Europe Extended Reality (XR) Market is estimated to witness a rise in revenue from US$ 8.83 Bn in 2021 to US$ 98.74 Bn by 2030. The market is registering a CAGR of 31.48% during the forecast period 2022-2030.

Virtual reality (VR), augmented reality (AR) and mixed reality all fall under the umbrella of extended reality (XR), they give users new and more intuitive methods to engage with computers and systems. Extended Reality is becoming more popular, not just in the entertainment industry, but also in the business world. The Extended Reality (XR) combines the real and virtual world together in order to produce immersive technologies using some computer technologies or wearable devices. Moreover, the exponential increase in smartphone usage, combined with advances in computer technology, has expedited innovations across the extended reality (XR) market ecosystem, therefore resulting in increased demand. 

Market Dynamics

The major factor responsible for the growth of the Europe extended reality (XR) market includes the increasing demand for immersive entertainment and digital environments and surging adoption of extended reality in healthcare sector. The significant increase in disposable income, availability of smartphones & tablets and rising consumer desire for the best all-around entertainment experience, is projected to stimulate demand for extended reality technologies. Moreover, the application of augmented reality technology in healthcare from self-care to therapy and surgical operations is lowering expenses and increasing patient outcomes without risking patient lives. Furthermore, the continuous developments in technology in augmented reality (AR), virtual reality (VR) and mixed reality creates a lucrative growth opportunity in the market. However, legal concern, health concern, high cost of hardware and privacy & security inhibits the market growth over the forecast period. 

Report Summary

The study of the Europe Extended Reality (XR) Market considers various market determinants, industry value chain analysis and competitor analysis of the market. The report discusses the analysis of the extended reality (XR) industry for the period 2017-2030, where the base year is 2021 and the forecast period is 2022-2030. The report provides a detailed analysis of the Europe Extended Reality (XR) Market across 16 Chapters and 203 pages. The report includes data presentation across 39 tables and 120 statistical figures. 

The report provides PESTLE analysis, which is a tool to examine the external market environment factors that have an impact on the industry. The PESTLE analysis examines the Political, Economic, Social, Technological, Environmental and Legal factors in the external environment. Thus, sufficiently examining the threats and weaknesses of the industry. The research report also provides Porter’s five forces analysis wherein bargaining power of buyers is low and competitive rivalry is high.

The subsequent section provides details of the market analysis based on different segments such as component, technology, application, industry and country. The report includes detailed study of value chain of the industry. It includes research & development, application development and end users. The report also covers extensively about the key competitors in the market for Europe Extended Reality (XR).

Impact of COVID-19 on Europe Extended Reality (XR) Market

The outbreak of the COVID-19 pandemic is expected to saw a decrease in demand in the main stage of the Europe XR market. However, in some areas, demand has begun to rise as AR and VR platforms have grown increasingly important to businesses. Further, the work-from-home trend gave the market additional exposure.

The global supply of extended reality devices has been interrupted due to the pandemic's catastrophic impact on the manufacturing industry. The advent of the COVID-19 pandemic is projected to slow the growth of the worldwide extended reality (XR) business in the short term.

Key Takeaways from the Europe Extended Reality (XR) Market Report

• Based on component, the hardware segment holds the highest share and is also anticipated to grow at the highest CAGR during the forecast period. Moreover, constant innovation in headsets and controllers is expected to drive the VR and AR market in hardware components.
• In terms of technology, the Virtual Reality (VR) segment held the largest share in the Europe extended reality market in 2021 as it creates an entirely digital environment. Moreover, Mixed Reality (MR) segment are expected to grow at the highest CAGR during the forecast period. Furthermore, they allow on-site teams to verify their work’s quality, lessen errors and encourage short communication loops within a team.
• On the basis of application, the business engagement segment is estimated to hold the largest market share and highest CAGR over the forecast period. Businesses can boost their potential by using extended reality (XR) technology when collaborating on projects. Moreover, extended reality technology, speeds up the onboarding process for new employees and provides learning opportunities to the recruiters.
• By industry, the media & entertainment segment dominated the Europe extended reality market in 2021 as they are the major industries adopting technologically advanced virtual platforms. Whereas industrial & manufacturing segment is expected to register the highest CAGR during the forecast period. Moreover, the industrial & manufacturing industry is adopting XR technology, as XR is particularly useful for design.
• By country, UK is expected to be the leading country in the Europe extended reality market. Whereas Germany is expected to project the highest CAGR in the market during the forecast period. Moreover, German extended reality industry is mainly centered on software development and content creation.

Competitive Landscape

The key players in the Europe Extended Reality (XR) Market are Atheer, Inc., Blippar.com Ltd., Dell Technologies Inc., EON Reality, Inc., Google, Inc., Honeywell International Inc, HTC Corporation, Magic Leap, Manus Machinae B.V., Microsoft Corporation, Nokia Corporation, Oculus VR LLC, Qualcomm Incorporated, Samsung Electronics Co. Ltd, Semcon, Sony Corporation, VirZoom, Inc. and Vuzix Corporation among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip of emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview 

Europe extended reality market is segmented based on component, technology, application, industry and country. The industry trends in the extended reality market are sub-divided into different categories in order to get a holistic view of the Europe marketplace. 

Following are the different segments of the Europe Extended Reality Market:

By Component segment of the Europe Extended Reality (XR) Market is sub-segmented into:

• Hardware
• Software
• Services

By Technology segment of the Europe Extended Reality (XR) Market is sub-segmented into:

• Virtual Reality (VR)
• Augmented Reality (AR)
• Mixed Reality (MR)

By Application segment of the Europe Extended Reality (XR) Market is sub-segmented into:

• Business Engagement
• Consumer Engagement

By Industry segment of the Europe Extended Reality (XR) Market is sub-segmented into:

• Education
• Healthcare
• Industrial & Manufacturing
• Media & Entertainment
• Retail
• E-commerce
• Others

By Country segment of the Europe Extended Reality (XR) Market is sub-segmented into:

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe