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Extended Reality (XR) Market To Generate Revenue Worth $1,005.9 Billion by 2030

Published Date:   August 2020

The growing penetration of smartphones and connected devices, increasing collaboration among players, and rising adoption of augmented reality (AR)/virtual reality (VR) across the globe are the major factors positively impacting the growth of the extended reality (XR) industry. Owing to these factors, the global extended reality market size was $18.6 billion in 2019, advancing at a CAGR of 48.3% during the forecast period (2020–2030).

COVID-19 Impact Analysis

The ongoing COVID-19 pandemic has led to an increase in the demand for XR solutions, due to more employees working from home and the increasing rate of digitization across all industry verticals, including retail, healthcare, education, and manufacturing, for the training and development of employees. For instance, in March 2020, Spaces Inc. introduced a new PC VR app, SPACES, which allows users to engage in live video conferencing in a VR environment. The user integrates into the environment with a virtual whiteboard and markers, along with a camera that can be adjusted as per his/her convenience. However, due to the lockdown measures in some countries, the manufacturing and distribution of XR devices might remain negatively impacted.

Headset Category to Witness Fastest Growth

The headset category is projected to witness the fastest growth during the forecast period. This can be ascribed to the growing demand for VR/AR headsets across the world and introduction of advanced headsets by market players. For instance, in February 2019, HTC Corporation launched VIVE Focus Plus, a standalone headset that includes a pair of updated motion controllers. The product, which supports six degrees of freedom (6DoF) tracking, is powered by Qualcomm Snapdragon 835 and equipped with a 3K active-matrix organic light-emitting diode (AMOLED) display.

On the basis of industry, the industrial & manufacturing category had the largest share in the extended reality market in 2019, owing to the excessive use of immersive technologies for training and development in heavy industries, including oil & gas, mining, and chemicals. In addition, the increasing implementation of AR and VR technologies in the manufacturing industry is further projected to drive the category growth. As per the PricewaterhouseCoopers (PwC) Annual Manufacturing Report 2020, nearly 29% of the manufacturers in the U.K. had adopted the AR technology till 2019.

In 2019, North America was the major revenue contributor to the extended reality market. The growing deployment of AR and VR solutions, presence of major market players, and high adoption of immersive technologies for training purposes in various industries, including oil & gas, mining, and construction, are the major reasons for the region’s dominance. In the near future, the Asia-Pacific (APAC) region is expected to witness lucrative growth, owing to the rising internet penetration and increasing adoption of XR solutions in various industries in developing economies, including India, China, and Indonesia.

Product Launches Empowering Players to Strengthen Their Position in Industry

In a bid to strengthen their position in the extended reality market, key players are engaging in product launches. For instance, in February 2020, HTC Corporation introduced the VIVE Cosmos series, which includes VIVE Cosmos, VIVE Cosmos Elite, VIVE Cosmos XR, and VIVE Cosmos Play. VIVE Cosmos is the most versatile VR headset in the VIVE product family. HTC launched the Cosmos series with three new products and three modular faceplates that expand the functionality of VIVE Cosmos. VIVE Cosmos XR is a mixed reality (MR) headset, which comes with two pass-through cameras, which allow the information and AR elements to be overlaid on top of the real world.

Browse report overview with detailed TOC on "Extended Reality (XR) Market Research Report: By Component (Hardware, Software, Services), Device Type (Mobile, Personal Computer, Headset), User (Single-User, Multi-User), Delivery Model (Consumer Engagement, Business Engagement), Application (Virtual Reality, Augmented Reality, Mixed Reality), Industry (Retail, Education, Industrial & Manufacturing, Healthcare, Media & Entertainment, Gaming, Aerospace & Defense) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/extended-reality-xr-market-insights

Similarly, in February 2020, Qualcomm Incorporated launched a new 5G-enabled XR reference design headset, based on the Qualcomm Snapdragon XR2 platform. The reference design has better CPU and GPU performance, higher resolution, artificial intelligence (AI) improvement, and more bandwidth, compared to the currently available XR platforms. The reference design is expected to simplify complex technologies and enable original equipment manufacturers (OEMs) to bring the next generation of VR, AR, and MR devices to the market.

Some of the major players in the global extended reality market are Qualcomm Incorporated, Accenture plc, Adobe Inc., Unity Technologies, SoftServe Inc., Alphabet Inc., Sony Corporation, Northern Digital Inc., Microsoft Corporation, Facebook Inc., Semcon AB, Tata Elxsi, and HTC Corporation.