In the current scenario, augmented reality (AR) and virtual reality (VR) are leading the market for extended reality. These technologies are based on the concepts of spatial computing, which is believed to be the next step in computing evolution. The spatial computing concept is defined as the interaction between human and machines where the machine can retain and manipulate information related to the real world.
The extended reality is likely to get a positive boost from 5G infrastructure and increased data transfer rates on the internet. XR tech will allow users to interact with each other in a virtual environment with real-time data sharing; this will boost the communication industry and help the business to collaborate more often without needing to travel or meet in person.
Extended reality offers vast possibilities for various end-users, including consumers and enterprises. Industry experts suggest that in the short term, the market will be aligned toward consumer applications due to higher penetration. In the long term, enterprise applications and various industrial sectors will become a focal point of further development in the market. Extended reality is very likely to replace the currently available computing products, such as personal computers, with products that are much easier to handle and portable wearable devices, which are capable of doing basic computing to extensive operational computing.
Recently, Modulo Pi, a next generation media server solutions organization, announced the addition of extended reality (XR) capabilities to the fully integrated media server solution, Modulo Kinetic. The improved XR features that are a part of the new version will streamline the production of virtual and hybrid events and make them more accessible.
According to the market intelligence published by BIS Research, the global extended reality market was estimated at $42.55 billion in 2020 and is expected to grow at a CAGR of 50.9% during the forecast period, 2020-2025. The market growth is attributed to increasing demand for spatial computing applications, decreasing prices of extended reality hardware, and rising need to mitigate human risk in industrial operations.
In addition, there are several challenges that are restricting the growth of the market, including health and safety issues related to extended reality, lower adoption rates in the enterprise segment, lack of standardization, and technology-related challenges.
To study the extended reality market in detail, the market has been segmented on the basis of applications, technology, solution, and region. The application segment is further segmented on the basis of consumer and enterprise. The consumer segment is further categorized into gaming, entertainment, and education,
Further, the consumer applications segment of extended reality market has the largest share and the segment is expected to remain dominant during the forecast period of 2020-2025. The major demand for the extended reality market is from the consumer electronics market. This segment is also driven by the growth of the smartphone and tablet market, which is a key driver to the market.