The global extended reality (XR) market is expanding rapidly and is anticipated to reach USD 394.8 billion by 2030, with a CAGR of 38.5% during the forecast period. This growth is driven by the rising adoption of connected devices, increasing collaborations among industry players, and the growing acceptance of augmented reality (AR) and virtual reality (VR) technologies.
In recent years, the hardware segment dominated the market, accounting for approximately 55% of the revenue share. This dominance can be attributed to the widespread use of smart devices and the decreasing cost of components like sensors, cameras, displays, and position trackers.
The single-user interface category led the market in recent years, driven by the popularity of individualized virtual environments. However, the multi-user interface category is expected to grow at a higher CAGR of over 35%, fueled by the increased adoption of multi-user AR and VR devices across sectors such as retail, manufacturing, aerospace, defense, entertainment, and education, particularly for training and learning purposes.
AR has been a dominant force within the XR industry, largely due to its growing applications in e-commerce, healthcare, and retail. Increasing global investments in AR and the rising demand for AR-enabled solutions among individuals are further accelerating its growth.
The widespread acceptance of AR and VR technologies in both industrial and public sectors is a significant factor propelling the XR market. The COVID-19 pandemic played a crucial role in popularizing AR and VR, with social distancing measures driving the adoption of these technologies beyond gaming and entertainment into industries like education, healthcare, and marketing.
Geographically, North America held the largest market share, exceeding 40% in recent years. The region’s growth is supported by the high adoption of immersive technologies for training purposes in sectors such as oil & gas, mining, and construction, and by the significant investments made by companies to develop advanced XR solutions.
The rising demand for AR/VR in organizational training and development, coupled with increased investments in immersive technologies across industries like education, e-commerce, and retail, is expected to further accelerate market growth in the near future.
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