April 24, 2024

Extended Reality is Transforming Industries Trend by Growing Adoption of Augmented and Virtual Technologies

Extended reality (XR) encompasses both augmented reality (AR) and virtual reality (VR) technologies. AR overlay digital content onto the physical world, enhancing real world views with computer generated visuals like graphics, videos and more. VR immerse users in a simulated digital environment and block out the physical world completely. These technologies are finding applications across industries like gaming, entertainment, education, healthcare, retail and more.

XR devices like AR/VR headsets, smart glasses and spatial computing solutions allow users to interact virtually with digital content and simulated worlds in real-time. This is enhancing visual experiences, enabling remote collaboration and training, empowering customers, and changing how businesses operate.

The Global Extended Reality Market is estimated to be valued at US$ 70.05 Bn in 2024 and is expected to exhibit a CAGR of 23% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in the Extended Reality market are Meta Inc., HTC Corporation, Unity Technologies, Microsoft Corporation, Samsung Electronics Co., Ltd., Magic Leap, Sony Corporation, Vuzix Corporation, Apple Inc, Niantic Inc., Northern Digital Inc., Snap Inc., SoftServe, and Accenture.

The growing demand for immersive technologies across various industries like gaming, retail, education, healthcare, architecture and more is expected to drive the growth of the XR market. As XR solutions enhance customer experiences and enable remote operations, their adoption is increasing globally.

Major technology companies are investing heavily in XR research and development. Partnerships between platform developers and device manufacturers are also helping expand the global XR ecosystem. The commercial availability of affordable AR/VR devices will make these solutions accessible to more businesses and consumers globally.

Market key trends
Mixed reality and spatial computing are key trends in the extended reality industry. MR blends physical and virtual worlds seamlessly by overlaying digital content convincingly on physical surroundings. Technology giants are developing sleek MR headsets and spatial interface solutions. Spatial computing will allow humans to interact with digital content seamlessly through gestures and spatial interfaces without screens, advancing human-technology collaboration. Platforms are leveraging computer vision and AI to enable context-aware spatial experiences across AR, VR and MR devices.

Porter’s Analysis
Threat of new entrants: The extended reality market poses a medium threat for new entrants due to high initial costs required for technological innovation and advancement.

Bargaining power of buyers: The bargaining power of buyers is medium as extended reality devices and hardware solutions have limited options available. However, the options are increasing with time.

Bargaining power of suppliers: Suppliers have medium to high bargaining power due to high dependence on a few technology giants for components and hardware.

Threat of new substitutes: The threat of substitutes is low to medium as extended reality does not have close substitutes and emerging technologies are also complementary to it.

Competitive rivalry: The competitive rivalry is high given the presence of technology giants competing in the market. Market share is concentrated among a few major players.

The geographical region where the extended reality market is concentrated in terms of value is North America. This is mainly due to the early adoption of extended reality devices and technology by various industries in the US and Canada.

The fastest growing region for the Extended Reality Market is Asia Pacific. This is attributed to increasing investments in AR/VR/MR technologies by major regional players coupled with rising industrial and consumer applications of extended reality in countries like China, Japan and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it