The global extended reality market is projected to generate $394.8 billion 2030, advancing at a CAGR of 38.5% during 2022–2030. This will be due to the growing usage of smartphones and connected devices, increasing collaborations among market players, and rising acceptance of AR and VR.
The pandemic has aided the industry in various ways. People were unable to take holidays, complete their education, or go out for leisure. Virtual ways of engaging with others have proved to be useful during a period of social isolation, but these technologies have also enabled us to try new things without leaving the comfort of our homes.
The COVID-19 has surged the demand for XR due the lockdown that led the employees of several organizations to work from home, with increased requirement for virtual meetings and trainings. However, the pandemic has affected the manufacturing industry severely. The severe impact on the manufacturing industry has halted the supply of XR devices across the world, owing to which the XR market growth was affected.
The market will witness an increase in the deployment of XR across the world in the future, due to the increased need for AR/VR devices for real-time training, especially by people working from home. Globally, many organizations are planning to invest more in these technologies and market players are introducing advanced products to enhance the immersive experience offered by these technologies.
The industrial & manufacturing category held significant share, around 30%, in 2022. This is mainly due to the excessive use of immersive technologies for training and development purposes in industries, including oil & gas, mining, and manufacturing. Moreover, organizations in the sector have reported increased productivity and operational efficiency after the implementation of XR technologies.
Many companies are implementing training with the help of extended reality. The Boeing Company has implemented AR training and witnessed a positive impact on the quality and productivity of complex aircraft manufacturing procedures. AR was put to use for guiding the trainees through the course of 50 steps. Which were required to assemble an aircraft wing section which had 30 parts. With the help of AR, the trainees were able to complete the task in 35% less time as compared to those using traditional methods, such as documentation and 2D drawings.
Moreover, during the forecast period, the gaming category is expected to witness the fastest growth. This can be ascribed to the rapid adoption of AR and VR technologies in the gaming industry. For instance, in February 2020, Facebook Inc.’s subsidiary Facebook Technologies LLC acquired Sanzaru Games Inc. to expand its VR gaming offerings worldwide.
Moreover, the APAC extended reality market is projected to be the fastest-growing market forecast period. This can be ascribed to the proliferation of AR/VR mobile applications coupled with the growing use of immersive technologies for gaming, media & entertainment, and other purposes in the region. In addition, improved network connectivity, tetherless (wireless) access to AR/VR devices, and increased spending on immersive technologies for training and development purposes are the key factors contributing to the growth of the regional market.
Major players operating in the global extended reality market are Microsoft Corporation, Sony Corporation, Meta Platforms Inc., HTC Corporation, Google LLC, Samsung Electronics Co. Ltd., PTC Inc., Seiko Epson Corporation, Apple Inc., and Qualcomm Incorporated.