Northbrook, IL 60062 -- (SBWire) -- 08/03/2023 --The extended reality market size is projected to reach USD 111.5 billion by 2028 from USD 40.1 billion in 2023, at a CAGR of 22.7% from 2023 to 2028. Surging deployment of extended reality in education sector and industrial training and continuous developments in 5G technology are some of the major factors driving the market growth globally.

The major challenge faced by these AR/VR manufacturers is to provide a wide field of view (FOV). The field of view is defined as the extent of the observable world at any given moment. Ideally, a human eye has a visual field of ~200° horizontally and 135° vertically. Currently, AR and VR devices are able to provide a FOV of up to 90°. For AR devices to create immersive experiences, they must capture as much of the FOV as possible.

Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=147143592

In 2023, the software segment held the larger share of the extended reality market

In 2023, the software segment held the larger share of the extended reality market and is expected to continue to do so during the forecast period. The dominance of the segment can be attributed to the large-scale adoption of different extended reality technologies such as augmented reality, virtual reality, and mixed reality. For instance, retail stores like IKEA and Walmart use AR/VR applications to enhance the shopping experience of their customers. Also, AR/VR gaming applications are gaining traction now-a-days, leading to increased pressure on software providers to develop advanced and innovative gaming applications. This is expected to support market growth in the coming years.

Automotive application segment is likely to grow at the highest CAGR during the forecast period

The automotive application segment is likely to grow at the highest CAGR during the forecast period. The growth can be attributed to the increased focus of automotive manufacturers on enhancing the user experience. XR solutions are used by automotive manufacturers to train their staff. For instance, Maruti Suzuki set up a chain of simulation-based training centers in India, while Ford created a virtual laboratory for designing prototypes. In addition, AR and VR solutions are used in automotive showrooms to allow customers to experiment with the features of a new vehicle from a distance in a safe environment. These devices are also used by the staff to speed up the repair process. For instance, Porsche technicians leverage AR glasses to see schematic illustrations of vehicles in real time, leading to a 40% reduction in service resolution time. Owing to this, the segment is expected to witness growth in the future.

North America led the extended reality market in 2022

North America led the extended reality market in 2022. Growing use of smartphones, increasing adoption of smart electronic devices, increasing deployment of 5G technology, and surging demand for extended reality technology in various applications are the key factors fueling the growth of the extended reality market in North America. For instance, according to Telefonaktiebolaget LM Ericsson, it is predicted that North America will have the highest 5G subscription penetration rate among all regions, surpassing 90% by 2028.