Thomas Alsop
Research expert covering the global hardware industry
Extended reality (XR) is an umbrella term for all immersive technologies including augmented reality (AR), virtual reality (VR), and mixed reality (MR). XR technologies extend the reality we experience by either merging the virtual and “real” worlds or by creating a fully immersive experience. The global XR market is expected to grow considerably in the coming years, with XR innovation expected to be particularly strong in the United States.
XR market in the United States set for further growth
In its entirety, the consumer XR market in the U.S. was valued at just over 8.5 billion U.S. dollars in 2023, with forecasts suggesting that the market should grow by just under 20 percent in 2024. The consumer AR market in the U.S. was worth 5.5 billion U.S. dollars in 2023, while the consumer VR market in the U.S. was valued at just over three billion U.S. dollars in that same year. AR makes use of the existing environment by overlaying new information on top of it, whereas VR creates an artificial environment. In both AR and VR, the information or imagery is typically made available to the user using a headset. In 2023, the VR headset sales volume in the U.S. amounted to 4.4 million units.A number of XR companies are based in the U.S.
Notable XR headset vendors include U.S. companies such as Meta Quest offering predominantly VR devices, while Microsoft, Magic Leap, and Vuzix offer AR headsets and glasses. In addition to these firms, the U.S. semiconductor firm Qualcomm has previously ranked as the one of leading XR patent owners, with the company also joining forces with a coalition of telecommunications providers around the world to establish the Global XR Content Telco Alliance to develop 5G-based AR/VR content.The U.S. is well-positioned to harness the potential of the metaverse
Perceived to be the next iteration of the internet, the metaverse is where the physical and digital worlds come together. The evolution of social technologies allows digital representations of people, avatars, to interact with each other in a variety of settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities. Already, several U.S. companies including Meta, Microsoft, Roblox, and Epic are investing in their versions of the metaverse. However, the development of the metaverse will require collaboration across companies, creators, and policymakers.
