The extended reality (XR) market size is expected to reach over US$ 500.0 billion by 2028. The growing penetration of smartphones along with connected devices and the growing prevalence of 5G worldwide are the major factors for extended reality (XR) market growth.
Alchemy Research and Analytics LLP provided this information in a recently published report, titled, “Extended Reality (XR) Market Size, Share & COVID-19 Impact Analysis, 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), and Regional forecast 2020-2028.”
The extended reality (XR) report further mentions that the market size stood at US$ 18.73 billion in 2019, and it is likely to exhibit a CAGR of 51.3% during the forecast period between 2020 to 2028.
The Increased Prevalence of Connected Devices
The growing prevalence of smartphones as well as connected devices worldwide along with the rising adoption of 5G connections across the globe are the key factors for the growth of the extended reality (XR) market. As per a recent report published by Global System for Mobile Communications Association (GSMA) in 2020, there is around 12.0 Bn internet of things (IoT) connections worldwide in 2019 which is anticipated to reach 24.6 Bn by 2025. As per the same report, there will be around 1.8 Bn 5G connections worldwide by the end of 2025 which is estimated to enhance the global extended reality (XR) market growth. Furthermore, the growing adoption of augmented reality (AR) and virtual reality (VR) are anticipated to enhance the market demand over the forecast period.
Increasing demand for Extended Reality (XR) in Developing Economies
The increasing demand for extended reality (XR) in developing economies such as India, China, Brazil, and others is another key factor for market growth over the years to come. In addition, the increase in collaborations among key players and increased product launch is further anticipated to enhance the global market growth. For instance, in February 2019, Accenture Plc, Qualcomm Technologies Inc., and Kellogg Company collaborated for the development and pilot of a solution that embeds eye-tracking technology in a mobile virtual reality (VR) headset to revitalize how retailers and brands gather consumer data and perform market research.
Alchemy Research and Analytics LLP, had taken the impact of the ongoing COVID-19 pandemic on the extended reality (XR) market for the year 2020 and 2021. As per our extensive secondary and primary research, the demand for extended reality (XR) has increased in the COVID-19 period owing to sudden lockdown and the employees working from home which had increased the need for augmented reality (AR) and virtual reality (VR) for training, meeting, and other purposes. However, the severe impact of the COVID-19 pandemic on the manufacturing industry across the globe had reduced the supply of extended reality (XR) devices worldwide owing to which the growth for the extended reality (XR) market in the year 2020 and 2021 impacted severely.
Key Manufacturers Aim to Enhance Their Portfolios by Partnerships
According to Alchemy Research and Analytics major market players in the extended reality (XR) market are focusing on strategies such as partnerships, collaboration, acquisitions, and mergers to enhance their geographic presence as well as product portfolio. The extended reality (XR) market is highly dynamic and it is mostly dominated by big players.
Alchemy Market Research lists out the names of key market players in the extended reality (XR) market. They are as follows:
- Facebook Inc.
- Qualcomm Inc.
- Accenture Plc
- Adobe In.
- Alphabet Inc.
- Unity Technologies
- SoftServe Inc.
- Sony Corporation
- Microsoft Corporation
- Northern Digital Inc.
- HTC Corporation
- Apple Inc.
A Significant Industry Development-
- June 2020: Alphabet Inc. announced that it had acquired a smart glass startup North Inc. to enhance the productivity of augmented reality (AR)/virtual reality (VR) devices. With the acquisition of North Inc., Alphabet Inc. is one step closer to its vision of ‘ambient computing’ in which ubiquitous devices work together.
Further Report Findings-
- In 2019, North America held for the largest share in the global extended reality (XR) market owing to the rapid adoption of XR solutions along with rising penetration of augmented reality (AR) and virtual reality (VR) in aerospace & defense as well as education industry in the region.
- Asia Pacific is anticipated to be the fastest growing region in the global extended reality (XR) market during the forecast period. This is mainly due to rising penetration of immersive technology along with the growing penetration of smartphones in the region.
Based on Application, the augmented reality (AR) category accounted for the largest share in the global market in 2019 due to the huge demand for AR solutions in numerous industries such as retail, healthcare, e-commerce, and others. Besides, the mixed reality (MR) category is anticipated to grow at a rapid pace during the forecast period.