30+ Extended Reality Statistics: Market Size, Trends and Facts in 2024
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30+ Extended Reality Statistics: Market Size, Trends and Facts in 2024
Dive into our extended reality statistics to gain valuable insights into how this technology is poised to reshape our everyday lives and business landscapes.
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Key Takeaways: Top 10 Key Extended Reality Statistics
The global extended reality market size is projected to grow at a compound annual growth rate (CAGR) of 32.1% from 2023 to 2032.1
By end-user analysis, the gaming industry dominates the global extended reality market share.1
Augmented reality (AR) accounted for most (55%) of the global extended reality market share in 2022.7
By component analysis, the software segment accounted for most (65%) of the global extended reality market share in 2022.7
The majority (68%) of tech leaders understand how extended reality works, but only 13% regard themselves as experts.4
Valued at $1.86 billion in 2023, projections indicate that headworn AR market revenue will reach $5.32 billion by 2028, which is a CAGR of 23.52.9
Just 25% of U.S. adults own or have used a VR headset.10
Only 26% of polled consumers said they’re willing to try VR technology.10
With online shopping, there is a 94% higher purchase conversion rate for products with AR experiences.2
With educational augmented reality, 77% of consumers would like to adopt AR for learning and 68% are interested in AR for instructions.2
Facts & Expert Analysis About Extended Reality:
COVID-19 helped propel XR: The pandemic was a large catalystof the extended reality, making people more open to remote events and increasing company reliance on AR and VR technologies for remote collaboration.1
Headsets lead the way: Headsets make up the majority of the most commonly used XR and VR devices, followed by smartphones and smart glasses.4
User experience concerns: Tech leaders see the potential in using XR technology, but 58% surveyed are concerned about investment risk, while 52% view integration problems as a barrier to adopting the technology. Unpleasant user experiences were cited as an impediment to adoption by 46% of respondents.4
By 2032, the global extended reality (XR) market is expected to reach $1.7 trillion, which is almost 10 times the current value.1 This immense growth signals XR’s potential to disrupt industries and change our world. The individuals and businesses that adopt this technology will be the most prepared to benefit from it. Read our extended reality statistics to stay ahead.
In this article, we explore various statistics about the extended reality industry, including XR market performance, extended reality in education, the two main types of XR technology — augmented reality (AR) and virtual reality (VR) — as well as the future of XR.
Extended Reality (XR) by the Numbers
What Is Extended Reality (XR)? Industry Overview
Extended reality (XR) is the umbrella term for all immersive technologies that are used today. From virtual reality (VR) to augmented reality (AR) and mixed reality (MR), extended reality technology can significantly impact individuals and businesses.
In this guide, we look at some of the best extended reality statistics, offering powerful insights into immersive technologies. To learn more about XR, you can also read our metaverse statistics article.
Extended Reality Trends, Growth and Development
Below, we’ll look at several extended reality statistics to learn about XR’s market size and its impact on education.
Extended Reality Market Statistics & the Future Predictions
If you’re looking for an extended reality market report, these statistics provide insights into extended reality market growth based on various categories such as region, sector and component. The forecast period ranges up to 2032.
1. The Global Extended Reality Market Is Projected to Grow at a CAGR of 32.1% From 2023 to 2032
Th XR market was valued at $131.54 billion in 2023, estimated to reach $183.96 billion in 2024, and is expected to reach $1.7 trillion by 2032.1
Worldwide Extended Reality CAGR Estimates, in Billions
2. The Gaming Industry Dominates the Global Extended Reality Market Share
The gaming industry accounted for 28.6% of the global extended reality market share in 2023. VR gaming and cloud gaming companies are some of the pioneers of extended reality technology. Using XR, these gaming extended reality companies have successfully enhanced game graphics, and boosted the engagement and speed of game consoles.1
3. North America Accounts for Most of the Global Extended Reality Market Share
North America accounted for 40% of the global extended reality market share in 2022. North America’s notable dominance in the XR market highlights its substantial role in fostering XR growth and adoption across various industries.7
North America’s booming landscape of tech companies, research institutions and venture capital organizations — as well as its high emphasis on innovation and entrepreneurship — have made it the epicenter of XR development and investment.7
4. European AR/VR Spending Is Expected to 2X by 2027
Spending in Europe in 2023 on AR was valued at $1.1 billion and spending on VR was valued at $3.4 billion, totaling $4.5 billion. Combined AR/VR spending is predicted to reach $10.5 billion in 2027, growing ata 24.9% CAGR from 2022 to 2027. While AR/VR spending in Europe was reduced in 2023 due to high inflation and other macroeconomic factors, many companies have taken cautious measures to resolve these issues.5
European AR/VR Spending Estimates, in Billions
5. Augmented Reality (AR) Dominates the Global Extended Reality Market Share
AR had a significant market share of 55% in 2022, with regard to technology, and is forecast to grow by a CAGR of 30.8% from 2023 to 2032. This segment’s substantial growth indicates the increasing integration of AR technology in smartphones, smart glasses and other devices.7
6. Software is the Top Segment in the Global Extended Reality Market
With regard to component analysis, the software segment accounted for 65% of revenue share in 2022. Its dominance in the XR market can be attributed to the growing demand for software solutions that enhance the immersive experience in extended reality environments.7
These solutions span various software categories that augment extended reality experiences, including content creation tools, development platforms and application software.7
Extended Reality in Education
Education is one sector in which extended reality technology could drive progress. Read these statistics to learn more about the impacts of extended reality on the education sector.
