XR Headset Market Expected to Reach $401.4 million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “XR Headset Market," The xr headset market was valued at $38.1 million in 2021, and is estimated to reach $404.1 million by 2031, growing at a CAGR of 28.3% from 2022 to 2031.

Extended reality (XR) technology is a computer-generated environment that creates an entirely virtual experience for users. XR is a superset of three technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR). By bringing all of this together, XR can discover a wide spectrum of opportunities across real and virtual-based environments. The considerable boost in the XR Headset Industry is primarily connected to the rise in the adoption of XR headsets in the media & entertainment industry. Games are the most lucrative sector for XR headsets. Virtual entertainment is also growing across the globe. Various companies are broadly adopting XR headset technology for content & social media development and event marketing.All these are the major factors anticipated to drive the XR headset market size during the forecast period. 

Some of the major restraints that are likely to hinder the XR headset market analysis growth are associated with high cost as well as less awareness of XR technology among consumers. Moreover, the shortage of specialized personnel in XR tech may impede the XR headset market growth. Despite these challenges, the various advantages of XR technology are expected to surge the adoption of XR headsets over the XR headset market forecast timeframe.

The healthcare industry is constantly experimenting with new educational approaches and surgery procedures. The XR headsets will facilitate patients to observe surgical operations before their intervention and also will provide optimal training and practice guides for surgeons. Industries such as e-commerce, retail, and education are focusing more on XR technology to minimize the connection gap with consumers. The implementation of interactive tools such as XR headsets has been one of the major strategies in various sectors including the fashion & beauty sector. These headsets aid companies in experiential marketing by creating immersive storytelling. With most of the stores closed during the COVID-19 pandemic, XR technology helped many businesses for marketing their products innovatively. Many beauty brands turned to XR technology to allow shoppers digitally test products to aid in buying decisions. Thus, the use of XR headsets in various end-user industries is expected to offer lucrative opportunities during the forecast period. 

The global XR headset market share is segmented on the basis of solutions, end user, and region. By solutions, it is classified into consumer engagement and business engagement. By end user, it 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.

The key players profiled in the XR headset market report include Varjo, HTC Corporation, HP Development Company, L.P., Trimble Inc., Microsoft, Meta, Valve Corporation., Samsung, Advanced Micro Devices, Inc, Google, and others.

The report offers a comprehensive analysis of the global XR headset market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and the emergence of substitutes in the market.

Impact of COVID-19 on the Global XR Headset Industry

• The COVID-19 pandemic has impacted how people work, socialize, and learn. The COVID-19 outbreak has increased the demand for XR headsets due to the strict lockdowns worldwide. Employees were instructed to work from home, thus, raising the need for virtual meetings, training, and conferences.
• With most of the shops closed during the lockdowns, XR stepped in as a key resource for various businesses
• For instance, beauty retailers shifted to XR technology to enable consumers digitally test products to help in buying decisions
• The gaming, media & entertainment as well as healthcare industries also positively benefitted from XR headset technology during the pandemic

Key Findings of the Study

• Based on solutions, the consumer engagement sub-segment emerged as the global leader in 2021, whereas the business engagement solutions are predicted to be the fastest growing during the forecast period
• Based on end user, the media and entertainment sub-segment emerged as the global leader in 2021 and is predicted to have a dominant market share in the upcoming years
• Based on region, North America registered the highest market share in 2021, and Asia-Pacific is projected to show the fastest growth during the forecast period