Global immersive technology consumer market revenue 2018-2023, by segment

In 2020, estimates suggest that the consumer market for immersive technology will bring in around 6.3 billion dollars in revenue around the world. The single largest segment of the market is virtual reality which will account for less than half of that total, while mobile augmented reality and augmented/mixed reality headsets will bring in around 3.7 billion dollars combined. The immersive technology market has been negatively impacted by the 2020 coronavirus (COVID-19) pandemic, and the forecast numbers reflected that impact.

What is immersive technology?

Immersive technology is perhaps best understood by considering some of its most well-known applications such as virtual and augmented reality. The technology seeks to simulate physical scenarios and environments for its users, thereby lending itself to uses related to both professional training and entertainment. The augmented and virtual reality market is forecast to grow into a 160-billion-dollar market by 2023, as the consumer electronic devices which enable the use of these technologies become increasingly available. As of 2018, the vast majority of immersive technology users in the United States accessed the technology via their smartphones, with smaller portions utilizing console or stand-alone virtual or augmented reality.

Immersive technology hardware

The devices used to experience immersive technology range from cardboard smartphone attachments to advanced virtual reality headsets. Primarily through sales of its popular PlayStation VR gaming product, Sony has solidified its position as the market leader in terms of sales of these virtual reality headsets, but companies like Facebook and Google have invested heavily in the hopes of claiming a portion of the growing market.