|Study Period:||2019- 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The Extended Reality (XR) Market is valued at USD 26.05 Billion in 2020 and is expected to reach USD 463.7 Billion in 2026, registering a healthy CAGR of over 62.67% during the forecast period (2021 - 2026).
The extended reality (XR) market is being impacted by COVID-19, primarily due to multiple factors that include physical lockdowns, essential e-commerce delivery limitations, brick-and-mortar retail closures, and supply chain disruptions (supplier, manufacturer, distribution, wholesale, retail), and economic impacts. Further, a player such as Avnet Inc. has implemented operating cost-saving restructuring plans, including plans to reduce operating costs by USD 75 million annually by the second quarter of FY 2021. Avnet expects to use cash for restructuring, integration, and other expenses. Such initiatives are made to tackle the uncertainty caused by the COVID-19 outbreak.
- Extended reality (XR) is currently an emerging umbrella term that encompasses immersive technologies, such as augmented reality, virtual reality, mixed reality, and other future realities such technologies might bring. The increasing demand for reducing the distance between people and richer visual content is driving market demand. According to a recent survey by Accenture, 80% of the business executives believed that it is essential to leverage XR solutions to bridge physical distance during employee engagement.
- Companies are also developing supporting technologies for XR platforms, which are forecast to global commercialize XR technologies. In January 2019, Northern Digital Inc., a global manufacturer of 3D measurement and motion tracking solutions, launched its new electromagnetic sensor-fusion tracking technology for the XR platform: Atraxa.
- Identifying a great potential in the XR domain, several companies have established their XR product lines globally. For instance, Qualcomm has developed First Responder XR Glass that uses inertial, haptic, environmental, and health sensors, eye-tracking cameras, bone conduction transducers, and other components aimed for more intelligent and faster interaction with the environment.
- Microsoft developed HoloLens 2, a hands-free mixed reality headset that is a guiding force for XR's existence. It enables 3D visual training, hands-free video calling, and generates a virtual floor or room plan map.
- However, XR adoption requires ubiquitous and wireless connectivity at fiber-optic speed, which is not yet feasible in all countries. Moreover, there is a risk of misuse of personal data since XR can measure user's feelings, etc., thereby making them vulnerable to cyber theft and manipulation.
Scope of the Report
The advent of extended reality is revamping the way people experience the physical and the virtual environments, from observation to immersion. The implementation of Extended Reality (XR) provides enterprises with a platform that helps people perform their jobs in a much effective way. The market study comprises the solution, applications, and end-users. The assessment of the covid-19 study has also been covered in the study along with geographical analysis.
|Virtual Reality (VR)|
|Augmented Reality (AR)|
|Mixed Reality (MR)|
|Industrial and Manufacturing|
|Media and Entertainment|
|Other End-user Industries|
|Rest of the World|
Key Market Trends
Business Engagement is Gaining Traction Owing to the Emergence of Immersive Platform
- XR devices create the illusion of making people feel like they are in an entirely new digital world. Given its enormous potential, XR technology has been increasingly applied and studied in a plethora of fields, ranging from tourism, education, retailing, gaming, and healthcare to manufacturing.
- For instance, Qualcomm developed First Responder XR Glass that uses inertial, haptic, environmental, and health sensors, eye-tracking cameras, bone conduction transducers, and other components aimed for more intelligent and faster interaction with the environment. Similarly, in March 2020, XRHealth collaborated with Israel’s Sheba Medical Center to offer VR telehealth services to patients exposed to COVID-19 who are quarantined at the healthcare facilities and to monitor their return home.
- Due to the convergence of the real world and simulated content, Mixed Reality (MR) environments can emerge easily. Microsoft has been at the forefront of the technology, with the company further investing in modern workspace capabilities, including Microsoft Layout and Microsoft Remote Assist, using artificial intelligence and the HoloLens. This technology allows employees to collaborate on issues remotely by viewing manuals and screens directly from the job site with image and object recognition and detection while working more efficiently.
- Moreover, US Government has been finding both direct and indirect ways to use these technologies to facilitate innovations and promote prosperity. Furthermore, the Foreign Service Institute at the State Department has also introduced VR as an experiential learning tool in specific training. Moreover, various AR and VR training programs have also been implemented to develop local workforces and manage wastewater. Several companies in the region are deploying innovative technology into their AR/VR wearables.
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North America Holds a Significant Market Share
- North America is one of the prominent regions for the extended reality market. It has also been a pioneer in the adoption of innovations, which provides North America with an edge over the other regions.
