Immersive Technology Market will grow at highest pace owing to VR adoption in education and training
The global immersive technology market is estimated to be valued at US$ 28.45 Bn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.
Naufan Cmi
Immersive technology involves using virtual, augmented and mixed reality to provide an experience that makes the user feel like they are present in the virtual environment. Immersive technology products like VR and AR headsets enable experiences like virtual tours, product visualization, 3D content viewing and more.
The global immersive technology market is estimated to be valued at US$ 28.45 Bn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Immersive Technology Market Companies include Acer Inc., Apple Inc., AVEVA Group Plc, Barco NV, Blippar Group Limited, EON Reality, Inc., Google LLC, HTC Corporation, Magic Leap, Inc., Microsoft Corporation, and NVIDIA Corporation. These players are focusing on developing advanced VR and AR headsets with better features.
The growing adoption of VR and AR technology in various industries like education and training, retail, healthcare, construction etc. is driving the demand for immersive technology products. Immersive technology is allowing improved learning experiences and more effective training simulations.
Rapid advancements in technologies like 5G, edge computing, high resolution displays are further enhancing the immersive experiences. Developments in areas such as eye tracking, hand tracking, spatial audio are also fueling the adoption of immersive technology solutions.
Market Trends
Increased Focus on Mixed Reality - With advancement in technologies, there is increased focus on developing mixed reality solutions which blend virtual and physical worlds. Mixed reality allows interactions between digital and physical objects seamlessly.
Growth in Extended Reality (XR) - XR combines VR, AR and MR into a single reality-virtuality continuum. It allows movement across different points on the spectrum between the exclusively virtual world and the exclusively physical world. The adoption of XR solutions is growing.
Market Opportunities
Commercialization of Virtual Production - Immersive technology solutions are helping transform filmmaking, TV and media production through virtual production. This offers opportunities to create high quality content virtually.
Virtual and Augmented Reality in Education - VR and AR have potential to revolutionize education by enabling immersive learning experiences. Their adoption in education and training sectors is expected to grow significantly over the coming years.
Impact of COVID-19 on Immersive Technology Market
The Covid-19 pandemic has significantly impacted the Immersive Technology Market Growth. During the initial lockdown phases in 2020, the market witnessed a decline as industries halted operations, events were canceled, and people stayed indoors. This reduced the demand for immersive technology solutions from various end-use verticals like entertainment, media, education, manufacturing, and retail. However, as lockdowns eased in late 2020 and 2021, the market regained momentum as businesses increasingly adopted immersive technology for remote collaboration and virtual experiences. It helped organizations operate seamlessly during the pandemic restrictions. Going forward, the ability of immersive technologies to create virtual experiences will continue driving their demand for applications like virtual meetings, events, classrooms and simulations. Companies are also focusing on developing affordable consumer-focused solutions to tap into increased indoor entertainment needs. While short term disruptions were observed, COVID-19 has highlighted the capabilities of immersive technologies and accelerated their demand over the long term across industries.
Geographical Regions with Highest Immersive Technology Market Value
North America region currently holds the largest share of the global immersive technology market in terms of value. This is attributed to early adoption of advanced technologies and presence of major players in the US and Canada. Large technology companies are heavily investing in R&D to develop innovative immersive solutions. Further, industries like media and entertainment, healthcare and manufacturing are major adopters, driving significant revenues. Europe is another major regional market, where countries like Germany, UK and France are major hubs of innovation. Presence of leading manufacturers, governments support for technologies and advanced industrial sector contribute to market growth. Asia Pacific region is witnessing fastest value growth led by China, Japan and India. Rapid digital transformation of industries, growing tech-savvy population and government initiatives are factors increasing immersive technology deployment.
Fastest Growing Region for Immersive Technology Market
The Asia Pacific region is poised to experience the fastest growth in the immersive technology market during the forecast period. This is due to increasing investments by leading global companies in the region coupled with initiatives by governments to encourage adoption. Countries like China and India are global manufacturing powerhouses and are deploying immersive technologies across industries extensively to drive efficiency. Further, growing digital literacy and exposure to technologies is fueling their consumer-centric applications as well. 5G roll-outs will help provide necessary network infrastructure. Taiwan, South Korea and other ASEAN countries are also witnessing major innovative projects. As industries become increasingly technology-driven in the region to compete globally, the requirements for realistic solutions like VR and AR are driving massive opportunities. This makes Asia Pacific the hottest growth region for immersive technologies over the long term.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
