Extended Reality Global Market Report 2024

The extended reality market size has grown exponentially in recent years. It will grow from $44.62 billion in 2023 to $57.64 billion in 2024 at a compound annual growth rate (CAGR) of 29.2%. The growth in the historical period can be attributed to enhanced device accessibility, widespread adoption of consumer electronics, increased utilization in gaming and entertainment, applications in military and defense, and integration with the Internet of Things (IoT).

The extended reality market size is expected to see exponential growth in the next few years. It will grow to $161.19 billion in 2028 at a compound annual growth rate (CAGR) of 29.3%. The forecasted growth in the upcoming period can be attributed to the integration with smart devices, the integration of extended reality (XR) in e-commerce and retail, the expansion of XR content libraries, the use of XR in healthcare simulation and training, its application in sports training, and its role in cultural heritage preservation. Major trends expected in the forecast period include advancements in hardware technologies, the integration of artificial intelligence (AI) for personalization, the use of blockchain for XR security, and the integration of augmented reality.

The anticipated growth in the extended reality (XR) market is expected to be propelled by increasing government initiatives. These initiatives represent various efforts by governments to support specific industries or areas within a country. Notably, the Dubai government has undertaken significant initiatives to advance extended reality, contributing to the country's digital transformation. An example of this is the metaverse strategy launched by the Dubai government in July 2022, aiming to position itself among the top 10 XR economies by creating a network of virtual spaces to enhance the quality of life for citizens through metaverse technologies. Thus, the rise in government initiatives for extended reality (XR) is a key driver for the XR market.

The extended reality market is poised for growth due to the increased penetration of XR in the retail sector. Retail, involving the direct sale of goods or services to consumers through various channels, benefits from immersive technologies such as virtual reality (VR) and augmented reality (AR). These technologies enhance customer experiences by facilitating interactive shopping and product visualization in the retail sector. For instance, recent data from the UK Parliament indicates a growth in retail sales in Great Britain, totaling $9.9 billion (£9.0) per week in October 2023, up from $9.2 billion (£8.4) in September 2023. Therefore, the increased adoption of extended reality in retail is a significant driver for the extended reality market.


The extended reality market is witnessing a prominent trend in product innovations, with major companies actively introducing new products to maintain their market positions. Notably, in June 2023, Apple Inc., a US-based technology giant, unveiled the Apple Vision Pro - an advanced spatial computer that seamlessly integrates digital content with the physical world. This device boasts an ultra-high-resolution display system controlled by the user's eyes, hands, and voice, offering an intuitive and natural input system. Running on Vision, a spatial operating system, the Apple Vision Pro facilitates multitasking and provides infinite screen real estate, revolutionizing personal computing with its immersive and interactive environment.

Major players in the extended reality market are concentrating on the development of cutting-edge devices, specifically extended reality headsets, to enhance the overall extended reality experience and boost their market revenues. The extended reality headset is a device that combines elements of augmented reality (AR), virtual reality (VR), and mixed reality (MR) to deliver immersive and interactive digital experiences. For instance, HTC, a Taiwan-based computer manufacturing company, launched the Vive XR Elite in January 2023 - an extended reality headset offering AR, VR, and Mixed Reality experiences. It features a 3,840x1,920 resolution, a 110-degree field of view, and a 90Hz refresh rate, powered by Qualcomm Snapdragon XR2 SoC. The headset includes four tracking cameras, a 16MP RGB camera, 128GB storage, and a removable 26.6Wh Battery Cradle, providing up to 2 hours of continuous power. It comes with two controllers offering up to 15 hours of battery life.

In May 2021, Snap Inc., a US-based camera and social media company, acquired WaveOptics for $500 million. This acquisition granted Snap Inc. exclusive access to WaveOptics' AR technology, enhancing its Spectacles augmented reality glasses and reinforcing its position as a leader in the social AR hardware space. WaveOptics, a UK-based company, specializes in designing and manufacturing diffractive waveguides for wearable Augmented Reality (AR) devices.

Major companies operating in the extended reality market report are Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Meta Platforms Inc., Sony Corporation, Accenture PLC, Qualcomm Incorporated, NVIDIA Corporation, Adobe Inc., Seiko Epson Corporation, Dassault Systemes SE, PTC Inc., Unity Technologies Inc., SoftServe Inc., Tata Elxsi Ltd., Semcon AB, HTC Corporation, Northern Digital Inc., Varjo Technologies Oy, Talespin Reality Labs Inc., Ultraleap Ltd., Marxent Labs LLC, Vuzix Corporation, Avegant Corporation, Virtuix Inc., Worldviz LLC, Sixense Enterprises Inc., Daqri LLC, The Void LLC.

North America was the largest region in the extended reality market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the extended reality market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the extended reality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The fundamental components of extended reality include hardware, software, and services. Hardware components encompass the physical devices and equipment utilized in extended reality. These technologies encompass Augmented Reality (AR) technology, Virtual Reality (VR) technology, and Mixed Reality (MR) technology, catering to diverse end-users such as gaming, retail, healthcare, manufacturing, media and entertainment, education, aerospace and defense, among others.

The extended reality market research report is one of a series of new reports that provides Extended reality market statistics, including extended reality industry global market size, regional shares, competitors with an extended reality market share, detailed extended reality market segments, market trends, and opportunities, and any further data you may need to thrive in the extended reality industry. This extended reality market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The extended reality (XR) market consists of revenues earned by entities by providing consumer engagement, and business engagement. The market value includes the value of related goods sold by the service provider or included within the service offering. The extended reality (XR) market also includes sales of AR devices, VR devices, and MR devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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