San Francisco, 09 April 2030: The Report Extended Reality Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application, By Industry Vertical, By Enterprise Size, By Region, And Segment Forecasts, 2024 - 2030

The global extended reality market size is anticipated to reach USD 1,069.27 billion by 2030 and is projected to grow at a CAGR of 32.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market, including virtual reality (VR), augmented reality (AR), and mixed reality (MR), is experiencing significant growth driven by advancements in technology and increased adoption across various industries. With the rising demand for immersive entertainment experiences, consumers are increasingly seeking more engaging and interactive forms of entertainment, driving the adoption of extended reality (XR) technologies in gaming, live events, and multimedia content.

The shift towards remote work and distributed teams, accelerated by global events due to the COVID-19 pandemic, highlighted the need for effective virtual collaboration tools. XR technologies, including virtual reality (VR) and augmented reality (AR), offer immersive and interactive platforms for remote teams to collaborate in shared virtual environments, regardless of physical locations.

Moreover, the increasing support and investment from governments and public institutions worldwide is further driving the market growth. Numerous governments worldwide are implementing policies and funding initiatives and partnering with industry stakeholders to promote XR development and adoption. Government support in the form of research grants, tax incentives, regulatory frameworks, and public-private partnerships aimed at encouraging innovation, improving infrastructure, and expanding access to XR technologies. For instance, in September 2022, the European Commission initiated the VR/AR Industrial Coalition, serving as a forum for communication between the European VR/AR industry and policymakers. Its objective is to recognize key obstacles and prospects within the European VR/AR sector to guide policy decisions better.

The market for augmented and virtual reality technologies is growing due to increased spending, rising government support, and high demand for improved visual information and shorter distances. In addition, the availability of affordable VR devices and increased demand in the entertainment and gaming industry are contributing to the market growth.

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Investors such as venture capital firms, private equity investors, and corporate entities provide more funds to XR startups and technology companies. This financial support helps research and development efforts, speeds up product commercialization, and promotes ecosystem growth, resulting in increased innovation and expansion within the market. For instance, in June 2023, Meta announced a new mixed reality (MR) program in India, which includes a grant of USD 250 thousand for Indian startups and developers to build apps and experiences. The fund encourages innovation and creates an ecosystem of extended reality (XR) technologies in the country.

The increase in 5G networks has boosted the extended reality (XR) market by enabling high-speed, low-latency communication, essential for delivering seamless and immersive XR experiences. 5G's capability to support massive data transfer and real-time interactions offers new opportunities for XR applications, particularly in remote collaboration, live events, and cloud-based gaming. This collaboration between XR and 5G is expected to further growth and innovation. According to the GSM Association, 5G connections are expected to double by 2030. It is being accelerated by innovations and new 5G network deployments in over 30 countries in 2023. The organizations are expected to benefit from the commercial availability of 5G Advanced in 2030, which is expected to improve speed, coverage, mobility, and power efficiency.

The COVID-19 pandemic positively impacted the XR market, accelerating the adoption of virtual and augmented reality solutions across various sectors such as education, media & entertainment, and gaming, among others. Due to restrictions on physical gatherings, organizations increasingly adopted XR technologies to maintain business continuity, deliver virtual events, and provide remote training and education. This change expanded the XR user base and established the value and usefulness of these technologies in addressing challenges.