

16.7.1. UAE

16.7.2. Saudi Arabia

16.7.3. Turkey

16.7.4. Rest of Middle East & Africa

Chapter 17.    Competitive Analysis

17.1.1. Competition Dashboard

17.1.2. Company Profiles

17.1.2.1.          Facebook Inc.

17.1.2.2.          Qualcomm Inc.

17.1.2.3.          Accenture Plc

17.1.2.4.          Adobe In.

17.1.2.5.          Alphabet Inc.

17.1.2.6.          Unity Technologies

17.1.2.7.          SoftServe Inc.

17.1.2.8.          Sony Corporation

17.1.2.9.          Microsoft Corporation

17.1.2.10.      Northern Digital Inc.

17.1.2.11.      HTC Corporation

17.1.2.12.      Semcon

17.1.2.13.      Apple Inc.