Lucintel predicts rapid expansion of the global extended reality sector, with forecasts reaching $450 billion by 2035, driven by virtual collaboration, immersive gaming, and regional growth in Asia-Pacific.
Lucintel said the global extended reality market is on course for rapid expansion, with the research firm projecting the sector will be worth $450 billion by 2035. In its report, Lucintel said the market is expected to grow at a compound annual rate of 23.5% from 2026 to 2035, supported by demand from both small and medium-sized companies and larger enterprises.
The report attributes the outlook to three main forces: wider use of virtual collaboration tools in remote working, stronger demand for immersive gaming and rising consumer interest in augmented reality and virtual reality devices. Lucintel said business engagement applications are likely to grow faster than consumer uses over the forecast period, while large enterprises are expected to be the strongest growth segment by organisation size.
Lucintel also expects Asia-Pacific to post the fastest growth among regions, reflecting the broader shift in enterprise technology spending and consumer adoption across the area. The company named Sony, Accenture, Qualcomm, SoftServe, SphereGen Technologies, HTC Corporation and Google among the main suppliers active in the market.
Its forecast sits among a range of upbeat industry views, though estimates vary widely depending on how analysts define the market and the time frame they use. Emergen Research projects a $425 billion market by 2035, while Vantage Market Research sees $312.5 billion by 2035. Future Market Insights and IMARC Group both point to even steeper long-term growth, underscoring the expectation that XR , an umbrella term covering virtual reality, augmented reality and mixed reality , will keep moving from novelty to mainstream business tool.
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