July 20, 2024
Extended Reality Market
Ict

Extended Reality Market is Estimated To Witness High Growth Owing To Demand For Enhanced Consumer Experience

The Extended Reality Market is estimated to be valued at US$ 46.3 Bn in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Extended reality refers to all real-and-virtual combined environments augmented reality (AR), mixed reality (MR), and virtual reality (VR). It enhances the physical world by overlaying digital information on it. Head-mounted displays (HMDs) are used for delivering augmented and mixed reality experiences, whereas dedicated devices like VR headsets are used for virtual reality. Extended reality provides more immersive experiences and helps train users through simulations while reducing costs. Its usage across different industry verticals offers numerous advantages including high productivity and lower costs of operation.

Market key trends:

One of the major drivers for the extended reality market is the rising demand for enhanced consumer experiences. Extended reality enhances consumer interactions with products and services by providing interactive and immersive digital overlays on real world environments. This improves understanding and leads to better decision making. Various industries are adopting extended reality technologies to offer more engaging digital experiences to consumers. For example, e-commerce retailers are using AR and VR to better display products and make online shopping more intuitive. Similarly, tourism companies provide virtual tours of destinations to aid travelers. The authentic experiences and interactions delivered through extended reality are attracting consumers, driving its adoption globally.

Porter’s Analysis

Threat of new entrants: The Global Extended Reality Market requires high investments in technology and R&D which poses barriers for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various product options from existing players.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many component and technology suppliers for the extended reality market.

Threat of new substitutes: Potential substitutes like virtual reality and augmented reality pose threat to the market.

Competitive rivalry: The presence of key players results in high competitive rivalry.

SWOT Analysis

Strengths: Technological advancements, growing investments and increasing applications across sectors.

Weaknesses: High costs associated, lack of quality content and limited use cases currently.

Opportunities: Development of 5G networks, growing demand from healthcare, education, retail and other industries.

Threats: Data privacy and security concerns, negative health impacts of extended reality devices.

Key Takeaways

The global extended reality market is expected to witness high growth, exhibiting CAGR of 2.3% over the forecast period, due to increasing investments from technology giants and growing product innovations.

Regionally, North America dominated the market in 2023 with a share of around 35% due to rapidly growing augmented and virtual reality adoption across sectors in the US and Canada. Asia Pacific is expected to be the fastest growing region during the forecast period, owing to rising demand from China, Japan and India propelled by increasing technology adoption.

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. Leading companies are investing heavily in development of advanced extended reality products and platforms.

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