7. The Use of Virtual Reality and Augmented Reality Technology in Education Is Rising
A 2023 study shows that the use of VR and AR in has increased in education, with 78% of respondents indicating that their organization had adopted XR technologies, compared to 54% in a 2019 study.8
Educational Use of VR & AR:
8. Around Half of the Educational Institutions That Embrace XR Tech Reported Moderate to Extensive Usage
Just 55% of institutions that have embraced extended reality solutions indicated moderate to extensive use. Higher education institutions reported 67% moderate to extensive use, while further education reported 46% moderate to extensive use.8
Higher Education Use of XR Technology
Further Education Use of XR Technology
9. The Level of Investment in XR Tech Varies Across Sectors
More than half of respondents in higher education had invested in at least 50 extended reality headsets. Only 25% of respondents in further education (FE) reported the same level of investment in headsets. The higher levels of investment in HE compared to FE suggest greater resource allocation for XR tech in higher education institutions.8
10. A Positive Correlation Exists Between the Level of Investment in XR Technologies and the Degree of Use
Of those surveyed, 31% of respondents from higher education (HE) institutions had purchased a large number of headsets (over 100) for their organization. The study showed that investment in XR tech was directly proportional to usage.8
Percentage of Moderate/Extensive Use With XR Headsets
11. XR Usage Within Organizations Is Predominantly Obtained Through a Mixed Model Approach
Of those surveyed, 68%of the organizations that had actively invested in XR reported that they had obtained content via a mixed model approach — some of the resources were developed in-house, and others were obtained from open-source and external providers.8
What Is Virtual Reality (VR)? Industry Overview
Virtual reality (VR) is one of the technologies that falls under the extended reality umbrella. It refers to the use of computer-generated graphics to simulate real-world experiences, allowing the user to interact with the simulated environment as they would in reality.
The increasing trend of 5G integrationwith XR technology has created various avenues to boost business communication, leading to a surge in demand for XR technology products.Additionally, virtual events have also become more prevalent in recent years due to the COVID-19 pandemic.1
The COVID-19 pandemic was one of the major catalysts of the XR global market growth, which increased companies’ reliance on AR and VR technologies for remote collaboration.1 Extended reality technology can make virtual events more immersive, so the act of attending them feels closer to that of real-world experiences.
Here are some impressive facts about virtual events and some findings on how attendees and event organizers view them.
12. Hybrid Events (In-Person and Virtual) Are the Future
During a 2022 survey of 1,250 event organizers and attendees, 90% of organizers thought all large events would be hybrid or virtual in 2023, while 84% of the respondents wanted to have a virtual option for events. Ease of setup and the ability to attend from any global location were two key factors contributing to this preference for virtual meetings.6
Event Attendees Want Virtual or Hybrid Events in 2022
13. Most Event Organizers Are Embracing Virtual Events
In 2021, 92% of event organizers had adopted virtual events as their main mode of hosting meetings, and 94% of them had planned to host virtual events in 2022.6
14. A Large Majority of Attendees Are Impressed With How Companies Have Embraced Virtual Events
Of those surveyed, 73% of virtual event attendees expressed high satisfaction with their experiences at virtual meetings, even when companies had to host impromptu events in unfavorable conditions. In addition, 93% of attendees applaud companies for how they switched from in-person meetings to online meetings.6
15. Brand Awareness Is the Top Reason Why Companies Host Virtual Events
Of the event organizers surveyed, 28% cited increasing brand awareness as their main objective for hosting virtual events, compared to 21% who said they created virtual events to generate revenue through ticket sales. In addition, 17% said they hosted virtual meetings to build new relationships.6 This shows a shift away from relationship building, compared to in-person events, when the main goal for organizers was to build relationships (32%).
