Market Size of Extended Reality (XR) Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 105.58 Billion |
| Market Size (2029) | USD 472.39 Billion |
| CAGR (2024 - 2029) | 34.94 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
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*Disclaimer: Major Players sorted in no particular order |
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Extended Reality (XR) Market Analysis
The Extended Reality Market size is estimated at USD 105.58 billion in 2024, and is expected to reach USD 472.39 billion by 2029, growing at a CAGR of 34.94% during the forecast period (2024-2029).
Extended reality is a new umbrella term for immersive technology, including Augmented Reality, Virtual Reality, and Mixed Reality, which will include additional future realities expected to be created by these technologies. Increased demand for shorter distances among individuals and improved visual information are the main drivers of market need.
- The idea of live virtual entertainment is spreading all over the world. People prefer at-home entertainment using technologies to attend live shows or events. The demand for Live Concerts, Live Shows, and Sports has grown substantially due to technologies enabling consumers to experience the real world interactively.
- In addition, the market is expected to grow over the forecast period, due to by increased adoption of gesture computing, a trend in miniaturization for intelligent devices, technological progress, and different growth strategies implemented by companies.
- With the advancement of miniaturization and smart technology, sensors and electronic systems that could be incorporated into a person's body will continue to shrink. Smart devices and many other Internet of Things applications drive the miniaturization trend.
- Training a more extensive audience is one of the biggest problems with XR technology. Existing development applications are restricted to a single user for tablets, smartphones, and wearables. Multi-XR user experiences, consistent and simplified, need to be developed to be more accessible. In the current market scenario, there is a need for more availability of these solutions, which significantly negatively impacts industry growth.
- Due to COVID-19 and the rising concerns about worker safety, many organizations have switched to remote working using the cloud. This is the primary motivator behind the need for XR, which allows people to work efficiently from home, join virtual meetings, and visualize a business atmosphere.
