The research study involved 4 major activities in estimating the size of the extended reality market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information required for this study. The secondary sources include annual reports, press releases, investor presentations of companies, white papers, and articles from recognized authors. Secondary research has been mainly done to obtain key information about the market’s value chain, the pool of key market players, market segmentation according to industry trends, regional outlook, and developments from both market and technology perspectives.
In the extended reality market report, the global market size has been estimated using both the top-down and bottom-up approaches, along with several other dependent submarkets. The major players in the market were identified using extensive secondary research, and their presence in the market was determined using secondary and primary research. All the percentage share splits and breakdowns have been determined using secondary sources and verified through primary sources.
Primary Research
Extensive primary research has been conducted after understanding the extended reality market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand- and supply-side vendors across 4 major regions—North America, Europe, Asia Pacific, and the Rest of the World. Approximately 25% of the primary interviews have been conducted with the demand-side vendors and 75% with the supply-side vendors. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews; questionnaires and emails have also been used to collect the data.
After successful interaction with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings of our primary research. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the report.
Note: “Others” includes sales, marketing, and product managers
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches, along with data triangulation methods, have been used to estimate and validate the size of the extended reality and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
The bottom-up procedure has been employed to arrive at the overall size of the extended reality market.
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Identifying various extended reality devices and software provided or expected to be offered by players in the value chain
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Tracking the major manufacturers and providers of extended reality devices and related software for different regions
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Estimating the extended reality market for devices and software in the respective countries of each region
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Tracking the ongoing and upcoming product launches and different inorganic strategies such as acquisitions, partnerships, and collaborations
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Forecasting the extended reality market in each region based on trade data and GDP analysis
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Conducting multiple discussions with key opinion leaders to understand the types of devices and software deployed by extended reality players and analyzing the break-up of the scope of work carried out by each major company
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Arriving at the market estimates by analyzing the revenues generated by extended reality manufacturers and software providers based in their locations (countries) and then combining the shares to get the market estimate for each region
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Verifying and crosschecking the estimates at every level by discussing with key opinion leaders, including CEOs, directors, and operation managers, and then finally with the domain experts at MarketsandMarkets
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Studying various paid and unpaid information sources such as annual reports, press releases, and white papers
The top-down approach has been used to estimate and validate the total size of the extended reality market.
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Focusing, initially, on the top-line investments and spending in the ecosystems of various industries. Tracking further splits based on product launches, advancements in extended reality technologies, and extended reality devices and software used for various industrial applications, and developments in the key market areas
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Representing and developing the information related to market revenue offered by key hardware and software providers
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Carrying out multiple on-field discussions with key opinion leaders across each major company involved in the development of hardware and software components pertaining to extended reality
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Estimating the geographic split using secondary sources based on factors such as the number of players in a specific country and region, types of products and types of software implemented.
Extended Reality Market : Top-Down and Bottom-Up Approach
Data Triangulation
After arriving at the overall market size by the market size estimation process explained in the earlier section, the overall extended reality market has been divided into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply side perspectives. Along with data triangulation and market breakdown, the market has been validated by top-down and bottom-up approaches.
Market Definition
Extended Reality (XR) is an umbrella term that includes immersive technologies like Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). These technologies serve to enhance the user experience by combining the physical and digital elements. Augmented reality (AR) captures a user’s view of reality and enhances it with virtual images or sounds. VR develops a live fictitious environment that users can fully immerse themselves in. MR integrates the real world and virtual worlds creating an interactive environment comprised of both the real and virtual worlds. Extended reality systems function with sophisticated devices like head mounted displays (HMD) units, smart goggles or in some cases even handheld devices and software systems, content development equipment and other elements. The incorporation of innovations, such as AI technology, 5G and motion sensors makes it possible to create innovative and realistic experiences for the end user.
The market for extended reality spans across multiple sectors such as games and entertainment, healthcare, education, retail, automotive, and industrial training, among others. It serves for various purposes including training and simulation, teamwork done through the internet, going on virtual tours, playing computer games, surgeries, etc. This shifts the paradigm on the way people perceive and use technology, while it is as well embraced by businesses for the purpose of enhancing productivity, developing customer relationships and optimizing processes.
Key Stakeholders
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Raw Material and Component Suppliers
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OEMs
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Display Manufactures
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Third-party Service Providers
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Distributors and Resellers
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Service Providers
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Regulatory Bodies
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Research and Development Institutes
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End Users
Report Objectives
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To define, describe, segment, and forecast the extended reality market size by technology, offering, and application in terms of value
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To define, describe, segment, and forecast the extended reality market size by device type in terms of value and volume
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To provide qualitative information about different extended reality devices and the applications of extended reality solutions in different enterprises
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To describe and forecast the extended reality market size in four key regions, namely, North America, Europe, Asia Pacific, and the Rest of the World (RoW), in terms of value
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To provide detailed information regarding the key factors such as drivers, restraints, opportunities, and challenges influencing the growth of the market
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To provide details about the value chain of the extended reality market and provide detailed information regarding Porter's five forces, technology trends, product pricing, trade, use cases, and import and export trends pertaining to the extended reality market
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To analyze opportunities in the market for stakeholders, along with a detailed competitive landscape of the extended reality market
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To analyze micromarkets with respect to individual growth trends, prospects, and contributions to the total market
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To strategically profile the key players and comprehensively analyze their market share and core competencies, along with the competitive leadership mapping chart
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To analyze the competitive developments such as product launches, partnerships, collaborations, contracts, agreements, joint ventures, expansions, and acquisitions in the extended reality market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
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Detailed analysis and profiling of additional market players based on various blocks of the supply chain
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