Organizers’ Main Goal for Large Virtual Events
Organizers’ Main Goal for Large In-Person Events
16. Respondents Cited Learning About a Brand or Company as Their Top Goal for Attending Virtual Events
The top reason for attendees to participate in virtual events is to learn more about the company or brand (36%), compared to in-person events, when attendees cited building new relationships (39%) as the top reason.6
Attendees’ Main Goal for Large Virtual Events
Attendees’ Main Goal for Large In-Person Events
What Is Augmented Reality (AR)? Industry Overview
Augmented reality (AR) is an enhanced, interactive version of the physical world achieved by overlaying computer-generated information onto a user’s environment, thus enriching their perception of it.
Definition: Augmented Reality vs Virtual Reality (AR vs VR)
Augmented reality (AR) and virtual reality (VR) are forms of extended reality that provide immersive experiences to users, but there are important differences between them.
Augmented reality involves integrating computer-generated information and graphics into the real world, adding to the real-world experience and elevating the user’s overall experience.
Virtual reality uses 3D display technology to transport and track users in virtual world experiences. It provides users with immersive experiences that closely resemble real-world experiences.
AR/VR Wearables Market Insights
The adoption of AR/VR wearables is marked by a steady rise, but many have been slow to embrace it, as you will see in the following statistics.
17. Head-Worn AR Revenue Is on a Steady Rise
Valued at $1.86 billion in 2023, projections indicate that head-worn AR could reach $5.34 billion by 2028, which is a 23.52 CAGR. Although headworn AR is considered the final aim of AR technology, it’s still in its early stages because it relies on advanced technology.9
Head-Worn AR Revenue Projections, in Billions
18. Just 25% of US Adults Own or Have Used a VR Headset
However, there are several indications that the growth of VR headset usage will start to pick up, such as the advent of mixed reality in VR. Mixed reality refers to the blending of physical and virtual worlds through next-generation sensing technologies.10
Percent of US Adults Who Have Used a VR Headset:
19. Despite the Positive Indications for VR Headsets, VR Tech Still Faces Adoption Challenges
Just 26% of consumers say they’re willing to try VR technology. In addition, 82% of consumers who expressed their disinterest said that they were “just not interested.” The low levels of customer satisfaction and interest in VR technology highlight a catch-22 dilemma for the industry.10
For VR tech to achieve customer satisfaction, people must first be willing to try it. Yet based on the above statistics, non-users show low levels of interest in the technology. This poses a huge challenge for VR proponents tasked with fostering the technology’s adoption.10
Augmented Reality Market Size and Trends
The following statistics provide insights into the AR market size based on segment and location.
20. The Global Augmented Reality Market Size Was Valued at $57.26 Billion in 2023
The market is also forecast to grow at a CAGR of 39.8% from 2023 to 2030. This growth can be attributed to an increasing interest from leading corporations — including Google LLC, Microsoft Corporation, Apple Inc. and others — to incorporate augmented reality (AR) technology in numerous applications.3
21. The Hardware Segment Accounted for Most of the Augmented Reality Market Share in 2022
This segment led the market with a share of close to 60%. Its dominance can be traced to the rising demand for augmented reality technology worldwide and its compatibility with older hardware devices.3
22. The Augmented Reality Healthcare Segment Is Projected to Record a CAGR of Over 44% From 2023 to 2030
This projected growth can be linked to the increasing implementation of AR technology in medical training, surgical visualization and vein visualization.3
23. North America Constituted Close to 35% of the Augmented Reality Revenue Share in 2022
North America comprises world-class technology companies such as Google LLC, Apple Inc., Microsoft and more, which was a contributing factor to the growth in this region.3
24. The Asia-Pacific AR Market Is Forecast to Record a CAGR of Over 40% From 2023 to 2030
The Asia-Pacific region continues to grow rapidly because of its booming industries, such as the logistics, manufacturing, gaming and automotive industries. Another contributing factor to this growth is the increasing adoption of 5G technology in the Asia-Pacific, which fosters the use of AR technology and AR-based solutions across the region.3
25. Projections Show the Global Augmented Gaming Market Will Accelerate at a CAGR of 30.11% From 2022 to 2027
The Global augmented gaming market was worth $3.331 billion in 2017, and it’s expected to grow by $24.12 billion between 2022 and 2027. Rising investment in AR is a key factor contributing to growth in this field. These increased investments foster innovation and development. Additionally, the rising prevalence of cloud gaming technology facilitates high-quality AR and VR gaming experiences without requiring expensive hardware.11
AR has great potential in the social commerce space as it can help brands enhance the marketing experience and empower consumers to make more informed decisions about products. Here are some statistics providing insights into how consumers view AR technology.
