PUBLISHER: The Business Research Company | PRODUCT CODE: 1923096
PUBLISHER: The Business Research Company | PRODUCT CODE: 1923096
Extended reality (XR) hardware encompasses devices designed to create immersive experiences by merging real and virtual worlds, thereby enriching user interactions and perceptions. These devices are intended to blend digital content seamlessly into the user's physical environment, enabling innovative forms of interaction, visualization, and entertainment.
In the realm of extended reality (XR) hardware, the primary focuses are consumer engagement and business applications. Consumer engagement pertains to the emotional connection and level of involvement consumers experience with brands, products, or companies. This field includes applications such as virtual reality (VR), augmented reality (AR), and mixed reality (MR), serving various sectors including education, retail, industrial manufacturing, healthcare, media, entertainment, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have impacted the extended reality hardware market by increasing the cost of imported semiconductors, display panels, sensors, and optical components used in xr devices. These impacts have led to higher manufacturing costs and pricing pressures, particularly for vr and ar headsets produced in asia pacific regions such as china and south korea. Consumer entertainment and enterprise hardware segments have been most affected due to complex global supply chains. However, tariffs have also encouraged local assembly, supplier diversification, and increased investments in regional xr hardware manufacturing capabilities.
The XR hardware market research report is one of a series of new reports from The Business Research Company that provides XR hardware market statistics, including XR hardware industry global market size, regional shares, competitors with an XR hardware market share, detailed XR hardware market segments, market trends and opportunities, and any further data you may need to thrive in the XR hardware industry. This XR hardware market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The extended reality (xr) hardware market size has grown exponentially in recent years. It will grow from $190.01 billion in 2025 to $268.12 billion in 2026 at a compound annual growth rate (CAGR) of 41.1%. The growth in the historic period can be attributed to early adoption of vr gaming devices, advancements in display and optics technology, growth of digital content platforms, increased investment in immersive technologies, rising demand for interactive user experiences.
The extended reality (xr) hardware market size is expected to see exponential growth in the next few years. It will grow to $928.04 billion in 2030 at a compound annual growth rate (CAGR) of 36.4%. The growth in the forecast period can be attributed to expansion of metaverse related applications, growing enterprise demand for immersive training, advancements in spatial computing, rising adoption of mixed reality solutions, increased investments in xr hardware innovation. Major trends in the forecast period include growing adoption of xr headsets for consumer entertainment, increasing use of xr hardware in enterprise training programs, rising demand for lightweight and ergonomic xr devices, expansion of xr hardware in remote collaboration, growing integration of advanced sensors in xr devices.
The extended reality (XR) hardware market is poised for growth, driven by the expansion of the video gaming sector. Video gaming encompasses the development, marketing, and monetization of games, revolutionized by the internet through online multiplayer experiences, game streaming, and digital distribution platforms that have transformed business models and player engagement. XR hardware enhances this sector by offering immersive experiences with realistic graphics, innovative game mechanics, and opportunities for social interaction and physical activity. According to the Entertainment Software Association and Circana, US video game sales totaled $57.2 billion in 2023, up from $56.6 billion in 2022, with increased spending on digital downloads for consoles and PCs, including VR platforms. This expansion in gaming is driving the demand for XR hardware.
Leading companies in the XR hardware market are advancing technologies such as natural sight vision to enrich virtual and augmented environments. These technologies enhance resolution and clarity, heightening realism and immersion in XR experiences. For instance, Varjo introduced the XR-4 series in November 2023, featuring high-resolution displays, foveated capture, LiDAR depth sensing, and gaze-directed autofocus cameras. Designed for industrial applications, the XR-4 series aims to deliver mixed reality experiences that closely resemble natural sight, showcasing innovations driving the XR hardware market forward.
In January 2025, Google LLC, a US-based technology company, acquired HTC Corporation's XR unit for $250 million. This acquisition enables Google LLC to strengthen its presence in the enterprise extended reality (XR) market, accelerate the development of immersive hardware and software solutions, expand its portfolio of virtual and augmented reality technologies, and enhance capabilities in next-generation enterprise applications. HTC Corporation's XR unit, a Taiwan-based extended reality division, specializes in developing virtual reality (VR) and augmented reality (AR) hardware and software solutions.
Major companies operating in the extended reality (xr) hardware market are Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Dell Technologies Inc., Sony Group Corporation, Lenovo Group Limited, Intel Corporation, Qualcomm Incorporated, ASUSTeK Computer Inc., Epson America Inc., Acer Inc., SoftServe Inc., Unity Software Inc., Dynabook Inc., Tata Elxsi, Magic Leap Inc., High Tech Computer Corporation (HTC), Varjo Technologies Oy, SphereGen Technologies LLC, Vuzix Corporation, Xreal Inc
North America was the largest region in the extended reality (XR) hardware market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the extended reality (xr) hardware market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the extended reality (xr) hardware market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The XR hardware market includes revenues earned by entities by providing services such as hardware and software sales, maintenance and support, training and education, leasing and rentals, research and development, and advertising and marketing. The market value includes the value of related goods sold by the service provider or included within the service offering. The XR hardware market also includes sales of products such as virtual reality (VR) headsets, augmented reality (AR) glasses, mixed reality devices, controllers, sensors, cameras, and associated accessories. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Extended Reality (XR) Hardware Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses extended reality (xr) hardware market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for extended reality (xr) hardware ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The extended reality (xr) hardware market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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