XR Market Value to Reach USD 350 Billion by 2030 as Vertical XR/MR Applications Open New Opportunities in 2024

 2024-02-22 By: InnoVEX Team

As the innovation hub of Asia, InnoVEX exhibitor trends often show hidden trends in the general interest to certain industries both regionally and globally. Analyzing the trends for XR startups in InnoVEX over the years has shown that XR startups can shine when developing professional XR applications compared to conventional entertainment content.

A report by Crunchbase also reflected this trend as investment in Metaverse, AR, and VR have dropped significantly from the relatively similar highs at 2021 – 2022 (USD 5.74 billion and USD 5.73 billion respectively) to only USD 1.97 billion in 2023. The largest late-stage venture round in the Metaverse, AR, and VR of 2023 was for Augmetics, a developer of AR image guidance technology for surgery who raised USD 82 million in their Series D funding. This also proves that professional AR/VR/MR/XR applications are already feasible, but still need some polish for the consumer application market.

The release of both Qualcomm's Snapdragon XR2+ Gen 2 Platform for spatial computing and Apple Vision Pro have invited more interest in XR; especially as more companies including Samsung and Google also plan to a new generation of XR products. In an interview, the Director of Thematic Programs & Futurist: Mr. Brian Comiskey shared that immersive experience is one of the 3 highlights of CES 2024. This rapid release of XR products have also driven more VCs attention to AR, VR, MR, and XR related startups.

The resurgence of XR growth opens up more opportunities for international collaboration and allows global companies to leverage each other’s strengths. For example, Taiwan’s core strength in hardware development and manufacturing; as well as content from other around the world that can be translated into an immersive AR/VR format. Given how different countries treat their wealth of IP, certain countries might be able to adapt to AR/VR faster or provide vertical AR/VR solutions faster.

Global XR Market Value to Reach USD 350 Billion by 2030 as Vertical XR Applications Open New Possibilities

TCA stated that according to Precedence Research, the value of XR has reached over USD 35 billion by 2022 with a market revenue of USD 46.76 billion in 2023. By 2030, this value is expected to achieve USD 345.9 billion with a CAGR of 33.09% between 2022 and 2030 and North America is expected to be the primary market. The combined factors of newly developed vertical business applications and reduced prices for the hardware have driven more interest in XR. New applications in education, healthcare & medicine, real estate, manufacturing, aerospace, and more are steadily creating the feasible profit model for the XR industry.

Education or corporate training has been among the main application for AR/VR in a professional setting. Utilizing AR/VR can help not only reduce cost and training time, but can also help trainees actively engage in their training materials and scenarios. This has already been used in JAL (Japan Airlines) who used XR to train flight attendants to conduct in-flight safety checks as well as a proprietary HoloLens application to train pilots cadets and mechanic trainees.

In addition, AR/VR's ability to simulate the real world means users can engage in design work with XR to reduce time and cost required for prototyping. These benefits are already leveraged by Toyota Motor Corporation that use XR to test cars in a VR environment, bypassing the need for creating physical mockups for safety verification purposes. This is also true for the construction industry, where smart XR glasses can be combined with 3D CAD and Building Information Modeling (BIM) software for safety inspections and design confirmation purposes. For professional maintenance, smart XR glasses can be used to provide remote support for on-site work; reducing transportation time and personnel cost.

Exploring Further Possibilities

In October 2023, TCA had the opportunity to visit a number of well-known Japanese companies exploring possible metaverse and AR/VR applications. A few of the visited companies have also built their own metaverse hardware and applications, including AR glasses and sensors. TCA also joined the Metaverse Expo Tokyo in 2023 where exhibitors showcased their innovations in the AR/VR field. The event mainly focused on solutions, including applications for businesses to build their own metaverse platforms. In general, the interviewed companies shared that as a media format, the growth of AR/VR will rely heavily on a combination of factors. These include: the affordability/ accessibility of the hardware, the users’ familiarity and willingness to try out new technology, content, IP library, and more.

Observations from the Japanese companies strongly signify that AR/VR can revolutionize how people work and interact with each other and the world. Whether through remote meetings or promoting remote work, virtual creation/ designing; AR/VR can facilitate better workflow and improve overall results.

InnoVEX Promotes Business Partnerships to Accelerate XR Application Development

TCA stated that XR applications require the integration of both hardware and software. As InnoVEX and COMPUTEX are held at the same time in the same venue, participating startups can not only use the organizer’s matchmaking system to find potential partners by participating in the matchmaking event, startups will have opportunities to connect with multiple VCs and CVCs to find investment for their business expansion.

About InnoVEX
Started in 2016, InnoVEX is a startup-focused exhibition organized by the Taipei Computer Association (TCA) and the Taiwan External Trade Development Council (TAITRA). Positioned as the innovation hub of Asia, InnoVEX is held alongside Asia's leading ICT B2B Tradeshow, COMPUTEX, to connect startups and their innovations to global VCs, CVCs, manufacturing partners, buyers, and media.

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