With the rapid evolution in technology, there exists a great potential to transform ways people work and live. Virtual, Augmented, and mixed reality technologies altogether comprise Extended Reality (ER.) It includes various types of hardware, software, & services. ER aids in blurring the line across physical and simulated worlds. Along with the gaming and entertainment sector, many other industries have started adopting extended reality technologies for various applications. These industries can use extended reality capabilities to their full potential to drive their productivity, enhance customer experience, and streamline their workflow, which can help improve their brand value.
The Global Extended Reality Market is anticipated to grow at a CAGR of around 55% during the forecast period, i.e., 2021-26. The primary factor contributing to the growth of the Global Extended Reality Market is the rising trend of the Industry 4.0, i.e., the surge in the establishment of smart factories. Extended reality uses a combination of Augmented Reality (AR), mixed reality, and Virtual Reality (VR) technologies to enable efficient learning and offer assistance in remote working. For instance:
Furthermore, the mounting trend of gesture-based computing, snowballing adoption of 5G networks, and the increasing prevalence of smartphones & connected devices also drive the global market. Extended Reality helps reduce costs, increase productivity, and improve customer experience. Rapid technological advancements in various sectors like marketing, manufacturing, media & entertainment, & IT industries are projected to boost the Extended Reality Market in the coming years.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil, and Argentina|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||Facebook Inc, Alphabet Inc. (Google Inc.), HTC Corporation, Unity technologies, Microsoft Corporation, Samsung Electronics CO., LTD, Magic Leap, Sony Corporation, Vuzix Corporation, Atheer, PTC, Apple Inc., Eon Reality, Niantic Inc., Snap Inc.|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Global Extended Reality Market
The Covid-19 pandemic in 2020 generated the situation of lockdown & stringent movement restrictions that propelled the adoption of extended reality since several organizations became reliant on AR & VR tools for operational continuation. ER combines augmented, virtual, & mixed reality technologies that enable people to virtually do most of their tasks.
With movement restrictions & lockdowns, most businesses adopted work-from-home culture, which boosted virtual conferences & events among them. The leading market players also started heavily investing in ER technology to deliver better solutions to businesses, which further offered profitable opportunities to the market players to cater to a large population base with enhanced solutions.
Furthermore, the lockdown led to the increasing number of people indulging in the virtual environment to support online classes, virtual shopping, & remote working. However, the macro-economic uncertainty had a short-term negative impact on the growth of the Extended Reality Market in 2020.