Latest News- Extended Reality (XR) Market: VR is expected to lead the Application segment during 2025-2029

The Extended Reality (XR) Market is being driven by Rapid improvements in sensor technology

The Extended Reality (XR) Market is expected to grow at a CAGR of 64.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 1842.9 billion. 5G technology, renowned for its high-bandwidth and ultra-low latency capabilities, is revolutionizing the Extended Reality (XR) market. This advanced connectivity enables the seamless deployment of AR in live, outdoor environments, unencumbered by Wi-Fi coverage. 5G networks facilitate cloud-based gaming by ensuring a stable connection with latency below 70 ms, necessitating a cost-effective yet robust 5G subscription. The significantly reduced latency of 5G networks compared to previous wireless technologies expedites data transmission, minimizing the delay between send and receive, thereby enhancing the overall XR user experience. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • VR
  • AR
  • MR
• Component
  • Hardware
  • Software and services
• End-user Industry
  • Education
  • Retail
  • Industrial & Manufacturing
  • Healthcare
  • Media & Entertainment
  • Others
  • Education
  • Retail
  • Industrial & Manufacturing
  • Healthcare
  • Media & Entertainment
  • Others
• Enterprise Size
  • Large Enterprises
  • Small & Medium Enterprises
  • Large Enterprises
  • Small & Medium Enterprises
• Device Type
  • Head-Mounted Displays (HMDs)
  • Mobile Devices
• Delivery Model
  • On-Premise
  • Cloud-Based
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rapid improvements in sensor technology
• Increasing adoption of extended reality in military
• Growing popularity of 360-degree videos

However, the market also witnesses some limitations, which are as follows:

• Infrastructural and integration issues associated with extended reality (XR) solutions
• Shortage of skilled workforce
• Strict government regulations associated with data protection

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Market Scope in Extended Reality (XR) Market Research Report

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Research Analysis Overview

The Extended Reality (XR) market encompasses AR/VR software and hardware, immersive technology, and platforms that support 3D content creation, interactive design, virtual prototyping, remote assistance, and more. Applications include virtual tours, patient engagement, surgical simulation, remote learning, industrial automation, asset management, virtual showrooms, digital signage, virtual events, and conferences. Additionally, XR technology offers immersive gaming experiences through AR, VR, and mixed reality games, haptic technology, motion capture, and virtual environments. Decentralized applications, 3D printing, and immersive experiences are also part of this rapidly evolving market.

Market Research Overview

The Extended Reality (XR) market encompasses companies specializing in virtual reality (VR), augmented reality (AR), mixed reality (MR), immersive experiences, 3D modeling, 360-degree video, and haptic feedback technologies. These firms contribute to the application software market segment within the larger IT software industry. The application software market refers to businesses producing software for specific business or consumer applications, excluding those in the interactive home entertainment industry or systems software sector. According to Technavio, the IT software market size is determined by the consolidated revenue of all IT software providers, including those offering cloud-based solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/