Extended Reality Market to Reach Valuation of USD 161.5 Billion by 2028 – Rise in the Use of Extended Reality (XR) in the Healthcare Sector Drives the Market

In terms of revenue, the Global Extended Reality Market is expected to reach USD 161.5 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 29.80% from 2023 to 2030.

Over the projected period, the Extended Reality (XR) Market is anticipated to develop fastest. In terms of emerging technologies, Extended Reality (XR) includes immersive technologies like augmented reality, virtual reality, mixed reality, and other potential future realities. The growing demand for shorter distances between people and more visual material is one of the key drivers driving the industry. Numerous businesses are working on enabling technologies that, by seeing the massive potential in the XR domain, could aid in the global commercialization of XR technology.

Gesture-based computing's growing popularity also assists the market's expansion by creating new opportunities and applications. For example, gesture-based computing describes interfaces where users interact with digital resources using only their bodies rather than typical input devices such as a keyboard, mouse, game controller, or voice recognition system. As a result, it is now possible to work in engineering, medicine, 3D sculpting, gaming, TVs, electronics, kiosks, medical experts, designers, marketing, and even persons with physical limitations. In addition, gesture-based gaming in children's educational games is expanding beyond the confines of traditional gaming consoles.

Key Highlights from the Report

• Based on Technology, the AR Reality segment dominates the Extended Reality market with the maximum market share and will continue its dominance in the forecast period. This is attributed to the increase in the gaming industry.
• Among Offering, the Software segment accounted for the highest CAGR in the forecast period. Factors include well-known companies providing various virtual and augmented reality tools for creating immersive visual environments.
• In terms of region, North America holds the significant market share within the Extended Reality market. This is because there are so many important participants in the market, like Adobe Inc., Alphabet Inc., Facebook, Qualcomm Inc., Microsoft Corporation, and Unity Technologies, to name a few.

Market Dynamics

Extended Reality (XR) applications in the healthcare industry give physicians new options and hold promise for the future, especially for modern healthcare institutions. Extended Reality technology can help surgeons explore the target organs before starting any medical procedure by visualizing the finer intricacies of the patient's body, reducing the likelihood of complications. For instance, Wolters Kluwer Health, a significant supplier of point-of-care solutions and information to the healthcare sector, announced in December 2022 the integration of BioDigital XR with its development into medical education and practice. This cooperation will offer immersive, safe-to-fail environments with Virtual Reality (VR) and augmented reality (AR) solutions to enhance students' learning courses. As a result, the rising digitization of the medical industry has increased the extended global reality (XR) market CAGR in recent years.

Extended Reality technologies are spreading in private and business contexts. These problems are anticipated to be solved by the arrival of 5G technology, allowing for improved processing capability distribution. Specifically, it is expected that by 2023, there will be 1,02 billion 5G customers, up from less than 200 million in 2019. Countries like China, South Korea, and the US have already started using 5G in a few limited locations. Worldwide, considerable expenditures are being made to support 5G installations in every region. As a result, the quick adoption and implementation of 5G service is another element boosting the revenue growth of the Extended Reality (XR) industry.

In 2022, the Extended Reality market in North America accounted for the most significant portion. The widespread use of immersive technologies for training purposes in sectors like oil & gas, mining, and construction is the main factor boosting the market growth. Additionally, a sizable number of businesses investing extensively in such technologies to bring cutting-edge solutions is another crucial driver for developing the sector. In the future, it is anticipated that the market growth will be further fueled by the spike in demand for AR/VR in companies for training and development reasons as well as the growing investment in immersive technologies across industries, including education, e-commerce, and retail.

The Global Extended Reality Market is Segmented as follows

• Technologies
  • AR Technology
  • VR Technology
  • MR Technology
• Offerings
  • Hardware
  • Software
• Device Types
  • AR Devices
  • VR Devices
  • MR Devices
• Applications
  • Consumer
  • Commercial
  • Enterprises (Manufacturing)
  • Healthcare
  • Aerospace & Defense
  • Energy
  • Automotive
  • Other Applications
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Extended Reality Market is

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), Facebook Inc. (U.S.), Microsoft Corporation (U.S.), Tata Elxsi (India), Semcon (Sweden), HTC Corporation (Taiwan)

The Global Extended Reality Market Scope can be Tabulated as below