- In the military and defense sector, the US Military is looking at immersive technologies for training purposes. The United States will also be investing as much as USD 11 billion by 2022 into virtual, augmented, and mixed reality training systems, with extended reality becoming a primary focus of military innovation.
- Also, VR players present in the market ecosystem are involving themselves with cutting-edge technology products, further boosting this segment's growth in recent years. For instance, in September 2020, Facebook launched Oculus Quest 2, its next generation of all-in-one virtual reality headset that starts at USD 299. The product comes with a Qualcomm Snapdragon XR2 Platform processor and 6GB memory. Oculus Quest 2 is culminated with several years of collaboration between Qualcomm and Facebook to create one of the most advanced and immersive gaming VR experiences for consumers.
- Similarly, in February 2020, SA Photonics, which is a California-based company, announced its PilotVision AR display's first commercial sale. The headset-mounted system that is designed specifically for commercial aviation was announced at the EAA AirVenture Oshkosh in August 2019. The PilotVision clips onto a set of communications headgear, giving situational awareness with high brightness symbology over a vast 62-degree field of view, with almost zero peripheral obscuration. The AR display also interfaces with a standard attitude and heading reference system (AHRS) and doesn't need to be plugged into aircraft electronics, enabling installation in seconds.
- Further, with the increasing usage of smart glass and head-up displays, the market for extended reality has gained traction. Smart glass is a key segment witnessing a considerable penetration of AR technologies in the region and is anticipated to grow significantly during the forecast period.
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The Extended Reality (XR) market is moderately fragmented and consists of a few players. Some of the players are currently expanding their services across the emerging market in terms of market share. However, with the advancement in the immersive technology trend across the virtual platform, new players are increasing their market presence, thereby enhancing their services and expanding their business footprint across the emerging economies.
- May 2021- DigiLens announced the launch of its developer prototype for extended reality glasses. The new prototype offers an augmented reality feature that includes overlaying the digital image. These glasses allow software developers to bring in the application for the final product.
- June 2021 - The Jewish General Hospital (JGH), a member facility of the West-Central Montreal Health Authority (CIUSSS), together with Auger Groupe Conseil Inc. (AGC) and Medtronic Canada ULC, a subsidiary of Medtronic plc, announced that they pioneered the first application of the Microsoft HoloLens for use in real-time, extended reality (XR) clinical support of a minimally invasive heart procedure. The Microsoft HoloLens 2, a headset that enables bidirectional remote viewing in real-time. The use of extended reality headsets and glasses has grown during the pandemic because of the limitations on travel to and within a hospital.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Technology Snapshopt
4.4 Impact of COVID-19 on the market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Gesture Based Computing
5.1.2 Growing Trend of Miniaturization in Smart Devices
5.2 Market Restraints
5.2.1 Complexity in the Implementation Process in Terms of Technology and Cost
5.2.2 Vulnerability for Cyber Attacks, Along with the High Cost of Implementation
6. MARKET SEGMENTATION
6.1.1 Consumer Engagement
6.1.2 Business Engagement
6.2.1 Virtual Reality (VR)
6.2.2 Augmented Reality (AR)
6.2.3 Mixed Reality (MR)
6.3 End-user Industry
6.3.3 Industrial and Manufacturing
6.3.5 Media and Entertainment
6.3.6 Other End-user Industries
6.4.1 North America
6.4.3 Asia Pacific
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Qualcomm Technologies Inc.
7.1.2 Accenture PLC
7.1.3 SoftServe Inc.
7.1.4 SphereGen Technologies
7.1.5 Northern Digital Inc.
7.1.6 Microsoft Corporation
7.1.7 Softweb Solutions Inc.
7.1.8 VertexPlus Softwares Pvt. Ltd.
7.1.9 Varjo Technologies OY
7.1.10 Talespin Reality Labs Inc.
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Extended Reality (XR) Market market is studied from 2019 - 2026.
What is the growth rate of Extended Reality (XR) Market?
The Extended Reality (XR) Market is growing at a CAGR of 62.67% over the next 5 years.
Which region has highest growth rate in Extended Reality (XR) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Extended Reality (XR) Market?
North America holds highest share in 2020.
Who are the key players in Extended Reality (XR) Market?
Qualcomm Technologies Inc., Accenture PLC, Northern Digital Inc., SoftServe Inc., SphereGen Technologies are the major companies operating in Extended Reality (XR) Market.