Immersive Technology Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The immersive technology market size has grown exponentially in recent years. It will grow from $154.94 billion in 2024 to $222.16 billion in 2025 at a compound annual growth rate (CAGR) of 43.4%. The growth in the historic period can be attributed to advancements in hardware, gaming, and entertainment, growing demand for virtual reality (VR) head-mounted displays (HMDs), proliferation of smartphones and iot-connected devices, emergence of consumer VR, demand for digitalization.

The immersive technology market size is expected to see exponential growth in the next few years. It will grow to $902.94 billion in 2029 at a compound annual growth rate (CAGR) of 42%. The growth in the forecast period can be attributed to increasing adoption of learning and shopping, global acceptance of multimedia tools, rising popularity of esports, immersive content accessibility, demand for head-mounted displays. Major trends in the forecast period include technological development, the emergence of metaverse and web 3.0, remote collaboration, increased investment in research and development, a rise in the use of immersive technology for virtual events.

Rising gaming and entertainment are expected to significantly propel the growth of the immersive technology market. Immersive technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR) are increasingly being utilized to create interactive and engaging experiences for users, particularly in gaming and entertainment. These technologies provide users with highly immersive and realistic environments that enhance the gaming experience and offer new forms of entertainment. For instance, in June 2023, the Fantasy Sports & Gaming Association, a US-based trade association, reported a 7% increase in total bettors in the U.S. compared to 2022, with a 26% rise from 2021. This surge reflects the growing integration of immersive technologies in the gaming sector, which is driving the growth of the immersive technology market.

Prominent entities within the immersive technology market are channeling their efforts towards developing cutting-edge technological solutions, particularly in the realm of immersive interactive technology, to enhance their market position. Immersive interactive technology combines various tools and techniques to create participatory experiences where users actively engage within simulated or augmented environments. In November 2022, Echo Healthcare, Inc., a US-based provider of highly realistic medical simulation training tools, introduced its latest software platform, Immersive Studio, operating on its Immersive Interactive technology. This platform enables content creation and sharing among diverse user groups without the need for goggles or headsets, facilitating group learning environments. The Immersive Studio software features a 360-degree camera for users to easily record and upload local content in a cloud-based environment, providing high-quality projections that immerse learners in realistic environments.

In January 2023, Schneider Electric, a France-based digital automation and energy management company, completed the acquisition of AVEVA, a UK-based provider of immersive technology and training systems, for an undisclosed amount. This acquisition aligns with Schneider's objective to integrate energy and process across the economic cycle, ensuring the generation of customer value. AVEVA's expertise in immersive technology and training systems positions it as a valuable addition to Schneider's portfolio, underscoring the convergence of digital automation and immersive technologies in advancing customer-centric solutions.

Major companies operating in the immersive technology market report are Google LLC, Samsung Group, Sony Corporation, Lockheed Martin Corporation, Honeywell International Inc., HCL Technologies Limited, Carl Zeiss AG, Acer Inc., PTC Inc., AVEVA Group PLC, Unity Software Inc., Barco NV, Magic Leap Inc., HTC Corporation, Immersive Technologies Pty Limited, Varjo Technologies Oy, EON Reality, Inc., FAAC Incorporated, CM Labs Simulations Inc., Oculus (Facebook Technologies, LLC.), VI-grade GmbH, Atheer Inc., NCTech Limited, Blippar Ltd., Zeality Inc.

North America was the largest region in the immersive technology market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the immersive technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the immersive technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The immersive technology market includes revenues earned by entities by providing services such as providing operator risk assessments, consulting and strategy, streamlining processes, and enhancing customer experiences. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The immersive technology market also consists of sales of virtual reality headsets, augmented reality devices, mixed reality devices, haptic devices, 360-degree video systems, and telepresence robots. 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).

Immersive technology encompasses technologies designed to fully engage users in digital or simulated environments, fostering a heightened sense of presence and interaction within those settings. These technologies typically leverage a combination of hardware and software to enrich the user experience, delivering a more captivating and interactive interface.

The primary components of immersive technology comprise hardware, software/platform, and services. The technologies employed in this realm include mixed reality (MR), virtual reality (VR), augmented reality (AR), and 360 film. Hardware refers to the tangible components of a computer or equipment with a specific purpose, and within immersive technology, it includes items such as head-mounted displays, gesture-tracking devices, projectors, and display walls. The application of immersive technology spans various industries, including healthcare, retail and e-commerce, education, construction, media and entertainment, gaming, manufacturing, aerospace and defense, among others, where it is utilized for purposes such as training and learning, product development, emergency services, sales, and marketing.

The immersive technology market research report is one of a series of new reports that provides immersive technology market statistics, including immersive technology global market size, regional shares, competitors with an immersive technology market share, detailed immersive technology market segments, market trends and opportunities, and any further data you may need to thrive in the immersive technology industry. This immersive technology 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 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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