Home
All updates- EDGE Insights
Industries
Overview & Market size
Use cases
Covid-19 impact
Market map
Disruptors
Funding history
Competitive analysis
Incumbents
Notable Investors
Related Content
Extended Reality
Overview
Extended reality (XR) is the umbrella term that includes Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). These segments are characterized by the varying degrees at which reality interacts with the virtual world. AR refers to the overlay of computer-generated (CG) content (e.g., video streams, images, interactive data, holograms) in a real-world environment. VR is a fully immersive world made with real-world (360-degree video) or CG content or a mix of both prepared in advance. MR, as the name suggests, falls in between the AR/VR mediums and refers to CG content that interacts with objects in the real world.
Gaming has been the legacy use case for XR allowing players to interact in virtual worlds and adding to the realism of gaming genres. However, the industry is witnessing renewed interest driven by the application of this technology for B2B use cases such as product demos, distance learning, virtual therapy, remote work, and virtual manuals. The retail e-commerce boom, the birth of the metaverse, and the continued interest in social and interactive gaming post-pandemic could boost the industry’s prospects moving forward.
Industry Updates
Market Sizing
The extended reality market in the US could reach USD 16 – USD 35 billion by 2026
USD 0.0 Bn
USD 0.0 Bn
USD 0.0 Bn
Use cases
XR-based solutions have found widespread adoption across various industries, with the industrials and consumer discretionary sectors being particularly prominent. This specifically includes the construction and engineering subsegment for industrials as well as the auto components and automobile manufacturers subsegment under consumer discretionary.
The adoption levels for employee training solutions are relatively high, given that they offer a cost-effective, safe, and immersive environment to improve learning retention for industrial applications. Additionally, XR product demos have seen a high level of adoption, as they enable brands to differentiate themselves, enhance customer acquisition and retention, and bolster sales.
We have identified key XR use cases below:
COVID-19 IMPACT
Market Mapping
Extended reality industry players operate in five segments, with the content segment housing many startups in the space. This could be attributed to the lower barriers to entry when compared with the capital-intensive Headset/display manufacturers segment. Startups from the headset/display manufacturers segment account for most of the total funding and include large players such as Magic Leap, DigiLens, Varjo, and WayRay.
Incumbents in the space include Vuzix (a pure-play company headset manufacturer) and a mix of large tech companies. Most companies, similar to the disruptors, have directed their attention to the enterprise segment. Facebook, which changed its name to Meta in October 2021, leads the charge by spending over USD 10 billion toward the metaverse in 2021. Other large tech companies, such as Microsoft, Google, and Apple, are also in the mix through the in-house development of AR/VR headgear.
Incumbents in the space include Vuzix (a pure-play company headset manufacturer) and a mix of large tech companies. Most companies, similar to the disruptors, have directed their attention to the enterprise segment. Facebook, which changed its name to Meta in October 2021, leads the charge by spending over USD 10 billion toward the metaverse in 2021. Other large tech companies, such as Microsoft, Google, and Apple, are also in the mix through the in-house development of AR/VR headgear.
The Disruptors
Funding History
Incumbents
Large tech players focus on the enterprise segment using in-house developments and acquisitions
Incumbents in the space include a mix of large tech companies, while Vuzix remains the only pure-play company. A balanced approach that includes a mix of in-house developments and acquisitions has outlined the incumbent's strategy in the space. Most companies, similar to the disruptors, have directed their attention to the enterprise segment. This includes Microsoft, Google, and Facebook, which were relentlessly pursuing the consumer market initially.
Facebook, which changed its name to Meta in October 2021, leads the charge by spending over USD 10 billion toward the metaverse in 2021. In addition to its interests in the VR headset space (through the Oculus brand), it launched the VR-based remote working app Horizon Workrooms (now known as Meta Horizon) in August 2021. Other recent high-profile announcements include Sony’s PSVR 2 headset, Microsoft’s virtual reality platform (Microsoft Mesh), and AR/VR headsets that are still under development from Apple and Google.
Social platform players such as Snap and Tik Tok parent ByteDance have also entered the headset/display manufacturing segment for consumer and enterprise-directed products respectively.
Notable Investors
