- Extended reality (XR) is a broad term encompassing virtual reality (VR), augmented reality (AR), mixed reality (MR), and everything in between. Even though virtual reality (VR) and augmented reality (AR) offer a wide-range of innovative experiences, the same underlying technologies are powering extended reality (XR).
- Extended reality (XR) is creating immersive portable XR experiences with photorealistic graphics by combining edge cloud processing, 5G, and on-device processing.
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Impact of Coronavirus (COVID-19) on the Extended Reality (XR) Market
Lockdowns across major regions (Europe, Asia, and North America) due to an increase in the spread of Coronavirus (COVID-19), has a positive impact on the extended reality (XR) market. End-users are currently focusing more on gaming and entertainment sectors to gain added experience in terms of augmented or virtual reality. Additionally, gaming companies are emphasizing on developing more innovative gaming software for end-users with the help of virtual or extended reality devices. This is positively impacting the adoption of extended reality (XR) systems worldwide.
Continuous Innovation in Technology Making the Market More Lucrative and Driving the Global Extended Reality (XR) Market
- Media & entertainment, and gaming are at the forefront of deploying technological advancements compared to other industries. Recent developments in technology in augmented reality and virtual reality is leading to rising end-user expectations to experience virtual environments in different applications. Currently, companies have introduced or updated virtual reality solutions to improve user experience to enhance their productivity.
- Various companies believe that the continuous innovation in VR headsets and controllers is anticipated to boost the growth of the extended reality market during the forecast period. Moreover, most market players are providing free software development kits (SDK) to developers which is likely to improve the demand for better controlling feature over software in extended reality related devices. Meanwhile, the market is at the initial stage coupled with high investment scenario; the market is expected to witness high scale of advancements in short to medium term as compared to the long term.
- Therefore, continuous innovation in technology is influencing the adoption of extended reality (XR) worldwide.
High Cost of Devices Expected To Hamper the Global Extended Reality (XR) Market
- Extended reality (XR) devices that provide immersive augmented and virtual reality experiences are rather expensive and unaffordable by most customers. The high cost of extended reality (XR) devices reduces its adoption in small and medium enterprises. This is also a major restraint that is restricting the growth of the market. However, reduction in the prices of the devices is expected to increase their adoption rate. Thus, selling the devices at an affordable rate will help reduce the impact of this restraint.
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North America to Account for Major Share of the Global Extended Reality (XR) Market
- In terms of region, the global extended reality (XR) market can be segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa
- North America is anticipated to account for major share of the global extended reality (XR) market during the forecast period due to increasing partnerships among different ecosystem players to improve the extended reality experience, and increasing focus on less power consuming hardware, indicating potential growth of the extended reality (XR) market in the region. Europe is expected to be the second largest market for extended reality (XR) from 2020 to 2030.
- Asia Pacific is projected to be a rapidly growing market for extended reality (XR) during the forecast period due to more focus on providing extended reality solutions to healthcare, education, and gaming sectors, specifically in India, Japan, and China.