Extended Reality (XR) Hardware Market Size was valued at USD 1.9 Billion in 2022. The Extended Reality (XR) Hardware market industry is projected to grow from USD 2.2895 Billion in 2023 to USD 10.1774 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.50% during the forecast period (2023 - 2032). Increasing interest in immersive technologies, including mixed reality (MR), augmented reality (AR), and virtual reality (VR), and the growing use in the e-commerce and retail industry are the key market drivers fueling the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Extended Reality (XR) Hardware is being driven by a rise of remote work and collaboration. Globally, there is a growing need for Extended Reality (XR) solutions that support virtual collaboration, remote training, and communication. Some of these solutions include virtual and augmented reality technologies. By offering immersive experiences that surpass those of traditional video conferencing tools, XR hardware plays a crucial role in facilitating more efficient and interesting remote collaboration. Despite geographical distances, team members can interact easily in virtual environments because of these technologies, promoting a sense of presence and connectedness. With new levels of engagement and productivity, this move toward XR-driven collaboration represents a revolutionary leap in remote teamwork and communication.
The growing demand in the Extended Reality (XR) hardware market is largely driven by the growing popularity of augmented reality (AR) and virtual reality (VR) applications in training and marketing. Companies comprehend how virtual reality technologies can improve consumer engagement by delivering memorable brand experiences and interactive ads. Furthermore, XR is essential for training scenarios because it provides practical experiences and realistic simulations. The need for more sophisticated and user-friendly devices to enable these immersive experiences is driving an increase in demand for XR hardware as these applications become essential to marketing strategies and training programs across a range of industries.
The growth of the travel and tourism industry boosts the market growth of the Extended Reality (XR) Hardware market. According to the World Travel & Tourism Council’s latest Economic Impact Report, the GDP of travel and tourism is expected to grow by 5.8% annually on average between 2022 and 2032, exceeding the 2.7% growth rate of the global economy to reach US$ 14.6 trillion (or 11.3% of the total global economy). To improve user experiences and next the gap between digital engagement and in-person travel, the travel and tourism sector is utilizing extended reality hardware, such as augmented and virtual reality devices. These devices offer immersive virtual tours, interactive destination previews, and creative marketing campaigns. Thus, the growing travel and tourism industry driving the Extended Reality (XR) Hardware market revenue.
The Extended Reality (XR) Hardware Market segmentation, based on type includes Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). The virtual reality (VR) segment dominated the market, accounting for 44% of the market revenue. This is attributed to VR's extensive applications in sectors like healthcare and education, as well as its broad adoption in gaming and immersive entertainment, which has increased demand and market share.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Extended Reality (XR) Hardware Market segmentation, based on end-users includes Education, Healthcare, Automotive, Aerospace, Retail, Manufacturing, and Media and Entertainment. The education segment dominated the market, accounting for more than a quarter of market revenue. It's linked to the growing amount of XR technology integration in training courses and classrooms. XR provides students with engaging and immersive learning experiences that improve their comprehension.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Extended Reality (XR) Hardware market area will dominate this market. North America, particularly the United States is one of the biggest markets in the world for cutting-edge mixed reality (MR) and virtual reality (AR, VR). Many of the companies developing this technology are based in the United States. Because of its high level of technological exposure and the ease with which linked devices can be operated, the region is in high demand.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Extended Reality (XR) Hardware market accounts for the second-largest market share because of strong federal programs, rising business spending, and a growing focus on XR technologies in industries like manufacturing and healthcare, which has accelerated market expansion and adoption. Further, the German Extended Reality (XR) Hardware market held the largest market share, and the UK Extended Reality (XR) Hardware market was the fastest-growing market in the European region
The Asia-Pacific Extended Reality (XR) Hardware Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to a growing number of tech-savvy people, a rise in industrial applications, and pro-innovation government policies have all contributed to the increased demand and broad adoption of XR technologies in a variety of industries. Moreover, China’s Extended Reality (XR) Hardware market held the largest market share, and the Indian Extended Reality (XR) Hardware market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines and include Virtual Reality, Augmented Reality, and Mixed Reality which will help the Extended Reality (XR) Hardware market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Extended Reality (XR) Hardware industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Extended Reality (XR) Hardware industry to benefit clients and increase the market sector. In recent years, the Extended Reality (XR) Hardware industry has offered some of the most significant advantages to Consumers. Major players in the Extended Reality (XR) Hardware market, including Qualcomm Incorporated, Accenture plc, Unity Technologies, Alphabet Inc., Adobe Inc., Northern Digital Inc., SoftServe Inc., Facebook Inc., Sony Corporation, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.
