Global Extended Reality Market
As stated in our extensive report; the Global Extended Reality Market accounted for USD 33.3 Billion in the year 2022.
Extended Reality is a term for a collection of visual technologies, such as virtual reality, augmented reality, and mixed reality. In order to transform a virtual environment into an interactive one, it uses software and headgear that produce authentic sounds and pictures. It is currently used in a number of corporate hiring processes, including onboarding and employee training.
Companies use it not just to advertise their products and services but also to save money and provide clients with first-hand knowledge. Due to COVID-19 and growing concerns about worker safety, several organizations have switched to remote working using the cloud. The need for XR, which enables workers to productively work from home, attend virtual meetings, and imagine an environment for their firms, is primarily motivated by this. The market is also growing as more people choose gaming as a vocation due to significant improvements in internet speed and the availability of cutting-edge gaming hardware.
The thriving entertainment industry is encouraging more people to use XR to watch live sporting events and concerts on their cell phones. Modern imaging techniques like computed tomography (CT) scans and magnetic resonance imaging also employ XR. Along with the rise in chronic diseases and the growing demand to improve diagnostic accuracy, this positively impacts how XR is utilized in the healthcare industry. Additionally, it is anticipated that as more people learn about its benefits, XR’s application will expand internationally in the defense, transportation, retail, travel, and tourism sectors.
Although the Extended Reality is gaining popularity worldwide, the study’s assigned time frame for the industry’s growth may be constrained by the high cost of technology.
Key factors influencing Extended Reality Market Growth
The growth of the global Extended Reality market can be attributable to the following:
- Computer technology is used to generate a simulated environment in virtual reality. VR immerses the user inside an experience, unlike the conventional user interface. This means that users are engaged in a three-dimensional world and may interact with it instead of simply observing a monitor screen in front of them.
- The application of this technology has changed with the simulation of as many senses as feasible, including vision, touch, hearing, and smell.
- In addition, teachers in various educational sectors are increasingly relying on virtual reality technology to raise the instruction bar. For instance, the introduction of VR in the educational field has made it possible for students to be fully engaged in a VR setting outside the boundaries of the actual classroom.
- Additionally, the technology offers less expensive lessons that are more engaging and visually appealing for the kids.
- In recent years, virtual reality technology has also carved out a place in the gaming sector. A new wave of gaming has taken shape thanks to VR, which offers players immersive first-person experiences.
- Developers like Oculus and HTC have been working over the past few years to lower the cost and increase accessibility to virtual reality. Before this, Oculus unveiled their standalone wireless virtual reality headset, the Oculus Quest.
- The intelligence of virtual characters is also growing because of the increasing prevalence of AI technologies in VR applications. Any standalone headset can now follow 6DoF controllers thanks to Google’s machine-learning algorithms.
- Facebook’s DeepFocus framework uses AI to produce focus effects in VR, and LG uses AI to reduce motion sickness in VR users. The top two tech companies in China, Baidu and Tencent, also focus on incorporating AI and VR into video games and mobile applications.
- Scalability is another benefit that cloud technologies are bringing to VR vendors. The cloud services will store programs, data, and memory in virtual servers and stream them on-demand as the volume of VR-generated data rises. This is also anticipated to fuel continuous service updates and VR innovation.
- The healthcare sector also embraced virtual reality (VR) technology fundamentally, with some of the top institutions adopting computer-generated visuals for various diagnoses.
- These diagnostic CAT scan photos are used in virtual reality simulations to create different 3D models of a patient’s anatomy. The cutting-edge virtual reality surgical simulations aid doctors, particularly in confirming the location of any tumor or cyst.
North America Region to Lead the Market
North America Extended Reality market is getting more significant with maximum market share during the forecast period. North America is predicted to dominate the global market over the projection period because of several significant corporations investing enormous quantities in industry developments, such as Microsoft and Qualcomm. Countries like the United States have been at the forefront of the development of augmented reality (AR), virtual reality (VR), and mixed reality (MR). Most companies involved in these technological developments have their headquarters in the US. The region’s increasing demand is due to increased technological exposure and the availability of smart devices. For instance, when Microsoft’s Hololens augmented reality technology first became accessible in North America, consumers reacted favorably.
According to CNBC’s sources, the US Army will receive more than 120,000 Microsoft HoloLens augmented reality devices. The arrangement comes after Microsoft was awarded a project to create Army prototype headsets, which may be worth up to $21.88 billion over ten years. A year and a half prior to this one, the Pentagon gave Microsoft a cloud contract with a potential value of $10 billion.
Thriving entertainment industry is encouraging more people to use XR to watch live sporting events and concerts on their cell phones, are positively influencing the overall Extended Reality market.
Some of the key players in the Global Extended Reality Market include- Accenture PLC (Ireland), Qualcomm Incorporated (U.S.), Unity Technologies (U.S.), Adobe Inc. (U.S.), Alphabet Inc. (U.S.), SoftServe Inc. (U.S.), Northern Digital Inc. (U.S.), Sony Corporation (Japan) and others.