Overview:
The global extended reality market is anticipated to grow from USD 25,310 million in 2021 to USD 67,870 million in 2030. Extended reality is a technology that merges the real and virtual environments to altogether create a virtual experience for users. It is the intersection of three technologies, Virtual Reality, Augmented Reality and Mixed Reality and extends across a wide range of immersive technologies. Extended reality is witnessing a growing demand from the global educational sector to create a safe learning space in schools and universities, and to enable learners to explore new learning methods. Advantages such as improvements in the learning rates, is driving the growth of the extended reality based learning platforms.
Drivers:
Extended reality enables the brands to reach new customers offering them ways to engage with products and services. This results in better experiences for customers in comparison to to real world offerings. Extended Reality tools also help with customer support. Growing demands from industries such as education, media and entertainment, and retail are propelling the demand for global extended reality market. The corporate world is booming with increased number of webinars, conferences, meet-ups and a range of events in all-virtual environments. Extended reality is also witnessing a rapid growth in marketing and advertising, and offers new ways of presenting and interacting with virtual products. As the real estate is witnessing rapid growth, property owners are optimizing real estate services by offering virtual tour of properties to their tenants. Such factors are driving the growth of the global extended reality market.
Segmentation:
On the basis of component, the extended reality market is segmented into Hardware and Software. On the basis of technology, the extended reality market is segmented into Virtual Reality, Augmented Reality, and Mixed Reality. On the basis of Application, the global Extended Reality market is segmented into Media & Entertainment, Retail, Real-estate, Education, Healthcare, Military & Defense, and Engineering. On the basis of End User, the global Extended Reality market is segmented into Personal and Commercial.
Geography:
On the basis of region, the global Extended Reality is segmented into North America, Middle East & Africa, Europe, Asia Pacific, and South America. North America is projected to capture a substantial revenue share in the global Extended Reality market over 2022-2030. The growth is attributable to the existence of multiple tech giants and the early adoption of the new technology in regions of US, Canada, and Mexico.
Impact of COVID-19 on the global Extended Reality Market:
The Covid-19 pandemic significantly increased the adoption of new Technologies across the globe. The crisis negatively impacted various businesses and disrupted the global supply chain. However, as the economies started to recover from the adverse impacts, new technology deployments witnessed a rapid acceleration. In the post COVID-19 scenario automation and efficiency are rapidly improving for business that are actively embracing the extended reality solutions. The pandemic has encouraged global businesses to rely on artificial intelligence, Augmented Reality, and virtual reality to increase productivity. Growing demands for enhanced customer experience some of the major factors that is bolstering the growth of the extended reality market in the post pandemic era.
Impact of the Russia-Ukraine War on the global Extended Reality Market:
The global supply chains are disrupted by the Russia-Ukraine conflict in the same way as the it did when the COVID-19 pandemic first surfaced. There has been a significant rise in the transportation costs, gas prices, and electricity rates as a result of the Russia Ukraine war. Due to the increased energy costs, companies are forced to raise prices. The supply of commodities is substantially disrupted in regions such as US, Europe, and China. The conflict has accelerated the chip shortage and raw materials such as neon and palladium used in semiconductor manufacturing. Russia and Ukraine are the two major producers of neon and palladium. The countries produce more than 50% of the aforementioned raw materials. Due to the war the industries that are completely dependent on Russia and Ukraine for raw material are incurring huge losses and are unable to find an alternative supplier soon. The continuation of the conflict is likely to further delay hardware production and sales which is anticipated to slow down the accelerated deployment of the new technological infrastructures. This is estimated to negatively impact the global extended reality market growth.
Company Profiles:
The key market players in the global extended reality market are Acer Inc., Atheer, Inc., Blippar.com Ltd., Dell Technologies Inc., EON Reality, Inc., Google, Inc., Honeywell International, Inc., HTC Corp., Magic Leap, Inc., Manus Machinae B.V., Microsoft Corp., Nokia Corp., Oculus VR LLC, Qualcomm Incorporated, Samsung Electronics Co., Ltd., Semcon, Sony Interactive Entertainment LLC, Varjo Technologies Oy, VirZOOM, Inc., Vuzix Corporation, and Others.