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During the forecast period, AR/VR spending for onsite assembly and safety purposes is projected to grow with a compound annual growth rate (CAGR) of percent, whilst spending on augmented reality games is set to grow at a CAGR of percent.

Extended Reality (XR)

Extended reality (XR) is an emerging term for all immersive technologies, including augmented reality (AR), virtual reality (VR), and mixed reality (MR), plus those that are yet to be created. Immersive, or XR, technologies, extend the reality we experience by either merging the virtual and “real” worlds or by creating a fully immersive experience. The market for XR technology is growing, with projections for 2023 valuing it at over *** billion U.S. dollars.

VR compared to AR

VR creates an artificial environment, whereas AR makes use of the existing environment by overlaying new information on top of it. In both VR and AR, the information or imagery is made available to the user through the use of headsets. In the coming years, global XR headset shipments are anticipated to surge, with major companies like LG, Sony, and Qualcomm investing in XR technology and innovation.

XR Consumption

The number of mobile AR users globally is expected to reach *** billion by 2023, fueled in part by a growing desire for AR technology to enhance consumer experiences in media and entertainment. Music concerts and sports events are just two examples where AR technology is being used more commonly in order to help enrich the fan experience. The consumer virtual reality market is expected to grow further in the years ahead, with significant VR investment going into VR gaming, as well as industrial training and maintenance.