26. Consumers Are More Interested in AR Than Brands Are
Consumers have a higher level of interest in augmented reality than brands are interested in providing those features. For example, 78% of consumers are interested in AR in navigation maps, while only 31% of brands have that interest.2Additionally, 68%of consumers are interested in AR for exploring the world and traveling, while only 26% of brands are interested.2
Consumers’ Interest in AR Experiences:
Brands’ Interest in Providing AR Experiences:
27. The Large Majority of Consumers See Great Potential in AR for Learning
In this category, 77% of consumers said they would like to adopt AR for learning and 68% are interested in AR for instructions. With this technology, educators and teachers can use AI to incorporate personalized, game-based learning into their curriculum, optimizing the learning experience.2
28. Many Consumers View AR as an Effective Driver of Memorable Events
Of the consumers surveyed, 67% said they want to experience AR at events and conferences, while 74% expressed interest in AR-driven experiences for entertainment at concerts and sporting events.2
29. AR Technology Is Changing Online Shopping For the Better
Six in 10 consumers say AR helps them shop differently, in ways that are new and exciting, including allowing them to “try on” products to purchase with more confidence. In fact, there is a 94% higher purchase conversion rate for products with AR experiences.2
Brands such as Nike have demonstrated the power of integrating AR with the online shopping experience. Its innovative use of AR in the social commerce space has increased its popularity among younger demographics.2
30. Most Consumers Believe AI Has the Potential to Reduce Product Returns
When it comes to making returns, 80% of consumers said that using AR in product testing could lead to fewer product returns. By allowing consumers to have an immersive feel for products through AR technology, they can make more informed and accurate purchasing decisions, resulting in fewer returns.2
31. A Large Majority of Consumers Prefer Using AR to Engage With a Product Before Buying
Of those surveyed, 77%of consumers indicated a high interest in testing a product with AR technology before buying. This underscores the growing trend of consumers seeking more engaging experiences before making purchasing decisions.2
Final Thoughts: XR Technology
Extended reality has numerous potential benefits for businesses and consumers alike. Imagine a world where extended reality technologies would be used to facilitate training for employees or accelerate product adoption for consumers. While the incorporation of this technology is still in its infant stages, the future of XR is bright.
This underscores the importance of keeping up with major trends in the XR industry. You must be prepared to tap into this technology when the opportunity arises. We hope our statistics have given you adequate knowledge to effectively navigate the world of XR.
What did you think of our XR statistics? What would you like to add? How do you envision the XR landscape in the near future? Let us know in the comments section below, and as always, thanks for reading.
FAQ: Extended Reality Statistics
Technology-wise, augmented reality (AR) dominates the global extended reality market share.[7]
From 2023 to 2032, the global extended reality market is forecast to grow at a CAGR of 32.1%.[1]
Augmented reality refers to interactive technology that blends real-world experiences with computer-generated visual elements, sounds and other stimuli.
With over four years of experience as a freelance writer and a cloud tech certification from Google, Samuel has carved a niche for himself writing on topics like cloud, cybersecurity and VPNs. When he's not writing, you'll find him sparring on the BJJ mat, writing non-fiction or binge-watching the latest sci-fi movies.
Brett is a freelance journalist with 10 years of experience in the tech industry. Brett has covered everything from smartphones to cameras to software while holding the roles of Tech Columnist and Gear Editor. He writes about project management for Cloudwards. When not behind his desk writing, Brett can be found out and about with one of his many cameras, hiking in the wilderness, playing with his dogs, or playing video games. Brett is a self-confessed coffee addict and will do nearly anything for a good cup of Joe.