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.
Of them all, the Media & Entertainment industry is among the most prominent end-users in the market, mainly due to the increasing availability of affordable smartphones, the surging income of the middle-class population, & improved internet connectivity. With the growing demand for video games, the desire for advanced features integrated into these games is propelling the growth of the extended reality market. In the media industry, ER technology is used in analytics, developing the interactive environment, which, in turn, helps enhance the overall customer experience.
On the other hand, the healthcare & life sciences sector is expected to experience the fastest market growth during the forecast period. The adoption of ER is creating new opportunities for medical professionals and holds a promising future for the healthcare industry. The ER technology helps surgeons save time while performing operations. It also provides new medical practitioners with a deeper understanding of a patient's particular disease. Moreover, ER can also help create 3D replicas, as per patient scans, that can enable surgeons & their team to study surgical tactics efficiently.
Moreover, the adoption of extended reality is gaining immense popularity among consumer goods & the retail sector. It is due to the rising penetration of smartphones & various initiatives by retailers to enhance the overall shopping experience for their customers using AR & VR technologies.
By Delivery Mode:
Of both, the Business-Based delivery model accounted for the largest market share. The adoption of ER in businesses promoted enhanced sales & customer engagement. In addition to this, the snowballing adoption of advanced technologies for business development & employee training is also driving the demand for Business-Based ER solutions.
Moreover, ER further assists businesses in decision making, solving business problems, and creating innovative solutions to fulfill client requirements. Hence, with a wide range of applications in business operations, the demand for Business-based ER solutions worldwide is increasing significantly.
Further, the adoption of customer-based ER solutions allows individuals to achieve experience of 3D simulated virtual retail stores. Customers can use AR-based apps to visualize cosmetics, furniture, etc., before purchasing them, which improves their shopping experience.
Recent Developments in the Global Extended Reality Market
Geographically, among all regions, North America acquired the largest share in the Extended Reality Market and is expected to maintain its dominance even during the forecast period. The mounting adoption of 5G and massive investments by companies like Microsoft Corporation, Google, & Qualcomm, among others in the technology, are the prime factors driving the regional market.
Additionally, rapid business expansion of large organizations, extended work-from-home practices, and the increasing adoption of advanced technologies in the education & aerospace sector are other crucial factors contributing to the overall market growth across North America.
On the other front, Asia Pacific is expected to witness the fastest market growth during 2021-26, owing to the mounting adoption of AR & VR technologies in gaming, media & entertainment, & other applications. Additionally, the growing trend of the 5G network across the region is another crucial aspect projected to contribute to the overall market growth in the years to come.
Key Driver: Increasing Adoption of Extended Reality Solutions in the Healthcare Sector
The adoption of ER in the healthcare sector is gaining incredible pace since it offers lucrative opportunities to medical practitioners, like helping in developing 3D imitations of patient scans that could further help them in their studies. ER can also help create an interactive platform for healthcare providers where multiple surgeons can collaborate for training lessons, discussions, etc. Hence, these benefits of ER in the healthcare sector are projected to drive the market during 2021-26.
Possible Challenge: Health Issues Associated with the Overuse of Extended Reality Devices
With the mounting sophistication in ER devices, various associated health concerns are also increasing significantly. The most common risk with using ER devices is getting injured by blundering into real objects while immersed in the virtual world. Whereas headaches, eye strains, & dizziness are other health concerns. Moreover, the regular use of these devices can also cause myopia. Hence, these severe health concerns might hamper the overall growth of the Extended Reality Market in the coming years.
According to the MarkNtel Advisors, the major leading players in the global Extended Reality market are 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., etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The Global Extended Reality Market is forecast to grow at a CAGR of around 55% during 2021-26.
A. Media & Entertainment holds the largest share of Global Extended Reality Market and is projected to maintain its significant market share.
A. Rising trend of industry 4.0, increasing adoption of immersive technologies in healthcare sector, and introduction of mobile supported extended reality solutions are the key factor propelling the Global Extended Reality Market growth.
A. In the coming years, the Global Extended Reality Market is expecting astronomical growth, owing to the extended work-from-home practices, resulting in boosting the adoption of AR/VR technologies for continued business operations.