XR Headset Market Research, 2031
The global XR headset market was valued at $38.1 million in 2021, and is projected to reach $401.4 million by 2031, growing at a CAGR of 28.3% from 2022 to 2031. Extended reality (XR) is the combination of computer-generated graphics and human interaction. Augmented reality (AR), virtual reality (VR), and mixed reality (MR) are subsets of XR.
The XR headset industry has greatly evolved over the last few years. XR, being an enormously promising technology has already discovered its use in various areas including media & entertainment, healthcare, education, and others. Technological progress along with human enthusiasm is continuously offering new ways of providing a better and more effective immersive experience in VR.
The substantial growth of the XR headset market can be primarily attributed to its growing use in the media and entertainment sector. XR headsets have brought a phenomenal revolution in the media & entertainment industry including the gaming industry. In the gaming world, XR technology has made a substantial impact after the introduction of the interactive experience of a real-world environment. Furthermore, it has caused a massive influence on the technological world covering e-commerce, marketing, automotive, healthcare, education, aviation, defense, retail, and other sectors.
The shortage of skilled technical personnel having good XR technology knowledge along with a lack of awareness about the technology in developing countries is predicted to hamper the XR headset market growth during the forecast period.
A rise in demand for Extended Reality Headset Market from the e-commerce industry is foreseen to offer lucrative opportunities to XR headset market players during the forecast period. E-commerce players are focusing more on XR technology to reduce the connection gap with consumers.
The industry players are investing a lot of effort on the R&D of smart and unique strategies to sustain their growth in the market. These strategies include product launches, mergers & acquisitions, collaborations, partnerships, and refurbishing of existing technology. For instance, Varjo, one of the key players in the XR headset market, introduced Varjo XR-3, a mixed reality headset. These headsets offer the most immersive mixed reality experience. All these factors are projected to create several growth opportunities in the Extended Reality Headset Marketduring the forecast period.
The key players profiled in this report include are Varjo, HTC Corporation, HP Development Company, L.P., Trimble Inc., Microsoft, Meta, Valve Corporation., Samsung, Advanced Micro Devices, Inc, Google, and others
The global XR headset market is segmented on the basis of solutions, end user, and region. By solutions, the market is divided into consumer engagement and business engagement. By end user, the market is classified into media and entertainment, manufacturing and construction, healthcare, education, retail, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By solutions, the consumer engagement sub-segment dominated the XR headset market share in 2021. XR headset technology improves the overall consumer experience. XR technology saves the time of consumers by skipping the need to travel physically to the retail location and wait in line to checkout. XR headsets boost consumer engagement where their senses are stimulated as they interact with the products available for purchase. XR headset market players such as Meta, Samsung, and Microsoft, are increasingly using XR technology to improve the customer experience. Particularly, large corporations are collaborating with these XR headset brands to achieve an increase in brand awareness and loyalty. These are predicted to be the major factors affecting the XR headset market size during the forecast period
By end user, the media and entertainment sub-segment dominated the global XR headset market share in 2021. The use of XR headsets has increased massively in the media and entertainment industry due to the COVID-19 pandemic as people had to stay at home and pursued activities aligned with social distancing. These activities included playing video games, consuming entertainment, virtual shopping, 360-degree travel videos, and others.
By region, Asia-Pacific is expected to dominate the global XR headset market during the forecast period. This significant growth is majorly attributed to the growing adoption of VR and AR technologies in the media & entertainment industry in this region. In addition, developments in the 5G infrastructure across China and India are expected to promote the XR headsets in this region during the forecast period. 5G has started a revolution from various Internet applications for consumers such as e-commerce to business-specific applications.
Impact of COVID-19 on the Industry
- The COVID-19 pandemic disturbed almost all business activities across the globe, as several countries closed their ports, domestic transportation as well as airports while imposing strict lockdowns and social isolation
- The COVID-19 outbreak has positively impacted the demand for XR headsets owing to the strict lockdowns across the globe
- Several organizations mandated their employees to work from home, thus, raising the need for virtual meetings, training, and conferences
- The COVID-19 outbreak has increased the use of XR headset across various sectors including healthcare, education, automotive, e-commerce, and others
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the xr headset market analysis from 2021 to 2031 to identify the prevailing xr headset market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the xr headset market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global xr headset market trends, key players, market segments, application areas, and market growth strategies.
XR Headset Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 401.4 million |
 Growth Rate | CAGR of 28.3% |
 Forecast period | 2021 - 2031 |
 Report Pages | 280 |
 By Solution |
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 By End-user |
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 By Region |
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 Key Market Players | Cavrnus, Inc., 4experience, Aircards, ARuVR, Microsoft Corporation, Qualcomm Technologies Inc., Arvizio, Inc, 4DR studios |
Analyst Review
An increase in demand for XR headsets in the media & entertainment, aviation, and e-commerce industries is a key factor that is anticipated to drive the growth of the global XR headset market during the forecast period. XR headsets are bringing unprecedented change in the media & entertainment industry including the gaming industry. In the gaming industry, XR technology has made a notable impact after the introduction of the interactive experience of a real-world environment. The high cost of XR headsets, however, is expected to pose a threat to the XR headset market. On the contrary, the rise in the use of XR headsets in the healthcare and education sector is expected to offer remunerative opportunities for key players to maintain the pace of the XR headset market. XR headsets aid surgeons in surgical operations by saving their time in seeking relevant inputs for critical decisions.
Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the market by the end of 2031, followed by Europe, North America, and LAMEA. A rise in development in the 5G infrastructure and network across India and China is expected to boost the demand for XR headsets in the region during the forecast period.
The major growth strategies adopted by XR headset market players are investment and agreement.
The increase in popularity of XR headsets in media & entertainment applications is the major XR headset market driver. In addition, the growing adoption of XR headset technology by global companies for social media development and event marketing is further increasing the demand for XR headsets.
Asia-Pacific will provide more business opportunities for the global XR headset market in the future.
The consumer engagement sub-segment of the solutions segment acquired the maximum share of the global XR headset market in 2021.
The use of XR headsets in media and entertainment, manufacturing and construction, healthcare, education, and retail industries is estimated to drive the adoption of XR headsets.
The growing use of XR headsets in e-commerce, fashion & beauty, and healthcare sectors is anticipated to boost the XR headset market in the upcoming years.
Varjo, HTC Corporation, HP Development Company, L.P., Trimble Inc., Microsoft, Meta, Valve Corporation., Samsung, Advanced Micro Devices, Inc, and Google are the major players in the XR headset market.
Media & entertainment industry leaders are the major customers in the global XR headset market.
The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global XR headset market from 2022 to 2031 to determine the prevailing opportunities.
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