Adobe Inc. is a well-known software company that was founded in 1982 and is best known for its creative software, marketing, and digital media solutions. With its headquarters located in San Jose, California, Adobe has had a significant impact on the digital landscape. The company offers a wide range of products that meet the needs of businesses, marketers, and creative professionals. Its Creative Cloud platform, which offers a subscription-based model for its software suite, has been widely adopted due to its smooth collaboration features and ongoing updates. Adobe is looking into immersive technologies in the Extended Reality (XR) Hardware Market, emphasizing content creation and experiences. With Adobe Creative Cloud's Adobe Aero, designers can create augmented reality (AR) experiences without knowing many lines of code. In March 2022, Adobe unveiled a series of efforts to advance its position in the metaverse, including updates for the Experience Cloud and Creative Cloud platforms. Highlights from the Adobe Summit 2022 revolve around enhancing offerings for augmented reality (AR) and 3D content creation. These advancements target brands looking to create immersive metaverse experiences in addition to individual users.
Facebook Inc. is a prominent technology conglomerate based in Menlo Park, California, in the United States. Established in 2004 by Mark Zuckerberg and associates, the organization has expanded to become one of the most significant participants in the worldwide technology sector. In addition to its main social networking platform, Facebook offers a variety of other services, such as Instagram, WhatsApp, and Oculus. Facebook purchased the virtual reality (VR) hardware and software startup Oculus VR in 2014. With this acquisition, Facebook entered the XR market. Since then, Oculus, a branch of Facebook Reality Labs, has led the way in creating virtual reality headsets, such as the Rift and Quest models, to enable social and immersive gaming. In April 2020, New Facebook Reality Labs unveiled cutting-edge AR and VR products. The company that created the AR-VR team for the social networking behemoth has renamed it Facebook Reality Labs as it began developing the next-generation computing platform for more immersive experiences.
February 2023: OnePlus and Qualcomm have partnered to incorporate the Snapdragon Spaces augmented reality functionality into the OnePlus 11 5G, thereby enabling the development of an approachable XR ecosystem for developers. Through this partnership, users will be able to enjoy immersive digital experiences like live concerts and movies, as well as be empowered to create extensive gaming experiences.
November 2021: The XR Metaverse Workspace, which was unveiled at MWC 2021 during ground-breaking 5G network slicing tests with Deutsche Telekom, Samsung, and Ericsson, is a service environment that seamlessly integrates NFT, AR, and VR within a multi-dimensional Web 3.0 framework, simplifying content creation. This product has fueled Immersivecast's ambitions to expand its market presence in Korea and the United States.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.9 Billion |
| Market Size 2023 | USD 2.2895 Billion |
| Market Size 2032 | USD 10.1774 Billion |
| Compound Annual Growth Rate (CAGR) | 20.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End-Users, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Qualcomm Incorporated, Accenture plc, Unity Technologies, Alphabet Inc., Adobe Inc., Northern Digital Inc., SoftServe Inc., Facebook Inc., Sony Corporation |
| Key Market Opportunities | Rise of Remote Work And Collaboration. |
| Key Market Dynamics | Increasing Travel and Tourism Industry |
Frequently Asked Questions (FAQ) :
The Extended Reality (XR) Hardware Market size was valued at USD 1.9 Billion in 2022.
The global market is projected to grow at a CAGR of 20.50% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Qualcomm Incorporated, Accenture plc, Unity Technologies, Alphabet Inc., Adobe Inc., Northern Digital Inc., SoftServe Inc., Facebook Inc., and Sony Corporation.
The virtual reality category dominated the market in 2022.
The education sector had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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